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:

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

Title/s

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

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.

• 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

Title/s

Question 3

(Elements: 1.1-1.4)

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

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

(Elements: 2.1-2.3, 3.1-3.2)

Nupina Gifts has the following balances as at 30 June 2017:

• Accounts receivable $343,630
• Balance of allowance for doubtful debts is $4,200
• Bad debts to be written off are $3,630 including GST
• Allowance for doubtful debts to be adjusted to 3% of accounts receivable

Required:

(a) General journal entries to record the bad debts and allowance adjustment (b) Post general ledger to relevant accounts

Question 6

(Elements: 1.1-1.4, 2.1-2.3, 4.1-4.2, 5.1-5.2, 6.1-6.3)

Landline Equipment Hire provides to credit to customers on a 30-day basis. Accounts receivables ledger shows the following:

Required:

• Prepare an Aged Debtors Report as at 31 May
• What actions do you recommend Landline Equipment Hire take to recovering the outstanding debts?