Reference no: EM132743807

FNSACC311 Process financial transactions and extract interim reports - Tafe Queensland

Task 1 - Practical exercise

Complete the following tasks:

a) Process transactions
Refer to the list of transactions at Appendix C. You are required to process these transactions in accordance with the policies and procedures of the organisation.
(Tip: Go through each of the transactions and determine if it is a Cash Receipt (CRJ), Cash Payment (CPJ), Sales Journal (SJ), Purchases Journal (PJ) or General Journal (GJ).
As part of the processing you will be required to carry out the following tasks:

i) Prepare all journals (PJ, SJ, CRJ, CPJ and one GJ) for the transactions listed (enter into the Templates provided - spreadsheet tab named "Journals"). Remember to enter relevant transactions into the Accounts Receivable and Accounts Payable Subsidiary Ledgers as well. Note that you must not process a General Journal for every transaction, only transaction 16.

ii) Using the spreadsheet tab named "Source Docs" prepare Purchase Orders, Delivery Dockets, Invoices, Adjustment Notes, Receipts, Statements, cheques, cheque requisitions and Remittance Advices as requested (These items are in Appendix C and are in bold and indicated as "prepare")

iii) Prepare the banking summary for the 18/6/18 (enter into the Templates provided - spreadsheet tab named "Banking & Bank Rec")

b) Ensure that all required entries have been made to the Accounts Receivable and Accounts Payable Subsidiary ledgers. Complete the Accounts Receivable and Accounts Payable reconciliations for 30 June 2018 showing the aged accounts (enter into the Templates provided - spreadsheet tab named "Acc Rec & Pble").

Note: At this stage you will not have the General Ledger account balance for Accounts Receivable or Accounts Payable so the reconciliation is not yet complete.

c) Detail actions required for the outstanding Debtors and Creditors per Policies & Procedures Manual (enter into the Templates provided - spreadsheet tab named "Acc Rec & Pble")

Task 2 - Theory

Provide brief answers to the following questions.

1. Identify three typical errors that could occur while processing financial transactions?

Incorrect debtor account, incorrect allocation account, incorrect amount

2. Explain the difference between bad and doubtful debts.

Allowance for doubtful debts account is created to reflect the amount of debts that are expected to be uncollectable, which is a negative asset account. The allowance is deducted from the accounts receivable and this reduces account receivable to its estimated realisable value.
Bad debt will occur when the account receivable is uncollectable, the owner or manager will write off the debt for bankruptcy, untraceable or the debt being too small to be worthwhile pursing. When accounts receivable becomes uncollectable it is no longer an Asset.

3. Explain three advantages of using computer software eg. Excel, when preparing Aged Debtors and Aged Creditors reports. What are the features that assist in the preparation of these Reports?

Time, once the spreadsheet is made we can use the spreadsheet all the time.
Computerized report, it is more clear than hand written.
Minimize errors, less calculation error.

It ensures control over accounting work and records.
Easy access and reference of accounting information is possible.
This system is highly secured and the data and information can be kept confidential, when compared to manual accounting system.

4. What are three advantages in using a computerised accounting system?

Automated invoices, credit notes and receipts
Real-time financial information as computerized systems are synchronised with online bank accounts.
Reduce time and money, complex calculations can be done quicker and you do not need someone to manually do the work.

5. Research the Australian Competition and Consumer Commission's "Debt Collection Guideline". Explain what an organisation's obligations are under Privacy Law when making contact with a debtor?

When making direct contact, your first task must always be to ensure the person you are dealing with is the debtor. This must be done every time you make contact before you divulge any information about the debt, the process for its recovery or before providing any other confidential information. Having established the debtor's identity, you should then identify who you are, who you work for and explain the purpose of the contact. When you make initial contact, you should also provide the debtor with basic information about the debt, including the name of the creditor and any assignee of the debt, details of the account and the amount claimed

6. What system of organisation would you recommend to a business for filing supplier invoices? Give reasons for your choice.

Accrual accounting system, purchases are recognised when the expense is incurred. Accrual systems assist management of debtors as the accounting system will report on customers that have outstanding accounts. Supplier invoices are also entered, making management of accounts payable more streamlined.

7. List five pieces of office equipment, software or consumables you might use in preparing financial records?

Computer, Myob, excel, printer, scanner/copier

8.
a) Identity the 3 errors in the current asset section of the balance sheet below.
There are 2 Inventories, Drawings is not a current Asset, The Total is wrong
b) Correct the errors.
c) Who should the error be reported to? Refer to the Extract from Gold Catering Policies and Procedures.

It should be reported to S Golden

9. Outline the Filing Procedures for Bank Statements and invoices per the Extract from Gold Catering Policies and Procedures Manual, to meet audit requirements.
Paper supplier tax invoices should be filed in alphabetical order in lever arch folders. Electronic invoices should be filed in each supplier's folder in the Accounts folder on the D drive, and paper bank statement should be filed in date order with all Bank reconciliation reports, electronic statements should be filed in the banking folder in the accounts folder on the D drive.

10. What type of Accounting System does Gold Catering use? (Refer to Extract from Gold Catering Policies and Procedures Manual)
Accrual accounting system
 
11. Reconcile the below statement to the Subsidiary Ledger account (in your spreadsheet file).

12. If there are any discrepancies in the statement in Question 11, who are they reported to (per the Policies and Procedures Manual)?

Any discrepancies should be reviewed by S Golden

Task 3 - Oral communication

This task requires you to undertake 2 role-plays: during your role-plays you must demonstrate your oral communication skills to communicate professionally with a range of personnel and to follow organisational guidelines with regards to debt collection processes and authorisations required.

Role-play 1: conversation with a debtor regarding overdue debt.
Role-play 2: feedback to the Accountant on the discussions and agreements reached with the debtor and responses to some questions the Accountant asks you.

Both role-plays must be done in class.

a) Role-Play 1

You will play the role of the Bookkeeper for Gold Catering, following the Organisational Procedures and using the information provided and the financial reports produced in Task 1 of this Assessment.

You will be contacting the manager of First Class Functions, (role-played by a friend/peer or relative) to discuss their debts and negotiate payment.

In reference to the information provided and the financial reports developed in Assessment Task 1, you are required to discuss the following with the manager:

• Introduce yourself and your role and responsibilities in this conversation
• Identify and confirm the identity of the person to whom you are talking
• Identify the date and amount of the invoice that remains unpaid
• Identify debt collection procedures of Gold Catering
• The manager of First Class Functions (your friend/peer or relative) must ask you if it is an option for them to enter into a long term payment plan. Follow organisational guidelines when providing your response to this question.
• Negotiate with the manager payment date and method
• Answer any questions from the manager with reference to work role responsibility, financial reporting and organisational procedures
• Confirm that the manager and yourself are clear on the decisions made to make the payment
• Confirm with the manager that the payment plan still has to be approved.
• Negotiate follow up dates and actions to confirm debts have been cleared as negotiated, and if not, consequences for non-payment and further action to be taken.
• Thank the manager for their attention to the issues as discussed
• End the conversation but keep the communication line open

b) Role-play 2

You will be reporting to the Accountant to discuss the outcome of your conversation with the Manager of First Class Functions (the debtor).

• At the start of the conversation, provide a summary of your discussion with the debtor.
• Answer these three questions posed by the Accountant during your conversation:

Question 1: Identify one legal procedure you have followed in this scenario

Question 2: Identify one Industry Standard that you are abiding by in this scenario

Question 3: Identify one organisational procedure you followed in this scenario.

Attachment:- Process financial transactions.rar