13421_FNSACC301_Ass3

Assessment 3

Research and questioning

1. Using the deposit forms overleaf, you are to prepare the days takings for banking. Income details are as follows.

Cheques

$38 from Erik Syed – NAB Cheque No 00000125 Brisbane CBD Branch

$125 from ABC Pty Ltd – CSB Cheque No 00025458 Collins Street Melbourne Branch

$77 from Loyola Airvey – CSB Cheque No 00070144 Heidelberg Branch

$42.25 from Laura Rose – Bendigo Bank Cheque No 07841 Bendigo Branch

$91.98 from Jayden Scott – ANZ Cheque No 100448 Sydney CBD Branch

2. Mr. Smith of Smiths Signs received a bank statement on 21 July showing a balance of $400 in the firms account. He is somewhat confused, as his own records indicate a balance of only $75. Upon closer inspection, the following differences were noted between the two records.

– A deposit of $80 made out on 31 July does not appear on the bank statement.

– Two cheques written out on 26 July are also missing from the bank statement. They are cheques numbers 4561 for $180 and 4562 for $225.

Prepare a bank reconciliation statement for Mr. Smith as at 31 July.

Mr. Smith of Smiths Signs

Bank Reconciliation Statement as at 31 July

3. Gary Burton is the proprietor of Burton’s Bourbon. On 31 August a bank statement was received and it showed a balance of $625 in the firm account. According to the cash journals kept by Mary, he should only have $220 in the bank. A comparison of the two records revealed the following differences

Cheques no. 347827 written on 22 August for $122 does not appear on the statement

A deposit of $145 made on 31 August has not been recorded by the bank

Interest received of $110 was deposited directly into the firms account, and has been recorded on the bank statement

A cheques written out on 25 August is missing from the bank statement. It is cheques no. 347831 for $340

Bank charges of $22 appear on the bank statement

Prepare a bank reconciliation statement for Burton’s Bourbon as at 31 August and adjust the business records to be reconciled with the bank statement.

Burton’s Bourbon

Bank Reconciliation Statement as on 31 August

4. The journals shown below were prepared for Gelling Swim Centre for the month of March 2010. On 1 March the business had $2,400 in bank.

a. Compare the bank statement information on the page with the firms records and update the journals, if necessary

b. Calculate the cash at bank balance according to the firms records

c. Prepare a bank reconciliation statement as at 31 March 2010

Gelling Swim Centre

Bank Reconciliation Statement as on 31 March 2010

5. What steps should you take to ensure the cheque you receive off a client / customer is valid. (List 5 steps)

......

receive off a client / customer is valid. (List 5 steps)

There is no definitive answer as to how to authenticate a cheque, though there are few points one can take to prevent a fraudulent cheque. There are few items to check on:

Does the checking account have funds available? (check with the bank if possible)

Is the cheque a legitimate document or a fake? (signature, security screen on the back of the checque, the word “Original Document” on the back of the cheque and any smudges and discoloration)

Does this person make a habit of bouncing cheques? (Make sure this person has a good history with you and keep his contacts)

Check if the name on the cheque matches the customer

Reference:

6. What should you check when accepting payment via credit card in person?

First one needs to check the name of the credit card and ask the customer to issue an identification document to confirm identity

Secondly, we will need to check the expiry date and make sure the date is still within its valid period

There are also some more technical ways to examine whether the credit card is valid. According to the tips by WestStar bank, there are 9 ways to spot a fake credit card.

Symmetry

First, look at the numbers to ensure they are evenly spaced and aligned. A counterfeiter typically uses an aftermarket tipper/embossing machine that handles one number at a time. As such, numbers are often skewed.

Correlation

Next, check to see if the account number matches the card name. Amex will start with a 3, Visa with a 4, MasterCard (MC) a 5 and Discover with a 6. You would be surprised how many thieves fail to do their basic homework.

Magnetic Strip

Receipt Match

Hologram

Signature Strip

UV Logos

Microprint

Behavior

For more details, please refer to the website.

Reference:

7. As a minimum, when processing a credit card-not-present transaction, what information should you collect from the customer?

If the merchant uses an online payment system, the system should be able…

...