FNSACC301: Financial Transactions & Interim Reports - Sydney College

This document presents a comprehensive solution to an accounting assignment focusing on financial transactions and interim reports, likely for the FNSACC301 course. The assignment covers a range of topics including source documents, cash handling procedures, GST compliance, internal ...Read More

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

1
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

2
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:

3
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.

4
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:

5
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.

6
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.

7
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

8
ACCOUNTING ASSIGNMENT 1
00
Total price inclusive of GST 1,254.00
Answer 2:
Dat
e
Assets Liabilities Owner
s'
Equity
Premis
es
Bank Plant and
machinery
Inventor
y
Motor
vehicle
Lapto
p
Bank
loan
Accounts
payable
1 150000 20000 15000 10000 50000 8000 137000
2 (5000) 5000
4 (2000) (2000)
9 10000 10000
13 6000 6000
16 (900) 900
19 (1000
0)
(1000
0)
21 (1500) (1500)

9
ACCOUNTING ASSIGNMENT 1
22 5000 (3500) 1500
30 (2500) (2500)
Answer 3:
Journal entries:
Date Account titles Folio Debit ($) Credit
($)
April, 2016
1 Cash 30,000.
00
Owner's capital 30,000.
00
(being cash introduced in the business)
2 Office equipment 1,000.
00

10
ACCOUNTING ASSIGNMENT 1
GST 100.
00
Accounts payable -Quick Office Equipment 1,100.
00
(Being office equipment purchased)
3 Inventory 6,600.
00
GST (6600 x10%) 660.
00
Cash 7,260.
00
(Being inventory purchased)
7 Cash 6,050.
00

11
ACCOUNTING ASSIGNMENT 1
Sales 5,500.
00
GST 550.
00
(Being sales affected)
Profit and loss account 3,500.
00
Inventories 3,500.
00
(Being inventories used for sale)
Sales 5,500.
00
Profit and loss account 5,500.
00

12
ACCOUNTING ASSIGNMENT 1
(Being sales recorded in the profit and loss account)
8 Accounts receivable- Accurate
Limited
2,860.
00
Sales 2,600.
00
GST 260.
00
(Being sales affected)
Profit and loss account 1,800.
00
Inventories 1,800.
00
(Being inventories used for sale)
Sales 2,600.

13
ACCOUNTING ASSIGNMENT 1
00
Profit and loss account 2,600.
00
(Being sales recorded in the profit and loss account)
9 Rent 1,500.
00
GST 150.
00
Cash 1,650.
00
(Being rent paid)
14 Cash 1,980.
00
Sales 1,800.
00
GST 180.
00
(Being sales affected)

14
ACCOUNTING ASSIGNMENT 1
Profit and loss account 1,200.
00
Inventories 1,200.
00
(Being inventories used for sale)
Sales 1,800.
00
Profit and loss account 1,800.
00
(Being sales recorded in the profit and loss account)
15 Inventory 2,000.
00
GST (2000 x10%) 200.
00
Accounts payable -Prompt Services 2,200.
00
(Being inventory purchased)

15
ACCOUNTING ASSIGNMENT 1
17 Cash 33,000.
00
Bank loan 33,000.
00
(Being money borrowed for business purpose)
21 Owner's capital 2,900.
00
Bank 2,900.
00
(Being cash used for personal expenses of the owner)
29 Accounts payable -Prompt Services 2,200.
00
Cash 2,200.
00
(Being cash paid)
30 Bank 2,860.

