Deposit Slip And Petty Cash System Management

What information is required to fill a deposit slip?

Instructions:

Task 1, 2, 4, 5 and 6 need to be completed in MS Excel templates provided.
These templates will be available in the e-learning (online section) of this unit.

Task 1: Managing the Petty Cash System (5 marks)

Using the following information from the Go-Jo trading PTY LTD and prepare “The petty cash book” in MS Excel file available in e-learning:

Record the following transactions in the petty cash book (5 marks)

31/05/2006 Issued cheque no. 536 for $150.00 to establish the petty cash fund

Date Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Voucher No.	Details	Amount $ (inc. GST)	GST $
1/6/06	203	Taxi fare	34.00	3.10
3/6/06	204	Coffee	15.00	1.35
4/6/06	205	Stamps	45.00	4.10
6/6/06	206	Pens	4.50	0.40
8/6/06	207	Biscuits	8.35	0.75
11/6/06	208	Newspapers	3.50	0.32
14/6/06	209	Taxi fare	23.00	2.10

Petty cash transactions have occurred for the current month. Total the columns in the petty cash book to determine total expenditure. (3 marks)

Determine the amount of the reimbursement. (2 marks)

Date	Received	Details	Ref	Payment	Stationery	Staff Amenities	Travel	GST Paid
31-May	$ 150.00	Petty cash received	536	$ –
01-Jun		Taxi fare	203	$ 34.00			$ 30.90	$ 3.10
03-Jun		Coffee	204	$ 15.00		$ 13.65		$ 1.35
04-Jun		Stamps	205	$ 45.00	$ 40.90			$ 4.10
06-Jun		Pens	206	$ 4.50	$ 4.10			$ 0.40
08-Jun		Biscuits	207	$ 8.35		$ 7.60		$ 0.75
11-Jun		Newspapers	208	$ 3.50		$ 3.18		$ 0.32
14-Jun		Taxi fare	209	$ 23.00			$ 20.90	$ 2.10
				$ 133.35	$ 45.00	$ 24.43	$ 51.80	$ 12.12
		Balance c/d		$ 16.65
	$ 150.00	Total		$ 150.00

30-Jun	$ 16.65	Balance b/d

Answer 3 – the amount of petty cash reimbursement is $133.35.

Task 2: (5 marks)

Batch and match the following transaction with the suitable heading. Your company has a policy to record the transaction according to the items of the transactions.

Commission received $500

Cash sales $15000

Purchase inventory from ABC& Company on cash $5000

Commission received from X & suppliers $ 350

Cash sales to Mr. Xu $ 5000

Loan From National Bank Australia $25000

Loan from XYZ Finance Company $ 65000

Cash Collected from Debtors $ 550

Commission paid $250

Cash collected from Miss Money $ 1000

Furniture sold on cash $ 25000

An old computer sold on cash $350

Received discount $ 950 from Mr. Anna as your organisation is a regular client of his business.

Rent collected for the current month $ 2500

Cash collected from Richard Business House, a debtor $ 14000 and given $1000 discount as it paid the dues as per a understanding.

Miss John, a regular party has deposited cash advance, and she will collect the goods from your organisation next month.

KEY: 1)

Batching Category: 1) Sale Journal, 2) Cash Payments Journal, 3) Cash Received Journal, 4) Purchase Journal

Account classification: 1) Income 2) Expense 3) Asset 4) Liability (10 marks)

Account classification		Batching Category
a) Income		Cash received Journal
b) Income		Sales Journal
c) Assets		Purchase Journal
d) Income		Cash received Journal
e) Income		Sales Journal
f) Liabilities		Cash received Journal
g) Liabilities		Cash received Journal
h) Assets		Cash received Journal
i) Expense		Cash payment Journal
j) Assets		Cash received Journal
k) Assets		Cash received Journal
l) Assets		Cash received Journal
m) Income		Purchase Journal
n) Income		Cash received Journal
o) Assets		Cash received Journal
p) Liabilities		Cash received Journal

Task 3: (5 marks)

Complete the cash Summary calculation sheet of notes, coins and cheques for the daily cash taking of 22^ndof March 2012 (3 marks)

