Finance and Management

FNSACC311 Process Financial Transactions

03 May 2023 12:51 PM | UPDATED 11 months ago

FNSACC311 Process Financial Transactions :

FNSACC311 Process Financial Transactions
FNSACC311 Process Financial Transactions

Assessment Instruction

FNSACC311 Process financial transactions and extract interim reports

Table of Contents

Table of Contents                                                                                          2

Assessment Information                                                                               4

Additional Resources                                                                                    5

Assessment Instructions                                                                               6

Assessment Task 1: Written Questions                                                        7

Assessment Task 1 Instructions                                                                  10

Assessment Task 2: Petty cash and cash receipts                                      11

Assessment Task 2 Instructions                                                                  13

Assessment Task 3: Reconcile and pay journals                                         18

Reference Resource                                                                                    23

Instructions

You are advised to commence work on your assessment from week 1 and all tasks must be submitted by the due dates provided.

  1. All assessments must be completed and delivered individually. Where an assessment involves group discussions, you should consider the input of your group but submit an individual assessment to your trainer.
  2. Please read all instructions on completing each assessment. Instructions for completion are provided at the beginning of each assessment.
  3. All written answers must be typed in a word document using Arial font, 12 size and single spacing if similar instructions are not provided in the assessment.
  4. Your trainer will not be able to assist you in answering questions. However, your trainer will address any issues concerning questions requiring further explanation.
  5. You may refer to your student learning resources or any other relevant resources when completing your assessment.
  6. Assessments are due for submission as specified in the assessment schedule. Any variations to this arrangement must be approved by your trainer prior to the due date for submission.
  7. You have access to computers which are equipped with Microsoft suite of products or any other relevant software and printing facility.
  8. Use assessment templates if provided, to complete relevant sections of the assessment. You can also create your known templates for assessment evidence.
  9. You must achieve a satisfactory result for all tasks to achieve competency in this unit.
  10. All assessment answers should be submitted to the trainer in required format (soft or hard copy) as per trainer instructions with completed assessment cover sheet (if required).

Assessment Schedule

TaskDue Date
Task 1Week 1
Task 2 and Task 3Week 2

Assessment Information

The assessment tasks for FNSACC301 Process financial transactions and extract interim reports are included in this booklet and outlined in the assessment plan below. 

To be assessed as competent for this unit, the student must complete all of the assessment tasks satisfactorily. 

FNSACC311 Process Financial Transactions Assessment Plan

Assessment TaskAssessment Task Summary
1. Written questionsStudents must correctly answer all questions to show that they understand the knowledge required of this unit.
2. Petty cash and business transactionsStudents must calculate a business’ Petty Cash and perform the monthly reconciliation. They must also check the day’s takings, bringing the cash and cheques to the deposit facility.
3. Enter data into electronic accounting systemStudents must establish a new business in MYOB, enter transactions and produce a trial balance.

Assessment Preparation

Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for clarification if you have any questions at all.

Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.

Assessment appeals

If you do not agree with an assessment decision, you can make an assessment appeal as per Sydney Metro College assessment appeals process.

Students have the right to appeal the outcome of assessment decisions if you feel you have been dealt with unfairly or have other appropriate grounds for an appeal.

Additional Resources

The following resources will be given to you before you begin each Assessment Task.

Assessment Task 2

  • Petty Cash Vouchers
  • Petty Cash Receipts
  • Financial Policy and Procedures
  • EFTPOS
  • Cheques
  • Andrew’s Workbook Template

Assessment Task 3

  • Andrew’s Slabs Accounts
  • Andrew’s Slabs Transactions July

Assessment Instructions

Trainer Marking Guide

This will be used by your assessor to mark your assessment. Read through this as part of your preparation before beginning the assessment task. It will give you a good idea of what your assessor will be looking for when marking your responses.

The Trainer Marking Guide will be returned to you with the outcome of the individual assessment task, which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your assessor will include written feedback giving reasons why.

Depending on the task, this may include:

  • resubmitting incorrect answers to questions (such as short answer questions and case studies)
  • resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
  • redoing a role play after being provided with appropriate feedback about your performance
  • being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily completed the first time, after being provided with appropriate feedback.

Process Financial Assessment Task Information

This gives you:

  • a summary of the assessment task
  • information on the resources to be used
  • submission requirements
  • re-submission opportunities if required

Assessment Task Instructions

These give questions to answer or tasks which are to be completed. Your answers need to be typed up using software as indicated in the FNSACC311 Process Financial Transactions Assessment Task Instructions.

If you are submitting electronically, consider giving the document a file name that includes the unit identification number, the task number, your name and the date.

Assessment Task 1: Written Questions

Task summary

  • Students need to answer all of the written questions correctly.
  • Answers must be word processed.

