4125 p 4-11032024140030-0001

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Australian College of Professionals *

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CPP41419

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Accounting

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Jun 19, 2024

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pdf

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Project 4 — Maintain and protect trust account records In this Section you will demonstrate your skills and knowledge in regard to: - e balancing and reconciling trust accounts * apply agency procedures to respond to discrepancies identified with trust accounts e prepare records and statements of trust account transactions e identify and explain the process for unclaimed trust monies e maintain the security of trust account records What you need to do: You are to undertake the tasks set out below in the spaces provided What you will need: e Access to legislation via www.austlii.edu.au e Access to NSW Fair Trading at www.fairtrading.nsw.gov.au e Access to your offices Policies and Procedures and standard forms and letters When: During your own time What you need to submit: Your answers in the spaces provided or as instructed in the project. Instructions Using the information below perform the following tasks in the spaces provided: a. Balance and reconcile trust accounts I. Set out the process of the monthly balancing and reconciling agency trust accounts. ‘I"f?&x F=if EML«-«\% - Sfodad atl 77 /&Jj—"’s & co mMpare ot P Poute Stafcomenl L>’/ Exrrovs avk /OJMJ—,:Q(J - é’lﬂA /¢Concf/,'o;#/°,‘ L adjast sz ermors paw balance AHle Mwwv‘“' ASSESSOR USE ONLY S D NS D 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 23 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

ii. Undertake the balancing of the trust account and prepare records You are to undertake the reconciliation and necessary adjustments on the foll Reconciliation 1 Below are the following for the Property Management Trust Account: e The Trust Cash Book Receipts and Payments for May 20XX e Bank Statement as at 31 May 20XX e Note that on the previous month's reconciliation there was an outstan presented on 30 April 20xx. owing three sets of agency accounts. You are to reconcile the cash book to the Bank Statement using the template provided THINK REALTY PROPERTY MANAGEMENT TRUST ACCOUNT ding cheque for $2,173.75 not TRUST CASH BOOK CASHBOOK — RECEIPTS SIDE (TCR) gg::( F;ec Type Received from On Account of LF | Transaction Amount Daily Bank 2/5 | 223 | Cash | PaulBell Jason Brown 10 | RentX2 900.00 224 | Cash | Andy Short Jason Brown 10 | RentX1 550.00 1,450.00 3/5 225 | Cash | Peter Edgar Steve Smith 20 | RentX2 1,000.00 226 | Chq | Alfred Thomas Grant Roberts 30 | RentX1 470.00 1,470.00 4/5 227 | Chg Alison Sommers Steve Smith 20 Rent X 2 1,200.00 1,200.00 23/5 | 233 | cash | PaulBell Jason Brown 10 | RentX2 900.00 234 | Cash | Peter Edgar Steve Smith 20 | RentX?2 1,000.00 1,900.00 6,020.00 6,020.00 Balag;: :rought 0 THINK REALTY PROPERTY MANAGEMENT TRUST ACCOUNT TRUST CASH BOOK CASHBOOK — PAYMENT SIDE (TCP) Transaction CcHQ Date EFTNo. | nNo Payee On Account of LF Transaction Amount 5 May 2641 City Water J Brown 10 Water Rates 250.00 31 May 328 Jason Brown J Brown 10 Settlement 1,931.25 329 Steve Smith S Smith 20 Settlement 2,960.00 2642 Grant Roberts G Roberts 30 Settlement 434.75 331 Think Realty J Brown/Smith 10/20 Management Fee 444.00 Total 6,020.00 Balance Brought Down 0 Final Total 0 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 24 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

THINK REALTY PROPERTY MANAGEMENT TRUST ACCOUNT TRUST BANK LEDGER ACCOUNT NAME: BANK ACCOUNT No 100 Date: Details: Folio No Debit Credit Balance 31/4/xx | Balance 0.00 2/5/x%x Receipts TCR 1,450.00 1,450.00 3/5/xx Receipts TCR 1,470.00 2,920.00 4/5/xx Receipts TCR 1,200.00 4,120.00 5/5/xx Payment TCP 250.00 3,870.00 23/5/xx | Receipts TCR 1,900.00 5,770.00 31/5/xx | Payment TCP 1,931.25 3,838.75 31/5/xx | Payment TCP 2,960.00 875.75 31/5/xx | Payment TCP 434.75 444.00 31/5/xx | Payment TCP 444.00 0.00 Think Realty Property Management Trust Account Bank Statement as at 31 May 20xx . Date o , Details/Reference . ~ Debit Credit Balance " Balance b/f 2,173.75 3-May Receipts 1,450.00 3,623.75 4-May Receipts 1,470.00 5,093.75 Payment 2,173.75 2,920.00 5-May Receipts 1,200.00 4,120.00 24-May Receipts 1,900.00 6,020.00 27-May ) 2641 250.00 5,770.00 31-May 328 1,831.25 3,838.75 329 2,960.00 878.75 331 444.00 434,75 You are to accept all the entries in the bank statement in this exercise are correct INSTRUCTIONS On the next page you are to reconcile the Trust Account to the bank statement 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 25 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

