Process financial transactions and extract interim reports + Administer subsidiary accounts and ledgers Student NameUnit Code & NameFNSACC311 Process financial transactions and extract interim reports + FNSACC312 Administer subsidiary accounts and ledgersAssessment TypePart A: Written question and answer Part B: Process financial transactions manually Part C: Process financial transactions using XeroAssessment NameFNSACC311 + FNSACC312Assessment Task … Continue reading “Administer subsidiary accounts and ledgers | My Assignment Tutor”
Process financial transactions and extract interim reports + Administer subsidiary accounts and ledgers Student NameUnit Code & NameFNSACC311 Process financial transactions and extract interim reports + FNSACC312 Administer subsidiary accounts and ledgersAssessment TypePart A: Written question and answer Part B: Process financial transactions manually Part C: Process financial transactions using XeroAssessment NameFNSACC311 + FNSACC312Assessment Task No.1Assessment Due DatePlease refer to your training plan for due dateDate submittedAssessor NameMonica NagpalStudent Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the Heed Education’s Student Handbook. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.Student SignatureDatePRIVACY DISCLAIMER: Heed Education is collecting your personal information for assessment purposes. The information will only be accessed by authorised employees of Heed Education. Some of this information may be given to the Australian Skills Quality Authority (ASQA) or its successor for audit and/or reporting purposes. Your information will not be given to any other person or agency unless you have given us written permission, or we are required by law.Instructions to StudentGeneral Instructions: Read all questions carefully before answering. Attempt all questions. All responses must be written in your own words Any quotations must be referenced. It is your responsibility to retain a copy of this assignment Sections must be submitted by the due date provided by the supervisor Failure to make a reasonable attempt at all sections may result in an unsatisfactory result and you will need to re-enrolYou will need access to: Textbook Xero Essentials FNSACC311 FNSACC312 from Office Link Learning. Textbook purchase detail can be located in the LMS site. In Assessment section of LMS site, you have been provided with detailed Assessment Task and any supplementary documents.Microsoft Word (or a similar program) to complete Parts A, B & C and a printer Access to Xero accounting software Access to Xero Organisation Bright Spark Bright Spark Ledgers and Blank Spark Bright Spark BS 30 Sep 2020.csv Folder in which to file and present journal solutions and reports ePayment Code Debt Collection Guidelines for Collectors and Creditors ICB Professional Code of Conduct Access to Excel Access to the Internet and basic skills to navigate websitesFNSACC311 Assessment Conditions: Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to: office equipment, technology, software and consumables required to process financial transactions and extract interim reports. FNSACC312 Assessment Conditions: Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to: office equipment, technology, software and consumables required to reconcile and monitor accounts receivable data systems. Number of Attempts: You will receive up to two (2) attempts at the Assessment Task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and/or discuss the relevant sections / questions with you and will arrange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Handbook.Submission detailsInsert your details on page 1 and sign the Student Declaration included in this template with your submission. Assessment to be submitted electronically via Heed Education’s LMS Site: FNSACC311+ FNSACC312 > FNSACC311+ FNSACC312 Assessment submission link. You are required to electronically submit your completed assessment and any required reports where asked. You must: Submit this assessment document in word format only. Save printouts (if any) as PDF documents. Attach all files when submitting your assessment to LMS.Instructions for the AssessorNote to StudentAn overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide. The assessment consists of three parts: Part A, B & C. Part A consists of written questions and answers. Part B consists of process financial transactions manually Part C consists of process financial transactions using Xero Students are required to complete all Parts of A, B & C in order to achieve a satisfactory result. Remember dates are important in Xero. Neatness and correction of error techniques is important. This assessment contains exercises using a case study where you can provide performance and knowledge evidence for this unit. In the first two parts you will answer questions to test your knowledge and complete tasks and process transactions manually. In the third part you will work through the same transactions using Xero. Bright Spark is owned by Sam Park, an electrician. Sam is a sole trader using subcontractors whenever needed. He has an ABN and is registered for GST reporting on a cash basis. Sam performs the following services and follows these procedures: Real Estate Maintenance, e.g. electrical installations, repairs and maintains rental houses and units managed by Mountain View Real Estate. A job card is kept by Sam and an invoice sent to Mountain View Real Estate on completion of the job. Domestic Maintenance, e.g. electrical installations and repairs and maintenance on houses and units. A handwritten invoice is always handed to the owner on completion of the job and payment is required on the completion of the job. Some domestic work is done for regular clients who are given a 30-day account. Sam employs a bookkeeper [You] to monitor the phone and look after the accounts of the business. The bookkeeper has permission to pay accounts using internet banking provided the owner has approved payments. Detailed extracts of Bright Spark Policies and Procedures are provided on the following pages. Sam purchases electrical materials from ABCD Electrical on credit. This is ABCD Electricals’ current price list. ABCD Electrical Price List – Trade Prices* [Extract] Item NumberItem NameSelling Price Including GSTGST or GST-FreePower PointsPP0001Single Power Point [Round]$6.05GSTPP0002Single Power Point with Extra Switch [Round]$7.26GSTPP0003Double Power Point [Square]$8.80GSTPP0004Double Power Point Vertical [Round]$9.90GSTCircuit BreakersCB0001IP56 MCB – Circuit Breaker$43.67GSTCB0002IP58 MCB – Circuit Breaker$45.65GSTBracketsB0001Flat Bracket STD 155$.77GSTB0002Flat Bracket STD 155 Hoz/Vert Fit$.88GST * Any resemblance to actual products and prices is purely coincidental. CHART OF ACCOUNTS (Extract) – BRIGHT SPARK INCOME 200 Sales 210 Sales Returns and Allowances 270 Interest Received COST OF SALES 310 Purchases 311 Purchases Returns and Allowances EXPENSES 400 Advertising 402 Accounting Fees 404 Bank Fees 405 Merchant Fees 406 Bad and Doubtful Debts 408 Cleaning 425 Freight and Courier 461 Printing & Stationery 489 Telephone & Internet ASSETS 100 Business Account 110 Petty Cash 610 Accounts Receivable 704 Furniture and Fittings 705 Accumulated Depreciation on Furniture and Fittings 710 Tools and Equipment 711 Accumulated Depreciation on Tools and Equipment 740 Motor Vehicles 741 Accumulated Depreciation on Motor Vehicles LIABILITIES 800 Accounts Payable 820 GST Collected 821 GST Paid 900 Bank Loan EQUITY 970 Capital 980 Drawings Extract from Bright Spark Procedures Manual DOCUMENTATION PROCEDURES All source documents are to be checked against computerised entries.Where appropriate a copy of the source document should be uploaded to Xero and/or filed in the Accounts filing cabinet for audit purposes.All manual supplier invoices, adjustment notes, statements and receipts should be filed in the Accounts filing cabinet for audit purposes.All manual customer invoices, credit notes, statements and remittance advices should be filed in the Accounts filing cabinet for audit purposes. BANKING PROCEDURES Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day, and allocated to the Undeposited Funds account in Xero. A receipt is written out or emailed for accounts paid.On receipt of a cheque, the date, payee, amounts and signature must be checked. Any irregularities