Assignment Paper

Instructions
General Instructions:
This assessment requires you to complete 2 tasks. You are required to achieve a satisfactory result in both tasks to be successful in this assessment. Task 1 will require you to identify and correct receipt errors.
Task 2 will require you to complete the processing for a new entity and prepare:
• Subsidiary ledgers
• A bank reconciliation
• Completed journals
• General Ledger accounts
• Subsidiary ledger reconciliations
• A Trial Balance
• An Income Statement
• A Balance Sheet

Assessment

Jolly Amusements commenced operations in January with a minigolf course and games parlour. The accounts manager (Jenny Chee) has kept a full set of journals which are shown below. Templates are provided below for all required entries or you may use the templates contained in the Excel file provided:

FNSACC311_312_AT3_W_TQM_v4.xls

Task 1 – Verifying receipts

Copies of the receipts (source documents) for the period 21 January 2018 to 31 January 2018 have been provided at Appendix A.

You are required to check the receipts against the entries made in the Cash Receipts Journal to ensure that:
– All receipts have been fully and correctly completed
– Details recorded match the entry in the Cash Receipts Journal
– If any discrepancies are found the following actions are required to comply with the organisations policies and procedures:

a) List the discrepancy including all relevant details below:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
b) Examine the information you have available (subsidiary ledgers, sales figures, bank statement) to determine the correct transaction to be recorded. For this exercise you should assume that the bank statement figure is always correct.
c) Make the necessary corrections to the Receipt and to the Cash Receipts Journal if required to correctly record the transaction. Initial and date any changes made to the source document or journal.

Task 2 – Ledgers and reports

To complete the January accounting for Jolly Amusements you are required to:

a) Check that all journals have been properly authorised in accordance with the Organisational Policies and Procedures. Add the name of the authoriser if not already included. (Note: The Organisational Policies and Procedures require that journals be signed and dated by the accounts manager prior to being posted to the General ledger.)

b) Check that the total of the opening balances in the Accounts Receivable and Accounts Payable Subsidiary ledgers match the Accounts Receivable and Accounts Payable General Ledger opening balance and make any necessary corrections. Record all relevant transactions into the Accounts Receivable and Accounts Payable Subsidiary Ledger accounts.

c) Check the opening Bank Balance in the General Ledger and ensure that it agrees with the Bank Reconciliation as at 31 December 2017 as provided. Reconcile the bank account and prepare a Bank Reconciliation Statement as at 31 January 2018

d) Total and balance the journals as required.

e) Ensure all opening balances in the General Ledger (refer to Templates provided) match the December Trial Balance provided. If they don’t then you need to enter the balance from the December Trial Balance. Post the journals to the General Ledger accounts.

f) Complete the Accounts Receivable and Accounts Payable reconciliations for 31 January 2018.

g) Prepare the Trial balance as at 31 January 2018.

h) Prepare the Income Statement for the period ended 31 January 2018 on the template provided.

i) Prepare the Balance Sheet as at 31 January 2018 on the template provided.

 

General Journal Debit Credit
21.01.18 Motor vehicle 10,500
Equipment at cost 700
Capital 11,200
(Owner introduced assets into the business)

23.01.18 Equipment at cost 1,500
GST paid 150
Accounts payable 1,650
(Purchased equipment from John Deere on credit)

31.01.18 Accounts receivable 10
Late Fee Revenue 10
(Late fee charged on Trendy Tricks Pty Ltd account )

Authorised: Jenny Chee 31.01.18

 

Sales Journal
Date Invoice no. Sold to: Sales* GST collected Accounts receivable
05.01.18 1214 Solid Solutions Ltd 1020.00 102.00 1122.00
09.01.18 1256 Allen’s Accounting 620.00 62.00 682.00
10.01.18 1259 Gumby Footy Club 755.00 75.50 830.50
11.01.18 CN554 Allen’s Accounting -40.00 -4.00 -44.00
15.01.18 1285 GDT Pty Ltd 230.00 23.00 253.00
24.01.18 1304 S Smith 154.00 15.40 169.40
31.01.18 1324 Goodfield SHS 140.00 14.00 154.00

Totals
Authorised: Jenny Chee 31.01.18
* All credit sales include GST.

