T-1.8.

Details of Assessment
Term and Year Time allowed 3 Weeks
Assessment No 1 Assessment Weighting 100%
Assessment Type Case Study and Report
Due Date Week No. 9 Room
Details of Subject
Qualification SIT60416 Advanced Diploma of Hospitality Management
Subject Name Process Accounts
Details of Unit(s) of competency
Unit Code (s) and
BSBFIA303 Process accounts payable and receivable
Names
Details of Student
Student Name
College ACT Student ID
Student Declaration: I declare that the work submitted is
my own and has not been copied or plagiarised from any Student’s
person or source. I acknowledge that I understand the Signature: _ ______
requirements to complete the assessment tasks. I am also
aware of my right to appeal. The feedback session
schedule and reassessment procedure were explained to Date: ___
me.
Details of Assessor

Assessor’s Name Kaneez Selim

Assessment Outcome
Assessment
Competent Not Yet Competent Marks /100
Result
Feedback to Student
Progressive feedback to students, identifying gaps in competency and comments on positive
improvements:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
______________________________________________________________________________

Assessor Declaration: I declare that I have

conducted a fair, valid, reliable and flexible
assessment with this student.
Assessor’s
Student attended the feedback session. Signature: ___________________

Date: _____/_____/________
Student did not attend the feedback session.

HM_Process Accounts Assessment I_v1 Page 1 of 39

Last Updated 29th September 2019
 T-1.8.1

Purpose of the Assessment

Competen Not Yet
The purpose of this assessment is to assess the student in the
t Competent
following learning outcomes:
(C) (NYC)
BSBFIA303 Process accounts payable and receivable
1.1 Check source documents for accuracy and appropriate
authorisation
1.2 Refer errors and discrepancies in source documents for
resolution in accordance with organisational policy and procedures
1.3 Enter transactions into cash and credit journal system in
accordance with organisational policy and procedures and relevant
legislation and compliance requirements
1.4 Total credit journals in accordance with organisational policy and
procedures
2.1 Check cash journals against bank statements to identify
differences
2.2 Update cash journals with relevant data from bank statement/s
2.3 Identify discrepancies and refer to appropriate staff member,
organisation or agency
2.4 Total cash journals in accordance with organisational policy and
procedures
2.5 Prepare regular reconciliation reports within designated timelines
4.1 Reconcile accounts payable statements with accounting records
and in accordance with organisational policy and procedures
4.2 Check payment documentation for accuracy of information and
discrepancies and rectify errors in accordance with organisational
requirements
5.1 Produce and check accounts receivable statements for accuracy
in accordance with organisational policy and procedures
5.2 Rectify discrepancies and statements despatched within
designated timelines
6.1 Maintain accounts receivable ledger system in accordance with
organisational requirements and to reflect current credit situation
6.2 Conduct aged-analysis of accounts receivable to identify
outstanding accounts and to determine collection procedures in
accordance with organisational requirements
6.3 Report or follow up outstanding accounts in accordance with
organisational policy and procedures
6.4 Monitor and review credit terms in accordance with credit policy
and procedures
Assessment / evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A
student can only achieve competence when all assessment components listed under “Purpose of the
assessment” section are recorded as competent. Your trainer will give you feedback after the
completion of each assessment. A student who is assessed as NYC (Not Yet Competent) is eligible
for re-assessment.
Resources required for this Assessment
 All documents must be created in Microsoft Word/ Excel and PowerPoint
 Upon completion, submit the assessment printed copy to your trainer along with assessment
coversheet
 Refer to the notes on eLearning to answer the task/s
 Any additional material will be provided by your Trainer
 Computer with relevant software applications and access to internet
 eLearning notes relevant to the tasks/questions

HM_Process Accounts Assessment I_v1 Page 2 of 39

Last Updated 29th September 2019
 T-1.8.1

Instructions for Students

Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.
 Feedback on each task will be provided to enable you to determine how your work could be
improved. You will be provided with feedback on your work within two weeks of the assessment
due date. All other feedback will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and
your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge
and skills to be deemed competent for this unit of competency.
 If you are not sure about any aspect of this assessment, please ask for clarification from your
assessor.
 Please refer to the College re-assessment policy for more information (Student handbook).

HM_Process Accounts Assessment I_v1 Page 3 of 39

Last Updated 29th September 2019
 T-1.8.1

Case Study

Student instructions
For this assessment, students are required to understand and analyse the case study provided.
Questions relating to the case study should be answered with appropriate detail to demonstrate the
necessary understanding required.

This assessment activity aims to measure the competencies of the student in terms of their knowledge
and skills required to reconcile and monitor financial accounts receivable systems, identify bad and
doubtful debts and plan a recovery action, and remit payments to sundry creditors.

There are two (2) parts to complete using the case study and additional information provided in the
assessment. In Part 1 you are required to answer 6 questions and in Part 2 there are three (3) sections,
each part contain one or more questions to answer using the templates provided in answer section.

Resources required for this assessment

 Office equipment, technology, software and consumables.
 Integrated financial software system and data.
 Organisational records policy and procedures.
 Internet to access Accounting standards, code.

Company Background
ACA Restaurant Cafe’ incorporated its business in 2014. The business is registered for GST as the
annual turnover is more than $750,000. Emma & Rufus are the owners of ACA Restaurant Café.

ACA Restaurant Cafe’ provides food and beverage services to clients, as well as selling specialised
food & catering products such as cheeses, pastries and sandwiches to both clients and the general
public. The company details are as follows:

Company information
ACA Restaurant Cafe’
505 George Street
SYDNEY NSW 2000
Phone: 02 9XXX XXXX
Fax: 02 8XXX XXXX
Email: acarc@email.com.au
ABN: 2000000000
Financial Year: 20CY
Conversion Month: April

HM_Process Accounts Assessment I_v1 Page 4 of 39

Last Updated 29th September 2019
 T-1.8.1

Company information
12 accounting periods
Type of Business – Restaurant Cafe’

Role of the student:

You have been appointed as an account clerical for ACA Restaurant Cafe’ and required to review the
company policies and procedures and complete the tasks that have been assigned to you.

EXTRACT FROM ACA RESTAURANT CAFE’ POLICIES, PROCEDURES AND RELEVANT

LEGISLATIONS

ACA Restaurant Café food product purchasing procedures

1. The chef/manager is to personally purchase all materials required by the business. A purchase
order is rarely used, because the materials are usually bought over the counter by the staff at
ACA Restaurant Café. The materials are to be purchased from Suzy’s Bakery, Brittany’s
Cheese.
2. Business needs other than materials are to be purchased by the owners.
3. At the time of purchase, a printed invoice is to be received listing all items and total cost of
materials and supplies. All details are to be checked for accuracy. Should there be a
discrepancy, a telephone call is to be made to the supplier and a new tax invoice is requested.
4. Suppliers usually send a statement at the end of the month; however, some invoices are
payable on invoice, not statement.
5. On receipt of the statement, the bookkeeper is to check their statement with the invoices
received at the time of the purchase.
6. Credit terms for most suppliers are to be payment by the end of the following month. No
discounts are allowed by any suppliers. The chef/manager is to request a trade price at the
time of purchase.
7. Materials purchased are to be used on the job, stored on her storeroom located at the back of
the restaurant café.