Cash Summary Slip March 22, 2012
Notes	Number	Value
$100	11	$1,100.00
50	25	$1,250.00
20	112	$2,240.00
10	96	$960.00
5	154	$770.00
Total	$6,320.00
Coins
2	32	$64.00
1	52	$52.00
0.50	44	$22.00
0.20	152	$30.40
0.10	256	$25.60
0.05	65	$3.25
	Total	$197.25
Total Cash	$6,517.25
Cheques received	0
Total	0
Total deposit cash & Cheques	$6,517.25

Complete both sides of the deposit slip as at 22^ndof March 2012 by using the above information. (3 marks)

Deposit Slip (Front side)
Bank of XYZ	Bank of XYZDEPOSIT DATE: 22/03/2012
ABN 78 344 123 456	Branch Name
Date:	Broadmeadows
Deposited for credit of	For credit of	Cash	$ 6,517.25
Cash	$ 6,517.25	ABC Pty Ltd	Cheques	0
Cheques	0			Bankcard/ MasterCard/ Visa/other	0
Bankcard/ MasterCard/ Visa/other	0	Paid by (Signature)		Total $	$ 6,517.25
Total	$ 6,517.25

Teller

Bank use only Third party cheques explanation
Drawer (account name on cheque)	Bank	Branch	Amount	Bank use only
				100	11	Detail of cheques
				50	25
				20	112
				10	96
				5	154
				Coin	$197.25
				Cash Total	$6,517.25
Total $			$6,517.25

Answer the following questions:

What information needs to be entered in a deposit slip when depositing cheques?

The deposit slip contains the details of amount deposited via notes, coins and cheques. Further, it also contains the bifurcation as to the number of notes and their respective denominations.

What are the methods of depositing money into an account? What supporting document will you need as proof of your transaction?

The amount can be deposited via deposit slip on the counter of the bank or through transfer of amount from the online bank account. Deposit slip is required as a proof of the transaction.

What security precautions could you use to safeguard yourself and the deposit when taking your deposit to the for bank?

The cash should be kept with high security, one needs to be ultimate vigilant and should take care of cash. Further, the depositor should not share the details of the bank or amount with any unknown person.

Task 4: Posting to General Journal (5 marks)

To complete this assignment you will need to enter the following transactions for May 2006 into General journal.

Process the journal entries for the following transactions in the Journal worksheet in the MS Excel template available in e-learning.

Date	Details	Amount (inc.GST where applicable)
2/5/06	New leaf receives a cheque (no 683) from Perth News. The cheque is attached to a remittance advice that refers to invoice 1638 issued by New Leaf in 12/4/06. Perth News is paying the balance of its account.	650.00
3/5/06	New Leaf issues Invoice 1692 and stock to News Plus relating to its order dated 14/4/05 for magazines	1025.00
3/5/06	Stock Couriers sends Invoice 12204 to New Leaf requesting payment for the previous month’s delivery	465.0
5/5/06	News Plus contacts New Leaf as it has been incorrectly charged. New Leaf issues an adjustment notice (no. 54) to News Plus for the incorrect amount on Invoice 1692 issued 3/5/06.	65.00
7/5/06	New Leaf receives Invoice 1224 from Office World for office furniture received on 30/4/06.	2500.00
9/5/06	New Leaf issues cheque no 533 to Hibberd & Co for automatic monthly rent payment for its rented warehouse premises.	1050.00
9/5/06	New Leaf receives a cheque (no. 7542) from News Plus to pay the balance of its account.	960.00
20/5/06	New Leaf receives 750 copies of NERO (stock) from Nero Publishing along with Tax Invoice 887.	2250.00
20/5/06	New Leaf paid Office World via cheque no 534 to pay Invoice no 1224	2500.00
20/5/06	New Leaf paid Stock Couriers via Visa Credit card to pay the balance of Invoice no. 12204.	465.00
20/5/06	New Leaf paid Nero Publishing via cheque 535 to pay Tax Invoice 887.	2250.00
31/5/06	The Senior Accounts Officer authorises the drawing of cheque 536 to create a petty cash imprest (sufficient to cover the next fortnight’s expenditure from the Petty Cash.)	150.00

[Hint] Total debits and credits are $14,330.00

Date	Particulars	Debit ($)	Credit ($)
02-May-06	Cash	$ 650.00
	To Accounts Receivable		$ 650.00
	(Being cheque received from Perth News)

03-May-06	Accounts receivable	$ 1,025.00
	To GST Collected		$ 93.18
	To Sales		$ 931.82
	(Being amount invoiced to News Plus)

03-May-06	Courier expense	$ 422.73
	GST Paid	$ 42.27
	To Courier expense payable		$ 465.00
	(Being invoice received for previous month)