Required

  • Access to textbooks/other learning materials
    • Computer and Microsoft Office
    • Access to the internet

Submit

  • Answers to all questions

Assessment criteria

All questions must be answered correctly in order for a student to be assessed as having completed the task satisfactorily.

Re-submission opportunities

Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Students are encouraged to consult with their assessor prior to attempting this task if they do not understand any part of this task or if they have any learning issues or needs that may hinder them when attempting any part of the assessment.

Written answer question guidance

The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell you how you should answer the question. Use the definitions below to assist you to provide the type of response expected.

Note that the following guidance is the minimum level of response required.

Analyse – when a question asks you to analyse something, you should do so in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.

Compare – when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.

Contrast – when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write a response one or two paragraphs long.

Discuss – when a question asks you to discuss something, you are required to point out important issues or features, and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.

Describe – when a question asks you to describe something, you should state the most noticeable qualities or features. Generally, you are expected to write a response two or three sentences long.

Evaluate – when a question asks you to evaluate something, you should put forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.

Examine – when a question asks you to examine something, this is similar to “analyse”, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.

Explain – when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.

Identify – when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.

List – when a question asks you to list something, this means that you are asked to briefly state information in a list format.

Outline – when a question asks you to outline something, this means giving only the main points. Generally, you are expected to write a response a few sentences long.

Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the main points. Generally, you are expected to write a response a few sentences long.

Assessment Task 1 Instructions

Provide answers to all of the questions below:

  1. Describe the imprest system of petty cash, including the accounts to which the transactions and the petty cash replenishment will be attributed to.
  2. Explain the concept of accrual accounting.
  3. Explain the concept of cash accounting.
  4. Explain why a company may elect to use accrual accounting rather than cash accounting method?
  5. Explain the difference between an asset and an expense and include an example of each.
  6. Explain, in your own words, the procedure of Electronic Funds Transfer at Point of Sale (EFTPOS).
  7. When making a deposit at a bank, identify the proof of lodgement that you need to obtain in order to ensure you are able to trace the deposit if required?
  8. What additional security measures could a company use when banking a cheque made out to cash, as opposed to a general cheque?
  9. Outline three examples of errors that can be made when processing financial transactions.
  10. In your own words, briefly explain the five fundamental principles of the Code of Ethics for Professional Accountants.
  11. Briefly describe the purpose of the Tax Agent Services Act 2009 and why it is important for a BAS agent to be aware of this Act.
  12. Briefly explain the purpose of the Fair Work Act 2009 and the importance of understanding this Act for an individual working in accounts or bookkeeping.
  13. Provide three examples of actions that should be taken at work to meet the requirements of the Privacy Act 1988.
  14. List four (4) safety/security measures that should be implemented when transporting cash.
  15. Describe, in your own words, three important features of a chart of accounts, and list the five categories (excluding contra-accounts) under which all accounts are usually organised.
  16. Describe the key features of three (3) end of year financial year reports.

Assessment Task 2: Petty cash and cash receipts

Task summary

For this FNSACC311 Process Financial Transactions assessment task you are required to check petty cash receipts against a petty cash log, recording the transactions in a Petty Cash Book and the General Journal, as well as preparing for the month’s Petty Cash reimbursement. You will have to get approval, at a meeting with your assessor, for the Petty Cash vouchers and your General Journal entries before posting these to the Ledger.

You will also be required to check the day’s takings, in cash, cheque, and EFTPOS, and then deposit the cash and cheques at the selected deposit facility. You will also be expected to discuss the safety and security implications of deposit facility selection with your assessor at the meeting.

Required

  • Computer and Microsoft Office
    • Access to the internet for research
    • Petty Cash Vouchers
    • Petty Cash Receipts
    • Financial Policy and Procedures
    • EFTPOS
    • Cheques
    • Andrew’s Workbook Template.

Submit

  1. Andrew’s Slabs Workbook (Version 1)Email to your assessor with your Andrew’s Slabs Workbook attached Andrew’s Slabs Workbook (Version 2)Email to your assessor with your revised Andrew’s Slabs Workbook attached You will also be assessed on your performance during the role play with the help of observation checklistBank Deposit Slip (Received during the role play)Bank Withdrawal Receipt (Received during the role play).

Assessment criteria

All questions must be answered correctly in order for a student to be assessed as having completed the task satisfactorily.

Re-submission opportunities

Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.

Students are encouraged to consult with their assessor prior to attempting this task if they do not understand any part of this task or if they have any learning issues or needs that may hinder them when attempting any part of the assessment.

Assessment Task 2 Instructions

Carefully read the following:

Andrew has been buying and selling timber slabs for some years, and has recently started repairing furniture. The business transactions are still recorded in a cash receipts book, and then transferred to an Excel Workbook, but Andrew intends to move to an electronic accountancy system in the future.

