Deposit Slip And Petty Cash System Management

What information is required to fill a deposit slip?

Instructions:

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  1. Task 1, 2, 4, 5 and 6 need to be completed in MS Excel templates provided.
  2. 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:

  1. 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

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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

  1. Petty cash transactions have occurred for the current month. Total the columns in the petty cash book to determine total expenditure. (3 marks)
  1. 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)

  1. Complete the cash Summary calculation sheet  of notes, coins and cheques for the daily cash taking of 22ndof 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

  1. Complete both sides of the deposit slip as at 22ndof 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

  1. Answer the following questions:
  1. 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.

  1. 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.

  1. 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:

  1. Post the journal entries to the general ledger accounts in the Ledger worksheet @ 31/05/06.
  2. 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)

  1. Prepare a Trial balance in the Trial Balance worksheet for all active general ledger accounts for the month ending 31stMay, 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. 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

  1. 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

  1. 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 30thJune 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 (30th 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 1st April 2013. At 30th 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 30th June 2013 is as follows:

  1. Prepaid insurance is the cost of a 2-year insurance policy, effective from 1 April 2013.
  2. Depreciation on the equipment is $500 per month.
  3. Green Thumb took out the loan on 1 April 2013 for a period of 6 months at an annual interest rate of 12%.
  4. 1 customer paid for a lawn service package of $600 on May. The customer was serviced in June.
  5. Lawn services performed for other customers but not invoiced at 30thJune totalled $1500.
  6. Utility bill received for an amount of $800.
  7. 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 31st 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