unit 11 financial records management - … · · 2015-06-24gives you a copy of the order form ......

ISBN 9780170185653278 Nelson Business Education

Individuals and businesses must be able to record and manage fi nancial information. In a business context, this involves understanding the role of various kinds of fi nancial source

documents, and being familiar with bank reconciliation and petty cash procedures and software that can be used to store and track this information accurately and systematically.

In this unit, you will become familiar with new terms. Find these terms in the wordfi nd on BLM 11.1, on the CD in the back of your book.

UNIT 11 FINANCIAL RECORDS MANAGEMENT

In this unit you will learn about:

Financial source documents ScenarioImagine that you want to buy a Blu-Ray disc of the movie Transformers, but it is out of stock and has to be specially ordered for you.

You decide to place an order for the disc. The DVD store takes down your details and gives you a copy of the order form for your records. About four weeks later, the DVD store informs you that the disc has arrived and is ready for you to pick up.

When you go into the store to pick up the product, you are given a document called a tax invoice to sign. The tax invoice details the order and its cost. It also acts as evidence that you have picked up the disc. You pay for the disc with cash and are given a receipt as proof of payment.

Most businesses use a similar process as that described in the scenario to keep track of business transactions. They use fi nancial source documents to record the details of transactions, and act as evidence that those transactions took place. These documents can be generated manually or electronically. Financial source documents include:• purchase requisitions• purchase orders• tax invoices• delivery notes• adjustment notes• cheques• receipts.

The way these various documents are used in the purchasing process is shown in Figure 11.1.

• bank reconciliation

• petty cash

• fi nancial source documents p. 278

p. 295

p. 303

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BLM

11 Nelson Business Education 2E TXT 6pp.indd 278 19/03/10 11:53 AM

ISBN 9780170185653 279Unit 11 Financial records management

FINANCIAL RECORDS MANAGEMENT

p Figure 11.1 The purchasing process

Purchase requisitionsPurchase requisitions are used by departments within organisations to order supplies. For example, if stationery items are running low in a sales department, a staff member in that department completes a purchase requisition and sends it to the purchasing department. The responsible staff member in the purchasing department then places the order for stationery on behalf of the sales department.

While purchase requisitions may include item prices and fi nal totals, this area of the purchase requisition form is often left blank because prices can change or because prices are unknown by the person who is preparing the requisition.

supplierAn individual or organisation that provides (supplies) goods or services

The most common methods of business payment are cheque, credit card and direct debit (EFT) transfer.

Informs thesupplier

Prepares adjustmentnote

Receives adjustmentnote

Prepares and sendscheque/transfers payment

Receives receipt

Receives payment

Prepares and sendsreceipt

Receives purchaseorder

Prepares taxinvoice

Prepares deliverynote

PURCHASER SUPPLIER

Prepares a purchaserequisition

Sales department

Prepares purchaseorder

Purchasing department

Sends adjustment note to purchaser

Sends receipt to purchaser

Prepares and sendscheque/transfers payment

Signs the consignment note andchecks the order

No faultsFaults

Activity 11.11 Study the purchase requisition for All In One Baby Co. (Figure 11.2, page 280) and answer

these questions.a Who is the supplier? b Who is the purchaser? c Who has requested the purchase order? d What department are they in? e Why are there no prices on this document?



2 You work in the Sales Department at GymEquip (ABN 45 782 986 468), 6 Boundary Street, Townsville Qld 4810, telephone (07) 4721 8222, fax (07) 4721 8333. You notice that some equipment needs to be ordered from Equipment Plus (ABN 33 981 494 244), 376 Boundary Road, Browns Plains Qld 4118, telephone (07) 3567 3344, fax (07) 3567 3347.

The following items are required: • 1 treadmill (basic) (E0098) • 10 5 kg weights (E0044) • 25 10 kg weights (E0045)

The date is 18 June 2012 and the purchase requisition will be authorised by Nicole Cunningham. Your telephone extension is 3377.

Complete a purchase requisition form that records all the above details.

An internal purchase requisition template can be found on the CD in the back of your book.

3 You work for the Sales Department of Mannor Hairdressing Supplies (ABN 77 675 452 387), 222 Sheridan Street, Cairns Qld 4870. On 22 July 2012 you are required to complete a purchase requisition for:

• 10 boxes of hair spray (L632) • 12 boxes of rounded brushes (W291) • 2 bottles of All Natural Hair Tint in ash blonde

(E899) • 50 bottles of Moisturising Shampoo (M373) • 20 bottles of Classic Conditioner (A155).

The supplies are to be ordered from All Hair (ABN 33 999 271 642), 22 Edward Road, Cairns Qld 4870, telephone (07) 4050 3232, fax (07) 4050 3233. Your supervisor, Erin Smith, is the contact person, and has authorised the purchase requisition. Erin’s phone extension is 5877.

Complete a purchase requisition form that records all the above details.

Purchase ordersTHINKING PROMPT Have you ever purchased anything through a magazine offer or over the Internet or telephone? If so, what did this process involve? Draw a diagram illustrating what happened. If you haven’t purchased goods in this way, fi nd out what using one of these methods involves and illustrate the process.

Orders for goods and services can be placed in the following ways.• Mail• Telephone• Fax

• Email• Internet • Face-to-face

When you purchase football tickets over the counter, or via the Internet or telephone, you are placing an order with an external party known as a supplier. Businesses use purchase order forms to order the goods they need from their chosen supplier. The supplier completes the order within the specifi ed time or makes contact with the purchaser if the goods are unavailable. The purchaser always keeps a copy of the purchase order so they can check that the goods received match the goods that were ordered. If the goods received do not match the goods ordered, the purchaser must immediately notify the supplier of the problem.

Internal purchaserequisition

ABN: 60 899 431 098

GPO Box 39

GREENSLOPES QLD 4120

Supplier’s name: Baby Supplies AustraliaABN: 22 968 694 490Supplier’s address: 55 Hilton StreetBOX HILL VIC 3128

Internal department: Warehouse

Requested by: Simon Anderson

Phone extension: x3344

Supplier phone: (03) 9894 5467 Supplier fax: (03) 9894 5477

Description of the goods you wish to purchase

Baby bath time (B225) 4 boxes

Bright hooded towels (B144) 1 box

Tommee Tippee feeding bottles (F145) 150 each

Pigeon dummy pack (F344) 10 packs

Qty Units Unit price Total

$

Delivery: High Sky Couriers

Total amount of requisition including GST

Signature of requester or supervisor: S.Anderson

Date: 17 July 2012

Signature of officer with financial authority:

Date:

p Figure 11.2 Purchase requisition for All In One Baby Co.

Australian Business Number (ABN)A unique 11-digit number used to identify individual businesses

authoriseTo give permission

template



While purchase orders may include item prices and fi nal totals, this area of the form is often left blank, either because prices can change or because they are unknown by the person who is preparing the order.

p Figure 11.3 Example of a purchase order

Activity 11.2 1 Study the purchase order for All

In One Baby Co. (Figure 11.4) and answer the questions that follow.

Delivery Date: by 15 January 2012 Delivery Method: Fast Couriers

Notes: Nil

Purchase Order Authorisation: N McLeod Delivery Address:

Purchaser’s name, address and othercontact details

Purchase order number and date

Supplier’s name and address

Delivery dateDelivery instructionsSpecial instructions

Quantity and details of goods or services

Name of person authorising the purchase

To be completed if delivery address isdifferent from purchaser’s address

NELSON ENTERPRISESPO Box 453, Arana Hills QLD 4054

ABN: 45 555 672 987

Phone (07) 3356 7865 Fax (07) 3356 8888Email [email protected]

PURCHASE ORDERPurchase Order Number: PO223

Date: 5 January 2012

Quantity Description Item No. Item Price GST 10% Total

10 Bird Cage Small BBC1

TotalGST included in total

As above

To: Bird Supplies

Address1: 22 Richmond Terrace

Address2: Runcorn QLD 4113

p Figure 11.4 Purchase order for All In One Baby Co.

To: Baby Goods Pty Ltd102 Kingston RoadKINGSTON ACT 2604

4 bottles BB45 Baby shampoo

20 DD88 Baby bubble bath

Delivery instructions: Speedy CouriersDelivery required by: 14 July 2012Deliver to: All In One Baby Co., 22 Smithfield Street, RUNCORN QLD 4113

Authorisation: Jill Robinson

ABN: 60 899 431 098

GPO Box 39GREENSLOPES QLD 4120Phone: (07) 3245 667Fax: (07) 3245 6678www.allinonebabyco.com.au

Purchase orderOrder number: 756

Date: 30 June 2012

Quantity Item number Description Unit price Per Total

Subtotal

GST

Total



a Who is the supplier?b Who is the purchaser? c What is the delivery address? d Who has authorised the purchase? e When are the goods required by? f How are the goods being delivered? g Why are there no prices recorded on this document? h Why is the delivery address different from the company’s billing address?

2 On 17 July 2012 you receive a purchase requisition from the Warehouse Department of All in One Baby Co. (ABN 60 899 431 098). You are required to prepare a purchase order (no. 757) to be sent to Baby Supplies Australia. A purchase order template can be found on the CD in the back of your book. You will need to refer to Q1 of Activity 11.1 (p. 279) to complete this task.

3 Using the purchase requisition you completed in task 2 of Activity 11.1, prepare a purchase order (no. GE 2349) to be sent to Equipment Plus. The goods are to be delivered by Fast Couriers and the date of the order is 21 June 2012.

4 Using the purchase requisition you completed in task 3 of Activity 11.1, prepare a purchase order (no. PP0987) to be sent to All Hair. The goods are to be delivered by Fast Couriers and the date of the order is 23 July 2012.

5 You work as an office clerk at A1 Car Parts (ABN 34 567 984 120), 52 Beaudesert Road, Rocklea Qld 4106, telephone (07) 3347 8990, fax (07) 3347 8991. You are required to order the following items from Car Parts Australia (ABN 60 356 049 230), 200 Burnett Road, Brighton Vic 3186.• 3 Toyota Corolla fan belts (T345) • 150 BMW airconditioner belts (BMW22)• 1 Ford Fairlane oil filter (F90) • 1 box of standard engine oil (EO9877)• 1000 Ford Fairlane NGK spark plugs (F38)

Prepare a purchase order for the goods dated 10 June 2012 using order no. A4567. You would like the goods delivered by Overnight Express. The order has been authorised by Greg Jones.

