FNSACC301: Financial Transactions and Reporting Homework Assignment

This document contains a completed homework assignment for the FNSACC301 unit, focusing on processing financial transactions and extracting interim reports. The assignment covers essential elements such as checking and verifying supporting documentation, preparing and processing banking and petty cash documents, preparing and processing invoices, preparing and posting journals, posting journals to the ledger, entering data into the system, preparing deposit facilities, and extracting trial balances and interim reports. The student provides detailed answers to knowledge-based questions, including the importance of filing invoices, examples of special transactions with journal entries, the concept of proof of lodgement, security and safety precautions, types of source documents, common financial transaction errors, security procedures for handling cash and cheques, and the main types of business reports. The assignment also includes a practical activity where the student acts as an Accounts Assistant and prepares invoices for a sale. Overall, this assignment demonstrates a strong understanding of financial transaction processing and reporting principles.

PROCESS FINANCIAL
TRANSACTIONS AND EXTRACT
INTERIM REPORTS
FNSACC301: Assessment Tasks
Q1.
Q2.
Q3. ASSESSMENT COVER
SHEET
Q4.
Unit Name Process Financial
Transactions and
Extract Interim
Reports
Company Name of
students workplace
Training Location
Assessors Name
Result code: COM
– Competent NYC – Not Yet
Competent CT – Credit
Transfer RPL – Recognition
Prior Learning

Assessment Result
Assessor’s Feedback
Method: Assessment methods
used:
 Q - Questions
 A – practical
activities
 P - Project
I agree that the purpose and
consequences of the
assessment(s) have been
explained and I have received all
the relevant tools and resources
necessary to undertake
assessment, being fully aware of
Upskilled’s assessment, complaint
and appeal processes, and I
believe that I am ready for
assessment.
I acknowledge and agree that
recorded activities have been
conducted on specified dates and
the assessment process was
carried out fairly, with integrity,
professionally with appropriate
feedback during and after the
assessment.
A Note on Presenting Assessment Tasks.
Provide your answers in the space given, if you need to attach a separate file (e.g. word doc/ppt slides), submit it on
your student portal with appropriate file name.
Q5. ELEMENTS AND
PERFORMANCE CRITERIA
FNSACC301 Process financial transactions and extract
interim reports
ELEMENT PERFORMANCE CRITERIA
Elements describe the
essential outcomes.
Performance criteria describe the performance needed to
demonstrate achievement of the element.
1. Check and verify
supporting documentation
1.1 Identify, check and record information from documents
1.2 Examine supporting documentation to establish accuracy and
completeness and to ensure authorisation by appropriate personnel

2. Prepare and process
banking and petty cash
documents
2.1 Enter accurately and balance deposits and withdrawals
according to organisational procedures
2.2 Check cheques and card vouchers for validity before processing
2.3 Reconcile banking documentation with organisation’s financial
records
2.4 Check, process and record petty cash claims and vouchers, and
balance petty cash book according to organisational procedures
3. Prepare and process
invoices for payment to
creditors and for debtors
3.1 Prepare invoices in accordance with organisational procedures
3.2 Check invoices against source documents for accuracy and
correct any errors
3.3 File all invoices and related documents for auditing purposes
4. Prepare and post
journals and batch
monetary items
4.1 Prepare journals accurately and completely, and batch items
within organisational timelines
4.2 Match batch items precisely to initial receipt records
4.3 Ensure journals are authorised by appropriate person and
process in accordance with organisational policy and procedures
5. Post journals to ledger 5.1 Post journals accurately to ledger in accordance with
organisational input standards, with transactions correctly allocated
to system and accounts
6. Enter data into system 6.1 Enter data accurately into system in accordance with
organisational input standards and correctly allocate transactions to
system and accounts
6.2 Update related systems to maintain integrity of relationships
between financial systems
7. Prepare deposit facility
and lodge flows
7.1 Select deposit facility appropriate to banking method to be used
7.2 Balance batch with deposit facility without error
7.3 Take security and safety precautions appropriate to method of
banking, in accordance with organisational policy and industry and
legislative requirements

7.4 Obtain and file proof of lodgement so that it is easily accessible
and traceable
8. Extract trial balance and
interim reports
8.1 Process accurately any special transactions
8.2 Complete cash and credit journals and post to general ledger
8.3 Extract and check trial balance and prepare other required
reports
8.4 Find and correct any errors
Note: There is a range of skills, knowledge and critical evidence that must also be demonstrated in order for
you to be deemed competent in this unit of study. You can find more information about this on
www.training.gov.au and typing in the unit number.
Q6.
Q7.
Q8.
Q9.
Q10. ASSESSMENT TASK 1
Knowledge based activities
Using your understanding from the learner guide (and maybe from external research or
previous work experience) please provide responses to the following questions in the
space given below. Refer to the Learner Guide and Additional Resources for information.
1. Why is it important to file all invoices and related documents? Provide an
example of a systematic naming convention of filing documents.
Appropriate maintenance related to source documentation is major and
overlooked factor for ensuring accurate and proper transactions which are posted in
specific accounting system. The systematic naming convention of filing documents
would be performed through SAP software.