must be notified to the customer for reissue if necessary.A transfer is made to the Business Account when the monies are deposited at the bank.Two copies of the bank deposit slip must be taken to the bank to be stamped. A stamped copy must be returned and filed in the office as proof of lodgement.Appropriate safety and security measures must be followed when banking cash and cheques. ACCOUNT RECONCILIATIONS Reconciliations of the Business Account must be conducted upon receipt of the bank statement.The Petty Cash account must be reconciled each time that a reimbursement is withdrawn from the Business Account.Copies of the reconciliation reports must be stored with their source documents in arch lever folders in the Accounts filing cabinet. PETTY CASH All entries over $20 must be authorized by Sam otherwise the Bookkeeper can authorize and process the transactions.Vouchers are to be completed only when money is reimbursed to the purchaser. JOURNAL ENTRIES All journals must be authorised by Sam with his initials at the side of the entry.Entries are to be batched together and recorded at the end of month or end of quarter Extract from Bright Spark Procedures Manual PURCHASING PROCEDURES 1 Sam personally purchases all electrical materials required by his business. A purchase order is rarely used because the materials are usually bought over the counter by Sam or online. Most materials are purchased from ABCD Electrical. 2 Business needs other than materials are usually purchased online. 3 At the time of purchase, a printed invoice is received listing all items and total cost of materials and supplies. All details are checked for accuracy. Should there be a discrepancy, a telephone call is made to the supplier and a new tax Invoice is requested. “ENTERED” date and initials must be recorded on the tax invoice when it is entered into Xero. 4 Suppliers usually send a statement at the end of the month; however, some invoices are payable on invoice, not statement. 5 On receipt of the statement, the bookkeeper checks this statement with the invoices received at the time of the purchase. 6 Credit terms vary from supplier to supplier. No discounts are allowed by any suppliers. Any trade price discounts are provided at the time of purchase. SUPPLIER PAYMENT PROCEDURES 1 Upon receipt of an invoice, the validity and accuracy of the invoice must be checked before it is entered into Xero. 2 Statements received are reconciled with invoices received. 3 Expenses incurred by the bookkeeper, for example office supplies, must be first authorised by Sam. 4 At the end of the month, an Aged Payables Detail report is printed to review the supplier transactions and identify any outstanding bills. 5 The Aged Payables Detail report is reviewed by Sam who authorises which accounts are to be paid by the bookkeeper taking into consideration the cash flow situation. 6 Payments may also be made in response to supplier statements. Statements must be checked for accuracy and any due for payment should be presented to Sam for review and authorisation of payment. 7 The bookkeeper is authorised to pay accounts by BPAY, direct deposit or cheque. 8 The following security measures must be followed in relation to payments: Only Sam and the bookkeeper have access to the banking password, and this is updated every monthTwo-factor authentication is also used when accessing the bank accountThe payment recipient must be verified before processing an electronic paymentElectronic payment receipts are printed to PDF and filed as proof of payment.The business account cheque book is stored in a lockable cabinetAll cheques must be checked and signed by Sam and accompanied by a remittance slip. 9 After payments have been made a Payable Invoice Summary and an Aged Payables Summary report are printed to review the supplier transactions and reconcile with the Accounts Payable account. Extract from Bright Spark Procedures Manual COMMERCIAL MAINTENANCE BILLING PROCEDURES A job card is completed with the necessary details when the job is received over the phone.The job card is completed and signed by the customer before leaving the job.An invoice is sent to the customer as soon as possible.Materials are charged with work completed. All material costs include GST.Labour is charged at $66 inc GSTper hour [charged in 30-minute units].Travel may be charged at 66c per kilometre inc GST. DOMESTIC ELECTRICAL BILLING PROCEDURES A handwritten invoice [GST inclusive] is given to the customer on completion of the job. Labour and materials are not listed separately – just the total amount owing for the job.Payment by cash or EFT is required immediatelyand payment information is written on the tax invoice in the invoice book before handing the original to the customer. [Customers are informed when job is booked.] Credit terms of 30 days may be given to long-term customers. Sam carries an EFT machine with him. Cheques will only be accepted from customers at Sam’s discretion.Invoice details are entered in Xero.Travel may be charged at 66c per kilometre inc GST. PAYMENT OF CUSTOMER ACCOUNTS PROCEDURES Under the Privacy Act 1988, details kept must be accurate and not given to any person without the consent of the customer.Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day, and allocated to the Undeposited Funds account in Xero. A receipt is written out or emailed for accounts paid.Adjustment notes are where possible applied to the corresponding invoice and a revised invoice is emailed to the customer. If the invoice has been paid in full the credit is applied to a future invoice or recorded as a credit.Discrepancies between monies paid and owed are referred to Sam. The customer is contacted if required. Overpayments are recorded as a credit and applied to a future invoice. The customer is notified by email.Two copies of the bank deposit slip must be taken to the bank to be stamped. A stamped copy must be returned and filed in the office as proof of lodgement.Cheques are only accepted from long-term customers. On receipt of the cheque, the date, payee, amounts and signature must be checked. Any irregularities must be notified to the customer for reissue if necessary.Dishonoured cheques are reversed, not deleted.Full payment is required within 30 days of the date of the invoice.At the end of each month an Aged Receivables Summary Report is created to perform a reconciliation with the Accounts Receivable account.At the end of the month an Aged Receivables Detail report is created to identify overdue accounts and create a report of bad/doubtful debts. Sam may also request a Receivable Invoice Summary.Statements are emailed to customers each month by the 5th of the following month. Extract from Bright Spark Procedures Manual CUSTOMER CREDIT POLICY A credit application is completed when an account is set up. A phone call is made to each referee checking on payment of account.Account overdue up by to 30 days: an overdue reminder note will be included in the next statement email. A note is made of any contact with the customer.Account overdue by more than 30 days: a telephone call and/or email to assess the reason for non-payment and perhaps negotiate a payment plan. A note is made in the Contact Notes.Account overdue by 60 – 90 days: send first collection letter notifying intention to act and review credit terms and place credit on hold [entered in Xero]. A note is made in the Contact Notes.Account overdue by 90 or more days: a spreadsheet/report is prepared documenting the accounts receivable debt, recovery type, cause and recovery plan and ratified by the business owner. This report is paramount to provide a record of comments/communications/actions taken to try to collect the debt.A letter of demand will be sent to the customer asking for payment within 14 days. The letter of demand will use the business.gov.au template as a basis. The letter must be checked by owner Sam Park prior to sending. A note is made in the Contact Notes.If the letter of demand does not result in progress the local debt recovery service will be used to collect the debt if it is more than $500. Small debts of $500 or less will be written off as a bad debt. The Debt Collection Guideline for Collectors and Creditors must always be adhered to. Legal action will only be used for debts over $2000. Sam Park will be responsible for instigating any legal action.All bad