Financial Transactions Processing: A Practical Guide

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PROCESS FINANCIAL
TRANSACTIONS
1

Table of Contents
Task 1..............................................................................................................................................3
Task 2..............................................................................................................................................5
Task 3..............................................................................................................................................7
Task 4..............................................................................................................................................9
References.....................................................................................................................................12

2

Task 1
(a)
Radlight Trading
Date Voucher
No.
Particulars Amount Amount
2020 Dr. Cr.
2020 (in $) (in $)
2-Apr
158 Postage A/c
Dr.
38.5
To Cash A/c 38.5
(Being postage expenses paid)
5-Apr
159 Travel expenses A/c
Dr.
45.1
To Cash A/c 45.1
(Being travel expenses paid)
11-Apr
160 Motor vehicle expenses A
Dr.
30.25
To Cash A/c 30.25
(Being motor vehicle expenses paid)
15-Apr
161 Staff amenities A/c
Dr.
29.15
To cash A/c 29.15
(Being expenses paid towards staff
amenities)
18-Apr
162 Office stationey A/c
Dr.
35.2
To cash A/c 35.2
(Being expenses paid towards office
stationery)
22-Apr
163 Postage A/c
Dr.
29.7
To Cash A/c 29.7
(Being postage expenses paid)
(b)
Radlight Trading
Date Voucher
No.
Particulars Amount Amount
2020 Dr. Cr.
3

1-Apr Petty cash A/c Dr. 250
To Cash A/c 250
(Being petty cash float established)
30-
Apr Cash A/c Dr.
42.1
To Petty cash A/c 42.1
(Being petty cash float reimbursed)
4

Task 2
(a)
The given report is the distribution of debtors on the basis of time duration from which the
amount is payable. This will help to classify the debtors so that a fair idea can be gained
therefrom. Proper strategy can be taken accordingly on the basis of such types of tables. Various
types of problems can be managed and resolved there from. Such types of reports can be
modified as per the required changes (Collier, 2015).
(b)
Different procedures have been mentioned for varied types of accounts receivable. Strict
provisions have been made for the recovering the amount from the account receivable. For the
purpose of communication more efforts should be made to promote the written communication
so that proper evidence can be create thereof.
(c)
To
Executive Director
In the case or situation of non-receipt from the amount of trade debtors, several steps can be
taken accordingly. The first and foremost step that can be taken is the realizing the amount from
selling the assets given on security. In this manner, the due amount can be recovered. Another
step involves filing the suit in the name of concerned trade receivable. However, for this purpose
it is required to give due time within which he or she can clear the dues.
From
Operation Manager
(d)
Following documents will be needed to follow up with the Barrow Holdings:
5

Bills and relevant vouchers
Statement explaining date of purchase and purchase return
Debt securitization letter and documents
(e)
Walter Trading
Dat
e Vouche
r No.
Particulars Amoun
t
Amoun
t
202
0
Dr. Cr.
XYZ Ltd A/c Dr. 66
To Purchase A/c 66
XYZ Ltd A/c Dr. 66
To Purchase return A/c 66
(f)
Date:
Payee: XYZ Ltd. Amount: $ 974
Amount in
words: Nine hundred and seventy four
6

Task 3
(a)
Barry's Motors
Invoice No. Date
Sr. No. Quantity Particulars Unit price Amount
Sub total
Add: GST
Total
(b)
Bank
Name: Party name: Date:
I request to kinldy issue me cheque for the amount of $
for the due amount of
Authorised signatory
(c)
Financial item ‘Drawings’ will be shown on the debit side leading to the total amount of $ 97500
on the both sides.
Account Name Dr. Cr.
Capital 56000
Bank 5000
GST Paid 2000
Bad debts recovered 1000
Accounts receivable 60000
GST Collected 5000
Drawings 2000
Interest on loan 5000
Workshop
equipment
20000
Bad debts 1000
Sales 35000
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Discount received 1500
Discount allowed 3500
TOTAL 97500 99500
(d)
Two major accounting principles involved are going concern and mercantile or due basis. It is
generally presumed that these principles have been followed in every type and nature of
accounting transactions (Collis and Hussey, 2013).
(e)
There are different types of accounting errors. Some of these errors affect trial balance while
other do not. Different errors create problems in different manner. Impact of some of the errors
cannot be determined even after serious efforts.
8

Task 4
Date Particulars
Amoun
t
Amoun
t
2020 Dr. Cr.
1-Oct
Cash A/c
Dr.
23100
To GST receivable A/c 2100
to Sales A/c 21000
2-Oct
Purchase A/c
Dr.
5200
GST Payable A/c
Dr.
520
To C. Parsons A/c 5720
3-Oct
C. Parsons A/c
Dr.
275
To Purchase Return A/c 250
To GST Payable A/c 25
5-Oct
Wages A/c
Dr. 3520
To cash A/c 3520
7-Oct
J. Gains A/c
Dr. 15400
To GST receivable A/c 1400
To Sales A/c 14000
8-Oct
C. Parsons A/c
Dr. 4000
To Bank A/c 4000
10-Oct
A Park A/c
Dr. 3960
To GST receivable A/c 360
To Sales A/c 3600
12-Oct
Sales return A/c
Dr. 200
GST Receivable A/c
Dr.
To J.Gains 220
13-Oct
D.Lane A/c
Dr. 100
To interest receivable A/c 100
15-Oct
C. Parsons A/c
Dr. 5455
To Bank A/c 5400
9

To Discount received A/c 55
18-Oct
Drawings A/c
Dr. 1000
To Cash A/c 1000
20-Oct
Purchase A/c
Dr. 4200
GST Payable A/c
Dr. 420
To Trekking Australia A/c 4620
24-Oct
Cash A/c
Dr. 10000
To A Park A/c 10000
25-Oct
Cash A/c
Dr. 11770
Bad debts A/c
Dr. 330
To D. Lane 12100
27-Oct
Accountancy fees A/c
Dr. 1320
GST Payable A/c
Dr. 120
To cash A/c 1440
30-Oct
Computer A/c
Dr. 710
GST Payable A/c
Dr. 71
To cash A/c 781
31-Oct
J. Gains A/c
Dr.
To Cash A/c 4000
To Discount received A/c
Bank A/c
Date Particulars Amount Date Particulars Amount
2020
1-
Oct To Bal B/d 10000 8-Oct By C. Parsons A/c 4000
15-Oct By C. Parsons A/c 5400
By Balance c/d 600
TOTAL 10000 10000
A Park A/c
Date Particulars Amoun Date Particulars Amoun
10

t t
2020
1-
Oct To Bal B/d 14000
24-
Oct By Cash A/c 10000
10-
Oct
To GST Receivable
A/c 360
10-
Oct To Sales A/c 3600
By Balance
c/d 7960
TOTAL 17960 17960
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References
 Brief, R.P., and Peasnell, K.V., 2013. Clean Surplus: A link between accounting and finance.
Routledge.
 Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for
decision making. John Wiley & Sons.
 Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and
postgraduate students. Palgrave macmillan.
 Gillett, P.R., 2016. Accounting Information Systems. John Wiley & Sons, Incorporated.
 Guga, E., & Musa, O., 2015. Inventory management through EOQ model. International
Journal of Economics, Commerce, and Management.
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