ASSESSMENT-2-MAINTAIN FINANCIAL RECORDS (3)

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ASSESSMENT-2-MAINTAIN FINANCIAL RECORDS (3)

ASSESSMENT COVER SHEET

Course Name: BSB30115 Certificate III in Business

Method: Individual submission

Assessment No.: 2

Weighting: 50%

Due Date: Week-9

Competency Title/s:BSBFIA301 Maintain financial records

Student Name:CHAYAPAT RATTANACHOAWSIRI

Student Number:1288561

Trainer Name: Antony Robert Elmore

Performance objective

The candidate must be able to accurately allocate cash transactions to the relevant journals for a small business, complete bank reconciliation and identify the actions required to follow-up outstanding accounts.

The candidate must also demonstrate ability, knowledge and skills in completing the required journals and ledgers to accurately prepare a Trial Balance in line with organisational requirements.

Assessment description

For this task, you are required to demonstrate an understanding of the cash control and accounting system by completing transactions in a paper based/manual accounting system according to the policy and procedures of a case study organisation (Appendix 1). Templates of journals and reconciliation reports are provided in Appendix 2 of this assessment task.

You are also required to interpret financial information supplied on source documents and accurately post this information into the templates provided in Appendix 2. This information will be used to prepare a Trial Balance and this Trial Balance will be used to demonstrate your knowledge of the discrepancies and errors that can occur that result in an imbalance between the debit and credit columns. You are also required to answer questions regarding the concepts of double-entry bookkeeping and accounting.

ASSESSMENT WEIGHTAGE

PART-1-25%

PART-2-25%

Assessment Instructions

Your assessment will be required to be typed in Arial font size 12 only. You will provide your completed assessment for all of questions in one document.

ALL YOUR ASSESSMEN SUBMISSIONS NEED TO BE UPLOADED INTO MOODLE. NO OTHER FORM OF SUBMISSION WILL BE ACCEPTED, BUT ONLY PERMITTED IN VERY SPECIAL CIRCUMSTANCES AND ONLY WITH THE APPROVAL OF YOUR TRAINER AND ASSESSOR.

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ASSESSMENT-2-MAINTAIN FINANCIAL RECORDS (3)
Last updated: Feb 2024

Page 1

ESSMEN SUBMISSIONS NEED TO BE UPLOADED INTO MOODLE. NO OTHER FORM OF SUBMISSION WILL BE ACCEPTED, BUT ONLY PERMITTED IN VERY SPECIAL CIRCUMSTANCES AND ONLY WITH THE APPROVAL OF YOUR TRAINER AND ASSESSOR.

Case study: P&B Autos

Part 1: Cash Transactions

Step 1

You are employed as an accounts payable clerk with the case study business of Saldo & Co – a medium sized manufacturing company. Your uncle owns a small garage called P&B Autos and has asked for your assistance with the cash accounts as his bookkeeper has taken some unexpected long-term leave. You have agreed to assist him on weekends until he is able to find a more permanent replacement to assist him with his financial records.

Before you begin reconciling the cash transactions that have occurred for the month, you review P&B Autos’ policies and procedures manual (Appendix 1) to ensure that you comply with the business’ organisational requirements.

Out of the corner of your eye you become aware of a large stack of files and closer investigation reveals these are client files containing business and financial information. You notice the business has a privacy policy which includes ensuring that ‘all client records will be stored in a secure environment at all times’ and having these files accessible to anyone who happens to be passing the office clearly breaches this.

You are unsure whether your uncle has intentionally left these files out to be used with the cash accounts and decide to clarify this with him. It is also the beginning of a new month and you wonder whether a bank reconciliation should also be completed and if so, whether the bank statement for the previous month has been received.

Your Uncle has limited understanding of the accounting process, so before you go to see him, you take a few minutes to think about what you need to clarify with him and plan on asking mostly ‘open’ questions to obtain as much information as possible.

Part 1: Cash Transactions

Accounting records are all of the documentation concerning the financial life of a business or individual. Records include the accounting system used to record and track financial transactions, prepared financial statements, and supporting documents, such as checks and invoices.

Records can be kept on paper, using a spreadsheet program, or using specialized accounting software. Record keeping for an individual or small-to-medium sized business may be relatively simple and straightforward, while a large corporation, as would be expected, has complex and involved records.

A basic record keeping system for a business generally consists of:

1.A basic journal for recording transactions, such as revenues and expenses

2.Accounts receivable and accounts payable records

3.Inventory records

4.Payroll records

5.Petty cash records

Records also include tracking of assets and liabilities.

The Accounting Process

Although an individual or small-to-medium sized business might operate on a cash basis, simply recording cash transactions, most businesses use double entry accounting. Transactions are first recorded in a general journal by date of transaction. Every transaction affects at least two accounts, one with a credit and the other with a debit.

Debits and credits to each account in the general journal are then posted (transferred) to the chart of accounts in the general ledger. A general journal is just a list of transactions by date, while the general ledger is a collection of all of the company’s accounts.

Journalizing and posting are done throughout the accounting period. At the end of the accounting period, these records are then used to prepare financial reports and statements.

Step 2

Your Uncle has confirmed that a bank reconciliation needs to be completed, but is unable to locate the bank statement required. The client files that were mistakenly left unsecured…

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ASSESSMENT-2-MAINTAIN FINANCIAL RECORDS (3)
Last updated: Feb 2024

Page 2

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