Part 1 Task 1:Prepare a tax invoice

• ABN number must be shown

Part 1Task2: File and store an invoice

Good work this section. You have correctly identified the procedures for filing invoices and the timeframe for retaining invoices and supporting documents. 

Part 2 Task 1: Prepare the journals

More work required on the following: 

• The supporting documentation for the transactions required in this task is provided in Section 1 of FNSACC321_AE_Sk2of2_Appx_ReceiptsJournals – TAFE Digital v2.0.docx 

• Only post the transactions that belong into the sales journal, cash receipts journal and transaction posted via a general journal related to either cash receipts or sales (hint: corrections/adjustments). Ignore all other information provided in the above-mentioned document.

Sales distribution journal: 

• Transactions must be recorded in date order. 

• Include the account number (from the chart of accounts provided) at the bottom of each column below the total. 

• “Authorised for processing” – refer to section 3.7 (6th bullet point) of “Accounting Requirements and Financial Reporting Policy”

• For each entry ensure the debits equal the credits. 

• Review the lesson resources on this topic. You have posted incorrect amounts to A/Cs rec column – the total must be entered here.

• Totals for each column required.

• Drawer/particulars must show the customer name

General journals: are generally used for corrections of errors. 

• Only transactions related to sales and cash receipts are required to be recorded. All other transactions are ignored. 

• There should be only two journals here relating to reversal and correction of one error.

• Use the standard format for the general journal.  

• Each transaction must have at least one account debited and one account credited. 

• The debits must equal the credits.

• “Folio” column – include the account number for the relevant account (from the chart of accounts provided).

• “Authorised for processing” – refer to section 3.7 (6th bullet point) of “Accounting Requirements and Financial Reporting Policy”

• Details should show the relevant account names for each posting. Ensure to use only valid account names.

 Cash receipts journal:

• Include the account number (from the chart of accounts provided) at the bottom of each column below the total. 

• For each entry ensure the debits equal the credits. 

• Post to A/Cs Rec when cash is received and post under Consulting fees when sale is made.

• Recording the GST when cash is received for credit sales: 

o when sales are made on credit and the sale is recorded in the sales journal, the GST amount is recorded as well. 

o When payment is received from the customer (here in the Cash Receipts Journal) the GST is not recorded again as you will double up on the GST amount.Revise all postings accordingly

• “Authorised for processing” – refer to section 3.7 (6th bullet point) of “Accounting Requirements and Financial Reporting Policy”

• GST amounts are incorrect. Check the method for determining GST

• Column totals must be shown

Part 2 Task 2: Organisational policies and procedures regarding journals

Good work this section. You have correctly identified the procedures for processing journals and finalising monthly accounts as well as the authorisation levels for the journals. The purpose and usage of specialised journals was also correctly identified.

Part 2 Task 3: Identify the journal entries

More work required on the following: 

In this task you need to address two aspects:

• Identify the type of journal used to record the transaction e.g. cash receipts journal, general journal etc. You have indicated the account name whereas the question requires you to nominate which of the special journals or general journal the posting is made in. Please revise.

• Prepare the general journal.

• Use the standard format for the general journal.

• “Folio” column – leave blank

• For each transaction you must have at least one account debited, and one account credited. 

• The total of the debits must equal the total of the credits. 

• It is common practice to record the debits first followed by the credits.

• Include narrations a narration (short description of the transaction) at the bottom of the journal.

Scenario 1; Revise the journal name

Scenario 2:  Revise journal name

• The reversal of the bad debts written off is correct, however you omitted to record the receipts. The question specifies Blake received $880. That means money went into Blake’s bank account. 

Scenario 3:  Revise: How would the error be corrected. Refer to policy document.

• Refer to section 3.7 of Accounting Requirements and Financial Reporting Policy before attempting this error correction. Revise entries is accordance with that section.

Scenario 4: Revise journal name

Part 2 Task 4: Prepare general journal entries

More work required on the following: 

• Journal dated 06/06 for telephone does not balance.

• For the transaction dated 25/06 you will have to calculate the amount owing taking into account all transactions (e.g. credit purchases, credit notes etc).  Revise the amount here. Also revise your entry. If amount is paid Bank should be decreased?

• Journal dated 27/06: review the account debited – 

o refer to Lesson 1 Topic 2 or

o if you use Word version of the student workbook available in TDC/Resources – page 14-15.

• Journal dated 27/06: the business did not purchase inventory; the owner of the business too inventory from the business. 

• Journal dated 28/06: the reinstatement of the bad debt is correct, however you did not record the receipts (i.e. money was received by the business).

12-AESk2of2Sub