Module Accounting

Assessment Tool Page 1 of 21
FNSBKG402A AT VOL2.12 V2.12 © Copyright 2012 OfficeLink Learning
FNSBKG402A - ESTABLISH AND MAINTAIN A CASH ACCOUNTING SYSTEM
Participant Name: Date:
Element of Competency
Requirements:
• Access to a computer loaded with MYOB
AccountRight – Version 19;
• Calculator;
• Paper for Printing;
• Backup CD/USB drive; • No data file is provided.
Assessment Conditions:
Access to Cash Accounting User Guide V19 or another appropriate text, MYOB Australia help
and participant’s notes is allowed. Access to Organisational Policies and Procedures.
Errors will be indicated. Students will be permitted to correct errors in remaining allocated
time.
All work must be accurate. It is recommended that on completion of this unit, participants
should be able to produce work with not more than two re-submissions.
Remember neatness and correction of error techniques is important.
Method of Assessment:
Jacqui [sole owner], has not formed a company or trust for Shortcuts a hairdressing salon
has approached you (who is a contract bookkeeper) to set up her books using MYOB
AccountRight V19 to process monthly transactions reconcile accounts and print monthly and
yearly reports in consultation with her accountant. In previous years, the books were done
by the accountant from a box of source documents using Cash Accounting procedures.
Before beginning this assessment, check that your posture, lighting and working space
meets occupational health and safety recommendations.
Observed by Supervisor/Trainer/Coach: Date:
ASSESSMENT TOOL
Part # 301ATV19F10 VOL
Version 2.12.1
1 Identify relevant information and establish a chart of accounts
2 Analyse and verify source documents
3 Process receipts and payments
4 Set up and maintain a petty cash system
5 Process and reconcile credit cards
6 Manage bank reconciliations and prepare and produce documents

Assessment Details:
Shortcuts
Receipts and Payments Policies &
Procedures
Receipts Procedures
1 All sales must be recorded in the Cash Register, identifying sale as hairdressing or
products and payment method as cash or EFTPOS [including Credit Card].
2 Correct cash change must be given.
3 At the end of the day, the till must be counted by owner [not staff] [Cash Float is $100]
and balanced against Till Tape. Owner will deal with any till shortage/over issues from
private sources. Till Tape plus all EFTPOS and Credit Card dockets must be bundled with
date clearly marked and filed in weekly bundles.
4 Reimbursement of Petty Cash is taken from the Daily Banking.
5 Cash is banked daily the following day.
Payment Procedures
1 All payments are made by cheque, petty cash, credit card or internet transfer/BPay.
2 Do not draw a cheque until there is full supporting documentation authorised by Jacqui.
Invoice must quote the ABN of the supplier. When paid, payment details eg PAID, date,
method is written on the invoice. When payment is made by Credit Card, the receipt is
attached to the invoice.
3 Cheques should be crossed “Not Negotiable” and signed only by Jacqui.
4 Internet and BPAY receipts are printed and attached to the invoice.
5 Any payment discrepancies are compared with the original source document then
referred to [your supervisor] for discussion and action.
Petty Cash Procedures
1 Small cash payments less than $15.00 are paid from Petty Cash.
2 Petty Cash is kept in a locked Petty Cash Box. Staff and Jacqui are to pay for the item
themselves, then complete a Petty Cash Voucher stating details and reason for
expenditure and attach a Tax Invoice or Sales Docket.
3 Jacqui will reimburse staff or herself from Petty Cash.
4 Petty Cash reimbursement is taken from the Daily Cash Register Takings.