05-May-06	Sales	$ 59.09
	GST Collected	$ 5.91
	To Accounts receivable		$ 65.00
	(Being amount incorrectly charged revised)

07-May-06	Furniture	$ 2,272.73
	GST Paid	$ 227.27
	To Accounts Payable		$ 2,500.00
	(Being invoice received for furniture purchased)

09-May-06	Accounts receivable	$ 1,050.00
	To GST Collected		$ 95.45
	To Rent Income		$ 954.55
	(Being invoice raised for warehouse rent payment)

09-May-06	Cash	$ 960.00
	To Accounts receivable		$ 960.00
	(Being amount received from News Plus)

20-May-06	Inventory	$ 2,045.45
	GST Paid	$ 204.55
	To Accounts Payable		$ 2,250.00
	(Being stock purchased on credit)

20-May-06	Accounts Payable	$ 2,500.00
	To Cash		$ 2,500.00
	(Being amount paid for office furniture)

20-May-06	Courier expense payable	$ 465.00
	To Cash		$ 465.00
	(Being amount paid for courier services)

20-May-06	Accounts Payable	$ 2,250.00
	To Cash		$ 2,250.00
	(Being amount paid for stock)

31-May-06	Petty Cash	$ 150.00
	To Cash		$ 150.00
	(Being petty cash reimbursed)

What other financial systems/software/programs other than MS Excel can be used to record above transactions? How would you ensure that data recorded in Excel can shared with other systems without losing their integrity?

There are other accounting software available in the market for recording the accounting transactions. So, apart from excel there are other accounting softwares available in the market.

Some of the popular accounting softwares are MYOB, Busy, Tally, etc.

This is ensured by making a reconciliation and cross tallying the information between excel and accounting software.

Task 5 Posting to the General Ledger (5 marks)

At the end of each month, you are required to post the journal entries to the general ledger. Complete the following tasks:

Post the journal entries to the general ledger accounts in the Ledger worksheet @ 31/05/06.
Total each of the account balances in the General ledger?

Cash
Date	Particulars	$	Date	Particulars	$
02-May-06	Accounts Receivable	$ 650	20-May-06	Accounts Payable	$ 2,500
09-May-06	Accounts Receivable	$ 960	20-May-06	Courier expense payable	$ 465
31-May-06	Balance c/d	$ 3,755	20-May-06	Accounts Payable	$ 2,250
			31-May-06	Petty Cash	$ 150

		$ 5,365			$ 5,365


Accounts Receivable
Date	Particulars	$	Date	Particulars	$
03-May-06	GST Collected	$ 93	02-May-06	Cash	$ 650
03-May-06	Sales	$ 932	05-May-06	Sales	$ 59
09-May-06	GST Collected	$ 95	05-May-06	GST Collected	$ 6
09-May-06	Rent Income	$ 955	09-May-06	Cash	$ 960
			31-May-06	Balance c/d	$ 400

		$ 2,075			$ 2,075


GST Collected
Date	Particulars	$	Date	Particulars	$
05-May-06	Accounts receivable	$ 6	03-May-06	Accounts receivable	$ 93
31-May-06	Balance c/d	$ 183	09-May-06	Accounts receivable	$ 95

		$ 189			$ 189


GST Paid
Date	Particulars	$	Date	Particulars	$
03-May-06	Courier expense payable	$ 42	31-May-06	Balance c/d	$ 474
07-May-06	Accounts payable	$ 227
20-May-06	Accounts payable	$ 205

		$ 474			$ 474


Sales
Date	Particulars	$	Date	Particulars	$
05-May-06	Accounts receivable	$ 59	03-May-06	Accounts receivable	$ 932
31-May-06	Balance c/d	$ 873
		$ 932			$ 932


Courier expense
Date	Particulars	$	Date	Particulars	$
03-May-06	Courier expense payable	$ 423	31-May-06	Balance c/d	$ 423

		$ 423			$ 423


Courier expense payable
Date	Particulars	$	Date	Particulars	$
20-May-06	Cash	$ 465	03-May-06	Courier expense	$ 423
			03-May-06	GST Paid	$ 42
		$ 465			$ 465


Accounts Payable
Date	Particulars	$	Date	Particulars	$
20-May-06	Cash	$ 2,500	07-May-06	Furniture	$ 2,273
20-May-06	Cash	$ 2,250	07-May-06	GST Paid	$ 227
			20-May-06	Inventory	$ 2,045
			20-May-06	GST Paid	$ 205
		$ 4,750			$ 4,750