6 You are the office clerk for Smart Stationers (ABN 22 875 112 872), 2 Range Street, Toowoomba Qld 4350, telephone (07) 3665 0435, fax (07) 3665 0439. You are required to order the following items from Stationery Wholesalers (ABN 70 545 746 825), 88 Ramsgate Hill Road, Ramsgate NSW 2217.• 25 boxes of ballpoint pens – black (BPB110)• 2 cartons of plain white bond A4 paper (A4PWB67)• 424 boxes of 2B pencils (2BP001)• 59 boxes of erasers (ER776)• 1010 lined A4 notebooks (NB444)

Prepare a purchase order for the goods dated 3 September 2012, using order no. SS78690012. The goods are to be delivered by Air Freight Couriers, and the purchase order will be authorised by Sebastian Janez.

7 You work in the Purchasing Department of Cheap Computers (ABN 57 497 725 286), 1875 Wellington Street, Heathcote NSW 2233, telephone (02) 6743 0435, fax (02) 6743 0444. You are required to order the following items from Mega Computers (ABN 43 543 255 097), 654 Potts Road, Rozelle NSW 2039.• 5 Auriga flat screen monitors (AFS875)• 25 boxes of DMG DVD-R 50-pack disks (DVD887)• 35 Belkin wireless notebook network cards (BWNB5)• 10 HP multifunction centres (S500)• 1200 reams of white A4 paper (A4P55)• 20 Belkin wireless routers (BWR55)• 20 D-Link modems (DLINK37)

Prepare a purchase order dated 2 January 2012 using order no. CCOM0001145, and authorised by Zak Ambrosini. The goods are to be delivered by Fast Road Couriers.

template



8 You work in the Accounts Department at Smith’s Electronics (ABN 33 348 761 156), 5 Clarke Street, Mt Isa Qld 4825, telephone (07) 4745 3333, fax (07) 4745 8888, www.smithselectronics.com.au, email [email protected]. Design a purchase order template for the company.

Tax invoicesWhen an order has been placed, the supplier prepares a tax invoice to be sent to the purchaser. A tax invoice is a bill that lists the goods or services that have been purchased and the total amount owed to the supplier. It is common for a tax invoice to be included with the goods being delivered to the purchaser. The tax invoice is used to check that the goods supplied match the original purchase order. If errors have been made, the supplier must be notified immediately.

In Australia, the goods and services tax (GST) is a tax of 10 per cent that is applied to most goods and services. By law, organisations are not required to prepare a tax invoice if the value excluding GST is less than $50. However, a record of the transaction still needs to be kept by the supplier. For further information on GST, refer to Unit 12.

THINKING PROMPT Make a list of five items you have purchased (goods or services) that have cost less than $50 and for which you did not receive a tax invoice. Instead of a tax invoice, what did you receive as evidence of your purchase? Do you know if GST was charged on these items? If so, how could you check the amount of GST charged?

For goods and services that cost a total of less than $1000, the tax invoice (Figure 11.5) must include:• the words ‘tax invoice’• the supplier’s name and address• the supplier’s Australian Business Number (ABN)• the date• a description of each item• the total amount owing, including GST• a statement such as ‘total including GST’ next to the total amount owing.

For goods or services that cost a total of $1000 or more, the tax invoice (Figure 11.6) must include:• the words ‘tax invoice’• the supplier’s name and address• the supplier’s ABN• the date• the name of the purchaser• the address or ABN of the purchaser• if goods, the quantity supplied• a brief description of each item supplied, whether goods, services or both• the total amount owing, including GST• a statement such as ‘total, including GST’ next to the total amount owing or, if the tax

invoice is itemised, the GST amount should be shown next to each item.When a purchaser receives a tax invoice, they need to check that the calculations are

correct (particularly the GST calculation) and notify the supplier if there are any errors. To calculate the amount of GST to be charged, multiply the base price of the item by 0.1, or 10 per cent. If you know the full price including GST, and you need to calculate the base price, divide the total amount by 11 (this is because there are 11 equal parts; that is, the original price – 100 per cent – plus 10 per cent).

ATO

DID YOU KNOW?Examples of goods and services that are exempt from GST are health services, education, baby food and infant formula, breakfast cereals, fresh fruit and vegetables, and cheese. For a full list of exempted items, visit the ATO website.

?

base priceThe cost of an item with no tax included



p Figure 11.6 Tax invoice for $1000 or more

p Figure 11.5 Tax invoice for less than $1000

}}

}Delivery Date: 10 January 2012 Delivery Method: Road Couriers

Purchase Order Number: 8623

Notes: Nil


ABN: 45 555 672 987


TAX INVOICE

Tax Invoice Number: 00002345

Date: 8 January 2012

Quantity Description Total 1 Fish Tank 220.00

Delivery Charges 20.00

$240.00Total including GST

Terms of payment: Please pay this invoice in n/30 days

Remittance Advice:

From:

Please find attached a cheque for: Total Amount: $

OR Debit my [ ] Bankcard [ ] Visa [ ] Mastercard

Cardholder Name: Expiry Date:

Signature:

Supplier’s name, address and othercontact details

Supplier’s ABNDocument nameTax invoice number

Date of issueDelivery instructions

Purchase order numberSpecial instructions

Quantity and/or details of goods or services

Total, including GST of $20(included in price of fish tank)

GST statementPayment terms and conditions

Remittance advice to be completed by thepurchaser and sent with or as payment

}

} Supplier’s name, address and othercontact details

Supplier’s ABNDocument nameTax invoice numberDate of issueDelivery dateDelivery instructionsPurchase order numberSpecial instructionsPurchaser’s name and address

Quantity and/or details of goods or services

GST statementPayment terms and conditions

Remittance advice to be completed by thepurchaser and sent with or as payment


ABN: 45 555 672 987


TAX INVOICETax Invoice Number: 00002357

Date: 10 March 2012

Delivery Date: 10 January 2012

Delivery Method: Road Couriers

Purchase Order Number: 8623

Notes: Nil

Terms of payment: Please pay this invoice in n/30 days

Remittance Advice:

From:

Please find attached a cheque for: Total Amount: $

OR Debit my [ ] Bankcard [ ] Visa [ ] Mastercard

Cardholder Name: Expiry Date:

Signature:

Quantity Description Item No. Item Price GST 10% Total 1 Large glass tank FT01 150.00 15.00 165.00 50 Large pumps FP02 22.50 112.50 1237.50

Delivery charges FT01 5.50 0.55 6.05

Total $1408.55 Total GST included $ 128.05

To: Fish Galore

Address1: 234 Richmond Street

Address2: Calamvale QLD 4116

GST calculation: $22.50 10% = $2.25

$2.25 50 = $112.50

}



Once a tax invoice is received and checked, the purchaser is usually given a time-frame and conditions for paying the amount owing. This is often referred to as the ‘terms of payment’. Example of terms of payment are shown in Table 11.1.

Table 11.1 Terms of payment

Terms Meaning

N/7 Net seven days – the amount owing must be paid within seven days

2/7 Two per cent discount can be deducted from the total amount owing if payment is received within seven days

2/7; N/30 Two per cent discount can be deducted from the total if payment is received within seven days – otherwise the total bill (without discount) must be paid in full within 30 days

Provided that all the necessary information required for GST reporting is listed on the tax invoice (as per government guidelines), the design of this type of document can differ from one organisation to the next (see Figure 11.7 for examples).

p Figure 11.7 Examples of tax invoices

‘Our terms are net 30 days. If you don’t pay after 30 days, we come after you with a net!’

Road InsurancePlus TAX INVOICE

INSURANCE DETAILS

Policy Number:Coverage Number:

187646537Q2

DETAILS OF SUPPLY

Vehicle Insured:Car Registration Number:Description:Insurance Period:

Daewoo Leganza 2001866JMZRenewal of comprehensive car insurance10 October 2011 to 10 October 2012

PRICE OF SUPPLY

GST exclusive amount:GST amount:Stamp Duty:Total GST inclusive:

$450.00$45.00$24.75

$519.75

M A Jones33 Smithfield RoadSmithfield QLD 4878

Invoice Date: 22 September 2012

This document will be a tax invoice for GST when paid

Home Phone: (07) 3344 1864

Work Phone: (07) 3864 5888

Mobile: 0413130506

Email: [email protected]

SHAWELECTRONICSABN: 488 876 238

45 Boundary RoadBOX HILL VIC 3128

Phone: (+61 03) 9876 5678Fax: (+61 03) 9876 5679Email: [email protected]

TAX INVOICE

Tax invoice number:

Date:

TO:

Order No. 029 Terms

Quantity Units Description Unit Price Total

DELIVER TO:

AUTHORISATION:

SUBTOTAL

GST 10%

TOTAL

Terms:

GST added at endwhen totalling



Activity 11.31 Why do organisations prepare tax invoices?2 What are the differences between a tax invoice with a total of $1000 or more and one

with a total of less than $1000?3 Study the tax invoice in Figure 11.8 and answer these

questions. a Who is the supplier?b Who is the purchaser?c What is the invoice number?d Why is the order number listed on the invoice?e What are the terms of payment?f What is the unit price for KC445?g What is the total cost for SC58?h What is the subtotal for this invoice?i How would you calculate the total amount of GST

payable?j What is the total amount of GST payable?k What is the total amount the purchaser has to pay?

4 Collect three different examples of tax invoices.a Which is your favourite design, and why?b Describe how each example fulfi ls the legal requirements

for a tax invoice.5 You work in the Accounts Department at Smith’s Electronics.

Design a tax invoice template for the company, assuming goods and services will exceed $1000. (Refer to the tax invoices you collected in the previous task to assist you, and use the same details as those listed in task 8 of Activity 11.2, page 283.)