2. Provide at least 3 examples of special transactions. For each example show the
journal entry
 Amount of 4500 was paid as rend advance for 2 months.
Prepaid rent ac dr 4500
Cash ac 4500
 Office supply was purchased at cost of 2600 on account
Office supplies ac dr 2600
Account payable ac 2600
 Dividends paid of 800
Dividends ac dr 800
Cash ac 800
3. What is proof of lodgement? How can you obtain it? Describe a method of filing
proof of lodgement to ensure it’s easily accessible and traceable.
While depositing money in bank, cash would be checked through bank teller along with
cheques, detail of credit card for ensuring balance. Generally, teller stamps copy of
specific deposit in form of evidence that deposit is made. The stamped deposit slip is
replicated as proof of lodgement while returning from bank. This proof of lodgement
must be reflected in section of accounts where it will file and checked as well.
4. List at least three security and safety precautions that you take while banking
and preparing deposit facilities.
1. Bank statements must be checked for verifying deposit which is correctly entered
or not.
2. All banking details must be completed on documents.
3. The time of banking should be vary.
4. The person must perform bank deposits accountable for cheques and money.
5. What is a source document? What is the purpose of having a source
document? List at least 5 types of common source document that a
business may use.

It is an original record which consist of details for substantiate transactions where
whole key information about transactions are captured like involved parties, transaction's
substance along with date and paid amount. The main objective during audit as
evidence of specific transaction of business which incurred.
Types:
 Cash Memo
 Receipt
 Cheque
 Vouchers
 Debit Note
6. List at least four typical errors that can be made in processing financial
transactions
 Error of Omission
 Error of Commission
 Error of duplication
 Error of Principle
7. Explain the security procedures for handling cheques, eftpos and cash of your
organisation (If you are not currently working, do an online research and
find any organisation to answer the question).
Cash handling security procedure:
 Supervisors must observe signals of cash theft.
 Store policy is closed to drawer and change must be given.
 Unauthorised person are not permitted behind counter for any reason.
 Cash drawer should not be left open and cash office should be notified during
requirement of cash pick up.
 Cash should be counted through cash office only.
 Security procedure and measure must be not discussed rather than manager.
Cheque transaction procedure
 The name of company must be correctly used and each correction should be
initialled through customer.
 Cheque must be signed in front of supervisor.

 All overseas and interstate cheques should be authorised through telephone.
 Verification of words and figures must match.
 Signature should be verified on cheque match with application of identification.
EFTOPS procedure
 Expiration must be checked
 Verification of correct amount along with approved circle
 Credit card slip must be initiated
 Ensure that customer obtain appropriate copy
8. List the three main types of reports that a business prepares. Outline at least
two items of types of account that must be included in each of the
reports.
 Statement of Profit and Loss: Revenues, Expenditure
 Statement of Cash flows: Operating activities, investing activities
 Statement of financial position: Current Asset and Current liability
9. What is double entry bookkeeping? Describe the difference between cash
accounting and accrual accounting.
Double entry system of bookkeeping or accounting signifies about involvement of two or
more accounts. The differences among accrual and cash accounting is with context of
timing when purchases and sales are recorded in particular accounts. Cash accounting
considers expenses and revenue when cash at hand is altered but accrual accounting
considers earned revenue and expenses when they are not bpaid.
10. Do an online research and identify and describe the key features of
finance/accounting industry codes of practice relevant to the profession.
It is set of enforceable rules which are set for commitments of industry for
delivering certain standard of practice. It is intended for raising standards of industry and
legislative requirements are complemented. Reliability and validity is main feature of
accounting.

11. What is a trial balance? How can you locate an error in a trial balance and
correct it?
Trial balance is replicated as worksheet of bookkeeping where whole balance of
every ledger is combined into credit and debit account column where its aggregate is
always equal. If there is mismatch among total of credit and debit which shows that one
or more transaction posting through journal to ledger is missing or has any other error.
ASSESSMENT TASK 2
Practical activities
You are the Accounts Assistant at OMG Ltd. OMG Ltd sells gym equipment like treadmills,
bikes, cross-trainers etc. You work in their accounts team. Your job role includes
processing financial transactions. Complete the following activities as a part of your daily
job role.
Part 1: Prepare and process invoices
1.1 Sally Mexico comes to your store this morning and enquires about your
treadmills. Sally works for Star Hotel in the city. You sell five treadmills to
Sally. Each of the treadmill costs $1200 plus GST. Sally has paid cash and
now requires a tax invoice.
a. If a customer asks you for a tax invoice, how long do you have to provide one?
At the time of sale Sally must get tax invoice nothing matters even she had paid cash for purchase of
treadmills.
b. Use the template provided below to prepare a tax invoice for Sally Mexico. Some
of the fields are pre-filled for you. Only complete the grey fields.
Tax invoice will be billed to Sally Mexico for $6600.
OMG Pty Ltd
111 Forest Rd, Jungle City
Phone: [phone]
ABN: 666 444 666 44
Tax Invoice #3601210
Date: <18/10>

