Accounting Assignment 1 - Desklib

Running head: ACCOUNTING ASSIGNMENT 1
Accounting Assignment 1
Name of the Student:
Name of the University:
Authors Note:

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ACCOUNTING ASSIGNMENT 1
Contents
Task 1:.............................................................................................................................................2
Task 2:.............................................................................................................................................7
Answer 1:.....................................................................................................................................7
Answer 2:.....................................................................................................................................8
Answer 3:.....................................................................................................................................9
Answer 4:...................................................................................................................................27
Answer 5:...................................................................................................................................30
Answer 6:...................................................................................................................................38
Answer 7:...................................................................................................................................41
Answer 8:...................................................................................................................................42
References:....................................................................................................................................44

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ACCOUNTING ASSIGNMENT 1
Task 1:
Answer 1:
An original record from which the accounting entries are recorded in the books of accounts or in
accounting system can be described as a source document. For example supplier’s invoice is the
source document for recording purchase entries in the books of accounts of an organization.
Answer 2:
An employee should follow the following procedures:
I. The employee should be fully aware of the amount of money that he is about to deposit.
II. He should take full precautions to ensure there is no risk of misplacing the cash in the bank
while depositing.
III. Immediately after depositing the cash into the bank the employee should take the deposit
receipt from the bank.
IV. The employee should take a bank statement to check that the amount deposited is showing in
the bank statement properly (Hoyle, Schaefer & Doupnik, 2015).
Answer 3:
I. The documents should be complete from all aspects.
II. All fields in the document should be correctly filled.
III. The filing should be made as per the requirements of respective legislation.
Answer 4:
The clerical officer shall be asked to submit the cash deposit receipt of the bank to the office
immediately after depositing the money into the bank. Duly stamped deposit receipt from the
bank is a possible proof of lodgements.
Answer 5:

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ACCOUNTING ASSIGNMENT 1
MYOB is a popular accounting software in the country. Auditing the records of the company is
one of the ways to be used to evaluate whether the data has been correctly recorded in the
accounting software in an organization. There is a separate currency tab in the software that shall
be clicked to ensure selection of appropriate currency in the software. The key purpose of
accounting reporting are as following:
 To keep record of all financial transactions properly.
 To report the financial performance and position of an organization.
 To provide the management with important financial information as and when needed to take
important business decisions.
 To provide the stakeholders of an organization important financial information about the
organization as on a particular date (Schaltegger & Burritt, 2017).
Answer 6:
An organization must have a strong authentication process to ensure there is no fraudulent online
transactions. Use of unique user id and password is a must. In addition the system should have
one time password system that shall be generated and send to the private numbers of the
individuals making payment to ensure there is minimum risk of fraudulent transactions in the
online.
Answer 7:
The supporting documents shall include bills and invoices to support such petty cash
expenditures must be attached with the petty cash vouchers. Generally the cashier is the
responsible person to approve such petty cash claims.
Answer 8:
I. Firstly, the colleague should have deposited the cash overnight even though he had a busy
day.

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ACCOUNTING ASSIGNMENT 1
II. However, even if left the cash in the cash register he should have locked the cash register
properly to ensure no one can take any cash out of the register.
Answer 9:
I. GST registration number of the creditor.
II. ABN must be provided of the supplier.
III. GST amount showing separately in the invoice.
IV. Signature of appropriate persons in the invoice must be there (Libby, 2017).
Answer 10:
In case no ABN has been provided then 49% of the invoice amount must be withheld and the
account payable shall be recorded accordingly.
Answer 11:
There should be CCTV cameras in the cash counter. The cash registers should have proper locks.
Employees other than cashier should not be allowed to enter inside the cash counter without the
permission of the cashier.
Answer 12:
Banking Act 1959 and the Reserve Banking Act 1959 are the main legislations governing
banking activities in Australia. These legislations are important to correctly regulate the banking
industry in the country.
Answer 13:
Daily transactions are processed all at once are described as batch total whereas receipts issued
show the number of transactions occurred during the period from last batch to the current batch.
Answer 14:

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ACCOUNTING ASSIGNMENT 1
Business banking services shall be used to perform business banking procedures.
Answer 15:
The credit information of the customers must stay confidential. There should not be any breach
in internal controls and securities while accepting payments from credit card and debit card of
customers.
Answer 16:
Amount of cash along with denomination of different notes and coins must be maintained
properly and taken in the banks at the time of deposit along with the pass book of the bank
account and cash deposit slips.
Answer 17:
The person should take the stamped deposit receipt from the bank and submit it to the office
properly. The bank statements should be collected and if it is not possible at least the passbook
must be up-dated immediately to check that the deposited amount has been correctly entered in
the pass book.
Answer 18:
The deposit clerk shall be asked to explain the reason for such differences. In addition the
differences must be reconciled immediately.
Answer 19:
I. To ensure that the document contains all details.
II. All details in the documents have been entered correctly.
III. The necessary authorization has been made correctly.

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ACCOUNTING ASSIGNMENT 1
Answer 20:
The invoice must have ABN of the supplier along with GST registration number. The details of
the invoice shall be checked with the purchase order along with inventory register. The amount
showed for different items should be checked to ensure these are correctly calculated in the
invoice. The amount of GST must be correctly calculated in the invoice.
Answer 21:
I. Entering wrong amounts.
II. Classification errors.
Answer 22:
I. Stamped deposit receipts from bank.
II. Up-to-dated bank statements.
III. Up-to-dated pass book of appropriate bank accounts.
IV. Intimation from banks.
Answer 23:
I. Sales transactions.
II. Purchase transactions.
III. Contract transactions.
Answer 24:
An appropriate person shall be given the responsibility of handling cash, cheque and vouchers.
The vouchers must be processed only after checking proper authorization in the vouchers.
Answer 25:
I. Relevant.
II. Comparability.

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ACCOUNTING ASSIGNMENT 1
Task 2:
Answer 1:
Tax invoice
Robin’s Landscaping Services 277 Kent Street, Sydney 2000
ABN 12 345 678 910
Dated: 19 November, 2012
To: Mascot Pty Ltd
19 Rodrigo Road
Mascot NSW 2017
ABN 16 987 653 21
Description of services Quantity Rate ($) Amount ($)
Ride on Mower grass cut 6 Hours 77.
00
462.00
Weeding services 2 Hours 66.
00
132.00
Whipper snipping services 5 Hours 22.
00
110.00
Rubbish removal 5 Loads 110. 550.00