Part A: Written / Oral (Questions and Answers)
Identifying Relevant Information
(a) After discussions with Jacqui and her accountant, you establish that the business is
operating as a [nature of entity]. Write here 1 advantage
and 1 disadvantage of this entity.
(b) You now need to identify the activities carried on by the business? Write here 3
questions you might ask Jacqui regarding the activities of the business:
At the meeting, Jacqui provides the following information:
• All sales in the salon are paid at the time of the visit by cash or EFTPOS [including
Credit Card]. Cash is banked daily. EFTPOS is recorded the following day on the Bank
Statement.
• Wages to staff are paid by cheque.
• Purchases of salon products are paid on delivery [by cheque] or within 14 days of
receiving the account by internet transfer or credit card.
• Small expenses are paid from Petty Cash.
• Salon rent [including GST] is paid by periodic payment from bank.
• The cheque account has a Debit Card facility so that Jacqui can pay accounts by
cheque, EFTPOS and internet transfer and Bpay facilities.
The accountant has advised the following:
• GST is reported MONTHLY on a CASH BASIS.
(c) Write here a brief explanation of reporting GST on a CASH BASIS as compared with
reporting on an ACCRUAL BASIS, and why CASH would be applicable for Shortcuts.
cash based accounting
advantage: real time transactions of cash are noted and no need of prepaid expense.
disadvantage : no real time revenue and expense tracking.
1) what are their requirement for financial needs of reporting.
2) wat are procedure for procurment .
3) do they have any tax excemption certificates
GST amounts collected or paid can be reported to the Australian Tax Office (ATO) either on
a cash or accrual basis. The difference between these is determined by when the liability is
recorded and when you report tax collected and paid.
Cash Basis: If you choose to report your GST on a cash basis, you will not pay any GST to
the ATO until you have collected it from your customers. You will also not be able to claim
back any GST you have been charged by your suppliers until you actually pay your
suppliers. The amount reported represents 1/11th of the amount actually paid or received
during the tax period.
Accrual basis (non cash basis): Using the accrual basis, you recognise GST when you
receive an invoice, in other words when you have a legal obligation to pay your suppliers,
and when you supply goods or services, in other words when you have a legal right to claim
payment.

(d) A CASH Accounting System would be applicable for Shortcuts. Write here a reason
why the accountant and yourself have decided to keep the books of Shortcuts on a
CASH accounting system.
(e) Write here what would be different if the books of Shortcuts were kept on an
ACCRUAL accounting system.
(f) You have decided to computerise the books of Shortcuts. Write here the names of 3
software packages which you could use to keep a computerised Cash Accounting
System.
(g) It is now your job to design the Chart of Accounts. What existing material would you
refer to, to help with the design of the Chart of Accounts for Shortcuts? [List 2].
When working as a subcontractor, you must also be aware of the Codes of Practice for the
industry you are working for and your own bookkeeping industry. Printed below is a brief
extract from the Hairdressing Code of Practice. [provided by the Hairdressing Federation of
Tasmania].
The cash method is simple in that the business's books are kept based on the actual flow of
cash in and out of the business.
System is small and it would be useful for measuring transactions at end of the period of
compilation of reports.
In a cash basis system, however, the receipt of a promissory note, the creation of an
account receivable, or the sending of a customer invoice are not, by themselves,
transactions eligible for recording.
rent expensse will be made to be recorded as rent payable on each month
peach tree, myob , SAP
detail about the petty cash procedure mentioned above and rules of taxation as shared in
above documents will be helpfull for developing the COA.

INTRODUCTION
What is a Code of
Practice?
A code of practice is a
statement of preferred work
practices or arrangements
that apply in a workplace that
will help control hazards and
reduce the risk of injury. It
documents an approved
means of achieving
compliance with the
legislative requirements. A
code of practice may be
approved by the Minister
under the Workplace Health
and Safety Act 1995 {the
Act}. Whilst compliance with
the code is not mandatory, it
may be used in court as
evidence of good practice.
LEGISLATIVE
RESPONSIBILITIES
The Workplace Health and
Safety Act 1995 {the Act} is the
law that governs safety in
workplaces. The Workplace
Health and Safety Regulations
1998 {the Regulations} provide
details on how hazards are to
be controlled in the workplace
and support the Act. The Act
places certain responsibilities
{duty of care} on key parties to
ensure the workplace is safe
and that people employed at or
visiting the workplace, are free
from injury.
Employers must:
- Provide and maintain a safe
working environment, safe
system of work, safe plant and
substances, adequate facilities,
and instruction, supervision and
training; and
- Ensure any contractors, or
people engaged by the
contractor to work at their
workplace, do not place at risk
the health or safety of any
person.
CHEMICAL ISSUES
The hairdressing industry
uses a vast array of
chemicals on a daily basis
and the majority of these
chemicals are hazardous
when handled incorrectly. The
effect that these chemicals
have on the body varies
considerably. However typical
health conditions experienced
are dermatitis, asthma, burns
and cancer.
(h) Read the brief extract from the Hairdressing Industry Code of Practice and identify 2
issues which may affect you as the contract bookkeeper.
Breakeven - Very difficult to calculate because most projects are one-of-a-kind custom jobs
Job Costing and Job Profitability Reporting - Is similar to the Company Profit and Loss
report except that it is specific to each particular job and has different expense codes