It is the first of May and, as Andrew’s bookkeeper, you are to balance the Petty Cash box for the previous month and prepare for its reimbursement. The Petty Cash box and log were started a month ago, so that Andrew can have better oversight of what is being spent by the office staff.

It is also your job to collect and batch the previous day’s cash, cheques, and EFTPOS receipts, balancing that against the previous day’s transactions.

You will then participate in a meeting with your assessor, who will be roleplaying Andrew. His approval is needed for the month’s Petty Cash vouchers and for the Journal before it can be posted to Ledger, as set out in Andrew’s Slabs Financial Policy and Procedures.

You will then role play the visit to the bank to reconcile the petty cash box and to deposit the previous day’s cheques and cash takings.

DateVoucher NumberParticularsTotal PaidWho paid
Apr 11001Taxi Fare27.50David
31002Ring binders8.80Angela
81003Coffee and sugar for staff room28.60Angela
121004Fruit for staff room12.30Angela
181005Carton of paper for photocopier19.80Angela
231006Taxi fare16.50David
251007New kettle for staff room26.40Andrew
251008Taxi fare25.30Andrew
291009Fruit for staff room13.20Angela
FNSACC311 Process Financial Transactions

Petty Cash Log

Complete the following activities:

  1. Balance the Petty Cash Log and prepare for reimbursement of the Petty Cash Fund.

Check the petty cash log against the Petty Cash Vouchers and Petty Cash Receipts source documents, then transfer the transactions to the Petty Cash Book Worksheet in Andrew’s Workbook Template. Include the reimbursement, which is due to happen later that day.

Make the General Journal entries for the Petty Cash fund.

  • Batch and total the cash, leaving a $300.00 float for the cash register.
DenominationQuantityValue
Notes  
$1001 
$503 
$208 
$106 
$55 
Coins  
$218 
$114 
50c10 
20c21 
10c13 
5c16 
Total  
  • Batch and total the cheques
  • Total the EFTPOS transactions
  • Enter previous day’s transactions into the Cash Receipts Book in the Andrew’s Workbook Template, and then enter the figures into the General Journal.
  • When you have accounted for the day’s trading and the month’s petty cash, organise a meeting with Andrew (your assessor).

Send your assessor an email requesting a meeting to look at, and authorise, the Petty Cash vouchers for the last month and the Journals.

The text of the email should include:

  • The table you have filled out for activity 2 above.
  • the previous day’s cash takings, total cheques, total EFTPOS transactions and total revenue for the day.
  • the total value of cash that you intend to deposit in the bank.
  • the amount that will be necessary for reimbursement of Petty Cash.

The covering email should be written in polite and technically correct English. Terminology should be used accurately and appropriately.

Attach your Andrew’s Workbook to the email.

  • At the meeting you will be expected to:
  • Give the Petty Cash Vouchers and Petty Cash Receipts to your assessor for authorisation.
  • Make any changes to your Workbook entries that are requested.
  • Obtain authorisation to post the Journals to Ledger.
  • Detail what cash and cheques you will be bringing to the bank, role playing the process of depositing these and receiving a receipt.
  • Give the amount of cash that you wish to withdraw for the Petty Cash Reconciliation, also role playing this and your receipt of the withdrawal slip.
  • Describe how you would file these two documents.

During the meeting, you will be required to demonstrate effective communication skills as follows:

  • Use of appropriate style (formal), tone (encouraging, respectful) and vocabulary (professional, business language) for the meeting
  • Active listening skills
  • Asking questions and listening to responses to clarify understanding.
  • At the above meeting, your assessor will also ask you about safety and security in relation to the company’s deposit facilities.

Before attending the meeting, research the safety and security measures that may be appropriate for a business the size of Andrew’s Slabs. Ensure that you have recommendations on:

  • which deposit facilities are appropriate
  • measures that can be taken to enhance safety and security.
  • When the meeting has been completed, reconcile the banking documentation with the company’s records.
  • Adjust the Petty Cash transactions in the Petty Cash Book and the Journals to reflect the information that Andrew has given you.
  • Post the approved Journal entries to Ledger
  • Record the day’s trading in the Cash Receipts Book within the timeframe given in the Policy and Procedures, ensuring that the figures reconcile with the banking documentation.
  1. Send your revised Andrew’s Slabs Workbook to your assessor as an email attachment. The email itself should refer to the meeting and its outcomes, summary of recommendations regarding safety and security measures and should give a short summary of changes you have made to the Workbook.
Student Appendices
Petty Cash VouchersPetty Cash ReceiptsAndrew’s Workbook Template

Cheques
EFTPOSFinancial Policy and Procedures
FNSACC311 Process Financial Transactions

Assessment Task 3: Reconcile and pay journals

Task summary

For this FNSACC311 Process Financial Transactions assessment task you are required to enter Andrew’s Slabs’ details into MYOB accounting software to record all the Sales and Purchase transactions for the company based on the scenario information, using the data provided.