debt recovery reports are filed in the special file for “Bad Debt Recoveries”. Part A: Written (Question and Answer) This section contains questions where the answers you provide are evidence of knowledge required to demonstrate competence in these units. What is the Accounting Process? Explain the importance of source documents in an accounting system? List six (6) actions you can take to examine source documents to establish their accuracy, completeness, and authorisation? Identify three (3) errors with the following invoice received from a supplier (refer to the price list on page 4)? ABCD ElectricalTax Invoice ABN 98 111 133 334 3333 31 Carson Ridge SPENCE ACT 2615 TO: Bright Spark Phone (02) 6235 8765 PO Box 111 SPENCE ACT 2615Date: 1/10/2020Purchase Order Number: SamTerms: 30 daysQtyItem NumberDescriptionUnit Price inc GSTTotal inc GSTTax Code100PP0001Single Power Point [Round]6.05605.00GST200PP0003Double Power Point [Square]8.801,670.00GST5CB0001IP56 MCB Circuit Breaker45.65228.25GST900B0002Flat Bracket STD 155 Hoz/Vert Fit0.88792.00GSTAmount of GST in this invoice: $306.85Total$3,295.25 Note the action you will take to rectify the identified errors in the above invoice? Re-enter the Unit price and Totals as they should be in the following template. (Hint: GST is correct.) QtyItem NumberDescriptionUnit Price inc GSTTotal inc GSTTax Code100PP0001Single Power Point [Round]GST200PP0003Double Power Point [Square]GST5CB0001IP56 MCB Circuit BreakerGST900B0002Flat Bracket STD 155 Hoz/Vert FitGSTAmount of GST in this invoice: $306.85Total Debits and creditsIdentify the account group names that are debit in nature? (Account groups are assets, liabilities, equity, revenue and expense) Identify the account group names that are credit in nature? Hint: account groups are assets, liabilities, equity, revenue and expense) For the Accounts Receivable account to increase in value, will this require a debit or credit entry? Identify the error in the following General Journal? GENERAL JOURNALDateParticularsPost RefDebitCredit6 Jul 20Purchases3103,000GST Paid821300Accounts Payable8203,000(Stock purchased on Credit) List three (3) areas of cheques which need to be confirmed for completeness and accuracy before banking. List at least four (4) reasons a customer payment, monies paid, may differ from monies owed? Why is it important to complete regular bank reconciliations? Outline six (6) items which need to be recorded accurately on the invoices prior to recording them in the system. Once invoices are accurately recorded the documentation needs to be filed for auditing purposes. Highlight your choice. TRUEFALSE According to the Bright Spark procedures what is the process for authorising journal entries and are there any timelines that must be adhered to? List four (4) types of records relating to entering financial transactions that a business must keep in order to meet the legal requirement to retain source documents. A deposit facility could be the ‘undeposited’ funds account. Highlight your choice. YESNO List three (3) methods of payment which customers could use with a deposit facility? What security and safety precautions could be taken when conducting the banking in accordance with organisational policy and industry and legislative requirements? What could be proof of lodgement of banking? Briefly explain what will be shown in a Trial Balance report. From the list below, indicate (by checking the boxes) what is required for a trial balance to be accurate? ☐ Debits equal the credits☐ Errors do need to be fixed☐ Any special transactions are processed accurately☐ Figures are verified against other reports to ensure accuracy.☐ Only shows sales figures☐ Source documents need to be filed for reference and auditing purposes. Describe what is involved in setting up and maintaining an imprest petty cash system. Include the documentation and process of using and maintaining the petty cash system in your answer. Why is it important to reconcile the creditor schedule with Accounts Payable? Why is it important for Bookkeepers to work within the organisation’s policies and procedures? In the Bright Spark organisation procedures when should the Payable Invoice Summary and Aged Payables Detail reports be created? Why is it important to produce these reports regularly? In the Bright Spark organisation procedures when should the Receivable Invoice Summary and Aged Receivables Detail reports be created? Why is it important to produce these reports regularly? Why is it important to reconcile the debtors schedule with Accounts Receivable? List at least six (6) indicators in general that a customer’s debt might be bad or doubtful? What are the procedures at Bright Spark for an account that is overdue by 90 days or more? ASIC and ACCC have a publication called Debt collection guideline for collectors and creditors. At what times can the collector contact the debtor in their workplace? Outline the key features of an industry code of practice. How does Clause 10 of the Fundamental Principles of the ICB Code of Conduct affect you as a bookkeeper when dealing with customers with overdue accounts? What does the GST Ruling GSTR 2003/12 clarify? Using the following dot points, complete the table below to identify the key point of legislation it relates to: Privacy ActNew Tax System (Good and Services Tax) Act 1999GSTR 2000/34ePayments CodeICB code of conductIncome Tax Assessment Act 1936 Key point of legislationRelates toA member must not make or prepare any account or record which they know is or may be false or misleading or the truth of which they are not satisfied on the materials or evidence before them.Requirement to restrict access to any records containing client informationDefines the legal requirement for a business to retain source documentsDefines who is required to be registered for GSTLists the circumstances when you can get your money back if there is an unauthorised transaction on your account.Defines what a tax invoice is for the purpose of the GST Act Part B: Process Financial Transactions Manually Section 1: Preparing Journals In this first section you will work through preparing manual journals for: purchase invoices and adjustmentssales invoices and adjustmentscustomer accounts payments and cash salescash purchasessupplier paymentsgeneral journal entries Notes: Blank Templates (file name: FNSACC311_FNSACC312 Bright Spark Blank Templates) are provided with the assessment files in the LMS for this assessment.The starting date for this assessment is 1 September 2020. Sam has accounts with three suppliers with various terms: Account Terms Statement ABCD Electrical Purchases EOM after EOM 7th Bendigo Hire Purchases EOM EOM Panorama Publishing Advertising 30 days from Invoice date 7th Sam has five customers with accounts: Mountain View Real EstateHamilton HomesRelease RentalsCookedup ConstructionsEvents by Ingrid According to the Bright Spark customer account procedures payment terms are 30 days from the date of the invoice Note: Historic data for both the suppliers and customers for July and August 2020 can be found in the Subsidiary Ledger templates provided in the student files for this assessment TASK PJ1 Assess and Enter Credit Purchases Record the following invoices received checking for validity and accuracy. Panorama Publishing ABN 23 111 144 445 5 Mill Park SPENCE ACT 2615TO: Bright Spark TAX INVOICE PO Box 111 SPENCE ACT 2615 PP0961Date: 4/09/2020Reference: PO#Terms: 30 daysQuarter page advertisement in Capital Living $1650.00 inc GSTPayment by cheque only!Mail PO Box 445 Phone (02) 6235 3535 Email sales@panoramapublishing.com.au Bendigo Hire Equipment Tax Invoice ABN 64 111 222 687 5147TO: Bright Spark PO Box 111 SPENCE ACT 2615Date: 10/09/2020PO#Terms: EOMHire of Excavator 4 hours @ $110 per hour $440.00 inc GST ABCD ElectricalTax Invoice ABN 98 111 133 334 31 Carson Ridge 3201 SPENCE ACT 2615 Phone (02) 6235 8765TO: Bright Spark PO Box 111 SPENCE ACT 2615Date: 13/09/2020PO No:Terms: EOM after EOMQtyItem NumberDescriptionUnit Price Inc GSTTotal inc GSTTax Code100PP0001Single Power Point [Round]6.05605.00GST100PP0004Double Power Point Vertical [Round]9.90990.00GST10CB0001IP56 MCB Circuit Breaker43.67436.70GST500B0001Flat Bracket STD 1550.77385.00GSTAmount of GST in this invoice: $219.70TOTAL$2,416.70Bank Details: 033 222 123456 Acc name: ABCD Electrical Reference: Brig001 ABCD ElectricalTax Invoice ABN 98 111 133 334 31 Carson Ridge 3288 SPENCE ACT 2615 Phone (02) 6235 8765TO: Bright Spark PO Box 111 SPENCE ACT 2615Date: 20/09/2020PO No:Terms: EOM after EOMQuantityItem NumberDescriptionUnit Price Inc GSTTotal inc GSTTax Code200PP0002Single Power Point with Extra Switch [Round]7.261452.00GST3CB0002IP58 MCB – Circuit Breaker45.65136.95GSTAmount of GST in this invoice: $144.45$1588.95Bank Details: 033 222 123456 Acc name: ABCD Electrical Reference: Brig001 TASK PJ2 Enter Purchases Credit Notes On checking bill 5147 Sam realised that he only hired the excavator for three hours in the end, not four. He telephoned Bendigo Hire to advise them of this correction and the following adjustment note was received. (a) Enter the following adjustment in the Purchases Returns journal Bendigo Hire Equipment Credit Note ABN 64 111 222 687 5147ATO: Bright Spark PO Box 111 SPENCE ACT 2615Date: 11/09/2020Re Invoice 5147Credit on InvoiceReason:Reduction of hire hours from 4 to 3Hire of Excavator 1 hours @ $110 per hour $110.00 inc GSTThis credit will be applied to Invoice 5147. On 14 September, one of the circuit breakers purchased from ABCD Electrical on Invoice 3201 was returned as it was faulty. 