 

Purchases Journal
Date Invoice no. Bought from: Purchases GST paid Accounts payable
04.01.18 100471 Coca Cola Ltd 485.00 48.50 533.50
04.01.18 56594 Donaldson’s Dairy 124.00 0 124.00
05.01.18 2201 Allen’s Confection 260.00 26.00 286.00
07.01.18 567 Allen’s Confection -20.00 -2.00 -22.00
08.01.18 5546 Clear Springs 155.00 0 155.00
13.01.18 56596 Donaldson’s Dairy 146.00 5.50 151.50
15.01.18 102484 Coca Cola Ltd 845.00 84.50 929.50
19.01.18 44494 Coca Cola Ltd -42.00 -4.20 -46.20
20.01.18 8997 Smart Golf 62.00 6.20 68.20
30.01.18 56657 Donaldson’s Dairy 180.00 18.00 198.00

Totals
Authorised: Jenny Chee 31.01.18

Cash Receipts Journal * Cash sales include GST Free sales and taxable sales.
Date Ref no. Particulars Folio/ account GST Collected Sales* Other accounts Accounts receivable Discount Allowed Bank
06.01.18 215 Cash sales Sales 142.00 1510.00 1,652.00
08.01.18 216 Cash sales Sales 135.00 1,410.50 1,545.50
12.01.18 217 Cash sales Sales 5.00 50.00
12.01.18 218 Cash sales Sales 36.40 387.20 478.60
13.01.18 219 Rent received Rent 110.00 1,100.00 1,210.00
14.01.18 220 Solid Solutions A/C Rec 1122.00 1,122.00
18.01.18 221 Cash sales Sales 62.50 690.10 752.60
21.01.18 222 Gumby Football Club A/C Rec 803.50 803.50
22.01.18 223 Cash sales Sales 40.00 400.00 440.00
29.01.18 224 S Smith A/C Rec 169.40
29.01.18 225 Cash sales Sales 35.00 380.00 584.40
30.01.18 226 Owner contribution Capital 2,000.00 2,000.00
31.01.18 227 Cash sales Sales 121.00 1,245.00 1,366.00

Totals
Authorised: Jenny Chee 31.01.18

Cash Payments Journal
Date Ref no. Particulars Folio/ Account GST Paid Purchases Other accounts Accounts payable Discount Received Bank
01.01.18 45 Coles Purchases 35.60 384.20 419.80
04.01.18 46 Ready Rewards Purchases 100.00 1,000.00 1,100.00
11.01.18 47 Coca Cola Ltd A/C Pay 533.50 533.50
11.01.18 48 Telephone Telephone 32.40 324.00 356.40
11.01.18 49 Donaldson’s Dairy A/C Pay 124.00 124.00
13.01.18 50 Cash purchases Purchases 4.30 43.00 47.30
13.01.18 51 Wages Wages 430.00 430.00
14.01.18 52 Clear Springs Various -0.50 155.00 -5.00 149.50
22.01.18 53 Coca Cola Ltd A/C Pay 883.30 883.30
26.01.18 54 Harvey Norman Equipment 230.00 2,300.00 2,530.00
27.01.18 55 Wages Wages 510.00 510.00
31.01.18 56 Donaldson’s Dairy A/C Pay 198.00 198.00

Totals
Authorised:

b) Subsidiary Ledgers

Accounts Receivable Subsidiary Ledger
Allen’s Accounting 1-2001
Date Details Folio Debit Credit Balance
1/01/2018 Opening balance (Invoice date 18/12/17) 540.00 DR

GDT Pty Ltd 1-2012
Date Details Folio Debit Credit Balance

Goodfields SHS 1-2014
Date Details Folio Debit Credit Balance

Gumby’s Footy Club 1-2018
Date Folio Debit Credit Balance

Solid Solutions Pty Ltd 1-2025
Date Details Folio Debit Credit Balance

S Smith 1-2026
Date Details Folio Debit Credit Balance

Trendy Tricks Pty Ltd 1-2030
Date Details Folio Debit Credit Balance
1/01/2018 Opening balance (Invoice date 05/12/17) 870.00 DR