Required

  • A computer
    • MYOB access
    • Andrew’s Slabs Accounts
    • Andrew’s Slabs Transactions July
    • Financial Policy and Procedures.

Submit

  1. Sale Invoices (4)Banking Transactions ReportTrail BalanceEmail to your assessor with invoices and both reports attachedCompleted MYOB file.

Assessment criteria

All questions must be answered correctly in order for a student to be assessed as having completed the task satisfactorily.

Re-submission opportunities

Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.

Students are encouraged to consult with their assessor prior to attempting this task if they do not understand any part of this task or if they have any learning issues or needs that may hinder them when attempting any part of the assessment.

Assessment Task 3 Instructions

Carefully read the following

It is the first of August in your current financial year, and Andrew is interested in using a simple version of MYOB to keep the company’s accounts. Andrew has asked you, as the Accounts Clerk, to record the company’s details and transactions into the MYOB framework, and extract interim reports as requested by Andrew.

Many customers are walk-ins, as the workshop is close to the Tyagarah CBD, but Andrew also has several regular customers who purchase from him to resell in their retail stores. These customers can purchase on credit as set out in the Financial Policy and Procedures. You will also be asked to write invoices for orders that these customers have made.

Complete the following activities:

  1. Enter Andrew’s Slabs’ details from Andrew’s Slabs Accounts into MYOB.

Accept the chart of accounts suggested, and modify this as set out in Andrew’s Slabs Accounts, entering the opening balances as appropriate.

Inactivate the accounts in MYOB that are not listed in Andrew’s Slabs Accounts.

Under GST settings enter Accrual accounting, Quarterly reporting, BAS lodgement by paper.

Enter details of Andrew’s Slabs’ customers and suppliers from Andrew’s Slabs Accounts into MYOB. Add your name in the company details section for Authenticity purposes.

  • Enter the sales and expenses in Andrew’s Slabs Transactions July.

After a few unfortunate experiences with cheques not being honoured, Andrew decided to stop taking them at the end of the last financial year. There were also multiple problems with Andrew’s Slabs’ EFTPOS system, so no EFTPOS transactions could be carried out since the end of June. Consequently, all of the transactions listed in Andrew’s Slabs Transactions July were cash sales.

In the Notes window write “Cash Sales July”.

  • The following special transactions occurred in July also. Enter them into MYOB.
  • July 10       Upholstery pressure stapling machine           $875.00
  • July 18       Standing wood drill    $1,350.00
  • July 27       Andrew withdrew from business        $2,000
  • The following orders have been picked up by customers. Write an invoice for each in MYOB.

Make sure that the invoices are prepared as set out in the Financial Policy and Procedures.

As many of Andrew’s products are individual pieces, and are priced as such, do not use the Item column for items, but use the description column.

Use the invoice number suggested by MYOB.

Before saving the invoices, check them against the customer orders again, correcting any errors you find.

Save a pdf of the invoices to your desktop. File this document as set out in the Financial Policy and Procedure by creating an appropriately named folder on your desktop.

../../../../Desktop/Screen%20Shot%202017-02-08%20at%203.52.03../../../../Desktop/Screen%20Shot%202017-02-08%20at%203.52.17
../../../../Desktop/Screen%20Shot%202017-02-08%20at%203.52.30../../../../Desktop/Screen%20Shot%202017-02-08%20at%203.52.40
FNSACC311 Process Financial Transactions
  • Extract a trial balance and a bank transactions report from MYOB. Check their figures against the data you have entered to ensure that it is accurate. If there are any errors, correct these. Save both as pdf documents, filing them as you did with the invoices, and take a screen shot of the opened Folder.
  • To ensure that the relevant information is understood easily by Andrew, he has asked you to create a small table that shows, for each month:
  • Total income
  • Cost of sales
  • Total expenses
  • Net profit
  • Total Assets
  • Total liabilities

The table should have a row for each of these values, and a column for each month for the next half a year. It will be updated every month, and sent to Andrew as part of an email. This will be a separate system of data entry that you will maintain yourself, given that the figures cannot be automatically imported from MYOB.

  • Write an email to Andrew (your assessor).

The email should be written in polite and technically correct English, asking your assessor, in the role of Andrew, to check through the attached documents and to give his opinion as to the benefits of using MYOB.

Place the table within the email’s text, summarising how it can be updated monthly to keep Andrew abreast of the company’s performance.

Attach the pdf documents you generated in activities 4 and 5 to this email, as well as the screen shot you have taken of the files and folder.

Student Appendices

Andrew’s Slabs Accounts
Andrew’s Slabs Transactions JulyFinancial Policy and Procedures
FNSACC311 Process Financial Transactions

Reference Resource

Process financial transactions and extract interim reports – FNSACC301, 2018, J&S Learningwork, Mullumbimby NSW Australia.

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