1CB0001IP56 MCB – Circuit Breaker43.67inc GST Adjustment note 44 was received on 14/09/2020. Enter this adjustment in the Purchase Returns Journal According to the Documentation procedures what should happen to adjustments notes received from Bendigo Hire and ADCD Electrical? TASK PJ3 Record Sales Invoices for Account Customers The following job for Mountain View Real Estate has been completed. Enter the Job Card details in the sales journal as invoice #136. Note: Refer to the policies and procedures to calculate the labour and travel portions of the invoice and then calculate the invoice total including GST. JOB CARDNumber: 144Job Location: 43 City Street SPENCE ACT 2615Date: 2/09/2020Job Details: Repairs to laundry power supplyMaterials: $374.00 including GSTLabour: 1 hourTravel: 50 kmCustomer to be Billed: MOUNTAIN VIEW REAL ESTATEJob done by:SAM PARKJob has been completed. Signature: S Whiting Date: 2/09/2020 Materials: ………………………….. Labour: ………………………….. Travel: …………………………… Total Invoice ……………………….. including ……………….GST The following job for Release Rentals has been completed. Calculate the invoice amounts and total and then enter the Job Card details in the sales journal as invoice #137. JOB CARDNumber: 145Job Location: 21 Ton Street HOLT ACT 2615Date: 10/09/2020Job Details: Supply and install 3 ceiling fansMaterials: $1122.00 including GSTLabour: 3 hoursTravel: 200 kmCustomer to be Billed: RELEASE RENTALSJob done by:SAM PARKJob has been completed. Signature: Evelyn Reynolds Date: 10/09/2020 Materials: ………………………….. Labour: ………………………….. Travel: …………………………… Total Invoice ……………………….. including ……………….GST The following job for Hamilton Homes has been completed. Calculate the invoice amounts and total and then enter the Job Card details in the sales journal as invoice #140. JOB CARDNumber: 146Job Location: 10 High Street HOLT ACT 2615Date: 23/09/2020Job Details: Supply new meter to houseMaterials: $1122.00 including GSTLabour: 2 hoursTravel: 100 kmCustomer to be Billed: HAMILTON HOMESJob done by:SAM PARKJob has been completed. Signature: Harry Hamilton Date: 23/09/2020 Materials: ………………………….. Labour: ………………………….. Travel: …………………………… Total Invoice ……………………….. including ……………….GST TASK PJ4 Record Sales Adjustment Notes Sam has realised the mileage charged on Job Card 145 should have been 100 km not 200 km. Enter the required adjustment note # 138, in the Sales Returns Journal dated 12 Sept 2020. According to policies and procedures what should happen with the adjustment? Mountain View Real Estate have emailed and pointed out that an adjustment to Inv 128 that was agreed with the owner Sam Park, had not been received. What should you do? Sam Park has confirmed with you that there was an agreement to reduce the price on that job by $55. Enter an adjustment note, #139, in the Sales Returns Journal on 17 Sept 2020. TASK PJ5 Record Customer Account Payments and Cash Sales The following remittance advice was received on 18 Sept 2020: Mountain View Real Estate Direct Deposit of $322.20 Reference Inv 128 Enter the details into the receipt advice. Bright SparkReceipt 007 PO Box 111 SPENCE ACT 2615 …………………20…… Received from: ………………………………………………………..…The amount of……………………….. ……………….…dollars …….cents. $…………..Reason for payment: ……………………………………….…………..Per .…………………………… Enter the above payment into the Cash Receipts journal. A remittance advice and cheque were received from Hamilton Homes on 20 Sept 2020. Hamilton Homes Cheque payment $550 Reference Inv 131 Eastpac Bank CANBERRA ACT 2600Date: 20/09/2019Pay Bright Spark OR BEARERThe sum of Three hundred and fifty dollars only$550.00DRAWER Hamilton HomesHarry Hamilton“001198 “062”‘001: 4511781″ Before accepting the cheque, check the cheque details for accuracy Identify any problem/s with the above cheque? What are you going to do about it? Assuming the cheque has been reissued, enter the above payment of $550 in the Cash Receipts journal. On 26 Sept 2020, Events by Ingrid paid $352 into the bank account and sent a remittance advice that the payment was for invoice 134. Record the payment in the Cash Receipts journal and follow the policies and procedures of the business to deal with any discrepancies. What discrepancy did you find? What procedure will you follow? Sam completed three small domestic jobs on 25th September and was paid in cash on the day for all three. Enter the payments details for each job in the Cash Receipts journal. Tax Invoice 141: Total inc GST $264 Customer: Mark Harris, 25 Spring Circuit Job details: Installed three new sockets in the house Paid in cash Tax Invoice 142: Total inc GST $308 Customer: Belinda Sawyer, 47 Castle Street Job details: Installed new light fitting in the stairwell Paid in by cheque ANZ Bank Spence ACT 2615 6152Date: 25 September 2020Pay Bright Spark OR BEARERThe sum of Three Hundred and Eight dollars$308-00DRAWER Belinda SawyerB Sawyer6152 023 661 402357 Tax Invoice 143: Total inc GST $242 Customer: Peter Brown, 610 Highview Crescent Job details: Called out to investigate blown fuse for oven Paid in cash The cash and cheque were banked by Sam at the end of the day. He also banked the cheque from Hamilton Homes at the same time. Complete the bank slip below and record the deposit in the Cash Receipts Journal. Bank Deposit Slip Business BankBANK DEPOSITACCOUNT NAME: BRIGHT SPARKCoinsACCOUNT NUMBER: 013-761 123123123Notes*Cheques etcDetails:TotalDrawerBankPlaceAmountTOTAL Cheques/Money Orders and Merchant Summaries (transfer to * above)Paid in by ………………………………………………………………. Date: …………………………… According to the Banking Deposits procedures what should happen to this bank deposit slip? The Banking Deposits procedures refers to following appropriate safety and security measures when banking cash and cheques. List four (4) precautions that you could take. TASK PJ6 Record Cash Purchases Record the following cash purchases in the Cash Payments journal. SupplierPetty CashNAB Credit CardReferenceATM WithdrawalBPAYDate:01/9/203/9/20MemoPetty CashPrivate Credit Card PaymentAccount Allocation110 – Petty Cash980 – DrawingsAmt$200.00 – no GST$340.00 – no GST SupplierTelstraMiddy WholesalersReferenceBPAYEFTPOSDate:06/9/2021/9/20MemoOffice Phone and InternetElectrical PartsAccount Allocation489 – Telephone and Internet310 – PurchasesAmt$242.00 – GST$825.00 – GST SupplierAustralia PostBackup PartsReferenceEFTPOSEFTPOSDate:26/9/2027/9/20MemoDomestic PostageElectrical PartsAccount Allocation425 – Freight and Courier310 – PurchasesAmt$88.00 – GST$440.00 – GST SupplierSuper Stationery SuppliesCleaned UpReferenceEFTPOSDirect DepositDate:27/9/2028/9/20MemoVarious office suppliesCleaningAccount Allocation461 – Printing and Stationery408 – CleaningAmt$165.00 – GST$90.00 – GST Free TASK PJ7 Suppliers Statements and Payments The following statement for August 2020 was received from ABCD Electrical. Check the statement for accuracy against the historic data in the ABCD Electrical ledger provided. Are there any discrepancies that you see? If there are what will you do? Based on the ABCD payment terms when is the balance of this statement due? ABCD Electrical STATEMENT ABN 98 111 133 334 31 August 2020 Phone (02) 6235 