FNSACC312 Administer subsidiary accounts and ledgers

FNS30317Certificate III in Accounts Administration
FNS40217Certificate IV in Accounting& Bookkeeping

Assessment 1 Portfolio of Evidence

Question 1

(Elements: 1.1-1.4, 7.2)

The Accounts Receivable and Accounts Payable listings in the books of Marlin Machinery at the end of April were as follows:

Accounts Receivable as at 30 April		Accounts Payable as at 30 April
T Yu	450	Franklin Electronics	1,600
M Markey	640	K Parris	350
P Thomas	1,400
M Jack	700
3,190	1,950

The following transactions occurred in them month of May. The invoices sent and received include GST.

Date	Transaction
May-02	Invoices sent to T Yu $462 and S Smedley $330
May-04	Received cheque from M Markey for $640
Sent invoices to P Thomas for $220
May-09	Bought tools from Quality Spare Parts for $891
May-10	Received cheque from M Jack for $700
May-13	Received cheque for $450 from T Yu
May-15	Invoiced M Markey for $572
May-18	Sent invoices to S Smedley for $385
May-20	Paid Franklin Electronics $1,600

Title/s

May-23	Bought $1,320 equipment from Franklin Electronics
May-24	Paid K Parris $200
May-27	Invoiced P Thomas $1,100
May-30	Received from P Thomas $1,400

Required

Enter opening balances in the subsidiary ledger accounts and post the May transactions to the accounts. Calculate the closing balances at the end of the month.
Prepare the Accounts Receivable Control account and the Accounts Payable Control account showing the effect of the above. Calculate the closing balances at the end of the month.
Prepare a list of Accounts Receivable and Accounts Payable as at 31 May. Question 2

(Elements: 2.1-2.3, 3.1-3.2, 4.1-4.2, 6.1-6.3, 7.1-7.2)

As a newly qualified accounts receivable clerk, your employer has asked you to analyse the following outstanding debts and determine which debts you would consider to be bad (e.g. the client or debtor is unlikely to ever pay the account).

List of Debtors Outstanding for Lamp Pty Ltd

Jason Robands	$1,000	Outstanding 45 days
Sue Lang	$789	Outstanding 29 days
Maree Stammers	$5,000	Outstanding 121 days
Xi Zhou	$6,890	Outstanding 5 days
Paul Stim	$10,120	Outstanding 116 days
Franklin Electronics	$572	Outstanding 37 days
Simmons Pty Ltd	$2,190	Outstanding 58 days
Limp Café Subiaco	$240	Outstanding 99 days
B Company Limited	$46,890	Outstanding 215 days
Graeme Sullers	$150	Outstanding 63 days

Required:

Complete an Aged Debtors Report based on the following format using an Excel spreadsheet and ensure that you sum each column with the total amount.

Debtors name

Amount

0-30 days

31-60 days

61-90 days

> 90 days

In the second part of this question based on the age debtors report prepared determine which accounts you would consider to be “doubtful” debts and those which would be “bad” debts?
For those debts now more than 90 days what actions do you think the company should take?

Title/s

Question 3

(Elements: 1.1-1.4)

Alana Adams has provided you with a list of her debtors and creditors:

Accounts Receivable balance at March 1, 2016	$ 79,750
Accounts Payable balance at March 1, 2016	11,550
Invoices received from Subcontractors (Suppliers)	7,645
Invoices sent to clients for consulting services	137,500
Fee income received in cash	12,200
Expenses paid in cash	4,400
Contra of accounts payable to accounts receivable	2,880
Cash received from accounts receivable	120,000
Bad debt (including GST) written off	880
Cash payments to accounts payable	32,000
Purchase of Motor Vehicle on credit	30,800
Interest income received in cash	8,000

Required:

Prepare the Accounts Receivable Control account, as it would appear in the general ledger.
Prepare the Accounts Payable Control account, as it would appear in the general ledger. (All amounts include GST)

Question 4

(Elements: 2.1-2-3, 3.3-3.4)

As part of your role in assisting Alana Adams in preparing the balances for the accounts payable and accounts receivable control accounts (question 3). She has now requested for you to develop a policy on debtors and creditors.

Required:

You are required to develop a policy for debtors and creditors for Alana Adams and this must include the following:

What procedures must Alana take to ensure (1) creditors are paid by the due date, (2) creditors are paid early when a discount is offered, and (3) creditors are not paid twice
What procedures must be taken to identify debts that are doubtful and those that a bad and must be written off
What procedures should be in place when chasing up debts, e.g. when and how should phone calls be made, letters of demand, legal action

This can be in the form of a Memo or a letter and should be no more than 1 page and you can use dot points

Note:

In addition to using information from the textbook and sessions/topics slides, you should also undertake a Google search for “organisational policies on debts”

Title/s

Question 5