FNS30315 Certificate III in Accounts Administration
FNSACC302 Administer Subsidiary Accounts and Ledgers
Assessment Task 1
This is a classroom based task and involves two parts.
Both parts need to be completed as an individual task.
Part A:
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.
Task 1
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/dues 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 Techni 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/dues 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
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. Print receivables and aging reports
In consultation with your trainer/assessor, you may also use an existing company file and complete the required tasks.
Task 2
You have noticed that two of the customer accounts are long overdue. From the Accounts Receivables Aging report, it appears that while several transactions were made, the last payment made by the customers was a long time ago. You suspect that these accounts may turn into bad debts as per company’s policy. Accordingly;
1. Print aging reports for both the customers
2. Refer to the relevant policy and prepare a document describing your reasons for potential bad debts
3. Refer to the relevant procedure and recommend appropriate actions
4. Prepare documents for customer information and interaction
5. Research and download the relevant legislative guidelines and codes of practice for dealing with bad debts as reference documents
6. Send all the documents to your Accounts Manager (role-play) for their information
Assessment Criteria
The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work;
? Completed the task as instructed
? Tasks completed in accordance with the prescribed company policies and procedures
? Identified discrepancies between monies owed and monies paid
? Investigated and identified the errors
? Processed correct transactions in the subsidiary ledger as per the company terms
? Prepared and verified final account balances
? Made appropriate notes explaining own actions for reference
? Monitored customer accounts addressed risk of bad debts as per the company policy
? Responded to customer query (scenario) and accurately provided account details
? Identified and communicated the risks of bad debts
? Reviewed and updated the subsidiary ledger
? Processed all the general journal entries as required (receipts)
? Posted all the entries to the general ledger
? Journal and ledger entries are based on double-entry system and meet accounting requirements
? Created a company file in an appropriate accounting software
? Effectively operated the software and applied all the required functions
? Created customers and applied credit policies
? Accurately entered opening balances
? Processed payment receivables and posted on the day
? Printed receivables and other required reports from the system
? Used aging reports to identify and highlight potential bad debts
? Undertook research and sourced legislative requirements and codes to manager bad debt
? Recommended appropriate actions in relation to potential bad debts
? Actions are consistent with organisational and legislative requirements and guidelines
? Saved the files in an appropriate location for future use
Submission Guidelines
? Copies of aging reports
? Excel data files (copies)
? MYOB/Software file
? Completed general journal (a printed hard copy and a soft copy)
? Completed General ledger (a printed hard copy and a soft copy)
? Email correspondences
Part B:
Debt recovery could be an onerous process for a creditor involving legal action. While debt management strategies should be implemented to prevent potential bad debts, bad debts still need to be managed and pursued as per organisational and legislative requirements.
In this task, you will be required to prepare a Debt Recovery Plan based on the information collected/developed in Part A. Assume that one of the following accounts has been identified as a bad debt;
? Pan Pacific
Bean’s Coffee has a debt management and recovery policy and procedure in place (Ref: Finance Policy and Procedure Manual). You had also complied legislative requirements and codes in relation to bad debts recovery in the previous task. Using the information available;
Task 3
1. Write a letter/email to the client explaining the reason for the communication and an explanation of monies owned by the customer citing organisational/legislative requirements & obligations of the client
2. Provide the required financial information/report for customer information
3. Demand appropriate action
4. Outline the next steps, proposals for resolution of bad debts and likely actions if the debt is not paid
5. Send the letter/email to your customer (mock address) with a copy to your Accounts Manager (trainer/assessor role play – real address)
Task 4
Assume that 14 days after sending the above correspondence, there has been no response from the customer. Accordingly develop a Debt Recovery Plan covering;
? Background/history of debt (from earlier parts)
? Potential financial impact/loss as a result of bad debt (copies of reports)
? Summary of organisational policy and legislative requirements in relation to bad debts
? Debt recovery strategy
? Recommended actions
? Recommended agencies (research and provide at least two real reference of agencies)
? Terms of engagement (codes, best practice, legal requirements etc.)
? Potential risks and breaches (cite examples)
? Benefits/outcomes as result of the proposed actions (including possible recoverable monies)
The plan must be word-processed and structured in appropriate sections. It must be prepared as a formal document and supported by appropriate reference documents/links.
Assessment Criteria
The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work;
? Completed the task as instructed
? Proposed strategies and actions are consistent with the recommendations made in the previous task
? Identified and reported bad debts as per the prescribed company policies and procedures
? Followed appropriate procedure to inform the customers and provided all the required details
? Provided the legislative and policy context in the correspondences
? Suggested resolution options and process in accordance with company policy
? Developed a debt recovery plan with recommendations and strategies for debt recovery
? Strategies are consistent with legal and organisation requirements
? Researched and provided reference documents that guide debt recovery process and the responsibilities of debt collectors
? Ensured that all the usual avenues for debt recovery options have been exhausted prior to recommended collection action
? Highlighted potential risk in engaging debt collectors, including potential breaches
? Developed terms of engagement with the collection agencies/collectors based on ethical, legal and code of conduct requirements (references provided)
? Strategies are supported by actionable measures
? Benefits to the company, including financial risks and recoverable monies are outlined
? Supported the plan with appropriate data and reports
? Organised and prepared the documents in an orderly fashion (documents folder, organisation)
? Plan is well-structured and is supported by relevant documents
Submission Guidelines
? Debt recovery plan (word-processed)
? Supporting financial documents/report
? Supporting reference documents

FNS30315 Certificate III in Accounts Administration
FNSACC302 Administer Subsidiary Accounts and Ledgers
Assessment Task 2
In this task, you will be required to processes payments to the payables ledger and prepare a final trial balance. You will be using the same Excel and MYOB/Accounting Software files and data used in the previous tasks.
Continuing 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. As per the company purchase/payment policy, the following invoices are now due;
Kitchen Supplies $8,690.00
Aroma Coffee $43,800.00
Devondale Milk $6,650.00
You have received reminders from the above suppliers to process the due payments. Accordingly;
Manual
? Review and verify the invoices with the payables ledger
? Review the invoices for errors
? Rectify errors, if any, any make notes on the ledger sheet
? Prepare a payment schedule and send it your Accounts Manager (role-play) with accompanying notes and explanation of rectifications
? Process the transactions in the subsidiary ledger
? Process journal entries
? Save your Excel Sheet
MYOB (or available Accounting System)
1. Create suppliers and payment terms (Ref: Excel file)
2. Apply opening balances
3. Process transactions
4. Print payables and aging reports
Next;
? Send (email) the reports along with your notes on rectifications to your Accounts Manager (role-play)
? Obtain authorisation for payment (email correspondence)
? On receipt of authorisation, post all the entries to the General Ledger
? Prepare electronic payments in MYOB/Accounting Software and print them for submission
? Reconcile and prepare a Balance Day Adjustment using worksheet method
? Print all the final subsidiary and general ledger reports
Assessment Criteria
The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work;
? Completed the task as instructed
? Tasks completed in accordance with the prescribed company policies and procedures
? Investigated and identified the errors in the supplier invoices
? Identified discrepancies between monies owed and monies paid
? Took corrective actions and fixed invoicing errors
? Processed correct transactions in the subsidiary ledger as per the company terms
? Prepared and verified final account balances
? Made appropriate notes explaining own actions for reference
? Prepared a payment schedule according to the due dates
? Communicated the information to the manager (role-play) and highlighted rectifications made
? Provided supported hard-copy evidences and rectifications
? Effectively operated the software and applied all the required functions
? Created supplier accounts and applied payment terms
? Accurately entered opening balances
? Processed payment payables and posted on the day
? Printed payables and other required reports from the system
? Prepared final payment details and schedule
? Undertook communication to obtain payment authorisation
? Posted to general ledger
? Prepared a Balance Day adjustment statement using Trial Balance
? The Balance day adjustment is consistent with Journal entries
? Reconciled and posted all the entries to the general ledger
? When authorised, accurately prepare electronic payments
? Saved the files in an appropriate location for future use
? Completed the task in accordance with organisational policies and procedures
Submission Guidelines
? Copies of aging reports
? Excel data files (copies)
? MYOB/Software file
? Email correspondences