Part B: Practical Exercise / Evidence
TASK 1 – Policy and Procedures
Read through Shortcuts policy and procedures document before commencing Part B.
TASK 2 – Establish a Chart of Accounts
(a) You are now required to create a new data file from the following information.
• Use “build my own list” Accounts List.
• Use the current month as your conversion month, HOWEVER if your current month
is JULY, please use AUGUST so that you can enter opening income and expense
balances.
• Use 13 accounting periods.
• Key in the name of the business as “Shortcuts – [your name]” so that your
printouts can be identified in the classroom.
• ABN of the business is “35 933853286”.
• Key in an address of your choice.
• Preferences/Linked Accounts
• Warn for duplicate cheque numbers.
• Use Audit Trail tracking.
• In Purchases Linked Accounts, do not use “Receive Items”.
(b) The following Tax Codes are required:
FRE GST Free
GST GST
CAP Capital Acquisitions
ITS Input Taxed Sales
ANR ABN but not registered for GST
N-T Not reportable
You are required to delete Tax Codes not required.
(c) Establish the Accounts List [Chart of Accounts] using the information on the following
pages provided by the accountant. You are required to use the same headings and
allocate appropriate Tax Codes.
Use your own account numbers. Delete accounts not required.
[Remember there will also be some accounts required by your accounting package not in the material
provided which you cannot delete. For example - Trade Debtors.]
(d) Enter the opening balances for the previous month using the information on the
previous page provided by the accountant.

Shortcuts
As at End / Last Month
Account Name Dr Balance Cr Balance
NAB Cheque A/c 9,000.00
Petty Cash 0.00
Cash Float 100.00
Stock on Hand 14,800.00
Equipment at WDV 48,000.00
Mastercard 2,000.00
GST Collected 2,100.00
GST Paid 1,200.00
Superannuation Payable 255.00
PAYG Withholding Payable 640.00
Bank Loan - Equipment 30,000.00
Capital 22,875.45
Drawings 10,000.00
Sales - Hairdressing 30,010.50
Sales – Products for resale 3,057.40
Interest Received 10.00
Purchases – Products for resale 2,010.60
Accounting Expenses 0.00
Advertising 120.00
Bank Charges 10.00
Bank Merchant Charges 41.30
Cleaning 108.50
Computer Support and Supplies 0.00
Depreciation 0.00
Electricity 241.45
Lease - Salon 700.00
Insurance 0.00
Interest Paid 0.00
Motor Vehicle Expenses 310.60
Office Expenses 43.40
Purchases - Salon 943.50
Protective Clothing 0.00
Staff/Client Expenses 54.00
Superannuation 255.00
Telephone 0.00
Wages 3,010.00
WorkCover 0.00
TOTALS $90,948.35 $90,948.35
(e) Enter the unpresented cheques and print a copy of the Bank Reconciliation on the 1st
of the month [after reconciling].

The Accountant has prepared the following Bank Reconciliation.
Bank Reconciliation
End / Previous Month
Balance as per Bank Statement $10,080.00
Less Unpresented Cheques:
Number 600 – Bella Haircare $600.00
Number 602 - Wages $480.00 $ 1,080.00
--------------------------------------------------
Cash Book balance $ 9,000.00
PRINTOUT 1 – Bank Reconciliation Dated 1st Month After
Reconciliation
PRINTOUT 2 – Trial Balance Dated End/ Last Month
(f) Print a copy of the Trial Balance dated end/last month you are using. Compare with
the Trial Balance provided on the previous page for accuracy. If errors are identified,
please rectify and reprint.
PRINTOUT 3 – Balance Sheet Dated End/Last Month
(g) Print a copy of the Balance Sheet dated end/last month. Compare with the Balance
Sheet provided on the previous page for accuracy. If errors are identified eg levels or
subtotals, please rectify and reprint.
Balance Sheet
As of End / Last Month
Assets
Current Assets
NAB Cheque A/c $9,000.00
Cash Float $ 100.00
Stock on hand $14,800.00
Total Current Assets $23,900.00
Non-Current Assets
Equipment at WDV $48,000.00
Total Non-Current Assets $48,000.00
Total Assets $71,900.00
Liabilities
Current Liabilities
Mastercard $2,000.00 $2,000.00
GST Liabilities
GST Collected $2,100.00
GST Paid - $1,200.00
Total GST Liabilities $900.00
Payroll Liabilities
Superannuation Payable $255.00
PAYG Withholding Payable $640.00
Total Payroll Liabilities $895.00
Total Current Liabilities $3,795.00
Non-Current Liabilities

