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Assessment 32660B/01

FNSACC301 Process financial transactions and extract

interim reports
Instructions
Once you feel confident that you have covered the learning materials for this unit, you are
ready to attempt this assessment. Write your assessment in a commonly used software
program such as MS Excel, or you can download an Excel Template for this assessment
from the relevant Study Period of your course in OpenSpace.
To help Open Colleges manage your assessment, please use the following file naming
convention when you save your Microsoft Word document.
Your file should be named and saved to your computer’s hard drive using your [student
number]_[assessment number].doc. For example 12345678_22129_01.doc

Assessment Description
By completing this assessment, the learner will gather evidence of the knowledge and skills
necessary to analyse and report on a broad range of financial and business performance
information – encompassing assessing clients’ needs, analyzing data and preparing advice
including:
 Check and verify supporting documentation
 Prepare and process banking and petty cash documents
 Prepare and process invoices for payment to creditors and for debtors
 Prepare journals and batch monetary items
 Post journals to ledger
 Enter data into system
 Prepare deposit facility and lodge flows
 Extract a trial balance and interim reports
 Review accounts receivable process
 Review compliance with terms and conditions
 Prepare reports and file documentation
 Distribute creditor invoices for authorisation
 Remit payments to creditors
 Prepare accounts paid report

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Assessment Tasks
Assessment Assessment type and methods
number
32660B/01 Project
A project consists of the following assessment method:
- Evaluating an integrated activity
32660B/01 Verbal questioning

Verbal consists of the following assessment method:

- Recording responses to questions to assess underpinning
knowledge and skills.

Marks will be awarded as follows:

Assessment question Total Assessment

possible Results
marks Marks
Part A
1. Prepare journal entries for commencement of 6
business and purchase of business
2. Complete cheques per the payments for 2nd of May 6
only
3.1 Enter May’s transactions into Cash Receipts journal 8
3.2 Enter May’s transactions into Cash Payments journal 16
3.3 Enter May’s transactions into Credit Sales journal 6
3.4 Enter May’s transactions into Credit Purchases 7
journal
4.1 Post journals into general ledger 20
4.2 Post journals into Debtors ledger 4
4.3 Post journals into Creditors ledger 5
5.1 Prepare debtors schedule and creditors schedule as at 7
May 31st
5.2 Prepare trial balance as at May 31st 10
Total Marks 95

Assessment question Total Assessment

possible Results
marks Marks
Part B
Question a 2.5
Questions b 2.5
Total Marks 5

All questions must be satisfactorily completed to achieve a passing result.

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Grade will be awarded as follows:

Grade Marks from distribution table

Pass (meet competency requirements per the 50-64%
competency evaluation below)
Credit 65-74%
Distinction 75-84%
High Distinction 85-100%

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Part A: Project
Introduction

Congratulations! You have found your very first client, Charlie Morris, the only catch is
Charlie doesn’t trust computers at all, so would like all her books kept on a manual basis,
and pays most of her bills with a cheque book.

Charlie Morris is a Chinese Medicine Herbalist and Naturopath. On May 1st, Charlie started
her business with $165,000 cash. She deposited this into her Bank which is ABC Bank.

On 2nd May, Charlie then purchased an existing business, a Naturopathy practice, for
$160,000 and paid the vendor Naturopathy. The assets acquired, at agreed valuation were:

Inventory – Herbs and Oils $ 59,000

Inventory – Books and Other $ 3,000
Furniture and Fittings $ 13,000
Delivery Van $ 42,000
Tools and Equipment $ 18,000
Goodwill $ 25,000

Charlie began operations on May 2st trading as “Erbal Remedies”. With the assistance of
her brother Michael who is studying accounting, Charlie prepared the following chart of
accounts:

Erbal Remedies
Chart of Accounts
Current Assets Cost of Sales
Cash at Bank 1-1100 Purchases – Herbs and Oils 5-1000
Cash on Hand 1-1110 Purchases – Books and Other 5-2000
Petty Cash 1-1115 Freight In 5-3000
Accounts Receivable 1-2000
Inventory - Herbs and Oils 1-3000
Inventory - Books and Other 1-4000
Stationery Stock 1-4500 Selling Expenses
Advertising 6-1050
Non Current Assets Wages 6-1100
Furniture and Fittings 1-5000 Motor Vehicle Expenses 6-1150
Equipment 1-6000
Delivery Van 1-7000
Goodwill 1-8000

Current Liabilities Administration Expenses

Bank Overdraft 2-2100 Electricity and Telephone 6-2050
Accounts Payable 2-2200 Insurance 6-2100
Vendor – Naturopathy 2-2201 Postage and Stationery 6-2200
Short Term Loan 2-2300 Rent 6-2300
GST - Collected 2-3010 Repairs and Maintenance 6-2400
GST - Paid 2-3030 Security Costs 6-2500
Proprietorship Sundry Expenses 6-2600
Capital 3-3000
Drawings 3-3200
Financial Expenses
Revenues Bank Charges 6-3050