Valid tax invoices

ACA Restaurant Café has satisfied ATO guidelines for issuing tax invoices whenever it provides
services to its customers.

ATO guidelines on valid tax invoices can be downloaded from the ATO website wvm.ato.gov.au.
Search for NAT 12358.

https://www.ato.gov.au/Business/GST/Issuing-tax-invoices/

HM_Process Accounts Assessment I_v1 Page 5 of 39

Last Updated 29th September 2019
 T-1.8.1

ACA Restaurant Café product supplier payment procedures:

1. Upon receipt of an invoice, the validity and accuracy of the invoice must be checked before
entering the Excel worksheet.

2. Statements received are to be reconciled with invoices received.

3. Due dates of supplier invoices are to be monitored, using the to do list - A/P.

4. Accounts due during the month are usually paid by BPAY or cheque. All cheques are to be
accompanied by a remittance slip.

5. Before payment by the bookkeeper any invoices for expenses incurred, e.g. office supplies, are
to be authorised, using a cheque requisition slip by Emma & Rufus.

6. The bookkeeper is authorised to pay accounts by BPAY, transfer electronic payments and sign
cheques.

7. At the end of the month, a payables reconciliation report is to be printed to make sure the
payables ledger and general ledger reconcile. The report is to be exported to Excel and
reviewed by Emma & Rufus who is to authorise on the Excel printout the accounts to be paid
by the bookkeeper.

8. Monthly accounts are usually to be paid by electronic transfer and authorised by Emma &
Rufus before the bookkeeper transfers the file to the bank.

Customer Credit Policy

ACA Restaurant Café’ credit terms are as follows:

1. A credit application is to be completed when an account is set up. A phone call is made to a
referee checking on payment of account.

2. Full payment is required within 30 days of the date of the invoice.

3. A 5% cash discount may be allowed to high volume customers for payment within 14 days.

4. Credit facilities are to be placed on hold (in MYOB company file) when accounts are
outstanding for more than 60 days, unless an alternative payment arrangement has been
negotiated with the customer. Details of such arrangements should be made in the contact log
in MYOB.

5. A receivables reconciliation report is to be printed at the end of each month and overdue
accounts and credit terms reviewed.
HM_Process Accounts Assessment I_v1 Page 6 of 39
Last Updated 29th September 2019
 T-1.8.1

6. Monthly statements are printed by the 5th of the following month.

Overdue Accounts Policy

1. Accounts overdue up to 30 days: An overdue reminder sticker is to be attached to the next

statement.

2. Accounts overdue more than 30 days: A telephone call is to be made to assess the reason for
non-payment and perhaps negotiate a payment plan. A note is to be made in the contact log.

3. Account overdue 60 days: Send first collection letter notifying intention to take action and
review credit terms and place credit on hold (entered in MYOB). A note should be made in the
MYOB contact log.

4. Account overdue 90 or more days: A report is to be prepared documenting the accounts

receivable debt, recovery type, cause and recovery plan and ratified by the business owner.

5. A letter of demand is to be sent to the customer asking for payment within 14 days.

6. If this fails, the Debt Recovery service is to be used to collect the debt if more than $200. Small
debts less than $200 will be written off as a bad debt. The Debt Collection Guideline for
Collectors and Creditors must be adhered to at all time.

7. Legal action is only be used as a last resort.

8. All bad debt recovery reports are to be filed in the special file for bad debt recovery.

Policies and procedures for accounts receivable:

Accounts receivable-credit control policy of ACA Restaurant Cafe’:

It is important to control all monies due to the company from sales on a credit basis. ACA Restaurant
Cafe’ operates in accordance with the accepted business practice of allowing credit to customers. At
the same time, the need for prompt receipt of monies due is vital.

Managing accounts receivable impacts on the cash flow of a business. An effecting management of
accounts receivable can ensure that cash flow is managed efficiently to pay off creditor’s bills.

Strategies
Payment by accounts receivable

 monitor all payments

 act swiftly if customers are not paying on time
 spend time on profitable customers

HM_Process Accounts Assessment I_v1 Page 7 of 39

Last Updated 29th September 2019
 T-1.8.1

 maintain confidence and goodwill with good customers

 increase the number of times that you deal with good customers with a view to higher sales
values
 watch there are not too many people owing you money instead of paying it-your overdraft is
expensive.

Debtor control (accounts receivable)

Review situations where the following occur:
 longer than usual delays in making payments
 cheques are post dated
 excessive returns of products purchased
 broken promises to make payments
 a decrease in new orders customers
 cheques dishonoured from bank
 no contact can be made with management.

Also:

 update accounts receivable records regularly-i.e. terms of credit, contact details

 use the age debtors report to detect slow payers quickly.

Minimising slow or non-paying debtors (accounts receivable)

 perform a complete credit check
 contact customer for explanation of late payment
 send demand letters
 use debt collection agencies
 stop further credit
 negotiate payment plans
 negotiate discounts for shorter payment times
 chase overdue debt as soon as possible-i.e. be serious about debt collection.

Effective collection procedures

 Monthly statements are sent to all active trade debtors whose balances are not equal to zero.

 There is a regular follow-up procedure for overdue accounts.

 Writing off of bad debts is approved by an independent senior official, for example the finance
director, who has been shown that every appropriate action has been taken to recover the
debts.

HM_Process Accounts Assessment I_v1 Page 8 of 39

Last Updated 29th September 2019
 T-1.8.1

Overdue accounts, revenue protection and bad debt recovery

When customers have exceeded their credit terms and/or credit limit, ACA Restaurant Cafe’ must have
a procedure in place to advise all staff that no further credit will be extended until at least part of the
outstanding account has been paid. Statements/letters indicating the overdue amount can be issued
and followed up with a courteous telephone call.

If the more subtle methods of reminding debtors of their responsibility to pay overdue accounts do not
result in payment, the organisation may employ a debt collector. The final step is to take legal action
through the local court.

Identify bad and doubtful debts and debt collection procedures:

As ACA Restaurant Café’ sells on credit it is likely that there are disagreements with its debtors or in
some cases the debtors have problems paying its debt. For these reasons businesses should have
procedures to regularly identify its non-paying or sticky debts to then be able to realistically write off or a
provision made for them to be written off as per the company policy.