Bank Loan - Equipment $30,000.00
Total Non-Current Liabilities $30,000.00
Total Liabilities $33,795.00
Net Assets $38,105.00
Equity
Capital $22,875.45
Drawings -10,000.00
Current Year Earnings $25,229.55
Total Equity $38,105.00
Note: This Balance Sheet has been prepared in accordance with the requirement of the following
Australian Accounting Standards: AAS 5: Materiality and AAS 8: Events Occurring After Reporting
Date.
TASK 3 – Validation of the Chart of Accounts and Opening Balances
Hand a copy of Printouts 1, 2 and 3 to your Supervisor/Coach/Trainer to check the
accuracy and approve your setup and entering of opening balances.
Observed by Supervisor/Trainer/Coach: Date:
TASK 4 – Organisational Policies and Procedures – Receipts and
Payments
(a) Before entering data you will need access to the Organisational Policies and
Procedures for Receipts and Payments.
TASK 5 – Make a Backup of the Data File
(a) Before entering data, make a backup of your data file. If needed, you can restore this
backup and start re-entering data from this point.
TASK 6 – Enter Daily Cash Register Takings
(a) Enter the following daily Cash Register Takings.
• Remember to create and use a “Use Recurring” transaction.
• All Hairdressing and Product sales include GST.
Shortcuts
ABN: 35 933 853 286
Details of Daily Sales
Sales - Hairdr $1,650.00
Sales - Products $55.00
Total $1,705.00
EFTPOS $1,100.00
Cash Banked $605.00
2/current month
Shortcuts
ABN: 35 933 853 286
Total $2,282.50
EFTPOS $1,870.00
Cash Banked $412.50
3/current month

(b) What happens to the above Till Tapes after details have been entered?
TASK 7 – Enter Payments
The following goods have been delivered. Jacqui checks the pricing and product details and
pays the amount owing by cheque.
Bella Haircare Tax Invoice
54 Valley Street 1478
BRISBANE QLD 4010
(07) 3555 6779
To: Shortcuts
25 Spring Street
BRISBANE QLD 4001
Date: 4/month, 20yy Purchase Order Number:
Phone
Terms: C.O.D.
Quantity
Item
Number
Description
Unit Price
Inc GST
Total inc
GST
Tax
Code
1 box C100 Professional Shampoo for
Salon
$110.00 $110.00 GST
3 boxes W600 Professional Conditioner for
Salon
$110.00 $330.00 GST
8 C120 Brushes for resale in Salon $11.00 $88.00 GST
$528.00
Amount of GST in this invoice: $48.00
Shortcuts
ABN: 35 933 853 286
Total $3,100.60
EFTPOS $940.00
Cash Banked $2,160.60
4/current month
Shortcuts
ABN: 35 933 853 286
Total $3,410.80
EFTPOS $2,090.00
5/current month

As the bookkeeper, you should check the accuracy of the above invoice. Jacqui should have
checked the prices of each product.
(a) Are the calculations accurate?
(b) Has the supplier quoted an ABN?
(c) If not, what are the consequences?
(d) Assume the problem has been corrected. The cheque has been written out. Enter the
following cheque details in your data file and indicate that the cheque has been
entered and account has been paid.
Cheque Butt
Date 4 month
Pay Bella Haircare
Details Products – Salon
Products - Resale
FWD
This
Cheque
$528.00
Balance
Cheque Number 603
Note: Remember to create cards for all suppliers.
Cheque Butt
Date 4 month
Pay Andrea Smith
Details Design of advertisement
for local paper.
NO GST CHARGED
FWD
This
Cheque
$98.00
Balance
Cheque Number 604
Cheque Butt
Date 6 month
Pay Salon Essentials
Details Aprons, Gloves for Salon
Tax Invoice 457
FWD
This
Cheque
$375.00
Balance
Cheque Number 605