6 a You are the offi ce clerk for Better Music Pty Ltd (ABN 22 875 486 959), 22 Bloomfi eld Street, Tingalpa Qld 4173, telephone (07) 3423 8556, fax (07) 3423 8558. Prepare a tax invoice (no. BM756) for the following items, purchased by Graham Lee (13 Dream Lane, Tingalpa Qld 4173) on 23 March 2012.• Seinfeld Season 3 DVD box set (TVS22) at $65.00• Maroon 5, ‘Songs about Jane’ CD (M5) at $23.00

Goods supplied do not exceed $1000 and a purchase order number is not necessary. The payment terms are immediate payment on purchase, and delivery is not required.

A tax invoice template can be found on the CD in the back of your book.b How much GST is payable on the total amount owing? To calculate GST, divide the

total by 11.7 You work for Car Parts Australia (ABN 60 356 049 230), 200 Burnett Road, Brighton

Vic 3186. You are required to prepare a tax invoice (no. 4562) dated 15 June 2012 for purchase order A4567 from A1 Car Parts (ABN 34 567 984 120), 52 Beaudesert Road, Rocklea Qld 4106. The order was dated 10 June 2012 and listed the following items.

Item Item price ($) GST total ($)

3 Toyota Corolla fan belts (T345) 24.50 (each) 7.35

1 Ford Fairlane oil fi lter (F90) 12.80 (each) 1.28

1000 Ford Fairlane NGK spark plugs (FS8) 1.20 (each) 120.00

150 BMW air conditioner belts (BMW22) 89.00 (each) 1335.00

1 box of standard engine oil (EO987) 65.00 (box) 6.50

Delivery charges 20.00 2.00

p Figure 11.8 Balmoral Kitchen Supplies tax invoice Balmoral Kitchen Supplies tax invoice

Invoice number: G45239Date: 16 July 2012Order number: 459Terms: N/30

BalmoralKitchenSuppliesABN: 20 678 452 198

TAX INVOICE42 Riding RoadBALMORAL QLD 4171Phone: [07] 3864 4887Phone: [07] 3864 4889

Bill to: Deliver to:

Sky High BuildersGPO Box 222BRISBANE QLD 4001

Sky High Builders22 Boundary RoadROCKLEA QLD 4106

Quantity Item number Description Unit Price Per Total

4 KT23 Kitchen taps 22.00 Tap 22.00

8 boxes SC58 Medium screws 10.20 Box ?

12 KC445 Cream kitchen cupboard doors ? Each 126.00

12 KH442 Silver kitchen cupboard handles 6.25 Each 75.00

Subtotal ?

GST ?

Total including GST ?

Delivery Instructions: Hall Couriers

template



The items are to be delivered by Overnight Express. The terms of payment are N/30. Car Parts Australia invoices list the GST payable for each item supplied.

8 You are the office clerk for Stationery Wholesalers (ABN 70 545 746 825), 88 Ramsgate Hill Road, Ramsgate NSW 2217. Prepare tax invoice no. 5643, date 8 September 2012, for purchase order SS78690012 from Smart Stationers (ABN 22 875 112 872), 2 Range Street, Toowoomba Qld 4350).

The order was dated 3 September 2012 and listed the following items.

Item Item price ($)

25 boxes of ball point pens – black (BPB110) 10.50 (box)

2 cartons of plain white bond A4 paper (A4PWB67) 6.00 (carton)

424 boxes of 2B pencils (2BP001) 9.00 (box)

59 boxes of erasers (ER776) 5.50 (box)

1010 lined A4 notebooks (NB444) 1.50 (each)

Delivery charges 25.00

The items are to be delivered by Air Freight Couriers. The terms of the invoice are N/30. Invoices prepared by Stationery Wholesalers include the GST within the item price.

9 You work for Mega Computers (ABN 43 543 255 097), 654 Potts Road, Rozelle NSW 2039. You are required to prepare tax invoice no. MC98765, dated 7 January 2012, for purchase order no. CCOM0001145 from Cheap Computers (ABN 57 497 725 286), 1875 Wellington Street, Heathcote NSW 2233. The order is dated 2 January 2012. The goods are to be delivered by Fast Road Couriers and the terms are N/7.

The order listed the following items.

Item Item price ($)

5 Auriga flat screen monitors (AFS875) 250.00 (each)

25 boxes of DMG DVD-R 50-pack disks (DVD887) 20.00 (box)

35 Belkin wireless notebook network cards (BWNB5) 25.00 (card)

10 HP multifunction centres S500 (HPMFS500) 125.00 (each)

1200 reams of white A4 paper (A4P55) 3.50 (ream)

20 Belkin wireless routers (BWR55) 100.00 (each)

20 D-Link modems (DLINK37) 65.00 (each)

Delivery charges 30.00

Invoices prepared by Mega Computers always show the GST amount for each item supplied. You are required to calculate the GST where necessary. (To calculate GST, multiply the item price by 10 per cent.)

10 Collect two examples of grocery shopping tax invoices from the supermarket.a Explain how these tax invoices meet legal requirements. b On each tax invoice, circle the items that are GST-exempt. c Total the items you have not circled and divide this total by 11. Does your result

match the GST figure on the tax invoice?

Consignment notesTHINKING PROMPT Have you ever purchased an item via the Internet (on eBay, for example)? If so, what documentation did you receive to confirm your purchase? Have you ever had a large parcel sent to you? If so, did you have to sign something when you received it?



When you pick up a parcel from the post offi ce, you are sometimes required to sign a form to acknowledge that you have offi cially received the goods. Businesses follow the same procedure. When goods are sent by a supplier to a purchaser, they are accompanied by a consignment note (Con Note). The purchaser uses the Con Note (Figure 11.9) to check that the quantity supplied and descriptions are correct, and that the goods have been delivered undamaged. If any of the goods are incorrect or have been damaged during transit, the purchaser must contact the supplier immediately. The purchaser signs the Con Note only when they are certain that the goods have been received in good order and condition.

p Figure 11.9 Example of a consignment note

Activity 11.41 a What is the purpose of a consignment note?

b Why does the order number need to be recorded on a consignment note? c Once the goods have been received, what should the purchaser do before signing the

consignment note?

Supplier’s name, address and other contact details

Purchaser’s name and address

Quantity and details of goods or services


ABN: 45 555 672 987


CONSIGNMENT NOTEConsignment Note Number: NE2398Date: 11 March 2012

Delivery Method: Road CouriersPurchase Order Number: FG332

Customer Signature: A. Fishy

Thank you for your order.

Please check the content of the consignment and advise the supplier of any errors.

To: Fish Galore



Quantity Description Item No. 1 Large glass tank FT01 50 Large pumps FP02

Consignment note numberand date

Delivery instructions

Purchaser’s order number

Signature of purchaser or their representative

A consignment note is also known as a delivery note.



2 Study the consignment note in Figure 11.10 and answer these questions.a What date was the consignment note

written? b Who is sending the consignment note? c Who is the purchaser?d Who has signed for the goods and why is

this important? 3 You work in the Accounts Department at

Smith’s Electronics, (ABN 33 348 761 156), 5 Clarke Street, Mt Isa Qld 4825, telephone (07) 4745 3333, fax (07) 4745 8888, www.smithselectronics.com.au, email [email protected]. Design an appropriate consignment note template that matches the purchase order template you designed in task 8 of Activity 11.2 (page 283).

4 You work for Car Parts Australia as an offi ce clerk. Prepare a consignment note (no. H4598) to be sent to A1 Car Parts. The note should be dated 23 June 2012. Harry Longman will sign for the goods when delivered. Refer to task 7 in Activity 11.3 (page 286) for the details needed to complete this activity.

A consignment note template can be found on the CD in the back of your book.

5 You are the offi ce clerk for Stationery Wholesalers. Prepare consignment note no. 7789 dated 6 September 2012 to be sent to Smart Stationers. Gabriel Garcia will sign for the goods. Refer to task 8 in Activity 11.3 (page 287) for the details needed to complete this activity.

6 Prepare consignment note no. MC555 dated 4 January 2012 for Mega Computers. The goods were received by Isabella Martin. Refer to task 9 in Activity 11.3 (page 287) for the details needed to complete this activity.

Adjustment notesAdjustment notes are almost identical to tax invoices. They are prepared by a supplier to show a reduction in the amount owing by the purchaser on the original tax invoice. When the purchaser wants to settle the account with the supplier, the amount listed on the adjustment note is deducted from the total owing on the original tax invoice, and only the difference in these amounts is paid.

For example, Nelson Enterprises, a business that owns a pet shop, had purchased 10 bird cages from Bird Supplies for $20 per cage, including GST – the total amount owing, as listed on the tax invoice, was $200. However, on delivery of the bird cages, a staff member noticed that one cage was damaged. The cage was sent back to Bird Supplies and an adjustment note for $20 (including GST) was issued in return (as shown in Figure 11.11). The total owing by Nelson Enterprises was then only $180 ($200 – $20).

template

p Figure 11.10 Balmoral Kitchen Supplies consignment note


CONSIGNMENT NOTE42 Riding RoadBALMORAL QLD 4171Phone: [07] 3864 4887Phone: [07] 3864 4889

Deliver to:


Quantity Description

4 Kitchen taps

8 boxes Medium screws

12 Cream kitchen cupboard doors

12 Silver kitchen cupboard handles

Delivered by: Hall Couriers

Delivery number: G45239Date: 16 July 2012Order number: 459

Received by:



p Figure 11.11 Example of an adjustment note

Activity 11.51 a Why are adjustment notes issued?

b What effect does the adjustment note have on the tax invoice?

2 Study the adjustment note in Figure 11.12 and answer these questions. a What is the reason for preparing this

adjustment note? b Who is the purchaser? c Who is the supplier?d For what other reasons would a purchaser

request an adjustment note? e Refer back to the tax invoice in task 3 of

Activity 11.3 (page 286) to calculate the fi nal amount that Sky High Builders will pay Balmoral Kitchen Supplies.

