Case study assessment 1 of 3 (Property Management)

Download Solution Now

Criteria

Unit code, name and release number

CPPREP4125 - Transact in trust accounts (1)Qualification/Course code, name and release number

CPP41419 - Certificate IV in Real Estate Practice (1)Student details

Student number

Student name

Ellena Zervos

Assessment declaration

This declaration only needs to be completed if you are not submitting your assessment online.

This assessment is my original work and no part of it has been copied from any other source except where due acknowledgement is made.

No part of this assessment has been written for me by any other person except where such collaboration has been authorised by the assessor concerned.

I understand that plagiarism is the presentation of the work, idea or creation of another person as though it is your own. Plagiarism occurs when the origin of the material used is not appropriately cited. No part of this assessment is plagiarised.

Student signature and date

Version:20210826

Date created:26/7/2021

For queries, please contact:

Business and Technology Skills Point

Ultimo

2020 TAFE NSW, SydneyRTO Provider Number 90003 | CRICOS Provider Code: 00591E

This assessment can be found in the: Learning Bank

The contents in this document are copyright TAFE NSW 2020, and should not be reproduced without the permission of the TAFE NSW. Information contained in this document is correct at time of printing: DATE @ "d MMMM yyyy" * MERGEFORMAT 22 May 2023. For current information please refer to our website or your teacher as appropriate.

Assessment instructions

Table SEQ Table * ARABIC 1 Assessment instructions

Assessment details Instructions

Assessment overview The objective of this assessment is to assess your knowledge and performance as would be required to conduct transactions in real estate trust accounts.

Assessment event number 1 of 3

Instructions for this assessment This is a case study assessment and will be assessing you on your knowledge and performance of skills required by the unit.

This assessment is in one part:

Part 1: Property management case study (5 tasks)

The assessment also contains an assessment feedback form

Submission instructions Where possible, complete and submit this assessment online via the TAFE NSW online learning platform. Upload all the required assessment files in the assessment area on the online learning platform.

Alternatively, hand all required assessment files to your assessor for marking. Make sure you have added your name to the bottom of each page of the assessment.

It is important that you keep a copy of all electronic and hardcopy assessments submitted to TAFE NSW and complete the assessment declaration when you submit the assessment.

What do I need to do to achieve a satisfactory result? To achieve a satisfactory result for this assessment, you must answer all questions correctly.

What do I need to provide? Computer with Microsoft WORD, calculator and note paper for transaction calculations

What will the assessor provide? Access to this assessment.

Due date and time allowed Your assessment due dates are in your Unit Assessment Guide (UAG) or Training Plan.

The indicative time to complete the assessment is approximately 2 hours.

Supervision This is an unsupervised assessment.

Your assessor may ask for additional evidence to verify the authenticity of your submission and confirm that the assessment task was completed by you.

Assessment feedback, review or appeals In accordance with the TAFE NSW policy Manage Assessment Appeals, all students have the right to appeal an assessment decision in relation to how the assessment was conducted and the outcome of the assessment. Appeals must be lodged within 14 working days of the formal notification of the result of the assessment.

If you would like to request a review of your results or if you have any concerns about your results, contact your Teacher or Head Teacher. If they are unavailable, contact the student administration officer.

Appeals are addressed in accordance with Every Student's Guide to Assessment.

Part 1: Property management scenario

To complete this part of the assessment, you will be required to read the scenario below.

Once you have read the information, you are to complete your entries in the property management workbook in Appendix 1 and submit your completed property management assessment to your assessor for marking.

Scenario:

The senior property manager has asked you to enter and complete the following May transactions for Azure Beach Realty Group (ABRG).

Task 1: Record property management transactions

To complete this task, you will need to note the following:

The trust cash book, trust ledgers and trust trial balance are to be completed so that it complies with the Property and Stock Agents Act 2002 and the Property and Stock Agents Regulations 2014.

The next trust receipt number to be issued is number 101 and the next trust cheque number is 710.

All trust monies are banked on the day of receipt.

All receipts are by EFT unless otherwise stated.

All payments are by cheque unless otherwise stated.

All transactions are GST free unless stated.

The first client ledger folio number is 110.

