PART D – Trust Account Exercise 

You are provided with information relating to all transactions for Roller Realty for the month of August

2000X, with the request that you:-

Correctly complete the Trust Cash Book,

Correctly post to the Trust Ledgers,

Correctly complete the Trust Trial Balance. 

Students to note the following:

The Trust Cash Book, Trust Ledger and Trust Trial Balance are to be completed so as to comply with the Property, Stock and Business Agents Act 2002, and the 2003 Regulations.

All trust receipts are banked on the day of receipt.

All receipts and payments are by cheque unless otherwise stated.

All transactions are GST free unless stated.

The next Trust receipt number to be issued is number 101, and the next cheque number is 407.

Do not record non trust account transactions

The accounts in the Trust ledgers had the following closing balances as at 31st July 200X. 

John to Paul                15, 000 Credit  

Craig to Emma           12, 400 Credit

K Smith (owner)       700         Credit

M Peterson (owner)               400         Credit 15              Rental Bond Board          1, 200    Credit 

August 200X

Received 10% deposit from Troy Mann being deposit on 12 Happyvale Road, Happydale. This property is owned by Mike Caesar. The purchase price of this property is $250, 000. 

Received advertising fees of $750 from Taryn Taylor. She has agreed to allow the agency to auction her property next month.

Received $900 valuation fees.

Paid wages of $150 to the bookkeeper, D Wills.

Received reservation fee $350 from J Morris for a property owned by R Wood, after his application was approved. 

Paid $210 for motor vehicle repairs.

Annie See leased an apartment owned by Jack Michaels. The tenant paid with one cheque (cheque was payable to the agency). The cheque represented 4 weeks rent and 4 weeks bond.  Cheque totalled $2, 400.

5 The sale concerning John and Paul was settled, and the money on deposit was released  after deducting commission of $6, 500.

Paid outstanding bond money, as at the 1st August 200X, to the Rental Bond

Board. (Assume cheque has cleared)

Received $200 rent from Kelly Clarkson, on a property owned by M Peterson.

Mr Morris decided not to continue with his application for tenancy. The agent refunded the $350.  

Received a 10% deposit by electronic funds transfer from Keating, for a holiday home owned by Richmond. The holiday home was sold for $927, 000. The parties to this transaction have asked that the deposit be invested in an interest bearing account with Regent Bank. 

Paid S. Sheen $400 for cleaning. Details were:

Property owned by Michaels $200, and office cleaning $200.  

Clint Holmes is to lease a penthouse owned by Joshua Petrovic. The tenant paid by cheque (cheque payable to the agency). The cheque is for 4 weeks rent, and 4 weeks bond. Note that the tenant voluntarily paid 4 weeks in advance.

Cheques totalled $14,400.

Mary Ferguson is to lease a townhouse owned by Watts. The tenant paid a bond (cheque payable to the Rental Bond Board) as well as a second cheque for two week’s rent in advance. 

                       Details were:         Bond $1,600

                                                       Rent       $800  

Received 4 weeks rent from the tenant See.

Received $400 rent from Kelly Clarkson. Paid the office rent to L J Smith $2, 350. 

The rent cheque from Ferguson has been returned by the bank as dishonoured. Cash for this amount has been requested and received on this day.

Paid outstanding money to the Rental Bond Board. (Assume cheque has cleared) 

Received 2 weeks rent from the tenant Holmes. 

Paid S Heat $175 for Hot Water Repairs for a property owned by Watts  

24         Received 2 weeks rent from the tenant See  

Settled with Joshua Petrovic. Management fee is calculated at 7.7% of rent collected. A letting fee of one weeks rent is to be deducted and an administration fee of $15. (You may pay the agent in one cheque but ensure you show all deductions in the ledger) Paid the Group Tax of $2, 400 to the Australian Taxation Office.

Settled with Peterson, Michaels and Watts for rent received to date. Management fees are calculated at 5.5% plus $10 admin fee. (You may pay the agent in one cheque but ensure you show all deductions in the ledgers)

Settlement occurred between Keating and Richmond (Order on Agent Received). Sales commission is $25,000 and the interest is $2,000. The interest is to be shared between the parties. 60% for the vendor, and 40% for the purchaser