Property Trust Accounting: Cash Book, Ledger, and Trial Balance

This assignment solution addresses a practical trust accounting task based on provided details from Granville Realty. The task requires the correct completion of a Trust Cash Book, Trust Ledger, and Trust Trial Balance as of June 30, 2019. The solution adheres to the Property, Stock and Business Agents Act 2002, the 2003 Regulation, and the Amendment Regulation. The assignment includes recording transactions, such as deposits from clients, payment of expenses, and commission calculations. It involves the use of receipt and cheque numbers, and the accurate posting of transactions to the Trust Cash Book and individual ledger accounts. The solution presents the completed Cash Book, Ledger, and Trial Balance, demonstrating a clear understanding of trust accounting principles and the ability to apply them within the given regulatory framework. The final trial balance is balanced, showing all debit and credit amounts equal, representing the correct financial position of the trust account at the end of the period.

Written Task Assessment 1 Class Test (C) Satisfactory (S)
Unsatisfactory (US)
Marking Guide Assessor use
only
Question 1
Using the following Trust Cash Book details provided by Granville Realty, you are
required to correctly complete the:
 Trust Cash Book
 Trust Ledger
 Trust Trial Balance as at 30th June, 2019.
Use the cash book and ledgers supplied in this paper to complete this task
S
 US

Students should note the following:
 The Trust Ledger and Trust Trial Balance are to be completed so as to comply
with the Property, Stock and Business Agents Act 2002, the 2003 Regulation
and the Amendment Regulation under the Act.
 The next Trust Receipt Number to be issued is Number 101 and the next
Trust Cheque Number is Number 401.
 All trust receipts and payments are by cheque unless otherwise stated.
 All transactions are GST free unless stated.
 The accounts in the Trust Ledger had the following balances as at 1st June,
2019.
100 Trust Account $24,850 Debit
110 Webster to Miller (deposit) $12,000 Credit
200 Rental Bond Suspense $ 12,850 Credit
Comments
June 2019
4th Received $44,000 from J Burns being a deposit on a property
owned by R Walters.
11th Paid Motor Vehicle expenses $1,800
16th Received $230,000 deposit from R Steward for a commercial
property owned by D Best. Both parties agreed for this amount
to be deposited in an interest being account with the Westpac
Bank until settlement takes place, at which time interest earned
thereon is to be shared equally between the two parties. The
cheque was cleared and invested on this day.
18th Obtained a new tenant S Jeffreys, for a property owned by L
Lewis. Weekly rent payable is $360. The tenant paid cash,
representing $720 rent, and $1,440 for the bond.
24th Received 2 weeks rent from S Jeffreys

Paid sales staff their wages and bonuses. The total amounted to
$4,800.
25th The sale M Webster and H Miller was settled and the balance of
the deposit forwarded to the vendor’s solicitor after deducting
sales commission of $5,600.
Paid the Rental Bond Board all outstanding money
26th Mr T Wong transferred $280,000 from his bank in China to
Granville Realty , being a deposit on a property owned by Mr J
Bloomfield.
28th Settled the sale, R Steward and Best. The initial investment plus
interest earned of $960 was banked in the Trust Account.
Commission was $4,800.

TRUST CASH BOOK - RECEIPTS
Receipt Side TC1
DATE REC.
NO.
TYPE RECEIVED
FROM
ON ACCOUNT OF L.F. TRANS-
ACTION
AMOUNT BANK
4th
June
101 J Burns R Walters 44,000
16th
June
102 R Steward D Best 230,000
18th
June
103 S Jeffreys L Lewis 720
18th
June
104 S Jeffreys 1440
24th
June
105 S Jeffreys L Lewis 720
25th
June
106 M Webster
and H Miller
sales commission 5,600
26th
June
107 Mr T Wong Mr J Bloomfield 280,000
28th
June
108 Westpac
Bank
Interest 960
28th
June
109 R Steward
and Best
Commission 4,800
Total 2160 566080

TRUST CASH BOOK - PAYMENTS
Payment Side TC1
DATE CHQ
NO.
PAYEE ON ACCOUNT OF L.F. TRANSACTION BANK
11th
June
401 Motor Vehicle expenses 1800
24th
June
402 Sales staff their wages
and bonuses
4,800
Total 6600
LEDGER ACCOUNT NAME: ACCOUNT NUMBER: 100
Trust Account
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
1st
June
Opening Balance 24,850 24850
4th
June
J Burns 44,000 68,850
11th
June
Motor Vehicle expenses 1,800 67,050
16th
June
R Steward 230,000 297,050
18th
June
S Jeffreys 2160
299,210
24th
June
S Jeffreys 720
299,930
24th
June
Wages and bonuses 4,800 295,130
25th
June
M Webster and H Miller 5,600 300,730
26th
June
T Wong 280,000 580,730
28th
June
R Steward and Best 5760 586,490
LEDGER ACCOUNT NAME: ACCOUNT NUMBER: 110
Webster to Miller
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $

Opening balance 12,000 12000
LEDGER
ACCOUNT
NAME: Wages
and bonuses
ACCOUNT
NUMBER:
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $
24th June Trust Account 4800 4800
LEDGER ACCOUNT NAME: ACCOUNT NUMBER: 200
Rental Bond Suspense
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $
Opening Balance 12,850 12,850
LEDGER ACCOUNT NAME: ACCOUNT NUMBER
J Burns
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $
4th June Trust Account 44,000 44,000
LEDGER ACCOUNT NAME: ACCOUNT NUMBER
Motor Vehicle
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $
11th
June
Trust Account 1,800 1,800
LEDGER ACCOUNT NAME: ACCOUNT NUMBER
R Steward
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE

$ $ $
16th
June
Trust Account 230,000 230,000
28th
June
Interest 960 230960
LEDGER ACCOUNT NAME: ACCOUNT NUMBER
S Jeffreys
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $
18th
June
Trust Account 2160 2160
24th
June
Trust Account 720 2880
LEDGER ACCOUNT NAME: ACCOUNT NUMBER
T Wong
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $
26th
June
Trust Account 280,000 280,000
LEDGER ACCOUNT NAME: ACCOUNT NUMBER
Sales commission
DATE PARTICULARS L.F. DEBIT CREDIT BALANCE
$ $ $
R Steward and Best 4,800
M Webster and H Miller 5600 10400

TRIAL BALANCE AS AT 30th JUNE 2019
NAME L.F. DEBIT CREDIT
$ $
Trust Account 586,490
J Burns 44,000
Motor Vehicle 1800
R Steward 230960
S Jeffreys 2880
T Wong 280,000
Sales commission 10400
Rental Bond Suspense 12,850
Wages and bonuses 4800
M Webster and H Miller 12000
Total 593,090 593,090