Use the same landlord ledger for more than one tenant.

Cross out any transactions not related to the trust account.

Calculate management fees on rent received only.

Balance the trust cash book and post to trust bank account.

May transactions for property management

Enter the information into the property management workbook in Appendix 1.

Table 2 May transactions for property management

Task No May 20XX

Date Transactions

1.1 1.5.20xx Obtained a new tenant, B. Moore, for landlord K. Street who paid two weeks rent in advance and four weeks bond by cheque made payable to the agent.

Details: Bond: $2000 Rent: $1000

(CHQ details: ANZ Sydney City)

1.2 3.5.20xx Received one weeks rent $450 and $150 for water usage from J. English on behalf of H. Spicer.

1.3 5.5.20xx Received two weeks rent, $1000, from O. Cromwell for owner Y. Burgess. Account number 113

(Rent period 5/5/xx-18/5/xx Inc. i.e. $1,000 in advance)

1.4 6.5.20xx Paid Darkside Plumbing, $160, on behalf of the landlord

K. Street.

1.5 7.5.20xx Paid all funds held on behalf of Rental Bond board to the Rental Bond Board.

1.6 9.5.20xx Received 1 week's rent of $450 by cheque, from J. English on behalf of H. Spicer.

1.7 10.5.20xx Paid Office works for office supplies and printing.

1.8 12.5.20xx The last cheque from J. English was dishonoured.

The tenant agreed to pay cash which was banked today.

1.9 16.5.20xx Obtained a new tenant K Cross for a new landlord J. Bowers.

Tenant paid $800 representing two weeks rent in advance and $1600 was paid directly to Rental Bonds Online.

(CHQ Details: NAB Wollongong)

1.10 18.5.20xx Paid Metropolitan Water $210 on behalf of H. Spicer.

1.11 21.5.20xx Landlord, Y. Burgess has asked for his rent to date - less the agencys management fees (7.7% GST inclusive) to be forwarded to his account.

Pay the landlord and Azure Beach Realty Group as per the instructions above.

1.12 21.5.20xx Received 3 weeks rent $1,500 from B. Moore, Landlord K Street

1.13 22.5.20xx Pay newspaper advertising the sum of $940.

1.14 30.5.20xx Account to the following landlords for May, the property management fees are 7.7% including GST calculated on rent received only (do not include money received for other purposes).

K. StreetH. Spicer

Task 2: Bank deposit

Using the templates provided below, complete the bank deposit slips for the following days:

1 May 20XX Rent & Bond received from B. Moore-(CHQ details: ANZ Sydney City)Bank deposit

National Banking Corporation

WollongongNSW 2500

Account Name:Azure Beach Realty Group Property Management Trust Account

Account Number:0244 56987

Please fill in the following particulars of cheques; proceeds will not be available until cleared

DRAWER Bank Branch Amount

1 2

Carried Forward Sub Total $

Paid in by Signature

DEPOSIT

DATE TELLER USE Notes $

Account Identification Number Teller

left000 $100 Coins

0244 56987 $50

Account Name $20 Cheques $

Azure Beach Realty Group $10 $5

TOTAL $

16 May 20xx Rent received from K. Cross - (CHQ Details: NAB Wollongong)

National Banking Corporation

WollongongNSW 2500

Account Name:Azure Beach Realty Group Property Management Trust Account

Account Number:0244 56987

Please fill in the following particulars of cheques; proceeds will not be available until cleared

DRAWER Bank Branch Amount

1 2

Carried Forward Sub Total $

Paid in by Signature

DEPOSIT

DATE TELLER USE Notes $

Account Identification Number Teller

left000 $100 Coins

0244 56987 $50

Account Name $20 Cheques $

Azure Beach Realty Group $10 $5

TOTAL $

Task 3: Trust receipts

Prepare a property management trust account receipt for the two weeks rent, $1000, fromJ. Brown for Landlord P. Woods, Account Number 203 on the 5.5.20xx.