Cheque Butt
Date 6 month
Pay Quick Office Supplies
Details As per invoice below
FWD
This
Cheque
$137.00
Balance
Cheque Number 606
Quick Office Supplies Tax Invoice:
ABN: 34 123 444 787 444
220 Supply Avenue
BRISBANE QLD 4008
(07) 3555 6779
To: Shortcuts
25 Spring Street
BRISBANE QLD 4001
Date: 1/month, 20yy Purchase Order Number: 21 Terms: 14 days
Quantity
Item
Number
Description
Unit Price
Inc GST
Total inc
GST
Tax
Code
2 bottles W100 Spring Water $30.00 $60.00 FRE
1 box E210 Till Tapes for Register $44.00 $44.00 GST
6 bottles C421 Cleaner - basins $5.50 $33.00 GST
$137.00
Amount of GST in this invoice: $7.00
Cheque Butt
Date 6 month
Pay Australian Taxation Office
Details BAS for previous month
[Refer to Balance Sheet]
FWD
This
Cheque
$1,540.00
Balance
Cheque Number 607
Cheque Butt
Date 6 month
Pay Sunsuper
Details Superannuation for the
previous month
FWD
This
Cheque
$255.00
Balance
Cheque Number 608

Cheque Butt
Date 6 month
Pay Hilder & Associates
Details Business Tax Return -
$990.00
Daughter’s Tax Return -$110.00
FWD
This
Cheque
$1,100.00
Balance
Cheque Number 609
Cheque Butt
Date 6 month
Pay Casey Charmers
Details Gross Wages - $480.00
Tax - $80.00
Super - $43.20
FWD
This
Cheque
$400.00
Balance
Cheque Number 610
(e) Use your Bank Register to check all entries up to this point have been entered
accurately. Display your Transaction Journal to check all entries up to this point have
been entered accurately.
TASK 8 – Make a Backup of your Data File
TASK 9 – Set Up and Maintain a Petty Cash System
Note: Access to Petty Cash Procedures of Shortcuts will be required.
(a) Set up a Petty Cash system by taking $100 [in small change] from the Daily Cash
Register Takings and putting into a locked Petty Cash Box. Enter the Daily Takings.
Shortcuts
ABN: 35 933 853 286
Total $4,330.80
EFTPOS $3,180.10
Petty Cash Advance $100.00
6/current month

(b) The following Petty Cash Voucher for the purchase of stamps [see Tax Invoice below]
by Casey Charmers, a staff member, has been prepared. Check the validity of the
expenditure and authorise the Petty Cash Voucher.
Petty Cash Voucher
No. 001 ……………6/month 20xx
Expenditure Details: Australia Post - Stamps………………………
Amount: Ten dollars……………………………………$10-00..........
Signed: Casey Charmers……………………………………………..
Authorised by:
(c) Enter the Australia Post payment.
(d) Enter the following Petty Cash payment authorised by Jacqui.
(e) What amount should be left in the Petty Cash Box?
(f) What is the reimbursement amount?
Local Supermarket
ABN: 45 127 111 444
TAX INVOICE
Milk $5.00
Biscuits $5.50
Total: $10.50
GST Amount $.50
6 Month
Australia Post
ABN: 49934461341
TAX INVOICE
Stamps $10.00
GST Amount $.91
6 Month
$
$

(g) Enter the Daily Takings for 7/month, entering the Petty Cash Reimbursement taken
from the banking.
(h) Suppose the amount in the till at the end of the day was $1,544.50, what is the amount
of the discrepancy?
(i) List 2 reasons why this situation could arise?
TASK 10 – Enter Credit Card Payments
Enter the following Credit Card Payments. [Tax Invoice received]
Purchase on Mastercard Tax Invoice
7 Month ABN quoted
Paid to: Bella Haircare
New Hair Dryer : $1,320.00 inc GST
Purchase on Mastercard Tax Invoice
7 Month ABN quoted
Paid to: WorkCover
Premium for the year $135.67
GST $13.57
Stamp Duty $7.46
TOTAL PAYMENT $156.70
Shortcuts
ABN: 35 933 853 286
Total $2,670.60
EFTPOS $1,100.60
Petty Cash Reimb $20.50
7/current month