Inventory
Date	Particulars	$	Date	Particulars	$
20-May-06	Accounts Payable	$ 2,045	31-May-06	Balance c/d	$ 2,045

		$ 2,045			$ 2,045


Rent Income
Date	Particulars	$	Date	Particulars	$
31-May-06	Balance c/d	$ 955	09-May-06	Accounts receivable	$ 955

		$ 955			$ 955


Petty Cash
Date	Particulars	$	Date	Particulars	$
31-May-06	Cash	$ 150	31-May-06	Balance c/d	$ 150

		$ 150			$ 150



Furniture
Date	Particulars	$	Date	Particulars	$
07-May-06	Accounts payable	$ 2,273	31-May-06	Balance c/d	$ 2,273

		$ 2,273			$ 2,273

Task 6 Prepare a Trial Balance (5 marks)

Prepare a Trial balance in the Trial Balance worksheet for all active general ledger accounts for the month ending 31^stMay, 2006. (Hint: Total debits and credits are $6474.10)

Trial Balance as on 31st May, 2006
Particulars	Debit ($)	Credit ($)
Cash		$ 3,755
Accounts receivable	$ 400
GST Collected		$ 183
GST Paid	$ 474
Sales		$ 873
Inventory	$ 2,045
Courrier expenses	$ 423
Rent Income		$ 955
Petty Cash	$ 150
Furniture	$ 2,273
Total	$ 5,765	$ 5,765

Part B: Prepare Financial Reports (50 marks)

Task 7:

On 31 March 2009, Southern Packaging purchased a wrapping machine, serial number VST06JKTRO460275, from Wills Machinery Ltd. The machine is located in Factory 4. The total purchase price including GST was $110,000. The residual value for the wrapping machine is estimated to be $15,000. The expected useful life of the machine is 15 years.

At the date of purchase, costs incurred including GST were:

Insurance	$1,540
Freight charges	$660
Repair of damage in transit	$462

Further costs incurred during installation and testing totalled $2,508 including GST. These costs are not of a recurring nature.

Depreciation on the machine is to be 10 per cent using the reducing-balance method (rounded to the nearest whole dollar).

On 30 September 2014 the company decided to trade in the machine for $82,500 including GST on an ungraded machine with a total capital cost of $137,500 including GST. The balance owing was paid by cheque number 102374.

Requirement:

1. Calculate capital cost of the wrapping machine (4 Marks)

Item	Type of Cost	Price Paid	GST	Capital Cost
Wrapping Machine	Purchase price	110,000	10,000	100,000
Wrapping Machine	Insurance	1,540	140	1,400
Wrapping Machine	Freight charges	660	60	600
Wrapping Machine	Repair of damage in transit	462	42	420
Wrapping Machine	Installation & testing	2,508	228	2,280

Record the capital cost of the wrapping machine as an opening balance in the Machinery general ledger account as at 31 March 2009. (2 Marks)

Dr.	Cr.
104,700

Prepare and complete an asset register card for the wrapping machine. (4 Marks)

Asset Register Card
Description	Wrapping Machine	Estimated Residual	$15,000
Asset ID	VST06JKTRO460275	Depreciation Method	reducing-balance method
Location	Factory 4	Depreciation Rate	5.71%
Supplier	Wills Machinery Ltd.	Estimated Useful Life	15 years
Date	Detail	Original Capital Cost $	Additional Capital Cost $	Total Capital Cost $	Depreciation	Written Down Value $
Annual $	Accumulated $
30-06-09	Wrapping Machine	104,700	0	104,700	1,495.00	1,495.00	103,205.00
30-06-10	Wrapping Machine	104,700	0	104,700	5,894.61	7,389.61	97,310.39
30-06-11	Wrapping Machine	104,700	0	104,700	5,557.94	12,947.55	91,752.45
30-06-12	Wrapping Machine	104,700	0	104,700	5,240.49	18,188.04	86,511.96
30-06-13	Wrapping Machine	104,700	0	104,700	4,941.18	23,129.22	81,570.78
30-06-14	Wrapping Machine	104,700	0	104,700	4,658.96	27,788.18	76,911.82
30-09-14	Wrapping Machine	104,700	0	104,700	1,098.22	28,886.40	75,813.60
30-09-14	Wrapping Machine (N)	125,000	0	125,000

Prepare the general journal entries to record the depreciation of the wrapping machine for the years ended 30 June 2012, 2013 and 2014 and post them to general ledger.