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THINK REALTY PROPERTY MANAGEMENT TRUST ACCOUNT Bank Reconciliationasat 3| I 5 Balance as per bank statement ADD Outstanding Deposits Sub Total S Add Bank Charges 5 Add Total Adjustments LESS Unpresented Cheques Cha#t 2642 Amount $434-775 Sub total S Less Total Adjustments CR Balance as per bank statement (adjusted) DR Balance as per cash book /Zo 24 $434-715 $424 - 7S o) ¢ O ASSESSOR USE ONLY s B 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 26 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

Reconciliation 2 Below are the following for the Sales Trust Account: e The Trust Cash Book Receipts and Payments for May 20XX e Bank Statement as at 31 May 20XX You are to reconcile the cash book to the Bank Statement using the template provided THINK REALTY SALES TRUST ACCOUNT TRUST CASH BOOK CASHBOOK ~ RECEIPTS SIDE (TCR) Date | Rec . 20xx | # Type Received from On Account of LF | Transaction Amount Daily Bank . Advertising 10/5 | 229 | Cash | Roger Hamilton Roger Hamilton 50 Contrib 1,600.00 1,600.00 19/5 | 231 | Chg |Jonlames Yates to James 60 10% Deposit | 122,000.00 | 122,000.00 21/5 1232 | Chq | Bert&MaryStewart | Hamiiton to Stewart | 50 | 10% Deposit | 60,000.00 60,000.00 183,600.00 Bal B/d THINK REALTY SALES TRUST ACCOUNT TRUST CASH BOOK CASHBOOK — PAYMENT SIDE (TCP) Date EFT# CHQ# Payee On Account of LF Transaction Amount 5 May 407 Aganovski Aganovski 21 Settlement 82,500.00 5 May 408 Think Realty Aganovski 21 Commission 25,500.00 31 May 6324 XYZ Realty Smith 11 Release of Dep 60,500.00 Total 168,500.00 Brought Down 183,600.00 Final Total 15,100.00 *Purchaser agreed to partial release of deposit to purchase another property THINK REALTY SALES TRUST ACCOUNT TRUST BANK LEDGER ACCOUNT NAME: BANK ACCOUNT No 001 Date: Detalls: Folio No Deblt Credit Balance 30/4/xx 274,180.00 5/5/xx | Settlement 82,500.00 191,680.00 5/5/xx Settlement 25,500.00 166,180.00 10/5/xx | Receipt 1,600.00 167,780.00 19/5/xx | Receipt 122,000.00 289,780.00 21/5/xx | Receipt 60,000.00 349,780.00 31/5/xx | Pmt land tax for Smith 60,500.00 289,280.00 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 27 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

Think Realty Sales Trust Account Bank Statement as at 31 May 20xx Date Details/Reference Debit Credit Balance Balance b/f 326,525.00 1 May 20xx CHQ 6323 52,345.00 274,180.00 5 May 20XX EFT 407 82,500.00 191,680.00 5 May 20XX EFT 408 25,500 166,180.00 11 May 20xx Receipts 1,600.00 157,780.00 20 May 20xx Receipts 122,000.00 289.780.00 22 May 20xx Receipts 60,000.00 349,780.00 CLOSING BALANCE 349,780.00 You are to accept all the entries in the bank statement in this exercise are correct INSTRUCTIONS On the next page you are to reconcile the Trust Account to the bank statement 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 28 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

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THINK REALTY SALES TRUST ACCOUNT Bank Reconciliation asat 3119 | 2oz 4 Balance as per bank statement ADD Outstanding Deposits Sub Total 5 Add Bank Charges S Add Total Adjustments LESS Unpresented Cheques Cha# £324 Amount § (o, 50000 Sub total S Less Total Adjustments CR Balance as per bank statement (adjusted) DR Balance as per cash book $349 780:00 $ 284,280 00 $2.89, 280+00 ASSESSOR USE ONLY s D 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 29 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

Reconciliation 3 Below are the following for the Property Management Trust Account: The Trust Cash Book Receipts and Payments for June 20XX Bank Statement as at 30 June 20XX You are to reconcile the cash book to the Bank Statement using the template provided. In this reconciliation you will find errors in the Bank Statement and the Trust Account records. You are in the spaces provided: - 1. correctly complete the cashbook and bring the balance down. 2. prepare a bank reconciliation report THINK REALTY SALES TRUST ACCOUNT TRUST CASH BOOK CASHBOOK = RECEIPTS SIDE (TCR) gg;: I;ec Type Received from On Account of LF Transaction Amount Daily Bank 1/5 Balance b/f 19,010.00 7/5 200 | EFT 345 J Brown Roe to Brown 300 Deposit 65,000.00 65,000.00 11/5 201 | EFT348 K Morrow Hill to Morrow 310 | Deposit 30,000.00 30,000.00 14/5 202 | Cheque Gow Gow 320 | Advertcontrib 1,500.00 203 | Cheque Faith Faith 330 | 149 Cert 120.00 1,620.00 15/5 203 | Cash Kim Lee to Kim 340 | Holding Dep 1,000.00 1,000.00 17/5 204 | eFT358 | Walford Walford 350 | Auction fee 3,500.00 3,500.00 18/5 205 | Cheque R Fuller Downey to Fuller | 360 5% deposit 30,500.00 30,500.00 28/5 208 | EFT 360 K Dully Hart to Dully 370 Deposit 20,000.00 20,000.00 29/5 209 | EFT 361 Kelly Poulos to Kelly 380 Deposit 130,000.00 130,000.00 ASSESSOR USE ONLY S EI NS D 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 30 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