16
ACCOUNTING ASSIGNMENT 1
00
Accounts receivable- Accurate Limited 2,860.
00
(Being cheque received)
Ledgers:
Cash
Date Particular
s
Fol $ Date Particulars Fol $
April,
2016
April,
2016
1 Owner's
capital
30000 3 Inventory 6600
7 Sales 5500 3 GST 660

17
ACCOUNTING ASSIGNMENT 1
GST 550 9 Rent 1500
14 Sales 1800 9 GST 150
GST 180 17 Owner's
capital
2900
17 Bank Loan 33000 29 Accounts
payable-
Prompt
Supplies
2200
Balance
c/d
57020
71030 71030
Inventory
Date Particulars Fol $ Date Particulars Fol $

18
ACCOUNTING ASSIGNMENT 1
April,
2016
April,
2016
3 Cash 6600 7 Profit and
loss
account
3500
15 Accounts
payable -
Prompt
2000 8 Profit and
loss
account
1800
14 Profit and
loss
account
1200
Balance
c/d
2100
8600 8600

19
ACCOUNTING ASSIGNMENT 1
Owner's capital
Date Particular
s
Fol $ Date Particulars Fol $
April,
2016
April,
2016
21 Cash 2900 1 Cash 30000
Balance
c/d
27100
30000 30000
GST
Date Particulars Fol $ Date Particulars Fol $
April,
2016
April,
2016
3 Cash 660 7 Cash 550

20
ACCOUNTING ASSIGNMENT 1
9 Cash 150 8 Accounts
receivable
-Accurate
Limited
260
15 Accounts
payable -
Prompt
200 Cash 180
2 Accounts
payable --
Quick
Office
equipment
100
14 Cash 180 Balance
c/d
300
1290 1290
Office equipment
Date Particular
s
Fol $ Date Particular
s
Fol $
April, April,

21
ACCOUNTING ASSIGNMENT 1
2016 2016
2 Accounts
payable -
Quick
Office
Equipment
1000
Balance
c/d
1000
1000 1000
Sales
Date Particulars Fol $ Date Particulars Fol $
April,
2016
April,
2016
7 Cash 5500
8 Accounts
receivable
-Accurate
Limited
2600

22
ACCOUNTING ASSIGNMENT 1
14 Cash 1800
Balance
c/d
9900
9900 9900
Accounts payable -Quick Office
Equipment
Date Particular
s
Fol $ Date Particulars Fol $
April,
2016
April,
2016
2 Office 1000

23
ACCOUNTING ASSIGNMENT 1
equipment
Balance
c/d
1100 GST 100
1100 1100
Rent
Date Particular
s
Fol $ Date Particulars Fol $
April,
2016
April,
2016
9 Cash 1500 Balance
c/d
1500
Accounts payable-Prompt services
Date Particulars Fol $ Date Particular
s
Fol $

24
ACCOUNTING ASSIGNMENT 1
April,
2016
April,
2016
29 Cash 2200 2 Inventory 2000
GST 200
2200 2200
Bank Loan
Date Particular
s
Fol $ Date Particulars Fol $
April,
2016
April,
2016
17 Cash 33000
Balance
c/d
33000

25
ACCOUNTING ASSIGNMENT 1
Bank
Date Particulars Fol $ Date Particulars Fol $
April,
2016
April,
2016
30 Accounts
Receivable-
Accurate
Limited
2860
Balance
c/d
2860
2860 2860
Accounts Receivable- Accurate Limited
Date Particular
s
Fol $ Date Particulars Fol $
April,
2016
April,
2016
8 Sales 2600
GST 260 30 Bank 2860

26
ACCOUNTING ASSIGNMENT 1
2860 2860
Trial Balance of Jacob as on 30th April, 2016:
Trial balance
Account titles Debit ($) Credit ($)
Cash 57,020.00
Inventory 2,100.00
Owner's capital 27,100.
00
Sales 9,900.
00
GST 300.00
Office equipment 1,000.00
Rent 1,500.00
Accounts payable -Quick Office
Equipment
1,100.
00
Bank loan 33,000.