Dispute resolution policy of ACA Restaurant Café’

ACA Restaurant Cafe’ addresses customer concerns in a timely and efficient manner, with a view to
resolving issues in a non-confrontational, non-adversarial environment. ACA Restaurant Cafe’ does the
followings:

 Listen to customer and supplier concerns;

 Identify the problem;
 Ensure that correspondence has a contact name and telephone number;
 Respect customer and supplier right to privacy;
 Provide customer and supplier with high quality information and advice
 Provide information and guidelines in plain language.

Identification of bad and doubtful debts

Why does ACA Restaurant Cafe’ need this policy?

ACA Restaurant Cafe’ (also referred as “organisation”) has implemented the following Debt
Management Policy to ensure sound credit management and the recovery of outstanding debts in a
timely manner, whilst maintaining a quality service delivery to customers.

HM_Process Accounts Assessment I_v1 Page 9 of 39

Last Updated 29th September 2019
 T-1.8.1

Who is this policy for?

This policy describes ACA Restaurant Café’s expectations and provides guidance to staff involved in
the debt management and recovery process. It applies to all business units and ACA Restaurant Café’s
staff authorised with the responsibility of providing credit, invoicing and recovery of the organisation’s
outstanding debts.

Policy Statement

ACA Restaurant Cafe’ will operate effective billing and debt collection processes including the efficient
management of accounts receivable and related credit management. The granting of credit and
recovery of debts outstanding must be controlled from the timely raising of invoices and subsequent
monitoring and collection of debt.

The Debt Management Policy will be included as part of an individual’s Service Agreement.

The organisation’s debt is to be managed in accordance with this policy and where applicable, the
defined relevant management procedures.

Where credit is provided, the following will apply:

1. Payment Terms
ACA Restaurant Café’s payment terms are 14 days from the date of invoice, unless specific exceptions
apply. Any exceptions to the standard payment terms require approval of the Manager or owners.

2. Invoicing
A debt is recognised at the time services are provided or when the invoice is created; whichever occurs
first. Unless there is regulation or accepted practice to the contrary, an invoice should be produced, and
payment requested at the time, or in advance, of the service being provided. This practice reduces the
risk of non-payment. However, it is recognised that there will be instances where invoicing and payment
in advance is impracticable.
The Finance department (Finance) is the only department with authority to generate an invoice.

3. Dispute Settlement
Where payment of an outstanding debt is being disputed by a debtor, the following procedure is to be
adopted by Accounts Supervisor as detailed below. Consultation should be made with the relevant
Manager and/or operational staff to attempt to mediate a solution. Any amounts not in dispute must be
paid in full and on time.

Invoice Dispute Procedure

If the Customer disagrees with an invoice issued:

HM_Process Accounts Assessment I_v1 Page 10 of 39

Last Updated 29th September 2019
 T-1.8.1

1. the Customer must notify ACA Restaurant Cafe’ in writing no later than 10 Business Days
following receipt of the invoice, setting out in reasonable detail the nature of the Invoice Dispute
and the reasons for non-payment;
2. ACA Restaurant Cafe’ will acknowledge receipt of such Invoice Dispute notice and both parties’
responsible managers, will endeavour to promptly settle the Invoice Dispute; and
3. if, on resolution of the Invoice Dispute, an amount is due to ACA Restaurant Cafe’, the
Customer will pay that amount within five Business Days of resolution of the dispute.

Where only a portion of an amount claimed in an invoice is the subject of an Invoice Dispute (Disputed
Portion), this clause will only apply to the Disputed Portion and the balance of the amount payable in
respect of that invoice must be paid by the Customer to ACA Restaurant Cafe’ no later than the due
date of the invoice.

4. Debt Follow up Procedure: Follow ups and Reminder Notices

Codes of Practice set out industry standards of conduct. They are guidelines for fair dealing between
your company ACA Restaurant Cafe’ and its customers, and let your customers know what your
business agrees to do when dealing with them. You can decide to establish your own Code of Practice,
or to adopt an industry specific Code of Practice. ACA Restaurant Cafe’ has established its own Code
of Practice in relation to debt collection policy which satisfies the industry compliance requirements.

Debt collection procedure by applying the Company’s Credit Policy and Procedures:

Accounts over 30 days due Phone customer to enquire why account is still
outstanding.
If no response within one week send collection letter 1

Accounts over 60 days due Send Collection letter 2.

May stop delivery of goods to Customer.

Accounts over 90 days due Send Collection letter 3. If no response within one-week
forward details to Debt Collection agency and stop delivery of
any goods to Customer.

A record shall be kept in the database of all attempts (phone calls and reminder notices) to the debtor.

Payment Arrangements

Any person, organisation or company who is having difficulty in paying the debt is encouraged to
contact ACA Restaurant Cafe’ and make a personal payment arrangement to pay off the debt in a
reasonable and manageable timeframe.

HM_Process Accounts Assessment I_v1 Page 11 of 39

Last Updated 29th September 2019
 T-1.8.1

Accounts Supervisor will bring forward any requests for a payment arrangement to management and
the CEO who will consider requests for a Personal Payment Arrangement and may agree upon a plan
(for example, a personal payment arrangement to make a weekly payment of an agreed amount until
the debt is paid in full). Details of the payment arrangement must be documented on paper, signed,
agreed and acknowledged by the debtor.

Such payment arrangements should then be recorded, and payments monitored.

Any defaults (that is, payment not made by the agreed date) shall be followed up by Accounts
Supervisor and a new payment arrangement may be made.

Failure to adhere to a payment arrangement shall result in ACA Restaurant Cafe’ commencing debt
recovery procedures.

Debt Recovery Procedure

Recovery processes will be implemented through the Organisation’s preferred supplier of Debt
Collection services in accordance with the service level agreement (if any). No recovery action should
commence without satisfactory proof of debt and prior approval from the owners.

5. Adjustments to Invoices / Credit Notes / Discounts

Credit notes or adjustments/discounts for invoices that may arise, must be applied to the invoice that is
refers to. Such credit notes raised must be approved by owners, with an appropriately documented
register maintained on all such credit and adjustment notes raised.

6. Provision for Doubtful Debts

A provision for doubtful debt is a liability to reflect debt that is likely never to be collected and hence is
expected to be written off in future periods.

Accounts Supervisor shall maintain a provision for doubtful debts, assessing each individual debt, its
aging profile, historical payment history and the likelihood of recoverability. Debts which are over 90
days; and/or has a history of difficult recovery; and/or is unlikely to be recovered should be provided for
accordingly. This assessment should be well-documented and approved by Manager Corporate
Services.
7. Bad Debts

As a follow up to provision for doubtful debts, bad debts should be considered and authorised
appropriately. The Manager is responsible for provision for doubtful debt assessment and bad debt
identification.

Write off templates must be completed with adequate authorisation in place. All write-off limits must be
approved by the Owners.

Postings to the general ledger can only occur after the templates are duly completed and authorised.