(Rent period 5/5/xx-18/5/xx Inc. i.e. $1,000 in advance) Property address 10 Clyde St, Bondi

15240012065Azure Beach Realty Group

144 Symons Road Azure Beach NSW 2100

Receipt No. 110

Date:____________________

Received From:___________________________________

The sum of:____________________________________________

Being for_____________________________________________________

Property Address: ______________________________________________

Landlord:___________________________Account No.__________

Property Management Trust Account

Per: _______________$

By: Cash/cheque/EFT

Rent in Advance: $

00Azure Beach Realty Group

144 Symons Road Azure Beach NSW 2100

Receipt No. 110

Date:____________________

Received From:___________________________________

The sum of:____________________________________________

Being for_____________________________________________________

Property Address: ______________________________________________

Landlord:___________________________Account No.__________

Property Management Trust Account

Per: _______________$

By: Cash/cheque/EFT

Rent in Advance: $

Task 4: Trust journals (Transfer journal)

It has come to your attention the $2,000 bond received from B. Moore (transaction on 1.5.202X, in task one) had been mistakenly been placed into the landlord K Streets ledger account No 110.

Complete the transfer journal below to transfer the funds into the Rental Bond Board ledger account No 111 from K. Streets ledger account No 110. The transfer date is the 11.5.20XX.

Table 4 Trust transfer journal

DR CR Date Particulars Ledger Account number Transfer from

$ Transfer to

$ Signature of person

in bonafide control (LIC)

Task 5: Bank reconciliation

Using the simplified cash book and bank statement provided below, prepare the bank reconciliation as at 30/11/20xx for Azure Beach Realty Group property management trust account.

Note: Arrangements have been made for all bank fees and charges to be debited to the general business account. If errors are detected, the bank statement is correct.

Azure Beach Realty Group Property Management Trust Account Trust Cash Book (SIMPLIFIED)

Cash Receipts Journal Cash Payments Journal

Date20xx Particulars

Bank$ Date20xx Particulars

Chq No.

Bank

Nov 1 Balance B/Fwd 10,400 Nov 4 Payments 831 580

9 Receipts 13,000 6 Payments 832 2,104

16 Receipts 28,000 14 Payments 833 4,300

26 Receipts 15,000 15 Payments 834 3,700

29 Receipts 10,000 15 Payments 835 2,600

17 Payments 836 385

18 Payments 837 850

18 Payments 838 1,210

19 Payments 839 1,565

21 Payments 840 240

Sub/Total Balance C/FWd1 Dec Balance B/Fwd

Westpac Bank Statement

Azure Beach Realty Group Property Management trust account -

Date

Details

Debit

Credit

Balance

20xx $ $ $

Nov 1 Balance B/Fwd 10,400 CR

7 832 2,104 8,296 CR

9 Cash/Chqs 13,000 21,296 CR

16 835 2,600 18,696 CR

Bank Reconciliation as at

Credit balance as per bank statement $

Add: Less:: Debit balance as per trust cash book 16 Cash/Chqs 28,000 46,696 CR

20 838 1,210 45,486 CR

27 Cash/Chqs 15,000 60,486 CR

28 Bank charges 85 60,401 CR

28 839 1,565 58,836 CR

840 240 58,596 CR

833 4,300 54,296 CR

Azure Beach Realty Sales Trust Account

Trust Bank Reconciliation as at 30/11/20xx

$ $

Credit balance as per bank statement 30/11/20xx

Add: Outstanding deposit 29/11/20xx

Bank fees in error

Less: Unpresented cheques Chq No

Debit balance as per Trust Cash Book as at 30/11/20xx

APPENDIX 1 PROPERTY MANAGEMENT WORKBOOK.Azure Beach Realty Group (ABRG) Property Management - Trust Receipts JournalTCB No. 01

Date Receipt

No. Receipt

Type Received From On Account Of AccountNumber Transaction Amount

$ Bank

1/5/20xx Balance B/Fwd 44,000 44,000

5/5/23 55 CHQ C. Lone Rob to Lone 121 10% Deposit Date ChequeNo. PAYEE On Account Of Account

Number Transaction Bank

Azure Beach Realty Group (ABRG) Property Management - Trust Payments JournalTCB No. 01

Azure Beach Realty Group (ABRG) Property Management Trust Ledger Accounts.

Account Name: Azure Beach Realty Group Property Management Trust Bank AccountAccount Number: 100