3 When A1 Car Parts received delivery of its order from Car Parts Australia, one of the Toyota Corolla fan belts (T345) was broken. Prepare an adjustment note (no. AD667), dated 16 June 2012, to be sent to A1 Car Parts. (Make sure you calculate the GST amount.)

Refer to task 7 in Activity 11.3 (page 286) for the details needed to complete this task. An adjustment note template can be found on the CD in the back of your book. templatep Figure 11.12 Balmoral Kitchen Supplies adjustment note

}

}

}


Adjustment note numberand date


Delivery date

Delivery instructions

Tax invoice number

Reason for the adjustment note

Quantity and details of goods returned

To: Nelson Enterprises

Address1: PO Box 453

Address2: Arana Hills QLD 4054

Quantity Description Item No. Item Price GST 10% Total 1 Large bird cage BBC1 18.18 1.82 20.00

Total 20.00Total GST included 1.82

Delivery Date: 11 March 2012

Delivery Method: Road Couriers

Tax Invoice Number: 0012357

Notes: Goods broken in transit

BIRD SUPPLIES22 Richmond Terrace, Runcorn QLD 4113

ABN: 45 335 787 878

Phone (07) 3344 2257 Fax (07) 3344 2222 Email [email protected]

Adjustment Note Number: ADN45

Date: 14 March 2012

adjustment note

Adjustment note number: 3678Date: 10 July 2012Order number: 459


ADJUSTMENT NOTE

42 Riding RoadBALMORAL QLD 4171Phone: [07] 3864 4887Phone: [07] 3864 4889

Bill to: Deliver to:

Sky High BuildersGPO Box 222BRISBANE QLD 4001


Quantity Item number Description Unit Price Per Total

1 KC445 Cream kitchen cupboard door 10.50 Each 10.50

Subtotal 10.50

GST 1.05

Total including GST 11.55

Reason for return: Damaged item. One door is broken.



4 You are an employee at Stationery Wholesalers. You received a phone call on 6 September 2012 from Smart Stationers informing you that two cartons of plain white bond A4 paper (A4PWB67) were water-damaged when delivered. Prepare an adjustment note (no. 451230) to be sent to Smart Stationers. Refer to task 8 in Activity 11.3 (page 287) for the details needed to complete this task.

5 Cheap Computers returned all of the Auriga fl at screen monitors to Mega Computers because it was unhappy with the quality of this product. Using the information in task 9 of Activity 11.3 (page 287), prepare adjustment note no. TT898H dated 10 January 2012. Make sure you calculate the GST amount.

ChequesTHINKING PROMPT Millions of individuals and business organisations write cheques every day to pay for goods or services. Can you think of an example of a cheque you have seen recently, and why it was prepared?

With a partner, and in one minute, make a list of as many items as you can that you would pay for by cheque.

A cheque is prepared by the purchaser and sent to the seller as payment of goods or services supplied. Because it allows money to be withdrawn from the business’s bank account, a cheque must be signed by an author ised person. The business whose account the money is withdrawn from is known as the drawer of the cheque. The fi nancial institution from which the money will be taken is known as the drawee. The person receiving the money is known as the payee.

A cheque is made up of two parts (as shown in Figure 11.13).• The butt, on which payment information is recorded, is retained by the business as proof of

payment.• The form, when completed, is sent to the payee.

p Figure 11.13 An example of a cheque

Cheques that are issued to pay for particular goods or services are crossed with two parallel lines, or with the words ‘not negotiable’ (sometimes these words are written between the lines). This indicates that the cheque must be deposited in a bank or other fi nancial institution and cannot be immediately exchanged for cash at a bank or store.

}

Cheque formDrawerCheque butt

PayeeReason for cheque

Amount being paid

Sunnybank Queensland 4113

Pay

/12 January 2012

or BearerTo:

For:

Balance Bt Fd:

Deposited

Total

Misc Dr or Cr

Total

This cheque:

Balance:

Bird SuppliesSmall bird cages

$22,100.00

$180.00$21,920.00

The sum of

NELSON ENTERPRISES

$

/12 January 2012

NOT NEGOTIABLE

Bird Supplies

One hundred and eightydollars only 180.00

Drawee Cheque crossing DateAmount in figuresAmount in words

Microline cheque numberand account number

}11 Nelson Business Education 2E TXT 6pp.indd 291 19/03/10 11:54 AM


THINKING PROMPT Can you think of any reason why you would not write ‘not negotiable’ across a cheque? What would happen if an uncrossed cheque was lost or stolen? Discuss these questions with a classmate.

Occasionally, an individual or business might want to withdraw cash from their cheque account. For example, an employee might request cash (instead of a cheque or direct debit) as payment of their weekly wage. In this case the employer would still prepare a cheque, but, rather than the employee’s name being recorded on the cheque as the payee, the word ‘cash’ would be written. The cheque would remain uncrossed, as shown in Figure 11.14.

Activity 11.61 Study the cheque in Figure 11.15 and answer the questions that follow.

p Figure 11.14 Example of a cash cheque

p Figure 11.15 Balmoral Kitchen Supplies cheque

a Who is the payee?b Why should the information on the cheque butt be accurate?c Who is the drawee?d Why is ‘not negotiable’ written across the cheque?e Who is the drawer?

Sunnybank Queensland 4113

Pay or Bearer

The sum of

NELSON ENTERPRISES

/15 January 2012

$

/15 January 2012

To:

For:

Balance Bt Fd:

Deposited

Total

Misc Dr or Cr

Total

This cheque:

Balance:

CashPetty cash

$21,920.00

$48.90$21,871.10

CASHForty-eight dollars and

48.90 ninety cents only

SUNNYBANK QLD 4113

Pay

The sum of

SKY HIGH BUILDERS

$

046 888 3474 1121 00027

00027 888 3474 1121

To:

For:

Balance Bt Fd:

Deposited

Total

Misc Dr or Cr

Total

This cheque:

Balance:Maxine Smithfi eld

Fortune Bank

NO

T N

EGO

TIA

BLE

or Bearer



template

2 Prepare a cheque dated 28 June 2012 on behalf of A1 Car Parts for payment of tax invoice no. 4562. The total amount payable is $16 166.48. (The tax invoice was not paid in time to receive any discount.) The balance brought forward (bt fd) on the cheque butt is $32 234.00. Write ‘not negotiable’ across the cheque.

A cheque template can be found on the CD in the back of your book.3 Prepare a cheque on behalf of Smart Stationers dated 19 September 2012 for payment

of tax invoice no. 5643. The original tax invoice total was $5955.00 but there was also an adjustment note (no. 451230) of $12.00. No discount has been applied. The balance brought forward (bt fd) to be recorded on the cheque butt is $15 688.90. Remember to cross the cheque. Refer to task 8 in Activity 11.3 (page 287) and task 4 in Activity 11.5 (page 291) to confi rm details and help you to complete this task.

4 You work for Cheap Computers as an offi ce clerk. Prepare a cheque payable to Mega Computers dated 16 January 2012. The balance brought forward to be recorded on the cheque butt is $13 475.00. Refer to task 9 in Activity 11.3 (page 287) and task 5 in Activity 11.5 (page 291) for the details needed to complete this task.

ReceiptsWhen the supplier receives payment, such as a cheque, for the goods or services, a receipt is prepared and forwarded to the purchaser. Figure 11.16 provides an example of this.

p Figure 11.16 An example of a receipt


Receipt numberand date


Payment details

Authorisation

PO Box 453, Arana Hills QLD 4054ABN: 45 555 672 987


receiptReceipt Number: ADN45

Date: 18 March 2012

To: Fish Galore



Description EFTPOS Credit Card Cheque Cash DiscountPayment of invoice 0012357

$1243.55

Authorisation:

Method of paymentand amount

}

}NELSON ENTERPRISES



Activity 11.71 Why are receipts prepared?2 Car Parts Australia has received a cheque from A1 Car Parts for the payment of tax invoice

no. 4562. A1 Car Parts has asked that a receipt be sent to them in the mail. Prepare receipt no. R42311 for this purpose. The total amount received was $16166.48. The receipt should be dated 1 July 2012 and authorised by you.

A receipt template can be found on the CD in the back of your book.3 Ping Pong Enterprises received a cheque on 21 March 2012 in payment of goods supplied

to Brisk Shoes, Victoria Street, St George QLD 4487. You are required to prepare a receipt (no. PP105) dated 22 March 2012. The tax invoice no. was SS456 and the cheque totalled $1022.60.

4 Using a computer program, design a receipt template for PNG Plumbing (ABN 45 670 293 439223), 76 Hunter Street, Charleville QLD 4470, telephone (07) 3384 2345, fax (07) 3384 2344, www.pngplumbing.com; email [email protected]). Ensure that you include all the necessary information.

5 PNG Plumbing received a credit card payment for $125 from Bev Blackmore, 13 Harris Avenue, Narangba Qld 4504 for payment of invoice no. 00002465. A discount of $20 was given. Prepare the receipt (no. R222) dated 10 August 2012 using the template you designed in the previous task.

6 On 22 September 2012, Stationery Wholesalers received a cheque from Smart Stationers for payment of tax invoice no. 5643. Prepare a receipt (no. RT9865) in acknowledgement of this payment. Refer to task 3 in Activity 11.6 (page 293) for the details needed to complete this task.

7 Prepare a receipt (no. CC998C) dated 16 January 2012 to be sent to Cheap Computers from Mega Computers. Refer to task 4 in Activity 11.6 (page 293) to complete this task.

8 For each of the following meanings (a–j), select the correct term from the group below. Write your answer as, for example, a: 2/7.

template

a Two per cent discount given if payment is received within seven days.b A document used to pay for purchases.c A document issued to the purchaser once payment has been received.d A document that provides details of the transaction and shows the total amount owed

to the supplier by the purchaser.e A document sent to the purchaser by the supplier if goods have been damaged or are

incorrect.f Payment due within seven days.g A person or business who provides goods or services upon receipt of an order.h A document that usually accompanies delivered goods and resembles a tax

invoice – it is signed by the receiver and is used to check that all items ordered have been received.

i A person or business who has placed an order for goods or services.j A type of document prepared by businesses when they want to place an order

for goods.