HM_Process Accounts Assessment I_v1 Page 12 of 39

Last Updated 29th September 2019
 T-1.8.1

The write-off templates should be kept on record and filed accordingly.

8. Reporting

Accounts Supervisor is to prepare a monthly Aged Debtors Report and populate the Debtor Follow-up
Sheet. These documents should then be circulated to the relevant Managers and Team Leaders, with
monthly meetings organised to discuss the progress of debt recovery actions, alternative payment
plans and any potential write-offs needed.

All meetings are to be minute and all documents are to be kept.

Responsibilities

The Accounts Supervisor is responsible for Debt Management, with the assistance of the Manager, the
Owner and Manager Corporate Services. Outstanding debts will be reviewed on a regular basis by the
Accounts Supervisor, who will be assisted by Accounts Officers. Decisions will be made as to the most
appropriate debt recovery action with approval from Owners and Manager. This can include:
 Issue of regular reminders (as detailed in the Policy);
 Direct communication with the debtor;
 Referral of matter to the Manager responsible for initiating the debt (where appropriate); and
 Escalation of matter to Manager and/or referral to debt recovery agents.

Reminder Notice Templates

Dear______(name):

You have not replied to our telephone call that your account is overdue. Please confirm
that you will be sending us a cheque for____________(amount) to bring your account up-to-
date.

Enclosed you will find a postage paid envelope for your convenience.

If a cheque is not received by return mail, we will take action by placing your account
on hold and reviewing your credit terms.

Yours sincerely

Source: www.freebusinessforms.com/collection/reminder2.html, retrieved 24

May 2013

Dear______(name):
Again, we must remind you that your account that is now____________(number of days) days
overdue. Even though you have ignored our phone call, you can no longer delay
payment if you wish to keep your account open.

HM_Process Accounts Assessment I_v1 Page 13 of 39

Last Updated 29th September 2019
 T-1.8.1

Please phone us to discuss ways we can work together to reduce this balance. We will try to help you
in every conceivable way. Don't fail your company and us now. At the very least, send us an
explanation with a partial payment of at least________(dollar amount) to keep your account open.

If you do not respond to this reminder, we will take action by placing your account on
hold and reviewing your credit terms.

Yours sincerely

Source: http://letterworld.narod.ru/sampIes2.htm, retrieved 24 may 2013

Second Reminder Notice Template

Dear_____ (Salutation):

We have not yet received your overdue balance of «Overdue». Please contact us immediately.

We'd like to continue thinking of you as a valued customer. We'd prefer not to damage our relationship
by turning your account over to a collection agency. However, we will do so if we don't receive payment
from you within 14 days. In the meantime, we will put your account on hold.

If you've already sent the payment, please call us. If you haven't done so, please send your payment in
full today.

Yours Sincerely,

Source: http://help.acclivitysoftware.com/ae06/mac/offlink-19.htm, retrieved 04 November, 2017.

Filling procedures:

To comply with ATO record keeping is required to keep all the taxation related records for at least 5
years from the transaction date. Emma & Rufus keep records both electronically and in hard copies.
The hard copy source documents are stored in the filing cabinet in the back office of the café. The
electronic copies are stored in one drive.

(Source:https://www.ato.gov.au/General/Other-languages/In-detail/Information-in-other-
languages/Record-keeping-for-small-businesses/?page=1#How_to_keep_records retrieved 04
November, 2017)

Professional Code of Conduct:

HM_Process Accounts Assessment I_v1 Page 14 of 39

Last Updated 29th September 2019
 T-1.8.1

The Tax Practitioners Board (TPB) was established in 2009 to administer legislation in the Tax Agent
Services Act 2009 (TASA). The Act stipulates the code of professional conduct that you must abide by
as a Bookkeeper of ACA Café. These five categories of core of principles of the code is available on
TPB website (www.tpb.gov.au)

Organisational policies, procedures and guidelines:

While remitting payments to creditors the ACA Restaurant Cafe’ checks the followings:

1. Cheque requisition is correctly drawn up and authorised and the correct general ledger to be
drawn against identified
2. Correct account is debited in a timely manner and in accordance with legislative and
compliance requirements
3. Creditors payments are prepared in an accurate manner

There are numbers of legislative and compliance requirements that are required to be met. However,
for remitting payments to creditors the Accounts Payable Clerk should mainly concentrate on two acts:

1. Privacy Act 1988, and

2. Electronic Funds Transfer: Code of Conduct

Privacy Act 1988: Credit and finance

Information about an individual's finances and credit worthiness is one of the most sensitive categories
of personal information. The Privacy Act 1988 (Privacy Act) has strict provisions that apply to the
handling of this type of personal information.

Credit providers (including banks, building societies, utility companies and telecommunications carriers)
provide information about individuals' activities in relation to consumer credit to central databases
managed by credit reporting bodies (CRBs). CRBs are then able to include that information on the
individual's credit report. A credit provider can obtain a copy of an individual's credit report from a CRB
to assist them in deciding whether to provide an individual with consumer credit, or to manage credit
that has been provided to an individual.

Part IIIA of the Privacy Act sets out the specific types of personal information that credit providers and
CRBs are permitted to collect about an individual for the purpose of inclusion in that individual's credit

HM_Process Accounts Assessment I_v1 Page 15 of 39

Last Updated 29th September 2019
 T-1.8.1

report. That Part also determines who is permitted to access an individual's credit report and for what
purposes. It also provides privacy safeguards in relation to the handling of the information.

Electronic Funds Transfer: Code of Conduct

According to Part D, Section 26 (subsection 26.6) of Electronic Funds Transfer - Code of conduct
published by Australian Securities and Investments Commission (ASIC) (Issued 1 April 2001, amended
18 March 2002, 1 November 2008 and 1 July 2012), the list of periodical payments must include all of
the following information:

a) BSB and account number of the payee

b) the name of the payee

c) the narrative

d) the payment due date, and

d) the amount of the transaction

Discrepancies:

Part C Section 7A (sub section 7.1) describes about the discrepancies between recorded deposits and
amounts received. Sub section 7.1 says:

"Where, in relation to an EFT transaction which is a deposit of funds to an account, there is a

discrepancy between the amount recorded by the electronic equipment or access method as having
been deposited and the amount recorded by the account institution as having been received, the
account holder will be notified of the difference as soon as possible and will be advised of the actual
amount which has been credited to the nominated account".

Discrepancies between deposits received and deposits paid may occur as a result of the following
reasons:

 deduction of brokers or agents' commissions

HM_Process Accounts Assessment I_v1 Page 16 of 39
Last Updated 29th September 2019
 T-1.8.1

 incorrect account allocation

 key stroke errors
 overpayments
 part payments
 system errors
 termination of policies
 underpayments

Bank reconciliation process:

The Bank reconciliation process of ACA Restaurant Café has been extracted below:

Bank reconciliation is the process of matching the balance in an entity's accounting records for a cash
accounts to the corresponding information on the Bank statement. The goal is to ascertain the
differences between the two and record changes to the accounting records as appropriate. The
information on the Bank statement is the Bank’ record of all transactions impacting the entity's ledgers
and bank account during the past month.