27
ACCOUNTING ASSIGNMENT 1
00
Bank 2,860.00
Suspense 6,320.00
Total 71,100.00 71,100.
00
Answer 4:
Trial Balance Write correct balances here
Account Debit Credit Debit Credit
Drawings 12,000.0
0
12,000.00
Bank Loan 11
,000.00
11,000.0
0
Office equipment 19
,500.00
19,500.00
Interest paid
820.00
820.00

28
ACCOUNTING ASSIGNMENT 1
Accounts receivable 36,330.0
0
34,330.00
Bank 21
,100.00
23,100.00
Accounts payable 11
,200.00
9,200.0
0
GST Collected/Payable 3
,700.00
3,700.0
0
Insurance 1
,200.00
1,200.00
Capital 50,000.0
0
50,000.0
0
Computer equipment 5
,200.00
5,200.00
Sales 448
,000.00
448,000.00
Advertising 4
,800.00
4,800.00

29
ACCOUNTING ASSIGNMENT 1
Cost of goods sold 336,000.00 336,000.00
Wages 42
,400.00
47,200.00
Rent 12
,000.00
12,000.00
Bad debts 500.0
0
500.00
Bank fees 150.0
0
150.00
Inventory 27
,500.00
27,500.00
607
,420.00
434,980.00 428,150.00 521,900.00
Answer 5:
Part a:
Date Transaction details Source
Documents
Amount Inc
GST
Journal
??

30
ACCOUNTING ASSIGNMENT 1
Mar 01 R. Stirling commenced a
building supply business by
depositing cash in the bank
Memo 30,000 Cash
receipts
02 Purchased fixtures & fittings
for cash
Chq 0001 6,600 √ Cash
payments
02 Paid rent on shop premises Chq 0002 1,100 √ Cash
payments
05 Purchased stock on Credit
– B Jones
Invoice 47 2,200 √ Purchase
distribution
06 Sold goods for cash Cash 770 √ Sales
distribution
06 Credit sales to E. Johnson Invoice 11 1,100 √ Sales
distribution
09 Paid wages Chq 0003 650 Cash
payments
09 Sold goods to F Black Invoice 12 704 √ Sales
distribution
10 Cash sales Cash 2,750 √ Sales
distribution
13 Paid television advertising Chq 0004 2,420 √ Cash
payments
14 Cash sales Cash 1,320 √ Sales
distribution
14 Sales to E. Thomson Invoice 13 550 √ Sales
distribution
16 Sales to D Brown Invoice 14 825 √ Sales
distribution
16 Purchases from P.
Plummer
Invoice 687 792 √ Purchase
distribution
17 Cash purchases Chq 0005 1,650 √ Purchase
distribution
17 Paid wages Chq 0006 450 Cash
payments
21 Cash purchases Chq 0007 1,265 √ Purchase
distribution
21 Cash sales Cash 2,200 √ Sales
distribution
25 Credit sales to E. Green Invoice 15 880 √ Sales
distribution
27 Received cash from F Black
for payment of account in
full
Receipt 01 704 Cash
receipts
28 Paid bank interest Chq 0008 250 Cash
payments

31
ACCOUNTING ASSIGNMENT 1
Part b:
Cash receipts journals
Date Account titles Debit ($) Credit ($)
March
1 Cash 30,000.
00
Owner’s capital 30,000.
00
27 Cash 704.
00
Accounts receivable 704.
00
30,704.
00
30,704.
00
Cash payments
Date Account titles Debit Credit

32
ACCOUNTING ASSIGNMENT 1
($) ($)
Marc
h
2 Fixture and fittings 6,600.
00
Cash 6,600.
00
2 Rent 1,100.
00
Cash 1,100.
00
9 Wages 650.
00
Cash 650.
00
13 Advertisement expenditures 2,420.
00
Cash 2,420.

33
ACCOUNTING ASSIGNMENT 1
00
17 Wages 450.
00
Cash 450.
00
28 Bank interests 250.
00
Cash 250.
00
Purchase distribution
Date Account titles Debit ($) Credit
($)
Marc
h
5 Purchases 2,200.
00
Accounts payable 2,200.