• tax invoice• adjustment note• 2/7• consignment note• purchaser

• cheque• purchase order• receipt• N/7• supplier



Bank reconciliationTHINKING PROMPT James, a Year 10 student, has a part-time job at Better Health Market. His pay is electronically deposited into his bank account each Friday.

On the weekends, James enjoys going to game parlours and to see movies with his friends, and often uses an automatic teller machine (ATM) to withdraw money from his account. After checking the balance of his account, he throws away the ATM receipts.

He also uses electronic funds transfer at point of sale (EFTPOS) to pay for his movie tickets but does not bother to keep the receipts. Every two months, James receives a bank statement from his bank. After a quick check of the final balance, he throws the statement into the bin.

Why should James keep:• ATM receipts• pay slips• EFTPOS receipts• bank statements?

James should keep all of his ATM and EFTPOS receipts in order to check that the correct withdrawal amounts are recorded on his bank statement. Additionally, James should use his pay slip to check that the correct amount of pay has been deposited into his bank account. He should also use his bank statement to find out the amounts for the following, and check whether those amounts are correct.• EFTPOS fees• Bank fees that have been automatically deducted from his account, including fees

associated with using ATMs• Bank interest that has been paid into his account

It is sensible financial management for all individuals and businesses to check that their own records of transactions match those recorded in their bank statement.

Bank reconciliation, a method of comparing a business’s own records of its transactions with the bank’s records, is a commonly used procedure to assist in the control of business funds. When the business receives a bank statement, it checks the cash transactions of the business against the items listed on the bank statement. Any discrepancies, such as errors or omissions, are easy to identify. The aim is for the balance on the bank statement to match the balance of the business’s Cash at Bank account. However, it is very common for these records to differ.

For further information on accounts, refer to Unit 12.

THINKING PROMPTS 1 Can you think of any reasons for a business’s Cash at Bank account to differ from its monthly bank

statement?2 Your school is like a business. Ask your Registrar for examples of differences between the school’s Cash at

Bank account and its bank statements, and how the school carries out the process of bank reconciliation.

Differences between the business and bank records can arise from any or all of the following incidents. • Interest paid by the bank being recorded only on the bank statement• Bank fees and government charges being recorded only on the bank statement• Deposits paid directly into the business’s bank account (for example, through BPay,

Internet banking or merchant settlements) being recorded only on the bank statement• Periodical payments that the bank has automatically deducted from the business’s bank

account (for example, loan repayments)• Deposits resulting from direct sales, such as those made through EFTPOS, being recorded

only on the bank statement

DID YOU KNOW?Banks make billions of dollars in profit every year but only 1.5 per cent of those profits comes from fees and charges.

?

BPayA method of paying bills using Internet banking or telephone banking systems; businesses register with BPay to enable the fast processing of payments from customers

Internet bankingA method of banking that allows users to pay bills, view account details and apply for loans using a secure Internet connection to their bank

merchant settlementThe name given to an EFTPOS transaction as it appears on a bank statement



• Cheques issued by the business that have not yet been presented to the bank by the recipients (unpresented cheques)

• Cheques banked by the business but declined by the bank (dishonoured cheques)• Deposits banked by the business that have not yet appeared on the bank state ment

(deposits not yet credited)• Errors made by both parties (incorrect recording of figures or omissions)

THINKING PROMPT Do you ever check your own bank statements?

Using one of your recent bank statements and the list above, check for any deductions or deposits you weren’t aware of until you viewed the statement. What is the total value of the deductions? What is the total value of the deposits?

Bank reconciliation procedureTo begin the reconciliation process, a business must refer to its cash receipts journal, cash payments journal, Cash at Bank account and bank statement.

For information on journals, refer to Unit 12.

Business recordsAn example of a cash receipts journal, a cash payments journal and a Cash at Bank account for Nelson Enterprises is shown below. A cash book can be used instead of separate cash receipts and cash payments journals. Businesses record EFTPOS and ATM transactions in the cash payments journal.

Nelson Enterprises — Cash Receipts JournalDate Receipt no. Particulars Bank

Jan 05 CRS Sales 1255.00

05 255 K. Wistler 490.00 1745.00

10 256 A. Shaw 250.00

19 CRS Sales 2690.00

20 257 B. Jackson 1670.00


26 258 T. Goodwin 560.00 1760.00

27 259 M. Marsh 800.00

Nelson Enterprises — Cash Payments JournalDate Cheque no. Particulars Bank

Jan 03 20124 B. Jelic 2500.00

05 20125 Wages 2500.00

10 20126 Office stationery supplies 125.00

13 20127 Telephone 250.00

17 20128 T. Clark 445.00

19 20129 Wages 2500.00

21 20130 Cyber Web 165.00

Nelson Enterprises — Cash at Bank AccountDate Particulars Debit Credit Balance

Jan 01 Balance 123 044.00 DR

DID YOU KNOW?You can ask your bank to provide an electronic version of your bank statement that can be imported into a spreadsheet package. This speeds up the process of bank reconciliation.

?



PR

OC

EDU

RE

Once these documents have been gathered, reconciling the records involves the following steps.

p Figure 11.17 An example of a bank statement

When you deposit money in a bank, the money is recorded as a liability for the bank because the bank now owes that money to you. This is why receipts are listed in the credit column of the bank statement.

Bank recordsAn example of a bank statement for Nelson Enterprises is shown in Figure 11.17.

Cheque Account

Nelson Enterprises Branch and AddressPO Box 453 CrownArana Hills QLD 4054 Cnr Crown and Jet Streets

Crown QLD 4022Account NameNelson Enterprises

Customer Number4566988BSB Number454-545

Opening Balance $123 044.00Total Credit + $10 017.50Total Debits – $7 680.00Closing Balance $125 381.50

Date Description Debit Credit BalanceJan 1 Opening Balance 123 044.00 CR

2 Merchant fees 33.00 123 011.00 CRGovernment debit tax 22.00 122 989.00 CR

5 Deposit 1745.00 124 734.00 CR10 Deposit 250.00 124 984.00 CR15 Withdrawal/Cheque 20125 2500.00 122 484.00 CR18 Interest 2.50 122 486.50 CR19 Deposit 2690.00 125 176.50 CR20 Deposit 1670.00 126 846.50 CR25 Withdrawal/Cheque 20126 125.00 126 721.50 CR26 Withdrawal/Cheque 20124 2500.00 124 221.50 CR

Merchant settlement 0091 1900.00 126 121.50 CRDeposit 1760.00 127 881.50 CRWithdrawal/Cheque 20129 2500.00 125 381.50 CRClosing balance 125 381.50 CR

Statement End Date 31/01/2012Statement 8 Page 1 of 1

Credit Union Masters

1 Compare the cash receipts journal with the credit column of the bank statement. In each document, tick each transaction that matches and circle any item that differs (that remains unticked).

Nelson Enterprises — Cash Receipts JournalDate Receipt no. Particulars Bank


05 255 K. Wistler 490.00 1745.00 ü

10 256 A. Shaw 250.00 ü

19 CRS Sales 2690.00 ü

20 257 B. Jackson 1670.00 ü


26 258 T. Goodwin 560.00 1760.00 ü

27 259 M. Marsh 800.00



2 Compare the cash payments journal with the debit column of the bank statement. In each document, tick each transaction that matches and circle any item that differs (that remains unticked).


Jan 03 20124 B. Jelic 2500.00 ü

05 20125 Wages 2500.00 ü

10 20126 Offi ce stationery supplies 125.00 ü

13 20127 Telephone 250.00

17 20128 T. Clark 445.00

19 20129 Wages 2500.00 ü

21 20130 Cyber Web 165.00

p Figure 11.18 Bank statement

Masters Credit Union

Cheque Account










When you withdraw money from the bank, this is money the bank has paid back to you, which decreases the bank’s liability. This is why payments are listed in the debit column of the bank statement.



Shaded lines are items the business did not know about until the bank statement arrived and must now be inserted in the business’s fi nancial records.

p Figure 11.19 Bank statement

3 Insert the circled items from the credit column of the bank statement into the cash receipts journal and obtain a revised total.

Nelson Enterprises — Cash Receipts JournalDate Receipt no Particulars Bank


05 255 K. Wistler 490.00 1745.00 ü

10 256 A. Shaw 250.00 ü

13 CRS Sales 2690.00 ü

17 257 B. Jackson 1670.00 ü


21 258 T. Goodwin 560.00 1760.00 ü

21 259 M. Marsh 800.00

18 BS 8 Interest 2.50

26 BS 8 Merchant settlement 0091 1900.00

$10 817.50

‘BS 8’ indicates that the transaction has come from bank statement

number 8.

Masters Credit Union

Cheque Account












4 Insert the circled items from the debit column of the bank statement into the cash payments journal and obtain a revised total.


Jan 05 CRS 20124 B. Jelic 2500.00 ü

05 255 20125 Wages 2500.00 ü

10 256 20126 Office stationery supplies 125.00 ü

13 CRS 20127 Telephone 250.00

17 257 20128 T. Clark 445.00

19 CRS 20129 Wages 2500.00 ü

21 258 20130 Cyber Web 165.00

02 BS 8 Merchant fees 33.00

02 BS 8 Government debit tax 22.00

$8540.00

5 Calculate how much money the business believes it has in its Cash at Bank account by entering the cash receipts total in the debit column of the Cash at Bank account, and the cash payments total in the credit column of the Cash at Bank account.

Nelson Enterprises — Cash at Bank AccountDate Particulars Debit Credit Balance

Jan 1 Balance 123 044.00 DR

31 Receipts 10 817.50 133 861.50 DR

Payments 8540.00 125 321.50 DR

6 Check the final balance of the business’s Cash at Bank account ($125 321.50 in the example) against the final balance listed on the bank statement ($125 381.50). If the two are different, as is the case for Nelson Enterprises, prepare a bank reconciliation state ment using the circled items from both the cash receipts and cash payments journals.