8765 31 Carson Ridge SPENCE ACT 2615 TO: Bright Spark PO Box 111 SPENCE ACT 2615DateReferenceDescriptionSalesPayments/ AdjustmentsBalance $1/08Balance forward3,968.8013/08Inv 3125Sale884.954,853.7523/08Inv 3150Sale1,724.256,578.0031/08Payment3,968.802,609.20UrgentDue NowDue 30 Sept> 60 days Overdue30 days OverdueCurrentTotal Due$2,609.20$2609.20Bank Details: 033 222 123456 Acc name: ABCD Electrical Reference: Brig001 The following statement for August 2020 was received from Panorama Publishing. Check the statement for accuracy against the historic data provided in the Panorama ledger provided. Are there any discrepancies that you see? If there are what will you do? Panorama Publishing ABN 23 111 144 445 5 Mill Park SPENCE ACT 2615TO: Bright Spark STATEMENT PO Box 111 SPENCE ACT 2615 31 August 2020DateReferenceDescriptionSalesPayment/ AdjustmentBalance$1/08/20Balance forward2,850.004/08/20Inv PP0862Sale2,850.005,700.0012/08/20Inv PP0751Payment Cheque 10121,850.003,850.0018/08/20Inv PP0862Payment Cheque 10141,425.002,425.00UrgentContact UsDue Now> 60 days Overdue30 days OverdueCurrentTotal Due$2,425.00$2,425.00Payment by cheque only please!Mail PO Box 445 Phone (02) 6235 3535 Email sales@panoramapublishing.com.au A corrected statement was received, as shown below: Panorama Publishing ABN 23 111 144 445 5 Mill Park SPENCE ACT 2615TO: Bright Spark STATEMENT PO Box 111 SPENCE ACT 2615 31 August 2020DateReferenceDescriptionSalesPayment/ AdjustmentBalance$1/08/20Balance forward2,850.004/08/20Inv PP0862Sale2,850.005,700.004/08/20Re Inv PP0751Payment Cheque 10111,000.004,700.0012/08/20Re Inv PP0751Payment Cheque 10121,850.002,850.0018/08/20Re Inv PP0862Payment Cheque 10141,425.001,425.00UrgentContact UsDue Now> 60 days Overdue30 days OverdueCurrentTotal Due$1,425.00$1,425.00Payment by cheque only please!Mail PO Box 445 Phone (02) 6235 3535 Email sales@panoramapublishing.com.au From the creditor terms when was the balance due? ______________________ According to the Supplier Payment procedures what should now happen with this statement? From the details above, please complete the cheque requisition slip to attach to the above statement. [The payment details will be entered on the following page.] CHEQUE REQUISITION SLIP Cheque payable to:Expenditure purpose:Relevant AccountsInvoice RefTotal Amount$I certify that the transactions described on the attached tax invoice/statement are accurate Requested by:Authorised by:Date of Payment: Payment Ref: [Cheque No] Entered into books by: Date Entered: Write out the cheque to pay the amount owing to Panorama Publishing on 14/09/2020. Date……………/………/…………… To ……………………………………… For ……………………………………… ……………………………………………FWDThis ChequeBalance014-667-1245784- 001015ABC Bank Kaleen ACT 2617 Date: …………/………/……………Pay ………………………………………………………………………… or bearer$The sum of…………………………………………………………………………………………………______________________________________________Bright SparkABN 84 111 122 223“001015 “014”‘667: 1245784″ According to the Supplier Payment procedures what security measures should be taken when writing out a cheque? Enter the above cheque payment into the Cash Payments Journal. Remember to enter the payment details on the cheque requisition slip and indicate that the payment has been entered. Completea remittance advice to attach to the cheque Bright SparkRemittance Advice Date:Unit 12, 30-50 Eastern Highway SPENCE ACT 2615 Ph 02 9852 2222To: Address: Amount: Invoice No: Paid:Notes: The following statement for September was received from Bendigo Hire. Check the statement for accuracy against your September purchases journal and purchases returns journal. Are there any discrepancies that you see? From the creditor terms when is the balance due? Bendigo Hire Equipment STATEMENT 1 Bendigo StreetSPENCE ACT 261502 9852 2589 30 September 2020ABN 64 111 222 687TO: Bright Spark PO Box 111 SPENCE ACT 2615DateReferenceDescriptionSalesPayment/ AdjustmentBalance$1/09/20Balance forward0.0010/09/205147Sale440.00440.0011/09/205147ACredit Note110.00330.00UrgentContact UsDue Now> 60 days Overdue30 days OverdueCurrentTotal Due330.00330.00 With reference to the supplier statements on the previous pages prepare a list of unpaid accounts that are due for payment by 30th Sept 2020. The payments will be made by direct deposit. Payments due by end of the month: SupplierInvoice/sDate requiredAmountPayment typeApprovedABCD ElectricalBendigo Hire EquipmentPanorama Publishing According to the Supplier Payment procedures, accounts to be paid must approved by Sam – to simulate this in your assessment submit your report for approval by your Assessor/Tutor via email. If this assessment is being completed by distance learning, your Assessor/Tutor will email the approval to you. According to the Supplier Payments procedures what forms of payment are authorised and what security measures are followed in relation to payments. Record the approved direct deposit payments in the Cash Payments Journal on 30 Sept 2020. ABCD Electrical – Invoices 3125 and 3150, total $2609.20 Bendigo Hire Equipment – Invoice 5147, $330 TASK PJ8 Record General Journal Entries A requirement for the following general journal entries has been noted during the month of September: a tax inclusive general journal entry to move $44.00 that was allocated to account 461, Printing and Stationery to account 408, Cleaning. This was a portion of the EFTPOS payment to Super Stationery Supplies for the purchase of cleaning products.a general journal to move $80 from account 489, Telephone and Internet, to the Drawings account as the payment to Telstra included a portion for a private mobile phone. This journal must account for a reduction in the GST paid. What procedures should be followed when recording these journal entries. Record these two journals, dated 30 Sept 2020, in the general journal provided in the blank templates. Section 2: Bank Reconciliation Reconcile the bank statement at the end of September. ANZ Bank Statement Issued: 30/09 Bank Statement 10 Page 1 DateTransactionWithdrawalDepositBalance1/09Balance6,641.89 CR1/09ATM Withdrawal200.006,441.89 CR3/09BPAY – NAB Credit Card340.006,101.89 CR6/09BPAY – Telstra242.005,859.89 CR16/09Cheque 10151425.004,434.89 CR18/09M V Real Estate Inv 128322.204,757.09 CR21/09EFT Middy Pty Ltd825.003,932.09 CR25/09Bank deposit1364.005,296.09 CR26/09EFT Aus Post88.005,208.09 CR26/09Events by Ingrid Inv 134352.005,560.09 CR27/09EFT Backup Parts440.005,120.09 CR27/09EFT Super Stationery Supplies165.004,955.09 CR28/09Cleaned Up DDeposit90.004,865.09 CR28/09Release Rentals Inv 132611.205,476.29 CR30/09Bendigo Hire Inv 5147330.005,146.29 CR30/09ABCD Electrical Invs 3125 31502609.202,537.09 CR30/09Interest received15.002,552.09 CR30/09Bank Fees10.002,542.09 CR30/09Merchant Fees33.002,509.09 CR Are there extra payments that have not been entered yet? If yes, enter the payment details in the Cash Receipts Journal Calculate the totals for each of the columns in the Cash Payments and Cash Receipts Journals Use the balance of the Business Account in the starting General Ledger provided in the blank templates document and the totals of the banked columns on the Cash Payments and Cash Receipts journals to complete the following bank account balance calculation Business Account Opening balance 1 Sept 2020 $…………….. Add total cash receipts (total of Debit Bank column) $…………….. Subtotal $…………….. Less total cash payments (total of Credit Bank column) $…………….. Business Account balance 30 Sept 2020 $…………….. Finally complete the bank reconciliation report below to ensure that the Business Account balance matches the bank statement balance Bank Reconciliation 30 September 2020 Business account balance 30 Sept $…………….. Bank statement balance $…………….. Difference $…………….. Section 3: Post Journals to the General Ledger Total the columns in the Purchases Journal and complete the journal entry below, checking to ensure that the journal balances. 310 Purchases Dr ………………… 400 Advertising Dr ………………… 821 GST Paid Dr ………………… 800 Accounts Payable Cr ………………… Total the columns in the Purchases Returns Journal and complete the journal entry below, checking to ensure that the journal balances. 800 Accounts Payable Dr ………………… 311 Purchases Returns Dr ………………… 821 GST Paid Dr ………………… Total the columns in the Sales Journal and complete the journal entry below, checking to ensure that the journal balances. 610 Accounts Receivable Dr …………….. 