34
ACCOUNTING ASSIGNMENT 1
00
16 Purchases 792
.00
Accounts payable 792
.00
17 Purchases 1,650.
00
Cash 1,650.
00
21 Purchases 1,265.
00
Cash 1,265.
00
5,907.
00
5,907.
00
Sales distribution

35
ACCOUNTING ASSIGNMENT 1
Date Account titles Debit ($) Credit ($)
March
6 Cash 770.0
0
Sales 770.
00
6 Accounts receivable 1,100.0
0
Sales 1,100.
00
9 Accounts receivable 704.0
0
Sales 704.
00
10 Cash 2,750.0
0
Sales 2,750.
00

36
ACCOUNTING ASSIGNMENT 1
14 Cash 1,320.0
0
Sales 1,320.
00
14 Accounts receivable 550.0
0
Sales 550.
00
16 Accounts receivable 825.0
0
Sales 825.
00
21 Cash 2,200.0
0
Sales 2,200.
00
25 Accounts receivable 880.0

37
ACCOUNTING ASSIGNMENT 1
0
Sales 880.
00
11,099.0
0
11,099.
00
Answer 6:
Journal entries of Bright Ltd.
Date Particulars Debit ($) Credit ($)
Bad debt (1650 x10/11) 1,50
0.00
GST 15
0.00
Accounts receivable- Shade Supplies 1,65
0.00
(Being bad debt recognized)
Cash 11,00
0.00

38
ACCOUNTING ASSIGNMENT 1
Motor vehicle (11000 x 10/11) 10,00
0.00
GST 1,00
0.00
(Being motor vehicle sold)
Owner's capital / Drawings 1,00
0.00
Lap top 1,00
0.00
(being lap top taken for personal use)
Accounts receivable - Sunny Pty Ltd. 66
0.00
Bank 66
0.00
(Being the cheque received dishonoured)
Motor vehicle 25,00
0.00

39
ACCOUNTING ASSIGNMENT 1
GST (25000 x 10%) 2,50
0.00
Sydney Cars Ltd 27,50
0.00
(Being motor vehicle purchased)
Cash 50,00
0.00
Owner's capital 50,00
0.00
(Being additional capital introduced)
Answer 7:
$ $
Credit balance as per bank statement 25,037.
80
Add: Direct debit 3,330.00
Bank charges 50.00

40
ACCOUNTING ASSIGNMENT 1
Cheque dishonoured (176+20) 196.00
Direct debit -Optus 384.00
3,960
.00
28,997.
80
Less: Unresented cheques 351.00
Interest credited 23.70
Receipts on 30th December yet to recorded in bank statements 1,300.00
1,674.70
Debit balance as per cash book 27,323.
10
Answer 8:
Petty Cash Book of Durable Pty ltd.
Receip
ts
Date Vouch
er No.
Details Paymen
ts
Trav
el
Postag
e
Statione
ry
Sundri
es
GS
T

41
ACCOUNTING ASSIGNMENT 1
Paid
150 31-
03-16
Cheque
no. 536
01-
04-16
203 Tax fare 34 30.9 3.1
03-
04-16
204 Coffee 15 13.65 1.35
04-
04-16
205 Stamps 45 40.9 4.1
06-
04-16
206 Pens 4.5 4.1 0.4
08-
04-16
207 Biscuits 8.35 7.6 0.75
11-
04-16
208 Newspap
er
3.5 3.18 0.32
14-
04-16
209 Tax fare 23 20.9 2.1
133.35 51.8 40.9 7.28 21.25 12.1
2

42
ACCOUNTING ASSIGNMENT 1
Balance
C/D
16.65
Reimbursement

43
ACCOUNTING ASSIGNMENT 1
References:
Hoyle, J. B., Schaefer, T., & Doupnik, T. (2015). Advanced accounting. McGraw Hill.
Libby, R. (2017). Accounting and human information processing. In The Routledge Companion
to Behavioural Accounting Research (pp. 42-54). Routledge.
Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues, concepts
and practice. Routledge.