Bank reconciliations should be completed at regular intervals for all records of statement and ledger
accounts, to ensure that a business's records are correct. Otherwise, it may find that cash balances are
much lower or higher than expected, resulting in deposit in transit, cheques issued but not cleared,
bounced cheques or overdraft fees. Bank reconciliation may also detect fraud after the fact. This
information can be used to design better controls over the receipts and payment of cash of the entity.

At a minimum, conduct Bank reconciliation shortly after the end of each month, when the Bank sends
the business a Bank statement containing the opening cash balance, transactions during the month,
and closing cash balance. It is even easier to reconcile the ledgers every day. By completing a Bank
reconciliation every day, you can spot and correct problems immediately.

Financial information 1: Source Documents

Customer/Supplier Opening Balances.

Customer Opening Balances

Clarendon College 10/06/2017 Invoice 654 - $980

Level 1, 123 Martin Place, Sydney 24/06/2017 Invoice 655 - $320

Pacific Training and Consultancy Firm 05/07/2017 Invoice 325 - $700

HM_Process Accounts Assessment I_v1 Page 17 of 39

Last Updated 29th September 2019
 T-1.8.1

Additional information:

The business had more cash sales to be recorded the cash receipts journal:
Cash sales include GST.

• Cash sales 02/08/17 $650.00

• Cash sales 12/08/17 $510.50
• Cash sales 19/08/17 $430.00

Source Documents:

Sales tax invoices (Credit sales):

ACA Restaurant Cafe’

505 George Street
Sydney, NSW 2000
ABN: 200000000
Clarendon College
Bill To:  
js@cc.com.au
   
  Tax Invoice 101
  Date 07/08/2017
Product Unit Price Quantity Total
Main Meals $ 33.00 28 $ 924.00
Finger Food $ 33.00 25 $ 825.00
Beverage $ 16.50 20 $ 330.00
No alcoholic beverage $ 19.25 20 $ 385.00
Desserts $ 33.00 12 $ 396.00
Total Due $2,860.00
GST Included     $ 260.00

ACA Restaurant Cafe’

505 George Street
Sydney, NSW 2000
ABN: 200000000
Pacific Training and Consultancy
Bill To:  
pete@pt.com.au
   
 
  Tax Invoice 102
  Date 12/08/2017
Product Unit Price Quantity Total

HM_Process Accounts Assessment I_v1 Page 18 of 39

Last Updated 29th September 2019
 T-1.8.1

Service staff 1/8/17 $ 33.00 12 $ 396.00

Service staff 2/8/17 $ 22.00 8 $ 176.00
Service staff (Public Holiday) $ 77.00 10 $ 770.00
     
Total Due $1,342.00
GST Included     $ 122.00

ACA Restaurant Café

505 George Street
Sydney, NSW 2000
ABN: 200000000
Bill To: Clarendon College  
  js@cc.com.au  
 
  Tax Invoice 103
  Date 15/08/2017
Product Unit Price Quantity Total
Entrée pack $ 22.00 10 $ 220.00
Entrée pack $ 22.00 10 $ 220.00
Special Request $ 49.50 10 $ 495.00
Main Meals $ 33.00 35 $1,155.00
Main Meals $ 33.00 35 $1,155.00
French Champagne $ 55.00 15 $ 825.00
         
Total Due $4,070.00
GST Included     $ 370.00

ACA Restaurant Café

505 George Street
Sydney, NSW 2000
ABN: 200000000
Bill To: Pacific Training and Consultancy  
  pete@pt.com.au  
 
  Tax Invoice 104
  Date 19/08/2017
Product Unit Price Quantity Total
Main Meal $ 33.00 10 $ 330.00
HM_Process Accounts Assessment I_v1 Page 19 of 39
Last Updated 29th September 2019
 T-1.8.1

Main Meal $ 33.00 10 $ 330.00

French Champagne $ 55.00 10 $ 550.00
Premium WIne $ 66.00 10 $ 660.00
       
Total Due $1,870.00
GST included     $170.00

Adjustment Notes:

ACA Restaurant Cafe’

505 George Street
Sydney, NSW 2000
ABN: 200000000
Bill To: Clarendon College  
  js@cc.com.au  
 
  Adjustment Note AN 101
  Date 09/08/2017
Product Unit Price Quantity Total
Main Meals $ 33.00 3 $99.00
Main Meals $ 33.00 2 $66.00
     
Total Due $165.00
GST Included     $15.00
Receipts:

RECEIPT OF ACCOUNT
Clarendon College
Date: 04/08/2017 Total
Invoice 654 $ 980.00
Less Discount (GST Included) -$ 24.50
Invoice 655 $ 320.00
Less Discount (GST Included) -$ 8.00
   
TOTAL $ 1,267.50

HM_Process Accounts Assessment I_v1 Page 20 of 39

Last Updated 29th September 2019
 T-1.8.1

       

RECEIPT OF ACCOUNT
Pacific Training and Consultancy
Date: 07/08/2017 Total
Invoice 325 $ 500.00
   
TOTAL $ 500.00
       

Financial information 2: Bank Reconciliation:

ACA Restaurant Cafe’ reconciles Bank Statement against the receipt and payment to identify
discrepancies between money received and money paid and investigate the reasons of discrepancies
by following the standard Bank reconciliation policy and procedures.

Below information has been extracted from the records of ACA Restaurant Café:

A Bank Statement of Account

Account Name: ACA Restaurant Café As at: 31/12/18

Date Transaction Debits Credits Balance

Balance brought forward 22,651.00 Cr
Dec 2 Deposit 1,370.00 24,021.00 Cr
Cheque 732 130.00 23,891.00 Cr
3 Cheque 736 178.50 23,712.50 Cr
5 Deposit 1,643.00 25,355.50 Cr
6 Cheque 733 266.00 25,089.50 Cr
10 Deposit 1,066.00 26,155.50 Cr
Cheque 735 444.00 25,711.50 Cr
Direct debit—Optus 384.00 25,327.50 Cr
12 Deposit 1,735.00 27,062.50 Cr
17 Deposit 988.50 28,051.00 Cr
18 Cheque 740 373.00 27,678.00 Cr
Dividend – ABC Ltd 300.00 27,978.00 Cr
19 Cheque 738 198.00 27,780.00 Cr
Deposit 1,274.00 29,054.00 Cr
20 Cheque 739 710.00 28,344.00 Cr