Bill to:
Sally Mexico
Star Hotel
2525 City Circle, Oceanville
ABN: 111 222 333 444
Payment Terms: Cash or within 5 business days of invoice for online purchase
Item Qty Description Unit Price Total ($)
TDM 5 Treadmills 1200 6000
Subtotal 6000
GST 600
Total 6600
If you have any questions about this invoice, please contact
[e-mail]
Thank you for your business!
1.2 Analyse the following scenarios and highlight the most appropriate answer.
Provide a reason for your answer.
Scenario 1
You have received an invoice from OfficeSolutions for the order that you have
placed last week.
What should you do?
a. Pay them straight away
b. Check the invoice against your purchase order and make sure everything
is as per requirement
c. You don’t take any action. You have other important things to do
d. None of the above
Reason for my answer
B will be correct as there is need to check goods with the invoice and price that
had been fixed at any time of order had been placed.
Scenario 2
You have received 15 notepads and 5 white board markers from
OfficeSolutions. However, you have ordered 15 whiter board markers and 5
notepads.
What should you do?
a. You will contact them straight away and enquire about the mistake.
b. You will double check your purchase order and make sure you have
placed the order correctly before contacting them
c. You will keep them as you may need them in the future.
d. Both A and B
Reason for my answer
D option will be correct answer as there is need to check P.O. First as there can be mistake
than can be done by us and afterwords if you are right than enquire about the mistake done by

office solutions.
Scenario 3
You are not quite sure of some of the requirements of invoicing and filing duties
that you have been assigned by the Finance Manager. You want to ask further
questions. Asking open-ended questions also lets your listener know that you
want to hear more about their story and that you’re not just listening for
information. Provide three open ended questions where you can demonstrate
active listening skills to convey and clarify information and instructions. You
may do further online research to gather more information.
From where to get authorization?
Format of Invoicing?
Access for the Files ?
Part 2 Process petty cash transactions
These are the petty cash vouchers for the month of October.
OMG Petty Cash
Voucher
Number 019
Date 6/10/2015
Paid for Parking
Sum paid 12.10
GST amount 1.10
Supporting Doc Y
Approved by Sales Manager
OMG Petty Cash
Voucher
Number 021
Date 16/10/15
Paid for Milk
Sum paid 6
GST amount 0
Supporting Doc Y
Approved by Office Manager
OMG Petty Cash
Voucher
Number 020
Date 11/10/15
Paid for Stationary
Sum paid 49.50
GST amount 4.50
Supporting Doc N
Approved by Office Manager
OMG Petty Cash
Voucher
Number 022
Date 22/10/15
Paid for Parking
Sum paid 5.50
GST amount 0.5
Supporting Doc N
Approved by Sales Manager

OMG Petty Cash
Voucher
Number 023
Date 24/10/15
Paid for Postage
Sum paid 16.50
GST amount 1.50
Supporting Doc Y
Approved by NIL
OMG Petty Cash
Voucher
Number 024
Date 27/10/15
Paid for Taxi
Sum paid 66
GST amount 6
Supporting Doc Y
Approved by Office Manager
2.1 You are required to complete the checklist below to ensure accuracy and
validity. Provide a comment when the answer is ‘No’. The first one is done
for you.
Insert your response in the table below
OMG Limited: Petty Cash Payment Checklist
Checklist Yes/No Comment
Date Yes
Voucher number Yes
What was paid for Yes
Amount Yes
GST paid (if applicable) Yes
Supporting documentation
(e.g. invoice, card receipt)
No In voucher number no. 20 and 22
Authorisation signature No In postage voucher no. 23
2.2 After going through the checklist, you find some discrepancies.
What should you do? (Highlight the most appropriate option and provide a
reason for your answer)
a. Process the vouchers without checking with anyone.
b. Contact the relevant supervisor to confirm validity and obtain written
approval.
c. You go to the person who provided you the vouchers and get into an
argument.
d. None of the above
Reason for my answer:
Option B is correct as to contacting relevant supervisor will be a great and getting written
approval from them will be a better proof.

2.3 You have resolved the issues. Now you need to prepare the petty cash book.
Complete the table below in order to record the transactions provided
above. The first one is done for you.
Note: On 1 November, a cheque (#456222) was issued to top up the petty cash float.
Original float was $200