Part A: Process Payment Receipts and Identify Bad Debts
Description:
Bad debts are debts that have been assessed as being uncollectable. Under accounting standards an assessment must be made as to the collectability of debts and a provision for doubtful debts must be created for debts that are unlikely to be collectible.
In this assessment task, you will need to refer to the following documents to collect the required information;
Finance Policy Manual: Bean’s Coffee
FNSACC302 Worksheet
The worksheet provides you with a Trial Balance at the beginning of the period (any date set by the assessor; modify as necessary), accounts payable ledger, accounts receivable ledger, general journal, general ledger, and adjusted trial balance. You will need to use this worksheet for ALL the tasks in this unit. Ensure that you work on and retain your own copy (rename the Excel file in your own name) for submission and for your records.
The business context used in this unit is same as used across this course – Bean’s Coffee.
FNS30315 Certificate III in Accounts Administration FNSACC302 Administer Subsidiary Accounts and Ledgers ASSESSMENT TASKS Mode | Classroom Delivery FNS30315| FNSACC302 Administer Subsidiary Accounts and Ledgers Learner’s Guide | V 3.0 | Jan 2017 Macquarie Education Group Australia Pty Ltd t/a Macquarie Institute | RTO Code 91305 | CRICOS Code 02657J Approved by: QAC | Next Review: Dec 2017 Page 2 of 13 FNSACC302 Administer Subsidiary Accounts and Ledgers Supporting: FNS30315 Certificate III in Accounts Administration; May also support other qualifications based on respective packaging rules © Le-Sharma Pty Ltd, 2016 Copyright: Provided under license from Le-Sharma Pty Ltd. All rights reserved. This document and its contents are protected by Australian and International copyright laws. No part of this document may be reproduced or transmitted in any form or by any means, electronically or mechanically, including photography, scanning, recording or any information storage or retrieval system, without permission in writing from the copyright owner or from Le-Sharma Pty Ltd. Information and/or resources used from the Commonwealth, government agencies, training.gov.au, public domain information, or any other external sources do not constitute copyright and remain the property of the original authors/agencies. All the websites and external resources mentioned in this publication, including any information linked to or referred to public domain information, are copyrighted to their respective owners. Web links are used as examples for reference purpose only and may have changed since publication of this resource. Le-Sharma Pty Ltd or author does not claim endorse the views expressed by them. Le-Sharma Pty Ltd ACN: 613 011 475 FNS30315| FNSACC302 Administer Subsidiary Accounts and Ledgers Learner’s Guide | V 3.0 | Jan 2017 Macquarie Education Group Australia Pty Ltd t/a Macquarie Institute | RTO Code 91305 | CRICOS Code 02657J Approved by: QAC | Next Review: Dec 2017 Page 3 of 13 Unit of Competency : FNSACC302 Administer Subsidiary Accounts and Ledgers Total Delivery Hours : TBA Schedule : TBA Cluster/Term : TBA 1. Introduction This assessment pack contains all the assessment tasks that need to be completed for this unit of competency. ALL the given tasks must be completed and submitted as per the instructions provided. Supporting information and guidelines are provided separately in the “Assessment Guide”, available from your trainer/assessor and online portal. 2. Unit Overview This unit describes the skills and knowledge required to reconcile and monitor financial accounts receivable systems, identify bad and doubtful debts and plan a recovery action, and remit payments to sundry creditors. It applies to individuals who use specialised knowledge and follow agreed processes to problem solve within their area of responsibility. Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements. Detailed unit description, including performance criteria and competency evidence can be accessed online at; http://training.gov.au/Training/Details/FNSACC302 View Unit Learning Outcomes On successful completion of this unit, the student/trainee will be able to; ▪ Review accounts receivable process ▪ Identify bad and doubtful debts ▪ Review compliance with terms and conditions and plan recovery action ▪ Prepare reports and file documentation ▪ Distribute creditor invoices for authorisation ▪ Remit payments to creditors ▪ Prepare accounts paid report and reconcile balances outstanding As well as demonstrating the performance criteria, to be assessed as competent, the student must demonstrate their ability to apply the required knowledge and skills in a range of situations. These are summarised in the unit description as provided in the link above. The students must familiarise themselves with all the competency requirements for this unit of competency and ensure that they have received all the relevant information and support, including assessment task and submission schedules, and any specific assessment requirements and conditions, from the trainer/assessor prior to undertaking these assessments. http://training.gov.au/Training/Details/FNSACC302 http://training.gov.au/Training/Details/FNSACC302 http://training.gov.au/Training/Details/FNSACC302 FNS30315| FNSACC302 Administer Subsidiary Accounts and Ledgers Learner’s Guide | V 3.0 | Jan 2017 Macquarie Education Group Australia Pty Ltd t/a Macquarie Institute | RTO Code 91305 | CRICOS Code 02657J Approved by: QAC | Next Review: Dec 2017 Page 4 of 13 Unit Prerequisites There are no prerequisites for undertaking this unit of competency. 