HM_Process Accounts Assessment I_v1 Page 21 of 39

Last Updated 29th September 2019
 T-1.8.1

23 Dishonour 176.00 28,168.00 Cr

Dishonour fee 20.00 28,148.00 Cr
Deposit 1,711.10 29,859.10 Cr
Cheque 742 529.00 29,330.10 Cr
24 Direct debit – Quality Realty 3,300.00 26,030.10 Cr
Cheque 744 774.00 25,256.10 Cr
Cheque 741 192.00 25,064.10 Cr
31 Interest 23.70 25,087.80 Cr
Bank charges 50.00 25,037.80 Cr
Closing balance 25,037.80 Cr

Bank Reconciliation as at 30 November 2018

$
Credit balance as per bank statement 22,651.00
Add: Outstanding deposits 1,370.00

24,021.00

Less: Unpresented cheques

732 130.00
733 266.00
734 520.00
916.00
Debit balance as per cash book 23,105.00

Books of ACA Restaurant Café

(Extract) Cash Receipts Journal (Extract) Cash Payments Journal

Date $ Date Cheque $
4/12 Receipts 1,643.00 2/12 735 444.00
9/12 Receipts 1,066.00 736 178.50
11/12 Receipts 1,735.00 4/12 737 500.00
16/12 Receipts 988.50 10/12 738 198.00
18/12 Receipts 1,274.00 12/12 739 710.00
20/12 Receipts 1,711.10 16/12 740 373.00
30/12 Receipts 1,300.00 741 192.00
18/12 742 529.00

HM_Process Accounts Assessment I_v1 Page 22 of 39

Last Updated 29th September 2019
 T-1.8.1

743 240.00
20/12 744 774.00
27/12 745 1,361.00
9,717.60 5,499.50

Financial information 3: Accounts Receivable and Accounts Payable data:

ACA Restaurant Cafe’ has the following accounts receivable and accounts payable balances in
October 20XX. The ACA Restaurant Cafe’ has a new customer Pacific Training & Consultancy from
October:

Details $
Accounts Receivable Control
Account Accounts Receivable
20,000
Listing: Suzy’ Bakery 9,000
Brittany’s Milk 6,000 20,000

Chomp’s Cheese 5,000

Accounts Payable Control
Account Accounts payable

Cream Chargers 5,000 15,000

Palette n Pastry 4,000 15,000

G B Wholesaler 6,000

The following journals for ACA Restaurant Cafe’ contain the transactions for October 20XX:

Sales Distribution Journal SDJ1

Inv / Folio Accounts GST

Date Particulars Sales COGS
CN No No. Receivable Collected/Payable

10 Oct XX 25 Brittany’s Milk 3,300 3,000 300 2,400

HM_Process Accounts Assessment I_v1 Page 23 of 39

Last Updated 29th September 2019
 T-1.8.1

13 Oct 26 Suzy’ Bakery 1,980 1,800 180 1,300

16 Oct 27 Chomp’s Cheese 2,200 2,000 200 1,500

17 Oct CN 5 Suzy’ Bakery (176) (160) (16) (100)

21 Oct 28 Suzy’ Bakery 1,540 1,400 140 1,000

24 Oct CN 6 Brittany’s Milk (220) (200) (20) (140)

8,624 7,840 784 5,960

HM_Process Accounts Assessment I_v1 Page 24 of 39

Last Updated 29th September 2019
 T-1.8.1

Purchases Distribution Journal PDJ1

Folio Accounts GST

Date Inv/CN No Particulars Inventory
No. Payable Paid/Receivable

2 Oct XX 311 Cream Chargers 2,200 2,000 200

4 Oct 700 Palette n Pastry 1,100 1,000 100

6 Oct CN 352 Palette n Pastry (110) (100) (10)

16 Oct 250 G B Wholesaler 1,760 1,600 160

18 Oct CN 211 Cream Chargers (220) (200) (20)

25 Oct 667 G B Wholesaler 1,320 1,200 120

6,050 5,500 550

Cash Payments Journal CPJ1

GST
Chq Accounts Discount Paid/
Date Particulars Fol Bank Inventory Wages Electricity
No Payable Received Receiva
ble

3 Oct XX 910 Wages 2,400 2,400

Cream
5 Oct 911 1,868 2,000 (120) (12)
Chargers
11 Oct 912 Electricity 550 500 50

13 Oct 913 Purchases 1,100 1,000 100

GB
21 Oct 914 3,000 3,000
Wholesaler

8,918 5,000 (120) 1,000 2,400 500 138

HM_Process Accounts Assessment I_v2, Page 25 of 39

Last updated on 29th August 2019
 T-1.8.1
Cash Receipts Journal CRJ1

GST
Accounts Discount
Date Chq Particulars Fol Bank Sales Collected COGS
Receivable Allowed
Payable

2 Oct XX 109 Sales 4,400 4,000 400 3,000

4 Oct 110 Suzy’ Bakery 3,780 4,000 (200) (20)

8 Oct 111 Sales 1,320 1,200 120 800

12 Oct 112 Sales 1,760 1,600 160 1200

21 Oct 113 Chomp’s Cheese 986 1000 (40) (4)

12,216 5,000 (240) 6,800 656 5,000

HM_Process Accounts Assessment I_v2, Page 26 of 39

Last updated on 29th August 2019
 T-1.8.1_v3

Assessment Task 1 20 Marks

You are working as an account clerical for ACA Restaurant Cafe’. You are required to research on
company policies, procedures, rules and regulations. Refer to the ACA Restaurant Café’s policies and
procedures available in the ‘Company Background’ and answer the followings.

Question 1:
According to ACA Restaurant Café’ s Electronic Funds Transfer (EFT) Code of conduct (2001),
list the 5 information that periodical payments must include.

[5 Marks]
1. BSB and account number of the payee
2. the name of the payee
3. the narrative
4. the payment due date
5. the amount of the transaction

Question 2:
List three implications of effective doubtful debt identification policy in the business operation of ACA
Restaurant Cafe’.
[3 Marks]
Monthly statements are sent to all active trade debtors whose balances are not equal to
1.
zero.
2. There is a regular follow-up procedure for overdue accounts.
3. Writing off of bad debts is approved by an independent senior official

Question 3:
List three reasons for which discrepancies between deposits recorded and deposits paid
may occur in ACA Restaurant Café’ s business operation.

[3 Marks]
1. part payments
2. system errors
3. termination of policies

HM_Process Accounts Assessment I_v1 Page 27 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

Question 4:
When you are filing documents at ACA Restaurant Cafe’, what factors should be considered when
deciding the filing order?
[3 Marks]
The number and the size of records to be maintained.
1.

The frequency of reference of files.

2.

The speed with which the documents is required.

3.

The physical appearance of the equipment as a piece of furniture.

4.

The life of filing equipment and the duration required for maintenance.
5.