TASK 11 – Manage Bank Reconciliations
The following Credit Card Statement has been received.
Shortcuts - Mastercard Statement
Ending 7 month you are using:
Date Transaction Withdrawal Deposit Balance
1/ Balance 2,000.00 DR
2/ Tfr from Cheque A/c 1,000.00 1,000.00 DR
7 Bella Haircare 1,320.00 2,320.00 DR
7 Interest 15.60 2,335.60 DR
(a) Reconcile this statement with your data file adding transactions if required.
PRINTOUT 4 – Print Credit Card Reconciliation Before Reconciliation
Shortcuts – Cheque Account Statement
The following Bank Statement has been received.
Shortcuts
Bank Statement
Issued: 7/month Bank Statement 6 Page 1
Date Transaction
Withdrawal
[Debits]
Deposit
[Credits]
Balance
1/ Balance 10,080.00 CR
2/ EFTPOS Banking 1,100.00 11,180.00 CR
2/ Transfer to Mastercard 1,000.00 10,180.00 CR
3/ DEPOSIT 605.00 10,785.00 CR
3/ 602 480.00 10,305.00 CR
4/ DEPOSIT 412.50 12,587.50 CR
4/ EFTPOS Banking 940.00 13,527.50 CR
5/ DEPOSIT 2,160.60 15,688.10 CR
5/ 603 582.00 15,106.10 CR
6/
Cash Withdrawal -
Jacqui
3,000.00 14,196.10 CR
6/ DEPOSIT 1,320.80 15,516.90 CR
6/ Interest on A/c 2.60 15,519.50 CR
7/ Merchant Charges 23.00 18,676.60 CR
7/ 604 98.00 18,578.60 CR
7/ 605 375.00 18,203.60 CR
7/ DEPOSIT 1,050.70 19,254.30 CR
7/ 607 1,540.00 18,814.90 CR
7/ Transfer to 184-613 770.00 18,044.90 CR

Date Transaction
Withdrawal
[Debits]
Deposit
[Credits]
Balance
416312 Lease [with GST]
7/
Transfer to Loan A/c –
Loan repayment
700.00 17,344.90 CR
7/ BPay – TELSTRA [GST] 588.98 16,755.92 CR
7/ Account Fees 13.00 16,742.92 CR
(b) Should you find any discrepancies, investigate according to organisational policies and
procedures, and then discuss with your supervisor for further action.
(c) Enter transactions on the Bank Statement not entered in your data file.
(d) Reconcile your data file figures with the above Statement.
(a) Should you find any discrepancies, investigate according to organisational policies
and procedures. Discuss with your supervisor the further action that would need to be
taken to correct the overpayment – the cheque was written out for $582 in error
PRINTOUT 5 – Print Bank Reconciliation After Reconciliation
TASK 12 – Prepare and Produce Reports
(a) Print the following reports required by Shortcuts at the end of the month you are using.
After printing, review the reports looking for any discrepancies.
PRINTOUT 6 – Print the Transaction Journal [All] for the month
Check the allocation of transactions to the correct accounts. Check the allocation of
accounts against the source document and make the necessary corrections.
PRINTOUT 7 – Print the GST [Detail – Cash] report for the month.
Check the allocation of Tax Codes and make the necessary corrections.
PRINTOUT 8 – Print the General Ledger [Detail] report for the month
Make the “Memo” column wider and do not print the “Job” and “Net Activity” columns. Do not
display account with no activity.
PRINTOUT 9 – Print the Profit and Loss [Cash] for the month
PRINTOUT 10 – Print the Balance Sheet at the end of the month
TASK 13 – Calculating and Reconciling your GST at the end of the
month
Use Printout 7 to calculate your GST Refund/Payment.
Amount of GST Collected on Sales $
Amount of GST Paid on Purchases $
Amount of GST PAYMENT $
Do the above figures reconcile with GST Collected and GST Paid in your Balance Sheet in
Printout 10?