Date	Account name	Debit	Credit
30 June 2012	Depreciation To Accumulated Depreciation	5,240.49	5,240.49
30 June 2013	Depreciation To Accumulated Depreciation	4,941.18	4,941.18
30 June 2014	Depreciation To Accumulated Depreciation	4,658.96	4,658.96

Depreciation A/c

Dr.

Cr.

30 June 2012 Accumulated Depreciation 5,240.49

30 June 2013 Accumulated Depreciation 4,941.18

30 June 2014 Accumulated Depreciation 4,658.96

Accumulated Depreciation A/c

Dr.

Cr.

30 June 2012 Depreciation 5,240.49

30 June 2013 Depreciation 4,941.18

30 June 2014 Depreciation 4,658.96

Prepare the general journal entries to record the disposal of the wrapping machine on 30^thJune 2015 and post them to general ledger. (6 Marks)

Date	Account name	Debit	Credit
30-09-14	Accumulated depreciation	$ 28,886
	To Machine		$ 28,886
	(Being depreciation adjusted)

30-09-14	Cash	$ 82,500
	Loss on sale of machine	$ 814
	To GST Collected		$ 7,500
	To Machine		$ 75,814
	(Being machine sold recorded)

Dr.

Cr.

Balance b/d 104,700

Accumulated depreciation 28,886

Loss on sale of machine 814

Cash 75,000

Dr.	Cr.
Machine 814

Dr.	Cr.
Machine 28,886

Task 8

At the end of the reporting period (30^th June 20XX) your trial balance figures are not balancing; identify and suggest solutions for a range of errors and discrepancies that may occur.

(4 Marks)

Answer:

The reasons for not balancing of trial balance are

Incorrect posting to wrong G/L – means amount to be debited is credited

Incorrect posting of amounts – means amount in one side is correct and another side is incorrect for example 562 posted as 526 in cash and 562 in accounts receivable.

Forget to post the entries on one side

The solutions for these errors is periodic reconciliation of the amounts and to check the posted entries to find out the possible errors.

Task 9

Green Thumb Lawn Care Ltd. began business on 1^st April 2013. At 30^th June 2013, the trial balance shows the following balances for selected accounts:

Prepaid insurance	$3,600
Equipment	28,000
Bank Loan	20,000
Revenue received in advance	4,200
Revenue	1,800

Additional information available on 30^th June 2013 is as follows:

Prepaid insurance is the cost of a 2-year insurance policy, effective from 1 April 2013.
Depreciation on the equipment is $500 per month.
Green Thumb took out the loan on 1 April 2013 for a period of 6 months at an annual interest rate of 12%.
1 customer paid for a lawn service package of $600 on May. The customer was serviced in June.
Lawn services performed for other customers but not invoiced at 30^thJune totalled $1500.
Utility bill received for an amount of $800.
Unpaid salaries to the employees totalled $1000.

Required: Prepare the adjusting entries for Green Thumb Lawn Care Ltd. (05 Marks)

Date	Accounts Name	Debit ($)	Credit ($)
30-06-13	Insurance	450
	To Prepaid Insurance		450

30-06-13	Depreciation	1500
	To Accumulated Depreciation		1500

30-06-13	Interest on loan	600
	To Interest payable		600

30-06-13	Revenue received in advance	600
	To Revenue		600

30-06-13	Unbilled revenue	1500
	To Revenue		1500

30-06-13	Utility expense	800
	To Utility payable		800

30-06-13	Salaries expense	1000
	To Salaries payable		1000

Task 10

Humpson Furniture Ltd. has credit sales of $120,000 in 2010, of which $20,000 remains uncollected at 31^st December 2016. The manager estimates that 5% of the outstanding amount will prove uncollectable.

Prepare the adjusting Entry to record the estimated uncollectable (establish allowance for doubtful debts):

Date

Account name

Debit

Credit

31 December 2016

Bad debts

To Allowance for bad debts

$ 1000

$1000

On 1 March 2017, Manager authorises a write-off of $1000 as bad (irrecoverable).

Prepare the journal entry to record the transaction:

Date

Account name

Debit

Credit

1 March 2017

Allowance for bad debts

To Accounts receivable

$ 1000

$1000

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