6. The document retention deadline.

Question 5:
To identify and describe the key features of accounting systems, we must maintain accurate record
keeping and reconciliations. What controls should be in place at ACA Restaurant Cafe’ to maintain
accurate records for recording source documents into the subsidiary ledgers?

[3 Marks]

You can keep invoicing, payment and other business transaction records electronically or on paper.
The principles are the same for each, but keeping electronic records will make some tasks easier

automatically tally amounts and provide ready-made reports

produce invoices, summaries and reports for GST and income tax purposes
keep up with the latest tax rates, tax laws and rulings
report certain information to us online
save on physical storage space
back up records in case of flood, fire or theft

1. The important of accounting system

2. What software used by aca cafe (the restaurant using the XERO software also)

Question 6:
Describe the key features of bank account reconciliation process to be implemented and how
often should a reconciliation be done at ACA Restaurant Cafe’?
[3 Marks]

HM_Process Accounts Assessment I_v1 Page 28 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

compare your internal record of transactions and balances to your monthly bank statement. Verify
each transaction individually, making sure the amounts match perfectly, and note any differences
that need more investigation
Normally you should review your accounts at least monthly. If you want a high-volume business or
situation with a high risk of fraud, you may need to reconcile your bank transactions even more
often.

Assessment Task 2 80 Marks

This task requires your read through the financial information available in ‘Company Background’ and
answer the following questions.

Part 1: [35 Marks]

Required: Using the source documents mentioned in the company details and in financial information
1, prepare the following for ACA Restaurant Cafe’ (use the templates provided in answer section,
detailed marks distribution in the answer templates):

a) Sales Distribution Journal

b) Cash Receipts Journal

c) Accounts Receivable subsidiary ledgers

d) Accounts Receivable Control Account in the general ledger

e) Listing/schedule of accounts receivable

f) Aged analysis of accounts receivable and

g) Debt collection policy

Part 2: [15 Marks]

You are required to use financial information 3 for the following:

You, being the accounts Clerk of ACA Restaurant Cafe’, have been asked to reconcile as at 31/12/18,
the Bank’s statement issued by A Bank as at 31/12/18 with the business records of ACA Restaurant
Cafe’.

Prepare bank reconciliation as at 31 December 2018 (use the space provided in the answer
section).

Part 3: [30 Marks]

HM_Process Accounts Assessment I_v1 Page 29 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

You are required to use financial information 3 for the following

(use the templates provided in the answer section):

a. Record the opening balances in appropriate ledgers.

b. Post the transactions for October to:

i) Accounts Receivable Control Account and Accounts Payable Control Account as they
would appear in General Ledger.

ii) Individual accounts receivable and accounts payable subsidiary ledgers.

c. Extract a list of balances from the accounts receivable and accounts payable subsidiary ledgers.
These should balance with the Accounts Receivable Control and Accounts Payable Control
Accounts.
d. What amount of cheque ACA Restaurant Cafe’ is required to draw and sign to make payment to
Cream Chargers if Emma and Ruff pays fresh cream supplies in full on 31/10/20XX?

e. Emma & Rufus received all outstanding amounts from Brittany’s Milk on 31/10/20XX. Prepare the
appropriate journal entry.

f. Emma & Rufus made all the outstanding payment to G B Wholesaler on 31/10/20XX. Prepare the
appropriate journal entry.

ANSWERS:

Assessment Task 2 80 Marks

Part 1 [35 Marks]

1a) Sales Distribution Journal [5 Marks]

Inv /
Accounts GST
Date CN Particulars Fol Sales
Receivable Payable
No
 07/0817  101 Clarendon College   2,860.00 2,600  260.00
Pacific Training and
12/08/17  102 Consultancy    1,342.00 1,220  122.00
 15/08/17  103 Clarendon College   4,070.00 3,700  370.00
19/08/201  Pacific Training and
7  104 Consultancy   1,870.00  1,700 170.00
09/08/201 AN10
7 1  Clarendon College   165.00  150.00  15.00
       
         
         

HM_Process Accounts Assessment I_v1 Page 30 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

     
   
     
       
Total        10,307 9,370 937

1b) Cash Receipts Journal [4 marks]

Account
Discoun GST
s Genera
Date Particulars Fol Bank t Sales Payab
Receivab l
Allowed le
le
 02/08/17  Cash sales    650    650  590.91  59.09  
 12/08/17  Cash sales    510.5    510.5  464.10  46.4  
 19/08/17  Cash sales    430    430  390.91  39.09  
 Clarendon
 04/08/17 college    955.5  24,5  980  890.91  89.09  
 Clarendon
 04/08/17 college    312  8  320  290.91  29.09  
 Pacific
training and
 07/08/17 consultancy    500    500  454.55  45.45  
 308.2
Total      3,358    3,390.5 3,082.29 1  

1c) Accounts Receivable Subsidiary Ledger [7 marks]

Pacific training and
consultancy   (2 Marks)   No:
Date Particulars Fol Debit Credit Balance Dr/Cr

 12/08 Sales    1342 1342 Dr

05/08/17 Invoice   700 2042 Dr
19/08/17 Sales    1870  3912 Dr
07/08 Receipts     500 3412 Dr
     
Clarendon college
  (5 Marks)   No:
Date Particulars Fol Debit Credit Balance Dr/Cr

24/06/17 Invoice 655    320 8395 Dr

 07/0817 Sales    2860  2860 Dr
Opening
 10/06/17 (Invoice 654)    980 8075 Dr
04/08/17  Receipt     1267.50  7127.5 Dr

HM_Process Accounts Assessment I_v1 Page 31 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

Receipt (less
32.5
04/08/17 discount)     7095 Dr
 15/08/17 Sales    4070 6930 Dr
09/08/17 Sales    165 7095 Dr
     
       
       
       
 

Part 1d Accounts Receivable Control Account [5 Marks]

Sales Receipts
 12/08  1342   07/08 500
700
05/08/17 Invoice 04/08/17  Receipt 1267.50
Receipt (less
 1870
19/08/17 Sales 04/08/17 discount) 32.5
Invoice
24/06/17 655  320

 07/0817 Sales  2860

Opening
 10/06/1 (Invoice
7 654) 980
 15/08/1
Sales
7  4070
Sales
09/08/17  165  

Total 12,307  Total 1,800

  Closing
balance 10,507

Part 1e) Listing/Schedule of accounts receivable as at 31 August 2017 [2 Marks]

Account name     Balance
 7,095
 Clarendon college
 3,412
 Pacific training and consultancy
10,507
 Total due

HM_Process Accounts Assessment I_v1 Page 32 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

Part 1f) Aging Analysis [4 Marks]

90 Days
Account name Account No. Balance Current 30 Days 60 Days
and over
  Clarendon
college   8,362.5 1,267.5  7,095    
  Pacific training
and consultancy    3,912 500  3,412    

             

             

             

TOTAL    12,274.5  1,767.5  10,507    

Part 1g) Debt Collection Procedure as per Policy and Procedures [2 Marks]

Account name Action Required

ACA cafe needs to do communication with Email or phone call

 Clarendon college to each customer

 The manager of ACA cafe needs to contact with a friendly

payment reminder
  Pacific training and consultancy

Part 1h) Bad debt and collection procedures [3 Marks]

The restaurant manager should be responsibility for bad debt. The owner should write all
related templates. The write-off templates should be kept on record and filed accordingly.