200 Sales Cr …………….. 820 GST Collected Cr …………….. Total the columns in the Sales Returns Journal and complete the journal entry below, checking to ensure that the journal balances. 210 Sales Returns Dr …………….. 820 GST Collected Dr …………….. 610 Accounts Receivable Cr …………….. Using the column totals in the Cash Receipts Journal, complete the journal entry below, checking to ensure that the journal balances. 100 Business Account Dr …………….. 610 Accounts Receivable Cr …………….. 210 Sales Cr …………….. 270 Interest Received Cr …………….. 820 GST Collected Cr …………….. Using the column totals in the Cash Payments Journal, complete the journal entry below, checking to ensure that the journal balances. 800 Accounts Payable Dr ……………… 311 Purchases Dr ……………… 110 Petty Cash Dr ……………… 404 Bank Fees Dr ……………… 405 Merchant Fees Dr ……………… 408 Cleaning Dr ……………… 425 Freight and Courier Dr ……………… 461 Printing and Stationery Dr ……………… 489 Telephone & Internet Dr ……………… 821 GST Paid Dr ……………… 980 Drawings Dr ……………… 100 Business Account Cr ……………… Now post the entries for these journals to the appropriate General Ledger accounts. A copy of the Bright Spark General Ledger is provided with the student files for this assessment. You also need to post the entries for the two general journals in task PJ8 to the appropriate accounts in the General Ledger. Prepare a Trial Balance for Bright Spark as at 30 September 2020 using the blank template provided in the student files. PRINTOUT 1 – Trial Balance 30 September 2020 Section 4: Post Journals to the Subsidiary Ledger TASK SL1 Update Accounts Payable Subsidiary Ledger The first task in this section is to post the Accounts Payable data from the purchase journals to the Accounts Payable Subsidiary ledger in the blank templates file. Note: Transactions in July and Augusts are listed for each creditor. TASK SL2Prepare a Schedule of Accounts Payable (Creditors) From the data in ledger make a list of the suppliers to whom the business owes money at the end of September. Enter the balance for each creditor into the schedule below: NameBalanceABCD ElectricalBendigo Hire EquipmentPanorama PublishingTotal Accounts Payable Reconciliation 30 September 2020 Schedule of Accounts Payable balance $…………………. Accounts Payable (800) account balance $…………………. Difference $…………………. Refer to the schedule above and your General Ledger solution to answer the following questions and complete the Accounts Payable reconciliation: In the Schedule of Accounts Payable, what is the amount owing to suppliers on 30/09/20? What is the balance of the Accounts Payable account in the General Ledger? Does the answer in (b) reconcile with the answer in (a)? If the above did not reconcile, what problems could exist in the subsidiary ledgers or General Ledger? TASK SL3 Aged Payables Summary Report Using the Accounts Payable Ledger and the original source documents as a cross reference, create an Accounts Payable report of outstanding payables. NameBalanceInvoice NoInvoice DateInvoice Due Date TASK SL4 Update Accounts Receivable Subsidiary Ledger The next task is to post the Accounts Receivable information from the sales journals to the Accounts Receivable Subsidiary Ledgers in the blank templates file. TASK SL5 Prepare a Schedule of Accounts Receivables (Debtors) From the data in the subsidiary ledger make a list of the customers that owe the business money at the end of September. Enter the balance for each debtor into the schedule below: NameBalanceCookedup ConstructionsEvents by IngridHamilton HomesMountain View Real EstateRelease Rentals Refer to the schedule above and your General Ledger solution to complete the Accounts Receivable reconciliation. Accounts Receivable Reconciliation 30 September 2020 Schedule of Accounts Receivable balance $……………….. Accounts Receivable (610) account balance $……………….. Difference $……………….. If these balances do not match you will need to recheck your figures and running totals in the source journals and the Account Receivable subsidiary ledger. Section 5: Bad and Doubtful Debts Task BDD1 Aged Receivables Detail Report 31 Aug 2020 Your first task in this section is to check the status of the customer accounts at 31 August. Using the Accounts Receivable Subsidiary ledger create an Aged Receivables Detail report as at 31 August 2020. Note: Check the policies and procedures for the standard customer payment terms. NameBalanceInvoice NoInvoice DateInvoice Due Date$6,962.40 According to the Policies and Procedures of Bright Spark what steps should have been taken by Sam at the end of August based on the report above. Task BDD2 Accounts Receivable Age Analysis 30 September 2020 Now list the invoices where payment is still to be received as of 30 September and determine the days overdue given the invoice due date. Acc NoNameBalanceInvoice NoInvoice DateDue dateDays overdue01Mountain View Real Estate377.20Inv 13529/828/92 Using the results above from the analysis above create an Accounts Receivables Age Analysis report. Acc NoNameBalanceCurrent1 – 30 days31 – 60 days61 – 90 days01Mountain View Real Estate850.20377.20 Based on the Accounts Receivable Aged Analysis above. What is the procedure you should follow now? TASK BDD3 – Review Contact Log Below is a copy of the contact log with notes added following the action taken at the end of September. 31 AugDuring Sept30 SeptDuring OctMountain View EstateStatement sent plus reminder re invoice 128 $377.20MVRE rang about adjustment not received. Adjustment entered and sent after checking with SamStatement sent plus reminder re Invoice 135 $377.20Hamilton HomesStatement sent – no reminder needed20 Sept – advised that cheque not correct – please reissueStatement sent – no reminder requiredRelease RentalsStatement sent plus reminder re Inv 125 $1029.60Customer emailed – just missed paying invoice – apologiesStatement sent plus reminder that $1029.60 still outstanding Decided not to call at this point.Payment received on 8th Oct for Inv 125Cookedup ConstructionsStatement sent plus reminder re Inv 121 $2970No contactStatement sent – telephone call as no contact No answer and no message machine Sent another emailNo contactNext step statement letterEvents by IngridStatement sent plus reminder for Inv 122 $33026 Sept – contacted Ingrid re Inv 134 payment as not full amount No contact re other o/s invoicesStatement sent plus reminder – telephone call made re older invoices to check what is happening – Ingrid says there are some cash flow issues – negotiated a payment plan of $100 per weekReceived two payments, 5th Oct, and 12th Oct then nothing(debt now below $500) Notice that several payments were received in October because of the debt collection activity. Record these payments in the appropriate customer ledger. Apply the two payments from Events by Ingrid to invoice 122.Record these payments in the Cash Receipts JournalUsing the journal below post the required entries for these payments to the General Ledger on 30 October 20. 100 Business Account Dr 1229.60 610 Accounts Receivable Cr 1229.60 TASK BDD4 – Bad/Doubtful Debt Report Based on the age analysis and contact notes prepare the following Bad/Doubtful Debt report for the owner of the business – use your judgement to complete the Comment/Reason column and make a judgement as to whether the debt is bad or doubtful. Customer NameOverdue Invoice NumberDue DateAmountComment/ReasonBad or Doubtful Debt What is the benefit of preparing the report? TASK BDD5 Account overdue by 90 or more days Assume that Cookedup Construction’s account is now more than 90 days overdue. Prepare the following recovery report for the owner. recovery report – to be sent to owner Debtor nameCookedup ConstructionsOutstanding amountNumber of days outstandingDebtor’s explanation for not payingRecovery stage(e.g. 90+ days, 60-90 days)Date for review of recovery actionsPerson responsible for leading recovery action According to the customer credit policy, where will a copy of the above report be filed? According to the customer credit policy, what next action will be considered? TASK BDD6 Letter of Demand Write [type] a letter of demand requesting payment and notifying the customer of the intention of placing the debt in the hands of a debt collection agency as per procedures. As per the business procedures use the business.gov.au template as a basis for the letter. PRINTOUT 2 – Letter of Demand