The document needs to be answered with simple answers and simple English to achieve a competent mark. The learner guide has been attached and that has the information that has to be used for the answers. No other references needed.
CPPREP4005 - Prepare to work with real estate trust accounts (Release 1)
Assessment Questions
RTO 32426
What you need to do:
Answer the questions below by writing in the space provided.
You are required to answer all questions correctly. If incorrect answers are provided, you will receive feedback in your ‘grades’ section and you will be requiring to resubmit your work
What you will need:
Research materials such as books, internet, magazines, workplace documentation etc. Access to legislative and regulatory documentation.
What you need to submit:
Your answers to these questions.
Assessment Questions
Question 1
What is the name of the relevant legislation (including sections if applicable) in your state/territory that outlines the requirements for operating a real estate trust account?
Question 2
List 5 examples of transactions that would NOT be entered into a trust account accounting system. (e.g. payment of wages to office staff).
Question 3
Complete the following table.
Give (2) reasons that inaccuracies/discrepancies can occur in trust accounts and a treatment to address these.
Source of Discrepancy Treatment Strategy to Address the Discrepancy
E.g. Dishonoured cheque
• Ensure that a reversal is completed in the cashbook
• Do not accept cheques as method of payment
Question 4
List (4) transactions you are likely to be handling on behalf of your clients / Principals and group the transactions according to whether they are a receipt or a payment.
Receipts Payments
e.g. Rent e.g. Rent Settlement
Question 5
What is the purpose of trust accounts in real estate?
Question 6
What are the requirements under the legislation in relation to being able to operate a real estate trust account?
Question 7
What is the difference between a trust account and a general account?
Question 8
Explain the roles and responsibilities of the following real estate personnel regarding trust account activities.
Trust Account Activity Personnel Responsible
Receipting rent from tenant
End of month disbursement of funds to the landlord
Receipting deposit from purchaser
Problem with trust account
Issue cheque for balance deposit at settlement
Question 9
Refer to the relevant legislation and outline the responsibilities of the licensee relating to account transactions and audits. Refer to the correct section of legislation as part of your answer.
Question 10
Read the following case and explain the impacts of trust inaccuracies on clients and agency.
Question 11
In 200 – 300 words, outline the monthly trust accounting processes required to be undertaken by the real estate agency (including the applicable timeframes) in line with legislation requirements in your state or territory.
Question 12
List the name(s) and explain the different types trust account(s) that can be used in real estate in your state/territory?
Question 13
What processes need to be implemented and authorities notified of discrepancies in trust accounting?
Question 14
What security arrangements need to be in place for trust accounts?
Question 15
What are (3) examples of trust records?
Question 16
What are the requirements under the legislation relating to the electronic/computer based accounting systems. As part of your answer identify the section of the legislation and the specific requirements. Any information direction for the legislation can be copy and pasted as part of your answer.
Question 17
In 25-100 words, explain what role will you be going into and what are the legislative requirements/limitation regarding your involvement in trust account activities.
Question 18
What are the legislative requirements pertaining to;
a) Issuing receipts
b) Banking of trust money.
Question 19
What is the name of a software package that can be utilised for trust accounting and what is its function/purpose?
Question 20
In 50-100 words explain the reason behind conducting internal and external trust account audits.
Question 21
What are at least (2) methods in which trust moneys can be provided/deposited into the trust account?
Question 22
What are the (2) ways that trust monies can be disbursed out of the trust account?
Question 23
a) Explain in 50-100 words what is a Cashbook Receipts Journal.
b) In the table below write (2) examples of standard transactions into the cashbook receipts journal that you would expect to see in your day to day real estate activity.
Date
money
received Date Receipt
Issued Name of person
(Payee)
Code or
client Description of the matter Amount received Account
Receipt
Number Date
Banked
02/08/2013 02/08/2013 Ted Johnson Ted Johnson Advertising payment – 2 Second St, Byron Bay $ 350.00 1206 02/0/2013
Question 24
a) Explain in 50-100 words what is a Cashbook Payments Journal.
b) In the table below write (2) examples of standard transactions into the cashbook payments journal that you would expect to see in your day to day real estate activity.
Date
Payment
made Amount Cheque
number
or
EFT
number Payment made to Identifier or name of
payer Description of
matter Ledger
identifier
debited
paid
28/04/2013
$1900.00 1434 Aircold Airconditioning John Jones Airconditioning Repair at 47 Robert St, Byron Bay JJ47
Question 25
a) Explain in 25-50 words what are trust account ledgers.
b) What are the standard trust account transactions you would expect to see in a ledger in your day to day real estate activity?
Question 26
In 25-100 words explain what is a trust account;
a) Trial balance
b) bank reconciliation
Question 27
Provide (1) example for each of the following which is generated using standard trust account transactions in day to day real estate operations and outline the types of information these contain.
a) Report
b) Statement
Question 28
What are source documents?
Question 29
What is a transfer journal and give 1 example of its use?
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