HM_Process Accounts Assessment I_v1 Page 33 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

Part 1i ) Purchase policy [3

Marks]

Business needs other than materials are to be purchased by the owners

Suppliers usually send a statement at the end of the month; however, some invoices are payable on
invoice, not statement.
Materials purchased are to be used on the job, stored on her storeroom located at the back of the
restaurant café.

Part 2 [15 Marks]

Books of ACA Restaurant Café

(Extract) Cash Receipts Journal (Extract) Cash Payments Journal

Date $ Date $
Sub-total 9,717.60 Sub-total 5,499.50

Bank account calculation:

Opening balance

Add: Cash receipts ______23,105___

Total Cash available

Less: Cash payments _______7724.5_____

Closing balance ____25,037.8________

HM_Process Accounts Assessment I_v1 Page 34 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

Bank Reconciliation as at 31 December 2018

$
Credit balance as per bank statement 25,037.8
Add: Outstanding deposits 1,300
26,337.8

Less: Unpresented cheques

743 240
745 1,361
737 500
Debit balance as per cash book 24,236.8

Part 3 [30 Marks]

a, b, c:

Accounts Receivable Subsidiary Ledger [8 Marks]

Account Name: Suzy Bakery

Date Particulars Fol Debit Credit Balance Dr/Cr

  01 Oct  Opening balance    9,000     9,000  Dr

 13 Oct  Sales    1,980    10,980   Dr
 17 Oct  Credit note      (176)  10,804  Dr
 21 Oct  Sales    1,540    12,344  Dr
             

Account Name: Brittany Milk

Date Particulars Fol Debit Credit Balance Dr/Cr

 10 Oct Sales    3,300    9,300  Dr

 24 Oct  Less discount     (220)  9,080  Dr
 01 Oct  Opening balance    6,000    6,000  Dr
             
             
             

HM_Process Accounts Assessment I_v1 Page 35 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

Account Name: Chomp Cheese

Date Particulars Fol Debit Credit Balance Dr/Cr

 01 Oct  Opening balance    5,000    5,000  Dr

 16 Oct  Sales    2,200    7,200   Dr
             
             
             

Listing of Accounts Receivable [3 Marks]

Customer     Amount

 Suzy Bakery       12,344

 Brittany Milk       9,080
 Chomp Cheese       7,200
       
Total      28,624

Accounts Payable Subsidiary Ledger [7 Marks]

Account Name:  Cream Chargers
Dr/C
Date Particulars Fol Debit Credit Balance
r
  01 Oct  Opening balance    5,000    5,000  Dr
 02 Oct  Purchases    2,200    7,200   Dr
 05 Oct  Cash payment    2,000 (120) 9,080   Dr
18 Oct   Credit note      (220)  8,860   Dr
             
             

Account Name: Palette n Pastry

Dr/C
Date Particulars Fol Debit Credit Balance
r
 01 Oct  Opening balance    4,000    4,000   Dr
 04 Oct  Purchases    1,100    5,100   Dr
 06 Oct   Credit note      (110)  4,990   Dr
             
             
             

HM_Process Accounts Assessment I_v1 Page 36 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

Account Name: G B Wholesaler

Dr/C
Date Particulars Fol Debit Credit Balance
r
 01 Oct  Opening balance    6,000    6,000   Dr
 16 Oct  Purchases    1,760    7,760  Dr
 21 Oct  Cash payment    3,000    10,760   Dr
 25 Oct  Purchases    1,320    12,080   Dr
             
             

Listing of Accounts Payable [3 Marks]

Customer   Amount
 Cream
Chargers      8,860
 Palette n
Pastry      4,990
 G B
Wholesaler      12,080
       
       
Total      25,930

Control Accounts:

Accounts Receivable Control Account [2 Marks]

 Opening  Credit
  01 Oct balance  9,000  17 Oct note  (176)
 Less
discoun
 13 Oct  Sales 1,980  24 Oct t  (220)
 21 Oct  Sales 1,540  
 10 Oct Sales 3,300  
 Opening
 01 Oct balance 6,000  
 Opening
 01 Oct balance  5,000  
 16 Oct  Sales 2,200  
Total 29,020 Total (396)
Closing balance 28,624

Accounts Payable Control Account [2 Marks]

 Opening  Cash
  01 Oct balance  5,000  05 Oct payment (120)
 Purchase   Credit
 02 Oct s  2,200 18 Oct note  (220)
 Cash   Credit
 05 Oct payment  2,000  06 Oct note (110)

HM_Process Accounts Assessment I_v1 Page 37 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

 Opening  4,000
 01 Oct balance  
 Purchase
 04 Oct s  1,100  
 Opening
 01 Oct balance  6,000  
 Purchase
 16 Oct s  1,760  
 Cash
 21 Oct payment  3,000
 Purchase
 25 Oct s  1,320
Total 26,380 Total (550)
Closing balance 25,830

d. [1 Mark]

5112

e. [2 Marks]
Emma & Rufus received all outstanding amounts from Brittany’s milk on 31/10/2017. Prepare the
appropriate journal entry.

Date Particulars Debit ($) Credit ($)

31 Oct Cash 3,300
Account receivable- Brittany Milk 6,000

f. [2 Marks]
Emma & Rufus made all the outstanding payment to G B Wholesaler on 31/10/2017. Prepare
the appropriate journal entry.

Date Particulars Debit ($) Credit ($)

31 Oct Account payable-GB wholesaler 6,000

Cash 5,696

HM_Process Accounts Assessment I_v1 Page 38 of 39

Last Updated 30th September 2019
 T-1.8.1_v3

END OF ASSESSMENT

MARKING FOR ALL TASKS (for trainer use only)

The assessor needs to use judgment in providing marks for the tasks based on learner performance.

Marks Marks
TASK NO.
Allocated Achieved
Assessment Task 1 (20 marks)

Question 1 – 6 20

Comment (if any answer is unsatisfactory):

Assessment Task 2 (80 marks)

Part 1: (35 marks) 35

Comment (if any answer is unsatisfactory):

Part 2 (15 marks) 15

Comment (if any answer is unsatisfactory):

Part 3: (30 marks) 30

Comment (if any answer is unsatisfactory):

TOTAL
100

Emma & Rufus

HM_Process Accounts Assessment I_v1 Page 39 of 39

Last Updated 30th September 2019