TASK BDD7 Write off Bad Debt On 15th November 2020, the business was notified that Cookedup Construction has gone into liquidation and there is little chance of recovering the amount owing. Sam decides to write off the amount owing as a bad debt. Using the general journal below post the required entries to the General Ledger GENERAL JOURNALDateParticularsRefDebitCreditNov15Bad and Doubtful Debts4062,700.00GST Collected820270.00Accounts Receivable (Cookedup Constructions)6102,970.00(Write off Cookedup Constructions as bad debt.) Update the Accounts Receivable Ledger to settle this adjustment against the original invoice. TASK BDD8 Trial Balance 15 November 2020 Using the final balances in your General Ledger prepare a Trial Balance as at 15 November 2020 using the blank template provided in the student files. If the totals of your report do not balance you will need to check your General Ledger solution to ensure the journals have been posted correctly and the running totals are all correct. Note: In a real business scenario there would have been many more transactions processed up to 15th November. This report is simply a reflection of the balances of the accounts after completing the processing in this assessment. PRINTOUT 3 – Trial Balance 15 November 2020 Congratulations you have completed Part B of the assessment Part C: Process Financial Transactions using Xero TASK 1 – Preview Existing Data and Update Settings You are now required to repeat the tasks completed manually this time using Xero. Login to your Xero organisation Bright Spark – Check the LMS site for the Link to self-enrol in Xero Organisation Bright Spark M. (assessment case study) Xero organisation. Please note the access to Xero Organisation Bright Spark M. is only for a limited duration (45 days), hence it is recommended that you should self-enrol when about to start working with Part C of the assessment.View the following to familiarise yourself with the company file: Chart of accountsTrial Balance as at 31 August 2020 – this should match the starting balances in your manual general ledger.Products and servicesAccount Transactions report for 1 July 2020 to 31 August 2020 for all accounts.Unpaid tax invoices issued to customersView the invoices to access the way the invoices are entered so that you can follow the same proceduresRead the policies and procedures for Bright Spark at the start of this assessment Update and save the Organisation details with the following information and include your name or student number in the Display name field as the business name for printout identification purposes ElectricianSole TraderABN 84 111 122 223Postal Address: PO Box 111, SPENCE ACT 2615Physical Address: Unit 12, 30-50 Eastern Highway, SPENCE ACT 2615Phone: 02 9852 2222 Update and save the Financial settings as follows: GST Accounting Method: Cash BasisTax File Number: 123123123GST Calculation: QuarterlyTax Default for Sales: Tax inclusive Update and save the Default Invoice settings as follows: Sales Invoices Default Due Date: Due 30 days after the invoice dateNext Invoice Number: 0136 View the contacts list for Bright Spark and for each supplier check and enter the following additional information as required. You will find the ABN and address for each supplier on one of their source documents. ABNAddressPurchase settings – purchases are tax inclusive for all suppliersDefault accountBills due date Account Terms Statement ABCD Electrical 310 -Purchases EOM after EOM 7th Bendigo Hire Equipment 310 – Purchases EOM EOM Panorama Publishing 400- Advertising 30 days from bill date 7th Tip: For terms that are EOM enter 31 as the due date. If a month has fewer than 31 days, Xero will automatically set this to the last day of the appropriate month. Remember that in this exercise you are working in the September 2020 Section X1: Process Purchases, Sales, Payments and General Journals In this first section you will work through processing the purchase and sales transactions, customer and supplier payments and the general journals but this time using Xero. You will need to refer to the source documents provided in the manual processing section to assist with your entry of the transactions. TASK X1 Enter Credit Purchases Enter and approve a bill for invoice PP0961 from Panorama Publishing Enter and approve a bill for invoice 5147 from Bendigo Hire Equipment Enter and approve a bill for invoice 3201 from ABCD Electrical. Ensure to check that the item prices and tax rates entered by Xero match those on the invoice. Enter and approve a bill for invoice 3288 from ABCD Electrical. Ensure to check that the item prices and tax rates entered by Xero match those on the invoice. TASK X2 Enter Purchase Credit Notes Enter and approve credit note 5147A from Bendigo Hire Equipment. Ensure the credit is applied to the correct purchase returns account.Allocate the credit to the original bill. Enter and approve adjustment note 44 from ABCD Electrical. Ensure the credit is applied to the correct purchase returns account.Allocate the credit to the original bill. TASK X3 Record Sales Invoices for Account Customers (a) Enter and approve sales invoice #136 for the job completed for Mountain View Real Estate. Enter and approve sales invoice #137 for the job completed for Release Rentals. Enter and approve sales invoice #140 for the job completed for Hamilton Homes. TASK X4 Record Sales Adjustment Notes Enter and approve credit note CN-0138 for Release Rentals. Ensure the credit is applied to the correct sales returns account.Allocate the credit to the original invoice. Enter and approve credit note CN-0139 for Mountain View Release Estate. Ensure the credit is applied to the correct sales returns account.Allocate the credit to the original invoice. TASK X5 Record Customer Account Payments and Cash Sales Record the direct deposit payment received from Mountain View Real Estate on 18 Sept 2020 for invoice 128. Record the cheque payment received from Hamilton Homes on 20 Sept 2020 for the balance outstanding on invoice 131. Assume the cheque has been reissued for the correct amount of $550. Receive the payment into the Undeposited Funds account. Record the direct deposit payment received from Events by Ingrid on 26 Sept 2020 for invoice 134. Enter and approve sales invoice #141 for the job completed for Mark Harris and record the cash payment on the same day into the Undeposited Funds account. Enter and approve sales invoice #142 for the job completed for Belinda Sawyer and record the cheque payment on the same day into the Undeposited Funds account. Enter and approve sales invoice #143 for the job completed for Peter Brown and record the cash payment on the same day into the Undeposited Funds account. Process a transfer to the Business Account to record the bank deposit on the same day – including the cheque from Hamilton Homes. TASK X6 Record Cash Purchases Record the cash purchases as Spend Money transactions from the Business Account. SupplierNAB Credit CardTelstraReferenceBPAYBPAYDate:3/9/2006/9/20MemoPrivate Credit Card PaymentOffice Phone and InternetAccount Allocation980 – Drawings489 – Telephone and InternetAmt$340.00 – no GST$242.00 – GST SupplierMiddy WholesalersAustralia PostReferenceEFTPOSEFTPOSDate:21/9/2026/9/20MemoElectrical PartsDomestic PostageAccount Allocation310 – Purchases425 – Freight and CourierAmt$825.00 – GST$88.00 – GST SupplierBackup PartsSuper Stationery SuppliesReferenceEFTPOSEFTPOSDate:27/9/2027/9/20MemoElectrical PartsVarious office suppliesAccount Allocation310 – Purchases461 – Printing and StationeryAmt$440.00 – GST$165.00 – GST SupplierCleaned UpReferenceDirect DepositDate:28/9/20MemoCleaningAccount Allocation408 – CleaningAmt$90.00 – GST Free TASK X7 Suppliers Statements and Payments Review the August statement received from ABCD Electrical against the historic data in your Xero organisation.What is the due date in Xero for the August purchases, invoices 3125 and 3150? Does this match the due date on the statement? Check that the total value of the Xero invoices 3150 and 3125 matches the balance on the statement. Review the August statement received from Panorama Publishing against the historic data in your Xero organisation.Is the missing payment for Bill PP0751 recorded in Xero? Record the cheque payment for the amount paid to Panorama Publishing on 14/09/20 . Ensure it is applied to correct