As at 31 January 2012

Credit balance as per bank statement $125 381.50

Add deposits not yet credited 800.00

126 181.50

Less unpresented cheques

20127 250.00

20128 445.00

20130 165.00 860.00

Debit balance as per Cash at Bank account $125 321.50

Shaded lines are items the business did not know about until the bank statement arrived and must now be inserted in the business’s financial records.

The business’s Cash at Bank account can easily be altered to include any discrepancies. The bank statement is issued by the bank and cannot be altered by the business, which is why the business prepares its own bank reconciliation statement.

‘BS 8’ indicates that the transaction has come from bank statement number 8.

Receipts (deposits) increase the balance

Payments (withdrawals) decrease the balance

Circled items from the cash payments journal

Circled items from the cash receipts journal

Final balance listed on the bank statement

Final balance of the business’s Cash at Bank account matches this figure



Activity 11.81 Ask two adults you know if they keep a record of all their receipts and payments, and if

they check these against their bank statements. Record their responses.2 Unscramble the words.

a eistopsdb ensepnretdu qeseuhcc ashctabnkad ypbae einoroacctliinf camethnrtsmntelteeg bnak estemtatn

3 Explain why it is important for a business to reconcile its banking records.4 Outline why there may be differences between the bank’s records and the business’s

records.5 Rewrite the following fi nancial record, fi lling in the blanks.

6 Using the following information, complete Brown Tanning Pty Ltd’s cash receipts and cash payments journals, Cash at Bank account (opening balance $5 500.00 debit) and bank reconciliation statement for March 2012.

Sebastian’s Corporation

Bank ______________________

as at 31 March 2012

______________ balance as per bank ______________ 3250.00

Add __________________ 1200.004450.00

__________________ unpresented cheques0125 156.000128 560.000132 1210.00 1926.00

Debit balance as per __________________ _______

BrownTanning Pty LtdBank StatementDate Particulars Debit Credit BalanceMarch 1

348

1012

1619

222428

30

BalanceMerchant FeesDepositDeposit043578Merchant Settlement 0112DepositElectronic Funds Transfer043577Interest043584Merchant Settlement 0113Deposit043581043582043583DepositState Govt Tax

30.00

120.00

800.001 100.00

780.25

2 250.00990.00150.00

10.20

350.001 200.00

250.001 000.00

12.50

990.75745.60

135.00

5 500.00 CR5 470.00 CR5 820.00 CR7 020.00 CR6 900.00 CR7 150.00 CR8 150.00 CR7 350.00 CR6 250.00 CR6 262.50 CR5 482.25 CR6 473.00 CR7 218.60 CR4 968.60 CR3 978.60 CR3 828.60 CR3 963.60 CR3 953.40 CR

Statement 21 Page 1 of 1



7 Nelson Enterprises has received its bank statement for May 2012 (at left). You are required to complete the cash payments journal, cash receipts journal, Cash at Bank account (opening balance $11 500.00) and, if necessary, the bank reconciliation statement.

BrownTanning Pty LtdCash Receipts JournalDate Receipt No. Particulars BankMarch 3

4

12

24

28 29

456

457

458

459

460

461

L. Smith

Jamerson Corporation

T. Francis

A. Shaw

F. Roberto

Barkly Pty Ltd

350.00 1 200.001 000.00

745.60135.00

1 230.25

BrownTanning Pty LtdCash Payments JournalDate Cheque No. Particulars Debits BankMarch 1

2

3

9

11

15

16

29

043575

043576

043577

043578

043579

043580

043581

043582

043583

043584

043585

Tanning Solutions

Solarium Hire Co

Beauty Products Pty Ltd

B. Martin

C. Fookes

K. Mallan

D. Price

South East News – Advertising

G. Colby

A. Cassidy

S. King

560.00

1 200.00

2 250.00

990.00

150.00

1 760.00

1 100.00

120.00

350.80

120.00

3 390.00

780.25

880.00

NELSON ENTERPRISESbank statement

Date Particulars Debit Credit Balance

May 1

4

61011

1220212527

29

31

BalanceMerchant FeesMerchant FeesMerchant Settlement 236509780976DepositDepositMerchant Summary 2366097909800977DepositDepositDeposit0981InterestDepositMerchant Summary 2367BPay – J.J. RichardsState Govt TaxClosing balance

50.0045.00

350.001 200.80

1 250.354 230.201 230.00

2 670.00

3 400.0022.50

2 500.00

1 350.00988.60500.00

725.751 745.60

250.00

13.25360.20280.00

11 500.00 Cr11 450.00 Cr11 405.00 Cr13 905.00 Cr13 555.00 Cr12 354.20 Cr13 704.20 Cr14 692.80 Cr15 192.80 Cr13 942.45 Cr

9 712.25 Cr8 482.25 Cr9 208.00 Cr

10 953.60 Cr11 203.60 Cr

8 533.60 Cr8 546.85 Cr8 907.05 Cr9 187.05 Cr5 787.05 Cr5 764.55 Cr5 764.55 Cr

Statement 5 Page 1 of 1



Petty cashTHINKING PROMPT Nelson Enterprises currently makes all its payments by writing cheques. Nelson feels that writing a cheque for items such as milk, stamps and bus fares is not practical and has decided to keep a small amount of cash at the pet shop for small incidental items. Other than milk, stamps and bus fares, what other items might Nelson purchase using cash instead of a cheque?

Petty cash is a system that allows the payment of cash for small (petty) items, such as fares, tea, coffee, milk, sugar and stationery, which are individually too small in value to warrant the writing of a cheque or use of a debit or credit card.

An employee, generally an office clerk, who is given sole responsibility for the operation of the petty cash fund, is known as the petty cashier. The petty cashier ensures that the money for the fund is stored in a secure location, such as a lockable tin or safe, and is the only person who has access to the money. An employee who wishes to obtain money from the fund must complete a petty cash voucher showing the date, amount and reason for the payment. Examples of petty cash vouchers are shown in Figure 11.20.

The voucher is authorised by the petty cashier, who staples the original receipt to the back of the voucher as evidence of the transaction. The petty cashier then uses the vouchers

NELSON ENTERPRISEScash receipts journal

Date Receipt No. Particulars Details Bank

May 26

10212527 29

23002301230223032304230523062307

Watson and Payne Pty LtdS. BlackCrown PrintersACME Pty LtdM. MounseyJ. JohnsonS. MitchellDods and Brown

360.203 245.00

1 450.501 350.00

988.60725.75

1 745.60250.00

3 605.20

NELSON ENTERPRISEScash payments journal

Date Cheque No. Particulars Details Bank

May 1

39

2025

097509760977097809790980098109820983

M. VossAPA BrownL. PowerS. O’ReillyThe Fix It ShopJ. JamesM. MichaelB. BrackenDodsworth Corporation

955.501200.80

350.001 250.354 230.20

450.00675.00

2 156.301 230.00

5 830.552 670.00

1 125.00



to prepare the petty cash book, which is a listing of all the transactions that took place over a given period of time, such as a week, fortnight or month. Examples of petty cash books are shown in Figure 11.21.

p Figure 11.20 Examples of petty cash vouchers

p Figure 11.21 Examples of petty cash books

Petty Cash Voucher

No: 12 Date: 10 August 2012

Person: Brad Hart

Particulars: Stamps

Account: Postage

Amount spent: $13.18

GST amount: $1.32

Total: $14.50

Signed: Brad Hart Authorised: J Smith

Consecutivenumbering

of vouchers

Date whenmoney was spent Name ofemployee Details of theexpense Name of accountto be charged

The amountof GST Total amountpaid, includingGST Signature ofauthorisingperson (pettycashier)

Signature ofemployee

PETTY CASH VOUCHER No: . . . . . .

Date: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Department: . . . . . . . . . . . . . . . . . . . . . . . . . .

Name of employee: . . . . . . . . . . . . . . . . . . . . .

Details: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Account to be charged: . . . . . . . . . . . . . . . . . .

Authorisation: . . . . . . . . . . . . . . . . . . . . . . . . .

Amount (excluding GST): . . . . . . . . . . . . . . . . .

GST: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total amount spent: . . . . . . . . . . . . . . . . . . . . .

Signature of employee: . . . . . . . . . . . . . . . . . .

NELSON ENTERPRISESpetty cash book

Cash received to beginor reimburse fund

Voucher numbers Business name

Details of purchases

Dates

All payments arerecorded in the cashpayments column

Date ParticularsVoucherNumber

CashReceipts

Cash Payments

GST Amount

Expenditure (excluding GST)Balance

Postage Fares Stationery Sundries

Aug 1 Petty Cash Advance – Cheque No. 00219

50.00 50.00

10 Stamps 12 14.50 1.32 13.18 35.50

Expenditure amountsexcluding GST

Running balance

Cash paymentsubtracted frombalance

GST column

}

Date Particulars VoucherNumber

CashReceipts

GST Amount

Expenditure (including GST)Balance


Aug 1 Petty Cash Advance –Cheque No. 00219

50.00 50.00

10 Stamps 12 1.32 14.50 35.50

Jelich Jones – Petty Cash Book



The procedure for the use of petty cash is shown in Figure 11.22.

imprestA set amount of money given in advance to establish a petty cash fund

Some businesses may not give cash in advance. Instead, the employees use their own money to purchase small items that they know will be authorised, and then seek reimbursement from the petty cashier.

p Figure 11.22 Procedure for the use of petty cash

PETTY C

AS

H P

RO

CED

UR

E

Nelson Enterprises has decided to use a petty cash fund. The company follows the three main steps involved in establishing and maintaining a petty cash fund.1 Establish the petty cash fund.2 Authorise vouchers and record payments in the petty cash book.3 Balance the petty cash book and reimburse the fund.

Step 1: Establish the petty cash fundTo start a new petty cash fund, the petty cashier is given a cheque for a certain amount of money. This is called the imprest amount, and it varies from business to business. For example, small businesses may have an imprest amount of $40, while larger organisations may start with $500. In the example in Figure 11.23 the imprest amount is $50.