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 Sales Revenue - Herbs and 4-1000 Discount Allowed 6-3100
Oils
Sales Revenue - Books and 4-2000
Other
Service Revenue – 4-3000
Consultation Services
Discount Received 4-4000

Other important information:

Charlie keeps a safe on the premises and banks cash received twice a week, on Tuesday
and Friday. As per the Erbal Remedies Financial Policies & Procedure manual all payments
are made by cheque and bank deposit receipts /lodgment evidences must be stored in
secure place

GST is included on all purchases and sales where applicable.

Your instructions from the client:

Charlie’s brother has asked you to take care of the following tasks in this order:

1. Prepare journal entry for commencement of business and the purchase of the existing
business, including the payment to vendor which was done via Bank cheque.
2. Complete cheques per the payments for 2nd of May only
3. Enter May’s transactions into journals
4. Post journals into general ledger, debtors ledger and creditors ledger
5. Prepare trial balance, debtors schedule and creditors schedule as at May 31st.

To complete these tasks, please use the Excel template supplied in the ‘Additional
Resources’.

The transactions for May are set out below:

May 2 Paid $1,980 to Paxton Realty for May rent. Cheque 64001
Paid radio station 2NNN $330 for advertising. Cheque 64002
Paid $1,320 to Top Fittings for new shelving. Cheque 64003
Note: Fittings account
4 Purchased Books worth $1,804 from Biz-Sys on credit. The invoice included
$44 delivery charge. Charlie allocated an account code of 220.001 to Biz-Sys.
Inv. J2205.
6 Parris Personnel opened an account and bought Herbs and Oils worth $1,320
and Books worth $242. Their account number is 120.001. Inv 001.
9 Opened account #120.002 for Ridgeway Bank. They bought Herbs and Oils for
$3,630 and Books for $880 on account. Inv 002.
Cashed cheque of $220 for establishment of petty cash. Cheque 64004
10 Banked cash receipts of $3,168. This amount is made up of:
Oil sales $2,750
Book sales $418
11 Provided service to Parris Personnel $110. Inv 003
12 Bought Books on credit from Scene In Books (SIS) for $3,520.
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 Acc. No 220.002. Inv 4406.
13 Paid cleaner $66. Cheque 64005
Note: Sundry Expense.
Sold Books to Parris Personnel, $242. (Inv 004)
Paid account of Biz-Sys in full. Cheque 64006
17 Banked cash receipts: Herbs and Oils sales $2,200
Books and other sales $ 440
20 Sold Herbs and Oils to Ridgeway Bank $880. Inv 005
Paid SIS for Invoice of May 12th less discount of $66. Cheque 64007
Bought Herbs and Oils from Biz-Sys $7,480. Inv J2421.
24 Banked cash receipts: Herbs and Oils sales $3,080
Books and other sales $275
Consultation Services $242
Invoiced Ridgeway Bank for customised Herbs and Oils $1,540. Inv 006
Received credit note C224 from Biz-Sys for $990 for Herbs and Oils returned.
(originally purchased on Invoice J2421)
26 Paid Biz-Sys balance owing from Invoice J2421 less discount of $44. Cheque
64008
Received delivery of Books from SIS $2,420. Inv 4520
Received $2,000 part payment from Ridgeway Bank. Receipt 001
27 Paid cleaner $66. Cheque 64009
Received payment from Parris Personnel for Invoices 001 and 003. Receipt 002
Drew cash cheque for wages $1,110 and drawings $660. Cheque 64010
Received telephone bill no 94361117/1 $242 from Telet (Account no 220.003)
Received electricity bill no 41.7044 $88 from Atlas Electricity (Acc. 220.004)
31 Banked cash receipts: Herbs and Oils sales $2,750
Books and other sales $462
Consultation services $275
Reimbursed Petty Cash for expenditure for month (Cheque 64011 & respective
Vouchers):
Motor Vehicle Expenses (Fuel and oil) $121.00
Sundry Expenses $85.80

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Part B: Oral Questions

Oral question – please record your response using the recording tool at
http://recordmp3online.com

a) You have been asked to call the Scene in books accounts department and verbally
request a copy of their supplier statement to check the balance outstanding. (2.5
marks)

Please upload the recording in Openspace.

b) You have received the statement from Scene in books and the amount outstanding
on the statement reconciles with your creditors schedule in the amount of $2,420,
record your request for authorisation from Michael to pay this amount in full. (2.5
marks)

Please upload the recording in Openspace.

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