 

Accounts Payable Subsidiary Ledger
Allen’s Confection 2-2001
Date Details Folio Debit Credit Balance

Clear Springs 2-2013
Date Details Folio Debit Credit Balance
1/01/2018 Opening balance (Invoice dated 24/12/17) 155.00 CR

Coca Cola 2-2014
Date Details Folio Debit Credit Balance

Donaldson’s Dairy 2-2020
Date Details Folio Debit Credit Balance
1/01/2018 Opening balance (Invoice dated 28/12/17) 124.00 CR

Smart Golf 2-2040
Date Details Folio Debit Credit Balance

John Deere 2-2018
Date Details Folio Debit Credit Balance

The Bank
Statement for January 2018
Jolly Amusements
2018 Withdrawals Deposits Balance
1 Jan Opening balance 25,154.68 Cr
4 Jan Deposit 1,256.00 26,410.68 Cr
4 Jan Withdrawal – Chq 000043 176.00 26,234.68 Cr
5 Jan Withdrawal – Chq 000045 419.80 25,814.88 Cr
7 Jan Deposit 1,652.00 27,466.88 Cr
9 Jan Deposit 1,545.50 29,012.38 Cr
12 Jan Withdrawal – Chq 000047 533.50 28,478.88 Cr
12 Jan Withdrawal – Chq 000046 1,100.00 27,378.88 Cr
12 Jan Deposit 478.60 27,857.48 Cr
12 Jan Withdrawal – Chq 000048 356.40 27,501.08 Cr
13 Jan Withdrawal – Chq 000049 124.00 27,377.08 Cr
13 Jan Deposit 1210.00 28,587.08 Cr
15 Jan Withdrawal – Chq 000051 430.00 28,157.08 Cr
15 Jan Deposit 1122.00 29,279.08 Cr
17 Jan Withdrawal – Chq 000052 149.50 29,129.58 Cr
18 Jan Direct debit Loan – The Bank 230.00 28,899.58 Cr
21 Jan Deposit 752.60 29,652.18 Cr
21 Jan Deposit 830.50 30,482.68 Cr
22 Jan Deposit 440.00 30,922.68 Cr
27 Jan Withdrawal – Chq 000054 2,530.00 28,392.68 Cr
29 Jan Deposit 584.40 28,977.08 Cr
31 Jan Bank charges 18.50 28,958.58 Cr
31 Jan Withdrawal – Chq 000055 510.00 28,448.58 Cr
31 Jan Interest on account 22.28 28,470.86 Cr

 
Trial Balance as at 31 December 2017

Account Debit Credit
Cash at bank 26234.68
Accounts receivable 1410.00
Equipment at cost 12870.00
Accounts payable 279.00
GST Collected 783.00
GST Paid 521.30
Loan – The Bank 17439.50
Capital 22534.48

41035.98 41035.98

Bank Reconciliation as at 31/12/2017

Balance as per Bank Statement $25,154.68

Plus Outstanding Deposits
31.12.17 1,256.00

26,410.68
Less Unpresented Cheques

Chq no. 000043 176.00

Balance as per GL $26,234.68

c) Bank Reconciliation as at 31/01/2018

Balance as per Bank Statement

Plus Outstanding Deposits

Less Unpresented Cheques

Balance as per GL

e) General Ledger accounts

Account Name: Cash at bank Account No.100
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 26,234.68 dr

Account Name: Accounts receivable Account No.110
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 1410.00 dr

Account Name: Equipment at cost Account No.170
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 12,870.00 dr

Account Name: Motor Vehicles at cost Account No.174
Date Details Folio Debit Credit Balance

Account Name: Accounts payable Account No.210
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 279.00 cr

Account Name: GST collected Account No.230
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 783.00 cr

Account Name: GST paid Account No.125
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 521.30 dr

Account Name: Loan – The Bank Account No.270
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 17,439.50 cr