The petty cashier cashes the cheque at the fi nancial institution and records this receipt of money in the petty cash book, as shown in Figure 11.24.

p Figure 11.23 Cheque for imprest amount



CashReceipts

Cash Payments

GST Amount



Nov 1 Petty Cash Advance – Cheque No. 00048

50.00 50.00Nov 1 Petty Cash Advance– Cheque No. 00048

50.00 50.00

p Figure 11.24 Entry in the petty cash book

1 Employee gets a voucher and cash from the petty cashier

2 Employee buys the petty cash item and requests a receipt for it from the supplier

3 Employee completes the voucher and attaches the receipt to the voucher

4 Employee gives the receipt, voucher and any change back to the petty cashier

5 Petty cashier authorises the transaction by signing the voucher

SUNNYBANK QLD 4113

Pay

The sum of

NELSON ENTERPRISES

$

054 577 3474 85310048 00048 054 577 3474 8531

To:

For:

Balance Bt Fd:

Deposited

Total

Misc Dr or Cr

Total

This cheque:

Balance:Joan Smith

Fortune Bank

or Bearer



Step 2: Authorise vouchers and record payments in the petty cash bookAn employee who requires money from the petty cash fund to purchase small items completes a petty cash voucher. The petty cashier must authorise (give permission for) all payments from this fund by signing each voucher and stapling corresponding receipts to the back of these. The vouchers (Figure 11.25) are then recorded in the petty cash book (Figure 11.26). Note that information from any unauthorised voucher (such as voucher number 15 in Figure 11.25) is not recorded in the petty cash book.

When Nelson Enterprises established a petty cash fund, it made a ruling that only items costing $20 or less (including GST) could be claimed via petty cash. Because the total for voucher 15 is $22, the petty cashier cannot authorise payment of this amount.

Petty Cash Voucher

No: 10 Date: 03/11/2012

Person: Faye Sayner

Particulars: Tea bags and coffee

Account: Sundry


GST amount: $1.38

Total: $15.20

Signed: Faye Sayner

Authorised: J Smith

Petty Cash Voucher

No: 11 Date: 11/11/2012

Person: Michael Voser

Particulars: Milk

Account: Sundry

Amount spent: $2.50

GST amount:

Total: $2.50

Signed: Michael Voser

Authorised: J Smith

Petty Cash Voucher

No: 12 Date: 15/11/2012

Person: Luke Power

Particulars: Freight Express

Account: Freight


GST amount: $1.65

Total: $18.15

Signed: Luke Power

Authorised: J Smith

Petty Cash Voucher

No: 13 Date: 15/11/2012

Person: Sam Frank

Particulars: Freight Express

Account: Freight

Amount spent: $4.68

GST amount: $0.47

Total: $5.15

Signed: Sam Frank

Authorised: J Smith

p Figure 11.25 Petty cash vouchers (continued over page)



Step 3: Balance the petty cash book and reimburse the fundThe petty cash fund is balanced and reimbursed on a regular basis (usually at the end of the week or month) to ensure there is always cash in the petty cash tin. After the vouchers have been recorded in the petty cash book, the petty cashier totals the cash payments column and all the expenditure columns as shown in Figure 11.27.

As a check for accuracy, the totals of the expenditure columns should be cross-added (across the bottom of the columns). The resulting fi gure (in this case, $42.25) should equal the total in the cash payments column (also $42.25). To reimburse the petty cash

p Figure 11.25 Petty cash vouchers (continued)

p Figure 11.26 Petty cash book

Petty Cash Voucher

No: 14 Date: 21/11/2012

Person: Shelley Pickford

Particulars: 1 blue pen

Account: Stationary

Amount spent: $1.14

GST amount: $0.11

Total: $1.25

Signed: Shelley PickfordAuthorised: J Smith

Petty Cash Voucher

No: Date:

Person:

Particulars:

Account:

Amount spent:

GST amount:

Total:

Signed:

Authorised:


The full amount of the cash payment is deductedfrom the running balance after each entry


CashReceipts

Cash Payments

GST Amount


Stationery Fares Freight Sundries

2012

Nov 1 Petty Cash Advance Chq.no. 00048

50.00 50.00

3 Tea and coffee 10 15.20 1.38 13.82 34.80

11 Milk 11 2.50 2.50 32.30

15 Freight Express 12 18.15 1.65 16.50 14.15

Freight Express 13 5.15 0.47 4.68 9.00

21 Pens 14 1.25 0.11 1.14 7.75



fund so that it returns to its original imprest amount, in this case $50.00, the petty cashier prepares and cashes a cheque (Figure 11.28) for the amount of money that has been spent; i.e. $42.25.

p Figure 11.28 Reimbursement cheque

Once the fund has returned to its imprest amount, the petty cashier continues to record transactions in the petty cash book, from step 2 onwards. Establishing the petty cash fund (step 1) is no longer necessary.

}NELSON ENTERPRISES

petty cash book


CashReceipts

Cash Payments

GST Amount



2012

Nov 1 Petty Cash Advance Chq.no. 00048

50.00 50.00

3 Tea and coffee 10 15.20 1.38 13.82 34.80

11 Milk 11 2.50 2.50 32.30

15 Freight Express 12 18.15 1.65 16.50 14.15

Freight Express 13 5.15 0.47 4.68 9.00

21 Pens 14 1.25 0.11 1.14 7.75

$42.25 $3.61 $1.14 $21.18 $16.32

ReimbursementChq no. 00060

42.25 50.00

Total all columnsFund reimbursed tothe imprest amount,i.e. $50 ($7.75 + $42.25)

SUNNYBANK QLD 4113

Pay

The sum of

NELSON ENTERPRISES

$

054 577 3474 85310060 00060 054 577 3474 8531

To:

For:

Stationery

Freight

Sundry

GST

This cheque:

Balance: Joan Smith

Fortune Bank

or Bearer

Date of reimbursementAmount spent thatneeds to be reimbursed

New cheque number GST amount listed separately

}

Petty cash expenditure(total amounts, excluding GST)

}}

p Figure 11.27 Petty cash book



Activity 11.9 1 Which of the following items would be purchased using petty cash?

2 Rewrite the sentences, including the missing words.a Petty cash funds can be used to purchase _________ items such as _________,

___________ and ____________. b The ______________ ____________ is the person responsible for maintaining the

petty cash fund.c A petty cash voucher is completed, showing the __________, ____________ and

reason for ____________. d A _________ must be stapled to the petty cash voucher. e Petty cash vouchers are used to record transactions into the ___________

___________ ______________.3 Using all of the following terms, write a short report that clearly explains the purpose of a

petty cash fund.• Petty cash• Petty cashier• Receipt• Reimbursement• Petty cash book• Imprest amount• Petty cash voucher

For information on writing reports, refer to Unit 9.4 Jackson Realty Pty Ltd is a medium-sized real estate agency with 30 staff members. You

have just been appointed the accounts clerk and have noticed that very small expenditure items, such as milk and coffee, are being paid for by cheque.a Write a memo to Sam Jackson, the Chief Executive Officer, requesting the

establishment of a petty cash fund. In the memo, outline the procedures for claiming petty cash that staff will be expected to follow.

For information on writing memos, refer to Unit 9.b Design the documents needed to operate a petty cash fund for this business.c Using the petty cash documents you have created in part b, and referring to the

following list, complete the petty cash vouchers and the petty cash book for Jackson



Realty Pty Ltd for August 2012. The imprest amount is $50 (cheque number 2134). You need to select appropriate expenditure column headings for the petty cash book.

An example of petty cash book entries is available on the CD in the back of your book.

Date Particulars GST Total (inc. GST) Employee

Aug 5 Stamps 0.95 10.50 John Andrews

8 Bus fare 0.23 2.50 Shelly Smith

10 Stamps 2.00 22.00 Brad Hart

11 Carton of milk 1.75 Rob Bennett

15 Taxi fare 0.95 10.50 Lisa Brown

22 Stamps 0.23 2.50 Ron Jelich

5 Diego Garcia has just opened a printing business (Garcia Printing) and needs to establish a new petty cash fund to pay for all small expenses. On 1 September 2012, Diego draws cheque number 4512 for $85.00 to establish the fund. Voucher numbers start at 10. The following transactions took place during September.

Date Particulars Total (inc. GST)

Sep 2 Ream of A4 paper (GST included) 5.50

3 Pen (GST included) 2.50

3 Taxi fares (GST included) 5.50

3 Bus fares (GST included) 3.50

5 Cleaning products (GST included) 3.20

10 Milk (no GST) 1.75

13 Stamps (GST included) 15.50

20 Freight (GST included) 12.00

25 Stamps (GST included) 8.25

28 Taxi fares (GST included) 22.00

a As the petty cashier for Garcia Printing, you are required to complete the petty cash vouchers and the petty cash book for September. Use these column headings for the petty cash book: Stationery, Fares, Postage, Sundries.

b After balancing the fund, prepare reimbursement cheque number 8876 to present to the accountant for authorisation and record the reimbursement in the petty cash book.

Cheque templates are provided on the CD in the back of your book.6 You are responsible for completing and balancing the petty cash book for Sharp Sounds

Pty Ltd for November 2012. All transactions include GST unless otherwise stated. Voucher numbers start at 20. Use appropriate column headings. The following transactions took place in November 2012.

After balancing the fund, prepare reimbursement cheque number 00055 to present to the accountant for authorisation, and enter the reimbursement in the petty cash book.

template

template



Date Particulars Total (inc. GST)

Nov 1 Petty cash imprest cheque no. 00049 100.00

3 Purchased tea and coffee (no GST) 6.25

3 Purchased 2 A4 reams of white 22.50

3 Paid for taxi fares 15.50

6 Purchased washing detergent 2.20

10 Purchased milk (no GST) 1.75

13 Purchased stamps 12.50


23 Purchased stamps 3.50


Using spreadsheets to record petty cash transactionsSpreadsheet packages such as Microsoft Excel make the task of preparing petty cash books easier. This is because a template can be prepared where entries can be made and altered without having to prepare an entirely new petty cash book each time. A spreadsheet, once prepared, can also automatically do and redo any calculations. A worksheet showing a selected cell appears in Figure 11.29.

p Figure 11.29 A spreadsheet

Columns

Rows

Worksheetmenu bar

Sheet tabs

Cell 1A

Formatting toolbar Formula bar

Scroll bars



As can be seen in Figure 11.29, a cell occurs at the intersection of a column and a row. Data, such as an item of petty cash expenditure, can be entered into a cell using the following steps.1 Place the mouse over the cell where data is to be entered.2 Click once with the left mouse button – the cell is now active.3 Enter the required data into the cell.4 To select another cell, press Enter on the keyboard or use the mouse.