Calculating your PAYG Withholding Payment
Look at the Balance Sheet in Printout 10.
What is the amount owing for PAYG Withholding? $
What is the amount owing to the ATO? [rounded to whole $] $
TASK 14 – Backup your Data File
TASK 15 – Presentation of Assignment
On completion of this assignment please provide your Supervisor/Coach/Trainer
with a completed copy of this assignment in electronic or printed format together
with Printouts 1 to 10 as pdfs or printouts and a backup copy of your datafile.
Part C: Observation Checklist
To be completed at your workplace or a simulated environment. You are required
to demonstrate your competence in the following elements.
Element
Did the Participant Demonstrate
Skill and Knowledge in…
Observed
N/Y
Give Details if Not
Yet Competent
1. Identify relevant
information and
establish a chart of
accounts
• Business owner/manager is
consulted to establish what
business activities are
undertaken, the nature of the
entity and the industry type.
• Existing material is identified
and examined for relevance in
creating and/or modifying the
chart of accounts.
• Business operations are
examined in conjunction with
the tax agent and business
owner to identify whether cash
or accrual accounting is
applicable, the accounting
software required and to
determine other relevant
requirements.
• Chart of Accounts is
established.
• Opening balances for assets,
liabilities, equity, income, cost
of sales and expenses are
established.
• Chart of accounts and
balances are validated and
authorised by relevant
persons.
2. Analyse and verify
source documents.
• Invoices and other source
documents are verified for
accuracy and compliance with
taxation.
Select...
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Element
Did the Participant Demonstrate
Skill and Knowledge in…
Observed
N/Y
Give Details if Not
Yet Competent
• Discrepancies between
monies owed and monies paid
are identified and investigated
according to organisational
policies and procedures
3. Process receipts and
payments.
• Payments are made and
money is received and
banked.
• Receipts and payments are
coded and recorded in
bookkeeping system on a
cash basis.
• Receipts and payments are
filed.
• Cash register is balanced
against purchases and taking
are processed in internal
bookkeeping system.
4. Set up and maintain a
petty cash system.
• Petty Cash - An
expenditure/authorisation
record is prepared.
• Petty Cash - Expenditure is
encoded, recorded and filed.
• Petty Cash - Expenditure is
reconciled and reimbursed.
5. Process and reconcile
credit cards.
• Credit card transactions are
processed against invoices
and other source documents.
• Credit card transactions are
verified and reconciled against
credit card statements.
• Credit card payments are
processed in accordance with
organisational policies and
procedures.
• On receipt of statement,
processed transactions are
verified against the bank
statement in a timely manner.
• Bank entries are processed
and verified.
• Bank statement is reconciled
to balance as per bookkeeping
system.
6. Manage bank
reconciliations and
prepare and produce
reports.
• Reports are produced in line
with the business needs and
are validated in a timely
manner.
• Corrections are made as
required.
2. Analyse and verify
source documents.
(Continued)
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Part D: Third Party Verification
The Participant’s Manager or Team Leader must sign and date each verification statement
below as evidence of the Participant’s ability to perform the specified tasks.
Verification Task Unit Element
Perf.
Criteria
I, verify that the Participant can
setup an accounts list for the company in order to be
able to allocate identified transactions.
Signed:
Date:
FNSBKG402A 1
2
ALL
ALL
Perf.
Criteria
I, verify that the Participant
can verify and process receipts, payments and
transactions according to company policy and
procedures.
Signed:
Date:
FNSBKG402A 3 ALL
Perf.
Criteria
can set up, maintain and reconcile a petty cash
system.
Signed:
Date:
FNSBKG402A 4 ALL
Verification Task Unit Element Perf.
Criteria
can process and reconcile credit cards and cheque
accounts.
Signed:
Date:
FNSBKG402A
6
ALL
ALL
5
can prepare and produce reports.
Signed:
Date:
LLA6A204GKBSNF

Part E: Outcome
Assessment Matrix
Participant is: Competent Not Yet Competent
Participant Details: Name:
W/Assessor Details: Name:
Further Action / Strategies if Participant is Deemed Not Yet Competent:
Signature:
Date:
Signature:
Date:
Element of Competency Comp / NYC Give Details if Not Yet
Competent
1. Identify relevant information and
establish a chart of accounts.
2. Analyse and verify source documents.
3. Process receipts and payments.
4. Set up and maintain a petty cash
system.
5. Process and reconcile credit cards.
6. Manage bank reconciliations and
prepare and produce reports.
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Module Accounting

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