3. Prescribed Text and Resources Sutherland, E., 2013, Computer Accounting: A Systematic Approach, Pearson Frost M., 2011, Rita's Animal Refuge: A Manual & Computerised Accounting Practice Set, Cengage Suggested Learner Resources & Readings Hart J., Wilson C., and Fergus C., 2012, Management Accounting: Principles and Applications, Pearson http://www.pearson.com.au/9781442549074 Marley S., Pedersen J., 2009, Accounting for Business, Pearson http://www.pearson.com.au/9780733987878 http://www.pearson.com.au/9781442549074 http://www.pearson.com.au/9780733987878 FNS30315| FNSACC302 Administer Subsidiary Accounts and Ledgers Learner’s Guide | V 3.0 | Jan 2017 Macquarie Education Group Australia Pty Ltd t/a Macquarie Institute | RTO Code 91305 | CRICOS Code 02657J Approved by: QAC | Next Review: Dec 2017 Page 5 of 13 4. Assessment Tasks The following summative assessments are planned for this unit; # Assessment Task/Activity Type Assessment Method 1 Part A: Process Payment Receipts and Identify Bad Debts Individual Practical Part B: Prepare a Debt Recovery Plan Individual Written 2 Process Payment Transactions and Make Balance Day Adjustments Individual Practical These assessment tasks/activities have been described in detail in the following section. Task schedule to be advised by trainer/assessor based on the lesson and session plans. FNS30315| FNSACC302 Administer Subsidiary Accounts and Ledgers Learner’s Guide | V 3.0 | Jan 2017 Macquarie Education Group Australia Pty Ltd t/a Macquarie Institute | RTO Code 91305 | CRICOS Code 02657J Approved by: QAC | Next Review: Dec 2017 Page 6 of 13 Assessment Task 1 Part A: Process Payment Receipts and Identify Bad Debts Description: Bad debts are debts that have been assessed as being uncollectable. Under accounting standards an assessment must be made as to the collectability of debts and a provision for doubtful debts must be created for debts that are unlikely to be collectible. In this assessment task, you will need to refer to the following documents to collect the required information; ▪ Finance Policy Manual: Bean’s Coffee ▪ FNSACC302 Worksheet The worksheet provides you with a Trial Balance at the beginning of the period (any date set by the assessor; modify as necessary), accounts payable ledger, accounts receivable ledger, general journal, general ledger, and adjusted trial balance. You will need to use this worksheet for ALL the tasks in this unit. Ensure that you work on and retain your own copy (rename the Excel file in your own name) for submission and for your records. The business context used in this unit is same as used across this course – Bean’s Coffee. Assuming the role of an Accounts Officer working for Bean’s Coffee, complete the following tasks in accordance with company’s relevant policies and procedures as provided in the “Finance Policy and Procedure Manual”. For the purpose of this task, your trainer/assessor will play the role of the Accounts Manager. Ensure that you communicate and obtain necessary information, clarification, and approval as required. PART a Process the following transactions using the accounts payable and receivable subsidiary ledgers and controlling ledgers and accounts provided; Manual: 1. You have received a payment of $2,700 from Bridge Club as a final payment for their outstanding invoice. You suspect that the accounts personnel at Bridge Club have erred in identifying the final payable amount. Accordingly, ▪ Accurately process the amount received ▪ Apply the payment to an appropriate invoice/due as per the aging report and prepare a final balance ▪ Write a brief note on the Excel sheet explaining the correction and adjustment 2. Techni college have made another payment of $457 towards outstanding payments. The accountant from Tehcni college has written to you to process the payment and advise them if they are at risk of not meeting the payment terms. Accordingly, ▪ Accurately process the amount received in the subsidiary ledger ▪ Apply the payment to an appropriate invoice/due and prepare a final ledger balance ▪ Write a brief note on the Excel sheet explaining the correction and adjustment ▪ Write an email draft as a response providing them with an aging report and payment deadlines as per Bean’s Coffee’s relevant policies ▪ Process journal entries ▪ Post all the entries to the General Ledger ▪ Save your Excel Sheet FNS30315| FNSACC302 Administer Subsidiary Accounts and Ledgers Learner’s Guide | V 3.0 | Jan 2017 Macquarie Education Group Australia Pty Ltd t/a Macquarie Institute | RTO Code 91305 | CRICOS Code 02657J Approved by: QAC | Next Review: Dec 2017 Page 7 of 13 MYOB (or available Accounting System) 1. Open a new company file 2. Create a chart of accounts with the given balances 3. Create customers and payment terms (Ref: Excel file) 4. Apply opening balances 5. Process transactions 6.