bill. Review the September statement received from Bendigo Hire against the data in your Xero organisation.Does the amount owing in Xero match the statement? Produce an Aged Payables Detail report as at 30 September 2020 and export a copy to PDF. PRINTOUT X1 – Aged Payables Detail 30 Sept 2020 Identify which invoices are due for payment at the end of September Compare your list with the manual report you created in Task PJ7 (m). Do they match? Record the authorised payments against the appropriate bills in Xero. All payments were made by direct deposit.As an example, send a remittance advice to ABCD Electrical for one of the bill payments – use your email address so that you can save a copy of the remittance advice to your reports. PRINTOUT X2 – ABCD Electrical Remittance Advice TASK X8 Record General Journal Entries Enter the following manual journals in Xero to account for the required adjustments during the month of September: The tax inclusive general journal entry to move $44.00 that was allocated to account 461, Printing and Stationery to account 408,to Cleaning. This was a portion of the EFTPOS payment to Super Stationery Supplies for the purchase of cleaning products. The general journal entry to move $80 from account 489, Telephone and Internet, to the Drawings account as the payment to Telstra included a portion for a private mobile phone. This journal must account for a reduction in the GST paid. Print a Journal Report dated 30 Sept 2020 showing posted manual journals only. PRINTOUT X3 – Posted Journal Report30 Sept 2020 Section X2: Bank Reconciliation Import the bank statement file Bright Spark BS 30 Sep 2020.csv available with assessment documents in the LMS.Reconcile your Xero transactions with the September bank statement. ANZ Bank Statement Issued: 30/09 Bank Statement 10 Page 1 DateTransactionWithdrawalDepositBalance1/09Balance6,641.89 CR1/09ATM Withdrawal200.006,441.89 CR3/09BPAY – NAB Credit Card340.006,101.89 CR6/09BPAY – Telstra242.005,859.89 CR16/09Cheque 10151425.004,434.89 CR18/09M V Real Estate Inv 128322.204,757.09 CR21/09EFT Middy Pty Ltd825.003,932.09 CR25/09Bank deposit1364.005,296.09 CR26/09EFT Aus Post88.005,208.09 CR26/09Events by Ingrid Inv 134352.005,560.09 CR27/09EFT Backup Parts440.005,120.09 CR27/09EFT Super Stationery Supplies165.004,955.09 CR28/09Cleaned Up DDeposit90.004,865.09 CR28/09Release Rentals Inv 132611.205,476.29 CR30/09Bendigo Hire Inv 5147330.005,146.29 CR30/09ABCD Electrical Invs 3125 31502609.202,537.09 CR30/09Interest received15.002,552.09 CR30/09Bank Fees10.002,542.09 CR30/09Merchant Fees33.002,509.09 CR Tips: You will need to use Find and Match to match the single payment of $2609.20 paid to ABCD Electrical to the two payments entered in Xero. Note that Xero matches the extra payment received from Release Rentals to the correct invoice. You will need to create Xero transactions for the following: ATM withdrawal for petty cashInterest receivedBank feesMerchant fees Print a copy of the Reconciliation Report as at 30 September 2020. PRINTOUT X4 – Reconciliation Report Print an interim Trial Balance for Bright Spark as at 30 September 2020. PRINTOUT X5 – Trial Balance 30 September 2020 Section X3: Reconcile Accounts Payable Produce a Payable Invoice Summary report for the date range 1 Jul 2020 to 30 Sep 2020 and export a copy to PDF. PRINTOUT X6 – Payable Invoice Summary Compare your report with your Accounts Payable Subsidiary Ledger solution for manual task SL1. Your report should include all the invoices and credit notes processed between 1 July and 30 Sept 2020 and the total outstanding balances for each supplier should match the balance for supplier in the manual ledger. Produce an Aged Payables Summary report as at 30 Sep 2020 and export a copy to PDF. PRINTOUT X7 – Aged Payables Summary 30 September 2020 With reference to the Aged Payables Summary report and your chart of accounts in Xero complete the Accounts Payable reconciliation below: Accounts Payable Reconciliation – 30 September 2020 Aged Payables Summary balance $…………………. Accounts Payable (800) account balance $…………………. Difference $…………………. If these balances do not match you will need to recheck your data entry for the purchases and payments transactions entered in Section 1. You can cross check with your manual processing to identify the source of any errors. Section X4: Reconcile Accounts Receivable Produce a Receivable Invoice Summary report for the date range 1 Jul 2020 to 30 Sep 2020 and export a copy to PDF. PRINTOUT X8 – Receivable Invoice Summary Compare your report with your Accounts Receivable Subsidiary Ledger solution for manual task SL1. Your report should include all the invoices and credit notes processed between 1 Jul 2020 and 30 Sep 2020 and the total outstanding balances for each customer should match the balance for customer in the manual ledger. Notice that the report also includes the cash sales. Produce an Aged Receivables Summary report as at 30 Sep 2020 and export a copy to PDF. PRINTOUT X9 – Aged Receivables Summary 30 September 2020 With reference to the Aged Receivables Summary report and your chart of accounts in Xero complete the Accounts Receivables reconciliation below: Accounts Receivable Reconciliation 30 September 2020 Aged Receivables Summary balance $……………….. Accounts Receivable (610) account balance $……………….. Difference $……………….. If these balances do not match you will need to recheck your data entry for the sales and receipt transactions entered in Section 1. You can cross check with your manual processing to identify the source of any errors. Section X5: Bad and Doubtful Debts Produce an Aged Receivables Detail report as at 31 August 2020 and export a copy to PDF. PRINTOUT X10 – Aged Receivables Detail 31 August 2020 Compare your report with the manual report you created in the manual task BDD1. The Xero report should match your manual report. Produce an Aged Receivables Detail Report as at 30 September 2020. Change the Report Settings to use the Ageing Periods ‘3 periods of 30 days’. Export two copies of the report, one to PDF and one to Excel. PRINTOUT X11 – Aged Receivables Detail 30 September 2020 Compare this report with the manual analysis report you completed in the manual task BDD2. You will notice that the layouts of the reports are slightly different, but the data should match. Referring to the Contact Log in manual task BDD3, record the additional payments made by customers in October. Apply the two payments from Events by Ingrid to invoice 122. Use the Aged Receivables Detail report exported to Excel to produce a bad/doubtful debt report like that created in manual task BDD4. It should account for the payments made in October. PRINTOUT X12 – Bad/Doubtful Debt Report Using a credit note write off the amount owing by Cookedup Construction as a bad debt on 15 Nov 2020 (ref manual task BDD7).Allocate the credit to the original invoice, Inv 121. Section X6: Petty Cash Below is a copy of the manual record of petty cash expenses in October, including the $200 starting balance from the transfer at the start of September. ParticularsRef. NoAmountBalancePrinting & StationeryFreight & CourierAdvertisingOffice ExpensesGST Amt01/09Opening balance$200.0002/10Printer paper – ColesSam$11.00$189.00$10.00$1.0008/10Stamps – Australia PostSam15.00$174.00$13.64$1.3614/10Business cards – OfficeworksSam$82.00$92.00$74.55$7.4521/10Teabags – IGASam$7.00$85.00$7.00$0.0031/10ReimbursementSam$115.00$200.00 Enter the four purchases as spend money transactions in Xero.Sam made a cash withdrawal from the Business Account on 31 October 2020 to reimburse the petty cash box for the recent spend. Record a transfer to Petty Cash from the Business Account to record the cash withdrawal.Conduct a manual reconciliation of the Petty Cash account. Produce a final Trial Balance report for this assessment as at 15 Nov 2020. PRINTOUT X13 – Trial Balance 15 November 2020 Note: This report will differ from your manual solution as the Xero report includes the petty cash spend which impacted on the Business, Advertising, Freight and Courier, Office Expenses, Printing and Stationery, and GST accounts. Congratulations you have completed Part C of the assessment. Assemble your reports and solutions for all three parts of this assessment to be submitted via assessment submission link in the LMS for the unit. — End of FNSACC311 + FNSACC312 Assessment —
