Assessment

Section A

Question 1
What is the debit and credit formula for each account type?

Question 2
What should be done before taking a deposit to the bank?

Question 3
List and briefly describe five errors that are typically made when processing financial transactions.

Question 4
When you are reconciling transactions, what can you use as proof of lodgement?

Question 5
List and describe (50-80 words) five types of special transactions.

Question 6
How should you deal with confidential information? Provide three examples of breaches of confidentiality.

Question 7
What aspects of legislation can impact upon financial transactions and reporting?

Question 8
How can policies and procedures control spending?

Question 9
What security checks should be applied to cheques or vouchers? List and describe five checks.

Question 10
List and describe (50-80 words) the key features of three reports.

Section B
Question 1

Prepare the special transaction:
A debtor, B Brown, has an opening balance of $535.00. After repeated attempts to contact the debtor you decide the debt is a bad one and will write it off. The debt occurred using docket R4502.

Debtor's ledger

Bad debt account

Question 2

A new business is established using $25,000.00 of owner's equity. Complete the balance sheet: