Adams Horticultural Supplies: Policies and Procedures

Adams Horticultural Supplies: Policies and Procedures

Adam Grow is the owner of Adams Horticultural Supplies, a small business that sells garden supplies including pavers, rocks, plants, and design features such as bird baths, statues and garden gnomes. The business is registered for GST.

Adam is yet to source a computerised accounting system to assist with his bookkeeping /taxation obligations and has hired you as his part time bookkeeper, therefore all of his business transactions will need to be prepared using manual processes.

Adam has provided you a copy of his organisational policies and procedures to ensure the integrity of his financial data is maintained, see below.

Organisational input standards and journal authorisation procedures:

Checking documentation

All supporting and source documentation is to be checked for accuracy prior to being entered into the system.

Where necessary errors are to be corrected and must be initialled by the bookkeeper

(student).

Changes are to be made by placing a line through the incorrect entries and entering the

correct amounts.

Enter all changes in red so that your manager can clearly see where you have made

updates to the records and authorise them.

Entering transactions

Transactions are to be entered into the system by the end of each month to which they relate.

Transactions, journal entries and other data are to be entered into the appropriate journal completely and accurately. Journals totals must be checked by cross adding the column totals to ensure all calculations are correct. Adam will authorise all journals before they are posted to the ledger.

Storage of documentation:

Once entered into the system, invoices and other related documents are then filed in the Accounts Department filing cabinet.

At the end of each month, the invoices and other related documents must be scanned and saved to the computer system, and backed up onto an external hard drive.

The business is structured as a sole trader, therefore documentation must be retained for 5 years to meet regulatory requirements.

Accounts Receivable and Accounts Payable:

Accounts Receivable Control Account (Debtors)

Each transaction that results in a credit sale is recorded using the hard copy of the invoice pad. The invoice pad is pre-printed and numbered, and includes Adams business details.

Errors are to be corrected as per Checking documentation above.

Accounts Payable Control Account (Creditors)

Adam Grow rarely uses a purchase order. Most of the goods are purchased from the following list of preferred suppliers.

Petes Paving

Milos Manufacturing

Rocks Galore

At the time of purchase, a printed invoice is received listing all items and total cost of materials and supplies. All details are checked for accuracy. If there is a discrepancy, the bookkeeper is expected to correct the invoice (as per Checking documentation above) so that Adam can make a telephone call to the supplier to request that a new tax invoice be provided.

Petty Cash, Banking and Bank Reconciliation:

Petty Cash

A petty cash imprest system has been set up for $500 to cover small miscellaneous expenses and staff reimbursements for minor outlays. All petty cash disbursements are to be documented on petty cash vouchers and entered into the petty cash book.

Banking and Bank Reconciliation

Most sales are to customers who pay by cash, with a cheque or debit/credit card. Adam accepts payment by Visa and Mastercard but does not accept payment with an AMEX or Diners Club card.

A few of Adams larger customers have an account with the business. These debtors pay by electronic transfer or by cheque. The debtor sends an email to advise that they have made the payment, and in some cases attach a remittance advice. The email/remittance advice is printed and stored with the related source documents in the Accounts Department filing cabinet.

When cash or cheques are received, the cheques, notes and coins are to be banked on the day of receipt. A bank deposit slip must be completed manually (using the personalised deposit book provided by the bank) and proof of lodgement (copy of the deposit slip) is to be attached and filed with the bank statement. If funds are unable to be banked on the day, funds are to be secured in a lockable cabinet.

All banking must be completed across the counter of the bank during bank opening hours.

Adam pays all creditors by cheque.

Copies of the bank reconciliation reports must be stored with their source documents in the Accounts Department filing cabinet.

Trial Balance and Interim Reports

The Trial Balance is extracted monthly. The bookkeeper is expected to review the trial balance for accuracy and to correct any errors.

Interim reports are to be completed at the end of each financial year on 30th June. The bookkeeper is expected to review the interim reports for accuracy and to correct any errors.

The Trial Balance and Interim Reports must be printed and filed in the Accounts department filing cabinet. In addition to this, they must be scanned and saved with an appropriate file name on Adams computer and on an external hard drive.

The business is structured as a sole trader, therefore documentation must be retained for 5 years to meet regulatory requirements.

Course Details

Code FNS40222 Title Certificate IV in Accounting and Bookkeeping

Unit Details

Code(s) Title(s)

FNSACC321 Prepare financial transactions and extract interim reports

Assessment Task Details

Number Assessment Method Type

AT1

Assignment Journals Product Based Project/AssignmentAdams Horticultural Supplies:

Documentation/transactions to accompany AT1 Assignment Journals Q1.3 are found on the following pages.

A.

Petes Paving

7 Rocks Road, VIC 3689

ABN: 87 789 543 341

TAX INVOICE: 344

Date: 1 June 2023

Sold to:

Adams Horticultural Supplies

17 Adams Drive, Bushlands VIC 3890

Description Quantity Unit price (inc. GST) Total (inc. GST)

40cm x 40cm slate pavers 100 10.45 1,045.00

Total Amount Due 1,045.00

The total price includes GSTPAYMENT OPTIONS:Please pay by total owing by 15 July, or pay by 30 June to receive a discounted invoice price of $1,001.00 B.Cheque butt:

Date: 4 June 2023

To: Courier newspapers

For: Advertising

Amount: $165 (inc. GST)

Cheque no: 87

C. 8th June: Cash sales of goods $220 inc. GST (POS)

D.

Adams Horticultural Supplies

17 Adams Drive, Bushlands VIC 3890

ABN: 27 890 789 909

TAX INVOICE: 901

Date: 10th June 2023

Sold to:

Springs Reserve

20 Pound Road

Kamble, VIC 3476

Description Quantity Unit price (inc. GST) Total (inc. GST)

Large Volcanic Rocks 2 550.00 1,100.00

Total Amount Due 1,100.00

GST Included

Due: 30 days after EOM 100.00

E. 13th June: Cash sales of goods $605 inc. GST (POS)

F. 16th June: Paid wages $500 (EFT)

G. Cheque butt:

Date: 21 June 2023

To: Petes Paving

For: Payment of invoice 344 after taking an early payment discount of $44 (inc. GST)

Amount: $1,001

Cheque no: 88

H.

Rocks Galore

7 Rocky Road, VIC 3456

ABN: 56 987 001 456

TAX INVOICE: A32

Date: 21 June 2023

Sold to:

Adams Horticultural Supplies

17 Adams Drive, Bushlands VIC 3890

Description Quantity Unit price (inc. GST) Total (inc. GST)

Large River Rocks 4 253.00 1,012.00

Total Amount Due 1,012.00

The total price includes GSTDue: 15 days after EOM I.

Rocks Galore

7 Rocky Road, VIC 3456

ABN: 56 987 001 456

ADJUSTMENT NOTE: B5

Date: 23 June 2023

Credit to:

Adams Horticultural Supplies

17 Adams Drive, Bushlands VIC 3890

Description Quantity Unit price (inc. GST) Total (inc. GST)

River Rock on Invoice A32 returned as damaged in transit 1 253.00 253.00

Total Amount credited 253.00

This adjustment note includes GST J.

Adams Horticultural Supplies

Date: 30 June 2023

From: Adam Grow

To: Bookkeeper

Subject: Please note that I forgot to record invoice 865 for $154 inc. GST in the Sales Journal two months ago.

K.

Adams Horticultural Supplies

Date: 30 June 2023

From: Adam Grow

To: Bookkeeper

Subject: Please note that I discovered an error in the ledger recording for May. An amount of $400 was incorrectly debited to the Advertising account instead of the Insurance account (note that the GST relating to this transaction was recorded correctly at the time).

Student

ID Number Contact Number Name Course Details

Code FNS40222 Title Certificate IV in Accounting and Bookkeeping

Unit Details

Code(s) Title(s)

FNSACC321 Prepare financial transactions and extract interim reports

Assessment Task Details

Number Assessment Method Type

AT1

Assignment Journals Product Based Project/AssignmentSTUDENT DECLARATION

I have completed this assessmentI am aware that penalties exist for plagiarism. Refer to Plagiarism and Misconduct page

https://www.swinburne.edu.au/current-students/manage-course/exams-results-assessment/plagiarism-academic-integrity/plagiarism-misconduct/I have retained a copy of this assessment taskSTUDENT SIGNATURE: DATE:

For electronic submissions only:

By typing your name in the student signature field, you are accepting the above declaration.

Assessment Requirements

Purpose of the task:

This assessment is designed to gather evidence of your ability to apply the knowledge and skills required to enter transactions into journals.

Instructions:

You are required to complete this task and submit all evidence required to meet the Product Based evidence marking criteria (below) for this task.

You can complete this assignment after you have finished Chapters 1 and 2 of the textbook.

To complete this task, you can use your learning materials as a reference.

Download the assessment document and supporting documents from Canvas and complete the task requirements as instructed.

Save in Microsoft Word format and upload your assignment to Canvas.

Assessment Conditions

Time: You are expected to complete the assessment by the due date outlined in the unit syllabus and provided in the Task Instructions in Canvas

Location and environment: You are expected to complete this assessment in your own time.

This task requires you to complete activities typical of those required by a job role and workplace environment applicable to industry. This includes access to organisational policies and procedures and regulatory requirements.

Authenticity: It must your own individual work and written in your own words. When quoting specific references, you must acknowledge the source. Evidence of plagiarism or cheating will result in the assessment being assessed as unsatisfactory and a further investigation will occur.

Resources and Equipment Required

You will need to provide:

A computer and the Internet

Canvas learning materials

Textbook

The assessor will provide:

The assessment task cover sheet in Canvas

Assignment instructions in Canvas including documents, templates and policy and procedures.

Learning resources and links provided in Canvas modulesResubmission or Re-sit Outcome

Where an answer is deemed unsatisfactory after the first attempt, up to one resubmission will be allowed. The attempt may occur immediately after the assessment if the assessor believes this is suitable. Alternatively, an additional attempt may be provided at a later stage where the assessor identifies a need for the student to undertake further training and preparation.

The assessor is required to provide you feedback detailing what was Unsatisfactory (US) and what you need to do to achieve a Satisfactory (S) outcome using the student feedback record. You will be required to re submit any aspect of the work that was Unsatisfactory (US).

Assessment Outcome

To successfully complete this activity, you are required to complete all requirements and submit all evidence to meet the Product Quality Criteria evidence criteria for this task to achieve a Satisfactory (S) result. The outcome of this assessment will contribute to the evidence used in the final decision to achieve competency for this unit.

Assessment Submission

To meet the requirements of this assessment you are required to submit the following documents/evidence via Canvas to your Assessor:

Completed assessment task consisting of:

1 Word document including the cover sheet (page 1)

Student Name Student ID Product Based Quality Checklist

The assessor is required to review the students submission to ensure that the evidence contains all the required aspects as described in the instructions and meets the submission marking criteria.

If any aspect of the assessment is not performed to a satisfactory standard, the assessor may question the student about their performance and indicate that an aspect needs to be reviewed. The assessor should NOT indicate or guide the student to what needs to be reviewed.

Marking Criteria S / US

Answer all questions to a satisfactory level Q1. Journals

This task relates to the business Samiras Organic World for the month of January 2023.

All work is to be carried out within organisational timeframes and according to organisational structure, policies and procedures of Samiras Organic World found on the intranet (Canvas).

Using the documentation provided to accompany Assessment Task 1, prepare and process journal entries (including where applicable, special journal entries for capital contributions, discounts, and balance day adjustments for bad debts and correction of errors) using the template journals provided below.

If you identify any errors, make the adjustment on the document/s according to organisational policies and procedures. Enter the revised (corrected) figures in the journal.

Include a screenshot of the corrected document/s below (or upload the corrected document/s as an additional file with your assignment submission)

General Journal

Date

2023 Particulars Folio Debit Credit

Sales Journal

Date

2023 Debtor Folio Ref No. Sales Sundries GST Collected Accounts Receivable Control

Amount Account TOTALS Sales Returns and Allowances Journal

Date

2023 Debtor Folio Ref No. Sales Return & Allowances Sundries GST Collected Accounts Receivable Control

Amount Account TOTALS Purchases Journal

Date

2023 Creditor

Folio Ref No. Purchases Sundries GST Paid Acc. Payable

Control

Amount Account TOTALS Purchases Returns and Allowances Journal

Date

2023 Creditor Folio Ref No. Purchases Returns & Allowances Sundries GST Paid Accounts Payable

Control

Amount Account TOTALS Cash Receipts Journal

Date

2023 Particulars Folio Ref no. Discount Expense Accounts Receivable

Control Cash Sales Sundries GST Collected Bank

Accounts Receivable

Control GST Collected Discount Expense Amount Account TOTALS Cash Payments Journal

Date

2023 Particulars Folio Ref no. Discount Income Accounts Payable Control Cash Purchases Wages Sundries GST Paid Bank

Accounts Payable Control GST Paid Discount Income Amount Account TOTALS This task relates to the business Adams Horticultural Supplies.

Prepare invoices for the sales made on credit in May 2023 below according to the organisational policies and procedures for Adams Horticultural Supplies found on the intranet (Canvas).

10th May 2023 Adam sold the following items to Muralis Garden Cafe at 78 King Lane, Goville 3030. The goods were picked up by the customer.

2 owl statues at $176.00 each (inc. GST)

5 garden gnomes at $55.00 each (inc. GST)

1 water fountain at $2,750.00 each (inc. GST)

Adams Horticultural Supplies

17 Adams Drive, Bushlands VIC 3890

ABN: 27 890 789 909

TAX INVOICE: 878

Date:

Sold to:

Description Quantity Unit price (inc. GST) Total (inc. GST)

Total Amount Due GST Included 11th May 2023 Adam sold 3 bird baths at $814.00 each (inc. GST) to Sammys Spa at 900 Paddy Lane, Orton 3578. The goods were picked up by the customer.

Adams Horticultural Supplies

17 Adams Drive, Bushlands VIC 3890

ABN: 27 890 789 909

TAX INVOICE: 879

Date:

Sold to:

Description Quantity Unit price (inc. GST) Total (inc. GST)

Total Amount Due GST Included This task relates to Adams Horticultural Supplies for the month of June 2023.

All work is to be carried out within organisational timeframes and according to organisational structure, policies and procedures of Adams Horticultural Supplies found on the intranet (Canvas).

Using the documentation provided to accompany Assessment Task 1, prepare and process journal entries (including where applicable, special journal entries for capital contributions, discounts, and balance day adjustments for bad debts and correction of errors) using the template journals provided below.

General Journal

Date

2023 Particulars Folio Debit Credit

Sales Journal

Date

2023 Debtor Folio Ref No. Sales Sundries GST Collected Accounts Receivable

Control

Amount Account TOTALS Sales Returns and Allowances Journal

Date

2023 Debtor Folio Ref No. Sales Return & Allowances Sundries GST Collected Accounts Receivable

Control

Amount Account TOTALS Purchases Journal

Date

2023 Creditor

Folio Ref No. Purchases Sundries GST Paid Accounts Payable

Control

Amount Account TOTALS Purchases Returns and Allowances Journal

Date

2023 Creditor Folio Ref No. Purchases Returns & Allowances Sundries GST Paid Accounts Payable

Control

Amount Account TOTALS Cash Receipts Journal

Date

2023 Particulars Folio Ref no. Discount Expense Accounts Receivable

Control Cash Sales Sundries GST Collected Bank

Accounts Receivable

Control GST Collected Discount Expense Amount Account TOTALS Cash Payments Journal

Date

2023 Particulars Folio Ref no. Discount Income Accounts Payable Control Cash Purchases Wages Sundries GST Paid Bank

Accounts Payable Control GST Paid Discount Income Amount Account TOTALS

Q2. Knowledge questions

What are the eight (8) items that the Australian Taxation Office (ATO) requires to be included on a Tax Invoice for sales in excess of $1,000 to meet legislative and regulatory requirements.

Refer to Samiras Organic World Policy and Procedures and explain the required storage method used for invoices and other documents.

Refer to Samiras Organic World Policy and Procedures and explain the organisational input standards and journal authorisation procedures.

For each of the five (5) statements below, complete the name of the relevant industry accepted accounting convention or doctrine that applies to each.

Statements Convention / Doctrine

The life of an entity can be divided into meaningful measurement periods For accounting purposes a business is treated as a separate entity from its owner/s When preparing accounting reports, accountants (and bookkeepers) are expected to use the same accounting methods consistently from one period to the next The financial reports of a business should contain all important information that may influence the decisions of the users of these reports Accountants (& bookkeepers) traditionally adopt a pessimistic rather than an optimistic stance when performance their accounting tasks Provide the number and name of the accounting standard that provides guidance regarding the presentation of reports.

Provide an explanation of the key features of the double entry bookkeeping/accounting system.

Explain the key features of the accrual accounting system.

Course Details

Code FNS40222 Title Certificate IV in Accounting and Bookkeeping

Unit Details

Code(s) Title(s)

FNSACC321 Prepare financial transactions and extract interim reports

Assessment Task Details

Number Assessment Method Type

AT1

Assignment Journals Product Based Project/AssignmentSamiras Organic World:

Documentation/transactions to accompany AT1 Assignment Journals Q1.1 are found on the following pages.

A.

Samiras Organic World

Date: 1 January 2023

From: Samira Pitt

To: Bookkeeper

Subject: Please note that I commenced the business today by contributing $25,000 cash into the business bank account, Stock of supplies valued at $15,000, a Motor Vehicle valued at $38,000, Computer Equipment valued at $5,500, Fixtures & Fitting valued at $17,000 and a loan on the Motor Vehicle with ABZ Bank for $20,000

B. (i)

Samiras Organic World

65 Pleasant Road

Warranville VIC 3113ABN: 12 369 852 198

PURCHASE ORDER: 1

Date: 2nd Jan 2023

To: Essence Hair Products

12 Corporate Drive

Hettysborough VIC 3098

Description Quantity Price (inc. GST)

$

Organic Mint Shampoo 500ml bottle

Organic Lime Conditioner 500ml bottle

Delivery charge

500

400 3.30 each

3.85 each

55.00

B. (ii)

Essence Hair Products

12 Corporate Drive

Hettysborough VIC 3098

Delivery docket

Date: 4th January 2023

Delivered to: Samiras Organic World, 65 Pleasant Road, Warranville VIC 3113

The following goods:

480 x Organic Mint Shampoo 500ml bottle

400 x Organic Lime Conditioner 500ml bottle

B. (iii)

TAX INVOICE: 50

Essence Hair Products

12 Corporate Drive

Hettysborough VIC 3098ABN: 12 369 852 198

Date: 4th Jan 2023

Order No: 1

Sold to: Samiras Organic World

65 Pleasant Road

Warranville VIC 3113

Description Quantity Unit price

(inc. GST) Total

(inc. GST)

Organic Mint Shampoo 500ml

Organic Lime Conditioner 500ml

Delivery Charges 500

400

1 3.30

3.85

55.00 1,650

1,540

55 00

00

00

TOTAL AMOUNT PAYABLE

*GST included in this invoice $295

Due: 30 days after EOM 3,245 00

C. 7th January: Paid Harris Real Estate for rent of premises $1,650 inc. GST (EFT)

D. Purchased 50 pairs of organic socks at $5.50 each (inc. GST) from Sporty Sox at a local market and received the following receipt:

E.

Samiras Organic World

65 Pleasant Road

Warranville VIC 3113ABN: 12 369 852 198

TAX INVOICE: 1

Date: 10th January 2023

Sold to:

Hair Today

15 Mane Street,

Furley, VIC 3567

Description Quantity Unit price (inc. GST) Total (inc. GST)

Organic Mint Shampoo 500ml bottle 100 6.60 660.00

Organic Lime Conditioner 500ml bottle 100 7.70 770.00

Total Amount Due 1,430.00

GST Included 130.00

PAYMENT OPTIONS:Please pay by total owing by 28th February, or pay by 17th January to receive a discounted invoice price of $1,386.00

Biller Code: 9008

Or direct to:

Bank Account: BSB 089 765

Account No. 76578

F.

Samiras Organic World

65 Pleasant Road

Warranville VIC 3113ABN: 12 369 852 198

RECEIPT: 1

Date: 17th January 2023

Received from: Hair Today

The sum of: $1,386 being for payment of invoice 1.

Early payment discount of $44 (inc. GST) was accepted.

G.

Samiras Organic World

65 Pleasant Road

Warranville VIC 3113ABN: 12 369 852 198

TAX INVOICE: 2

Date: 18th January 2023

Sold to:

Happy Feet

80 Steps Drive

Shores, VIC 3567

Description Quantity Unit price (inc. GST) Total (inc. GST)

Organic Cotton Socks 5 11.00 55.00

Total Amount Due 55.00

GST Included 5.00

PAYMENT OPTIONS:Please pay by total owing by 28th February, or pay by 25th January to receive a discounted invoice price of $53.00

Biller Code: 9008

Or direct to:

Bank Account: BSB 089 765

Account No. 76578

H.

Samiras Organic World

65 Pleasant Road

Warranville VIC 3113ABN: 12 369 852 198

ADJUSTMENT NOTE: 1

Date: 20th January 2023

Credit to:

Happy Feet

80 Steps Drive

Shores, VIC 3567

Description Quantity Unit price (inc. GST) Total (inc. GST)

Organic Cotton Socks returned for credit, as there was a hole in one. 1 11.00 11.00

Total Credit Amount 11.00

GST Included 1.00

20th January: Cash sales of goods $374 inc. GST (POS)

J. (i)

Samiras Organic World

65 Pleasant Road

Warranville VIC 3113ABN: 12 369 852 198

PURCHASE ORDER: 2

Date: 20 Jan 2023

To: Kids Kool Clothing

3 Sewing Lane,

Nette, VIC 3677

Description Quantity Price (inc. GST) $

Organic cotton t-shirts 300 4.95 each

J. (ii)

Kids Kool Clothing

3 Sewing Lane, VIC 3677

Delivery docket

Date: 21 January 2023

Delivered to: Samiras Organic World, 65 Pleasant Road, Warranville VIC 3113

The following goods:

300 organic cotton t-shirts

J. (iii)

Kids Kool Clothing

3 Sewing Lane, VIC 3677

ABN: 78 890 091 406

TAX INVOICE: 67

Date: 21 January 2023

Sold to:

Samiras Organic World

65 Pleasant Road

Warranville VIC 3113

Description Quantity Unit price (inc. GST) Total (inc. GST)

Organic cotton t-shirts 300 4.95 1,485.00

Total Amount Due 1,485.00

The total price includes GSTDue: 15 days after EOM K.

Samiras Organic World

Date: 24 January 2023

From: Samira Pitt

To: Bookkeeper

Subject: Please note that I took home shampoos and conditioners for my own personal use to the value of $110 (inc. GST).

L.

Samiras Organic World

Date: 31 January 2023

From: Samira Pitt

To: Bookkeeper

Subject: A bad debt of $220 (inc. GST) needs to be written off for debtor T. Van as I have been advised by their lawyer of their bankruptcy.

Samiras Organic World: Policies and Procedures

Samira Pitt is the owner of Samiras Organic World, a small business that supplies organic products, including items such as organic hair products and organic clothing, to the public and to other small businesses. The business is registered for GST.

Samira is yet to source a computerised accounting system to assist with her bookkeeping /taxation requirements; therefore, all her business transactions will need to be prepared using manual processes.

Samira has provided you a copy of her organisational policies and procedures to ensure the integrity of her financial data is maintained.

Organisational input standards and journal authorisation procedures:

Checking documentation

All supporting and source documentation is to be checked for accuracy prior to being entered into the system.

Where necessary errors are to be corrected and must be initialled by the bookkeeper

(student).

Changes are to be made by placing a line through the incorrect entries and entering the

correct amounts.

Enter all changes in red so that your manager can clearly see where you have made

updates to the records and authorise them.

Entering transactions

Transactions are to be entered into the system by the end of each month to which they relate.

Transactions, journal entries and other data are to be entered into the appropriate journal completely and accurately. Journals totals must be checked by cross adding the column totals to ensure all calculations are correct. Samira will authorise all journals before they are posted to the ledger.

Storage of documentation:

Once entered into the system, invoices and other related documents must be filed in the Accounts Department filing cabinet.

At the end of each month, the invoices and other related documents must be scanned and saved to the computer system, and backed up onto an external hard drive.

The business is structured as a sole trader, therefore documentation must be retained for 5 years to meet regulatory requirements.

Accounts Receivable and Accounts Payable:

Accounts Receivable Control Account (Debtors)

Most customers are required to pay cash at the time of sale. Transactions with the few customers who have an approved account with Samira are recorded as a credit sale using the hard copy of the invoice pad. The invoice pad is pre-printed and numbered, and includes Samiras business details.

Errors are to be corrected as per Checking documentation above.

Accounts Payable Control Account (Creditors)

A purchase order is prepared and sent to the suppliers that Samira buys her organic supplies from. On some occasions, the suppliers are unable to supply the total amount of units ordered. Samira accepts the lower number of units supplied as per the delivery docket, but does not authorise the supplier to send additional units for any item.

When the supplies have been received and the supplier has sent the invoice, the bookkeeper needs to check the purchase order and delivery docket against the invoice for accuracy. This is to ensure that for each item the number of units charged for is correct (as per the delivery docket) and that the price charged for each unit is correct. All figures and calculations on the invoice also need to be checked.

If there is a discrepancy, the bookkeeper is expected to correct the invoice (as per Checking documentation above) so that Samira can make a telephone call to the supplier to request that a new tax invoice be provided.

Banking and Bank Reconciliation:

Banking and Bank Reconciliation

Most debtors pay via direct electronic transfer or BPAY facility. The debtor sends an email to advise that they have made the payment, and in some cases attach a remittance advice. The email/remittance advice is printed and stored with the related source documents in the Accounts Department filing cabinet.

When cash or cheques are received, the cheques, notes and coins are to be banked on the day of receipt. A bank deposit slip must be completed manually (using the personalised deposit book provided by the bank) and proof of lodgement (copy of the deposit slip) is to be attached and filed with the bank statement. If funds are unable to be banked on the day, funds are to be secured in a lockable cabinet.

For the safety and security of staff, the timing of banking the deposits is planned to be at different times of the day. Samira does not allow banking at the ATM for safety reasons. All banking must be completed across the counter of the bank during bank opening hours.

Samira pays all creditors by direct debit. She has set up an authorisation code (2 factor authentication) with the bank so that only specific accounts staff can make online payments from the bank account.

Copies of the bank reconciliation reports must be stored with their source documents in the Accounts Department filing cabinet.

Trial Balance and Interim Reports

The Trial Balance is extracted monthly. The bookkeeper is expected to review the trial balance for accuracy and to correct any errors.

Interim reports are to be completed at the end of each financial year on 30th June. The bookkeeper is expected to review the interim reports for accuracy and to correct any errors.

The Trial Balance and Interim Reports must be printed and filed in the Accounts department filing cabinet. In addition to this, they must be scanned and saved with an appropriate file name on Samiras computer and on an external hard drive.

The business is structured as a sole trader, therefore documentation must be retained for 5 years to meet regulatory requirements.