Use this scenario or one from your own workplace to answer the following questions.

Scenario

You are working at the CA City Café. Your role is to assist Kurt Washington, accountant with bookkeeping for the café. Your main roles will be to maintain financial records on a daily basis, work with the general ledger and help with cash control for the Café. Your Business Activity Statement (BAS) and reconciliation work must be checked by Kurt Washington and banking by the duty managers. You are required to comply with all ethical principles and codes of practice that apply (see you eBook for help)

The café works on the following basis:

-Monthly lodgement of the BAS for the Australian Tax Office (ATO) is the report which calculates the GST owing or wed for your business. The due date is the 21st day of the following month. If the due date is a weekend or public holiday, the BAS can be lodged and payment made on the next business day. You are required to follow all ATO instructions and security of the café when compiling records

-The café prefers to perform bank reconciliations weekly to avoid any issues, this is your responsibility

-Other journal reconciliations are done monthly (eg. Petty cash, accounts receivable and payable)

-Any cash banking is done twice weekly, cash receipts are prepared daily along with transactions processed at the end of day by the duty manager (for the sake of this assignment we have provided daily transaction for the first few days to simulate a real situation, after that weekly totals to make the process less complicated. In the real world there would be a daily transfer of sales to the bank account via the EFTPOS machine)

-All records are to be kept for 7 years, as much as possible stored electronically with backup copies of electronic files stored with archived work. Monthly receipts and invoices stored in clearly labelled bundles ready to be added to the financial years' work after reconciling and checking. At the end of the month bundle work according to Café procedures

-The procedure manual for all financial transaction management is stored on the Café intranet and a copy of forms is located on your computer for your use

-Supplier invoices are to be paid for within 30 days

-Customers pay cash or EFT and there are catering customers who pay on 30 day invoices

-Your responsibilities also include:

• Preparing monthly accounts payable information for payments within the time frame of the supplier agreement
• Prepare accounts receivable statements for the month
• Preparing banking twice weekly or depending on cash deposits (maximum cash amounts to be held $500 to be deposited after this amount)
• Maintaining security and backups of all transactions, journals and ledgers
• Required to uphold all ethical principles of the café - honesty, fairness, loyalty and avoid conflict of interest for example (see your eBook for more on ethical principles)

The Café operates the following accounts:

One bank account for daily transactions

Under normal circumstances the café would pay wages, PAYG and superannuation amounts for all staff. For the sake of this assessment there are no wage or superannuation payments required

One bank business loan paid every two months, via direct withdrawal set up automatically

You have 5 suppliers that supply on a regular basis- all purchases are to be posted to account number 6-2000 in the chart of accounts, operating expenses for this assessment. In the real world there may be different account numbers for these kinds of transactions. (Check with your own organisation to determine their system and requirements).GST - unless specifically stipulated all prices are inclusive of GST 10%.

Question 1 - You are required to perform several tasks each day, week and month. Complete the table below:

Question 2 - In the café there are there are transactions between customers and the café, between the café and their suppliers and many others. It is important to understand what kind of accounts these transactions fit into. Answer the following questions.

2a. All accounts fit into one of five categories; what are these categories, include at least two examples for each category? Complete this table.

2b. Give five examples of transactions you would expect to work with in the café. Using the chart of accounts provided in Appendix one and the Rules for Debit and Credit in your eBook. What account could they belong to? Complete the table.

2c. Outline the difference between credit and debit transactions. Minimum 75 words.

Question 3 - Discrepancies happen in a variety of circumstances. You have had an invoice, a credit note and a statement from CAWfee this week, copies are included here:

3a. What is a discrepancy? Who may you need to refer it to?

3b. According to the invoices and statement from CAWfee and your records the discrepancy exists. Explain in your own words what the discrepancy is include amounts. Is the GST affected? If so what is the amount of the GST, round it to the nearest cent.

3c. What should you do now? Explain who you would approach and how you would record the outcome.

Question 4 - You have been provided with the figures for the café operation for the past month in the scenario. You must enter the figures provided into the templates provided below. You may choose to use Excel or another spreadsheet application. Work with the journals as provided to match the following diagram.

Question 5 - You are to create ledger for accounts receivable schedule and accounts payable for the transactions above.

Question 6 - Once the journals have been correctly entered you are required to transfer the details to the general ledger. The template is provided below:

Hint: The creditors and debtors control accounts are the total of all accounts payable (creditors) and accounts receivable (debtors) amounts respectively.

Question 7 - Reconciliation is an important part of your job. Answer the following questions regarding reconciliation.

7a. Why is reconciliation necessary? Minimum 25 words.

7b. In your own words outline the process of reconciling accounts payable and accounts receivable with the general ledger. Minimum 50 words

Question 8 - Your bank statement has arrived. You are required to perform a bank reconciliation. Any transaction that are related to timing of the statement are able to be corrected by you, any others would need to be referred to your supervisor.

8a. Did you identify any differences between the bank statement and the books of the business? Note them here. You need to identify date, amount, and the effect the transaction will have on the accounts complete the following table

8b. You are required to update the appropriate cash and credit journals with any relevant data from the bank statement.  Which four ledger accounts would you need to alter? List them here?

8c. Do you need to notify other personnel to adjust these errors? What types of transactions would need referring to a supervisor? Explain your answer. (Minimum 50 words)-

Question 9 - You are required to complete a reconciliation report. Use the following table to prepare this for your figures.

Question 10 - You have received the following statement from one of your suppliers. Do you balance with their figures? How will you reconcile this account? Answer the following questions.

10a. Is there a discrepancy? If there is, list the effect of the change, the invoice number and amount in question?

10b. You are required to check payment documentation. List the steps you would take to determine who has made the mistake? List three steps.

Question 11 - You are required to manage the accounts receivables systems for the business.

11a. Create statements owing for all your customers as at the end of September 20XX. You may need to check the bank reconciliation statement to make sure the correct amounts are included in the statements. Use the template provided below.

11b. How would you be sure these statements were correct? List three steps to confirm any discrepancies.  Include reference to source documents.

11c. When and how should invoices and statements be sent out?

Question 12 - Working with accounts receivable schedule/ageing summaries provides you valuable information regarding the age of transactions in your accounts receivable.

12a. Are there any accounts that could cause a problem for the café at the moment?

12b. Using a different accounts receivable schedule/ageing summary such as the one below, which of the accounts of the business in this case may be a problem for the business. List the amount and the account name.

Question 13 - There times in business when your customers do not pay. Answer the following questions.

13a. If you were to address the problem with the customer in the Another Big Business who should you work with and what steps should be taken?  Give examples of steps within the collection process? List five.

13b. If Flintstone Constructions does not pay what must you do at the end of the process? Explain in minimum 50 words.

Question 14 - Flintstone Constructions is a good customer even if they are terrible payers. Assuming they eventually paid you. What would need to happen with Flintstone Constructions with regard to their credit terms? Suggest three approaches you could take with managing the collection of this customers in your accounts receivable account. Minimum 100 words.

Hint: Which policy would you need to refer to when addressing these issues with credit terms and customers?

Would this be your sole responsibility?

eBook - BSBFIA303 Process accounts payable and receivable.

Attachment:- Assignment.rar