In cells where calculations are to be performed, the formula for that calculation needs to be entered. In a petty cash book, for example, separate formulas are used to add up expenses, calculate the running balance and calculate the reimbursement amount. When entering a formula, always begin with an equals sign (5) because this is how the spreadsheet package recognises that a calculation needs to be performed. Within the formula, it is a good idea to use cell references as much as possible. This way, when the value in a cell changes, the formula will update the result automatically. For example, as each expense is entered, the formula used to calculate the running balance will automatically readjust the balance to show the decreasing amount.

It is easy to perform common operations (such as adding or subtracting) in a spreadsheet. The symbols used in such formulas are shown in Table 11.2.

Table 11.2 Symbols used in spreadsheet formulasSymbol Operation

+ Addition

- Subtraction

* Multiplication

/ Division

Some examples of basic formulas are shown in Table 11.3.

Table 11.3 Basic formulas used in spreadsheetsFormula Explanation Example

=B18+B19 Adds the values in cells B18 and B19

55 + 22 = 77

=B8-B16 Subtracts the value in B16 from the value in cell B8

150 - 82 = 68

=C20*10 Multiplies the value in cell C20 by 10

30 × 10 = 300

=D15/A2 Divides the value in cell D15 by the value in cell A2

110 ÷ 5 = 22

Another feature of spreadsheet packages is their ability to perform functions. Simple functions include adding up the values in a range of cells or calculating the average of several amounts. Some examples of basic functions are shown in Table 11.4.

functionIn spreadsheet applications, a set formula that performs advanced calculations

formulaA calculation or equation performed within a spreadsheet

cell referenceThe label assigned to a cell (e.g. J7) by the intersection of its column location (e.g. Column J) and its row location (e.g. Row 7) in a spreadsheet application



Table 11.4 Basic functions used in spreadsheetsFunction Explanation Example

=SUM(B4:B7) Adds together the values in all cells located between (and including) cells B4 and B7

60 10 40 120 5 230

=AVERAGE(X10:X15) Finds the average amount of the value in all cells located between (and including) cells X10 and X15

(40 50 60 50 50 50) 6 5 50

To create the petty cash book for Nelson Enterprises, fi rst prepare the main worksheet as shown in Figure 11.30. Formulas will be entered in the cells to the right of those with the fi gures.

Following are the formulas required to perform the calculations for Nelson Enterprises’ petty cash book.• To calculate the base cost of each item, enter the following formula in the cell of the

appropriate expenditure column (J7 Sundries): 5(E7/11)*10.• To calculate the GST, enter the following formula in the cell where the GST fi gure will appear

(F7): 5E7/11.• To calculate the running balance, fi rst link the total amount received ($50) into the

corresponding cell of the Balance column (5D6), then enter the following formula in the cell where the running balance will appear (K7): 5K6E7.

• To calculate the total expenditure balances, enter the following formula where the balance is to appear (J12): 5SUM(J7:J11).

Using the reimbursement formula enables the fi nal running balance fi gure to be subtracted from the opening balance in order to calculate the amount spent (and therefore needing reimbursement). This will return the balance to the original amount.

These formulas are shown in Figure 11.31 and the completed spreadsheet is shown in Figure 11.32.

p Figure 11.30 Worksheet for the Nelson Enterprises petty cash book

1

2

3 Voucher Cash GST Expenditure (excluding GST)

4 Date Particulars Number Receipts Payments Amount Stationery Fares Freight Sundries Balance

5 2012

6 Nov 01Petty Cash AdvanceChq 00048

50.00

7 3 Tea and coffee 10 15.20

8 11 Milk 11 2.50

9 15 12 18.15

10 13 5.15

11 21 Pens 1.25

12

13ReimbursementChq 00060

Nelson Enterprises

Petty Cash Book

Cash

8

Freight Express

Freight Express

14

KA B C D E F G H I J



ChartsA useful feature of a spreadsheet package is the ability to display data in graphical formats, such as line, pie, column and bar charts. Examples are shown in Figure 11.33.

p Figure 11.32 Completed spreadsheet for the Nelson Enterprises petty cash book

1

2



5 2012

6Nov 01 50.00Petty Cash Advance

Chq 00048 50.00


8 11 Milk 11 2.50

13.82

2.50

9 15 12 18.15

10 13 5.15

16.50

4.68

11 21 Pens 1.25

$ 42.25

34.80

32.30

14.15

9.00

7.75

1.38

1.65

0.47

0.11

$ 3.61

1.14

$ 1.14 $ – $ 21.18 $ 16.3212


Nelson Enterprises

Petty Cash Book

Cash

8

Freight Express

Freight Express

14


$ 42.25 $ 50.00

To display all formulas in your spreadsheet, press ‘Ctrl’ and ‘~’. To return to normal view, press these keys again.

p Figure 11.31 Formulas in the Nelson Enterprises petty cash book

1

2



5 2012

6 Nov 01 50Petty Cash AdvanceChq 00048

=D6


8 11 Milk 11 2.5

=(E7/11)*10

=E8

9 15 12 18.15

10 13 5.15

=(E9/11)*10

=(E10/11)*10

11 21 Pens 1.25

=K6–E7

=K7–E8

=K8–E9

=K9–E9

=K10–E11

=E7/11

=E9/11

=E10/11

=E11/11

=SUM(F7:F11)

=(E11/11)*10

=SUM(G7:G11)

=SUM(H7:H11)

=SUM(I7:I11)

=SUM(J7:J11)12


Nelson Enterprises

Petty Cash Book

Cash

8

Freight Express

Freight Express

14


=D6–K11 =D13+K11



p Figure 11.33 Graphs made from a spreadsheet

Expe

nditu

re ty

pe

Nelson EnterprisesNovember 2012 – Petty Cash Expenditure

Amount Spent

Stationery

Fares

Freight

Sundry

Expenditure $ – $5.00 $10.00 $15.00 $20.00 $25.00

$ –

$5.00

$10.00

$15.00

$20.00

$25.00

Stationery Fares Expenditure type


Amou

nt S

pent

Freight Sundry

$ –

$5.00

$10.00

$15.00

$20.00

$25.00

Stationery Fares Expenditure type


Amou

nt S

pent

Freight Sundry

Column chart

Stationery

Fares


Freight

Sundry

Pie chart

Bar chart

Line chart



Spreadsheet packages usually provide a Chart Wizard function that can auto matically create charts for selected data. To create a chart, you would generally follow these instructions.• Highlight the cells to be included in the chart, as shown below.

1

2


4 Date Particulars Number Receipts Payments Amount Balance

5 2012

6 Nov 01 50.00Petty Cash AdvanceChq 00048


8 11 Milk 11 2.50

9 15 12 18.15

10 13 5.15

11 21 Pens 1.25

12


Nelson Enterprises

Petty Cash Book

Cash

8

Freight Express

Freight Express

14


$ 42.25

$ 42.25

50.00

34.80

32.30

14.15

9.00

7.75

$ 50.00

13.82

2.50

1.38

1.65

0.47

0.11

$ 3.61

16.50

4.68

1.14

$ 16.32$ 21.18$ 1.14 $ —


Highlight the expenditure cells in the heading row,as shown here. Then hold down Ctrl and highlightthe corresponding cells in the totals row

• Select the Chart Wizard function (usually located under the Insert menu or as a toolbar button).

• Follow the prompts to create the chart.Sections of a chart, such as colours and text, can easily be formatted by double clicking

on the section.

Activity 11.101 Use a spreadsheet package to complete the petty cash book for Garcia Printing for

September 2012. Refer to task 5 in Activity 11.9 (page 310) for details. When you have completed the petty cash book, create a bar graph that illustrates the amounts being spent each week.

2 a Use a spreadsheet package to complete the petty cash book for Sharp Sounds Pty Ltd for November 2012. Refer to task 6 in Activity 11.9 (page 310) for details.

b Print out a copy of the completed petty cash book and also a copy of your formulas.c Create a pie chart to show the amount of each expenditure item.d Create a pie chart that illustrates petty cash expenditure according to category.


UNIT 7


UNIT 7WRAP UP UNIT 11In this unit, you have learned that: fi nancial source documents such as purchase requisitions, purchase orders, tax invoices,

consignment notes, adjustment notes, cheques and receipts are used to document the details of business transactions and act as evidence that a transaction took place

bank reconciliation is the process of comparing the business’s records with the bank’s records

petty cash is a system that allows the payment of cash for small (petty) items such as fares, tea, coffee, milk, sugar and stationery

spreadsheet packages make the task of preparing petty cash books easier.

REVISION ACTIVITY Check your understanding of the main concepts covered in this unit by completing the crossword on BLM 11.10, on the CD in the back of your book. Good luck!

New business terms Australian Business Number (ABN)

A unique 11-digit number used to identify individual businesses

base price The cost of an item with no tax included

BPay A method of paying bills using Internet banking or telephone banking systems; businesses register with BPay to enable the fast processing of payments from customers

cell reference The label assigned to a cell (e.g. J7) by the intersection of its column location (e.g. Column J) and its row location (e.g. Row 7) in a spreadsheet application

formula A calculation or equation performed within a spreadsheet

imprest A set amount of money given in advance to establish a petty cash fund

Internet banking A method of banking that allows users to pay bills, view account details and apply for loans using a secure Internet connection to their bank

merchant settlement The name given to an EFTPOS transaction as it appears on a bank statement

supplier An individual or organisation that provides (supplies) goods or services

crossw

ord

BLM


unit 11 financial records management - … · · 2015-06-24gives you a copy of the order form ......

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