Account Name: Capital Account No.300
Date Details Folio Debit Credit Balance
01.01.18 Opening balance 22,534.48 cr

Account Name: Sales Account No.400
Date Details Folio Debit Credit Balance

Account Name: Rent received Account No.455
Date Details Folio Debit Credit Balance

Account Name: Interest received Account No.460
Date Details Folio Debit Credit Balance

Account Name: Discount received Account No.465
Date Details Folio Debit Credit Balance

Account Name: Late Fee Revenue Account No.475
Date Details Folio Debit Credit Balance

Account Name: Purchases Account No.500
Date Details Folio Debit Credit Balance

Account Name: Bank Charges Account No.602
Date Details Folio Debit Credit Balance

Account Name: Telephone Account No.650
Date Details Folio Debit Credit Balance

Account Name: Wages Account No.670
Date Details Folio Debit Credit Balance

 
f) Accounts Receivable and Accounts Payable Reconciliations

Account Receivable Reconciliation 31 January 2018
Account Number Account Name Total Due Current
0 – 30 days 31 – 69 Days 61 – 90 Days 90+ days

Grand Totals
Balance per GL $
Variance $

Account Payable Reconciliation 31 January 2018
Account Number Account Name Total Due Current
0 – 30 days 31 – 69 Days 61 – 90 Days 90+ days

Grand Totals
Balance as per GL $
Variance $
 
g)
Trial Balance of Jolly Amusements as at 31 January 2018

Account Number Account Name Debit Credit

 
h) Income Statement for the period ended 31 January 2018

JOLLY AMUSEMENTS
Income Statement for the period ended 31 January 2018

Revenue
Sales Revenue $
Less COGS $
GROSS PROFIT $
Add Other Revenue
Rent Received $
Interest Received $
Discount Received $
Late Fee Revenue $ $
$
Less Operating Expenses
Bank Charges $
Telephone $
Wages $ $

NET PROFIT $

 

i) Balance Sheet as at 31 January 2018

JOLLY AMUSEMENTS
Balance Sheet as at 31 January 2018

Current Assets
Cash at bank $
Accounts Receivable Control $ $
Non-current Assets
Motor Vehicles at Cost $
Equipment at Cost $ $
TOTAL ASSETS $

Current Liabilities
GST Collected $
Less GST Paid $ $
Accounts Payable Control $
$
Non-current Liabilities
Loan – The Bank $
TOTAL LIABILITIES $

NET ASSETS $

OWNERS’ EQUITY
Capital $
Net Profit (From Income Statement) $ $

 
APPENDIX A

RECEIPT Jolly Amusements No. 222
Date 21/01/2018

Received from Gumby Football Club

Amount in words Eight hundred and thirty Dollars $ 803.50
Fifty Cents

For payment of Invoice 1259 Cash
X Cheque
Received by C Clown Other

RECEIPT Jolly Amusements No. 223
Date 22/01/2018

Received from Cash

Amount in words Four hundred and forty Dollars $ 440.00
Nil Cents

For payment of Sales (Including GST $40) X Cash
Cheque
Received by C Clown Other

RECEIPT Jolly Amusements No. 224
Date 29/01/2018

Received from S Smith

Amount in words One hundred and sixty nine Dollars $ 169.40
Forty Cents

For payment of Cash
X Cheque
Received by C Clown Other

 

RECEIPT Jolly Amusements No. 225
Date 29/01/2018

Received from Cash

Amount in words Four hundred and fifteen Dollars $ 415.00
Nil Cents

For payment of Sales (Including GST $35) X Cash
Cheque
Received by C Clown Other

RECEIPT Jolly Amusements No. 226
Date 30/01/2018

Received from Cash

Amount in words Two thousand Dollars $ 2000.00
Nil Cents

For payment of Capital contributed by owner X Cash
Cheque
Received by C Clown Other

RECEIPT Jolly Amusements No. 227
Date 31/01/2018

Received from Cash

Amount in words One thousand three hundred and sixty six Dollars $ 1366.00
Nil Cents

For payment of Sales (Including GST $121) X Cash
Cheque
Received by C Clown Other