Process financial transactions and extract interim reports.
Assessment Task: Petty cash and cash receipts
Task summary
For this assessment taskyou are required to checkpetty cash receipts againsta petty cash log, recording the transactions in a Petty Cash Book and the General Journal, as well as preparing for the month's Petty Cash reimbursement.You will have to get approval, at a meeting with your assessor, for the Petty Cash vouchers and your General Journal entries before posting these to the Ledger.
You will also be required to check the day's takings, in cash, cheque, and EFTPOS, and then depositing the cash and cheques at the selected deposit facility. You will be expected to discuss the safety and security implications of deposit facility selection with your assessor at the meeting, too.
Required
- Computer and Microsoft Office
- Access to the internet for research
- Petty Cash Vouchers
- Petty Cash Receipts
- Financial Policy and Procedures
- EFTPOS
- Cheques
- Andrew's Workbook Template
Assessment Task - Instrucions
Carefully read the following:
Andrew has been buying and selling timber slabs for some years, and has recently started repairing furniture. The business transactions are still recorded in a cash receipts book, and then transferred to an Excel Workbook, butAndrew intends to move to an electronic accountancy system in the future.
It is the first of May and, as Andrew's bookkeeper, you are to balance the Petty Cash box for the previous month and prepare for its reimbursement. The Petty Cash box and log were started a month ago, so that Andrew can have better oversight of what is being spent by the office staff.
It is also your job to collect and batch the previous day's cash, cheques, and EFTPOS receipts, balancing that against the previous day's transactions.
You will then participate in a meeting with your assessor, who will be roleplaying Andrew. His approval is needed for the month's Petty Cash vouchers and for the Journal before it can be posted to Ledger, as set out in Andrew's Slabs Financial Policy and Procedures.
You will then roleplay the visit to the bank to reconcile the petty cash box and to deposit the previous day's cheques and cash takings.
Petty Cash Log
| Date |
Voucher Number |
Particulars |
Total Paid |
Who paid |
| 1-Apr |
1001 |
Taxi Fare |
27.5 |
David |
| 3 |
1002 |
Ring binders |
8.8 |
Angela |
| 8 |
1003 |
Coffee and sugar for staff room |
28.6 |
Angela |
| 12 |
1004 |
Fruit for staff room |
12.3 |
Angela |
| 18 |
1005 |
Carton of paper for photocopier |
19.8 |
Angela |
| 23 |
1006 |
Taxi fare |
16.5 |
David |
| 25 |
1007 |
New kettle for staff room |
26.4 |
Andrew |
| 25 |
1008 |
Taxi fare |
25.3 |
Andrew |
| 29 |
1009 |
Fruit for staff room |
13.2 |
Angela |
Complete the following activities:
1. Balance the Petty Cash Log and prepare for reimbursement of the Petty Cash Fund.
Check the petty cash log against the Petty Cash Vouchers and Petty Cash Receipts source documents, then transfer the transactions to the Petty Cash Book Worksheet in Andrew's Workbook Template. Include the reimbursement, which is due to happen later that day.
Make the General Journal entries for the Petty Cash fund.
2. Batch and total the cash, leaving a $300.00 float for the cash register.
| Denomination |
Quantity |
Value |
| Notes |
|
|
| $100 |
1 |
|
| $50 |
3 |
|
| $20 |
8 |
|
| $10 |
6 |
|
| $5 |
5 |
|
| Coins |
|
|
| $2 |
18 |
|
| $1 |
14 |
|
| 50c |
10 |
|
| 20c |
21 |
|
| 10c |
13 |
|
| 5c |
16 |
|
| Total |
|
|
3. Batch and total the cheques
4. Total the EFTPOS transactions
5. Enter previous day's transactions into the Cash Receipts Book in the Andrew's Workbook Template, and then enter the figures into the General Journal.
6. When you have accounted for the day's trading and the month's petty cash, organise a meeting with Andrew (your assessor).
Send your assessor an email requesting a meeting to look at, and authorise, the Petty Cash vouchers for the last month and the Journals.
The text of the email should include:
The table you have filled out for activity 2 above.
- the previous day's cash takings, total cheques, total EFTPOS transactions and total revenue for the day.
- the total value of cash that you intend to deposit in the bank.
- the amount that will be necessary for reimbursement of Petty Cash.
The covering email should be written polite and technically correct English. Terminology should be used accurately, but appropriately.
Attach your Andrew's Workbook to the email.
7. At the meeting you will be expected to:
- Give the Petty Cash Vouchers and Petty Cash Receipts to your assessor for authorisation.
- Make any changes to your Workbook entries that are requested.
- Obtian authorisation to post the Journals to Ledger.
- Detail what cash and cheques you will be bringing to the bank, roleplaying the process of depositing these and receiving a receipt.
- Give the amount of cash that you wish to withdraw for the Petty Cash Reconciliation, also roleplaying this and your receipt of the withdrawal slip.
- Describe how you would file these two documents.
During the meeting, you will be required to demonstrate effective communication skills as follows:
- Use of appropriate style (formal), tone (encouraging, respectful) and vocabulary (professional, business language) for the meeting
- Active listening skills
- Asking questions and listening to responses to clarify understanding
8. At the meeting, your assessor will ask you about safety and security in relation to the company's deposit facilities.
Before attending the meeting, research the safety and security measures that may be appropriate for a business the size of Andrew's Slabs. Ensure that you have recommendations on:
- which deposit facilities are appropriate
- measures that can be taken to enhance safety and security.
9. When the meeting has been completed, reconcile the banking documentation with the company's records.
- Adjust the Petty Cash transactions in the Petty Cash Book and the Journals to reflect the information that Andrew has given you.
- Post the approved Journal entries to Ledger
- Record the day's trading in the Cash Receipts Book within the timeframe given in the Policy and Procedures, ensuring that the figures reconcile with the banking documentation.
10. Send Your revised Andrew's Slabs Workbook to your assessor as an email attachment. The email itself should refer to the meeting and its outcomes, and should give s short summary of changes you have made to the Workbook.