THINK REALTY SALES TRUST ACCOUNT TRUST CASH BOOK CASHBOOK — PAYMENT SIDE (TCP) Date Chg# | EFT# Payee On Account of LE Transaction Amount 1/5 44 Build rite Faith 330 | Inspection 2,400.00 45 Redback Pest Control Faith 330 | Inspection 800.00 3/5 606| Think Realty Metcalf to James 30 Commission 4,700.00 666 James Metcalf to James 30 Settlement 11,110.00 16/5 672 Far West News Gow 320 | Ads 1,477.00 20/5 46 Far West Council Faith 330 | 149 Cert 120.00 26/5 47 Domain Gow 320 | Ads 656.00 27/5 673! Advance Signs Gow 320 | Signboard 460.00 30/5 B/S Fuller Downey to Fuller 360 | Dishonour 30,500.00 ASSESSOR USE ONLY S D NS [] 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 31 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

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Think Realty Sales Trust Account Bank Statement as at 31 May 20xx You are to accept all the entries in the bank statement in this exercise are correct INSTRUCTIONS On the next page you are to reconcile the Trust Account to the bank statement Date Details/Reference Debit Credit Balance Balance b/f 19,010.00 CR 3 May EFT 606 4,700.00 14,310.00 CR EFT 666 11,110.00 3,200.00 CR 6 May Chq 44 2,400.00 800.00 CR 7 May EFT 345 — Ref Brown 65,000.00 65,800.00 CR 10 May Chq 45 800.00 65,000.00 CR 11 May EFT 348 Ref Morrow 30,000.00 95,000.00 CR 15 May Manual Deposits 1,620.00 96,620.00 CR 16 May Cash Deposit 1,000.00 97,620.00 CR 17 May EFT 358 Ref Walford 3,500.00 101,120.00 CR 19 May Deposit Chq 30,500.00 131,620.00 CR 19 May EFT 672 1,477.00 130,143.00 CR 28 May Chg. 47 656.00 129,487.00 29 May EFT 360 — Ref Dully 20,000.00 149,487.00 CR 29 May Chq 46 120.00 149,367.00 EFT 361— Ref Thomas 130,000.00 .= 279,367.00 CR 30 May Dishonoured Chq - Fuller 30,500.00 248,867.00 CR 31 May Bank Charges 173.00 248,694.00 CR 31 May Dishonour fee 100.00 248,594.00 CR 31 May EFT — Fuller 30,500.00 279,094.00 CR INSTRUCTIONS On the next page you are to reconcile the Trust Account to the bank statement 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 32 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

THINK REALTY SALES TRUST ACCOUNT Bank Reconciliationasat || 5 |zo 24 Balance as per bank statement Feller ADD Outstanding Deposits >279,094%.00 Sub Total $ Add Bank Charges $ 273-00b Add Total Adjustments S279, 3L 75 o LESS Unpresented Cheques Cha# 4% Amount P4bo -0 © Sub total 5 Less Total Adjustments S CR Balance as per bank statement (adjusted) S 278.,%07 00 DR Balance as per cash book S 278, Qo7+ ASSESSOR USE ONLY s D ns [ 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 33 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

b. Apply agency contingency procedures and respond to discrepancies Prepare the report for the Licensee in Charge and a report explaining the discrepancies you have found and the adjustments that you have made for Reconciliation Number 3. fouwr shamding deposit & 3§30, 5mo-02 2/ i d Ponle fees 3/ u(\,Pqu“"&Ol O‘\quf— -ﬂer $4’60- oD ASSESSOR USE ONLY S D NS D c. Prepare a statement to the owner and purchaser regarding the following items in the trust ledger. Property is at 15 McWilliam Street, Penrith. Vendor H. Harvey, Purchaser A Austin. ACCOUNT NAME: Harvey to Austin ACCOUNT No 710 Date: Details: Folio No Debit Credit Balance 4/4/xx | Deposit 10% R £0,000.00 £0,000.00 5/4/xx Deposit invested cJP 80,000.00 0.00 16/5/xx | Deposit + nterest orR £0,226.00 80,226.00 16/5/xx | Agreed Advertising oP 555.60 F9,670.00 16/5/xx | Austin /= interest cJP 113.00 F9,55F.40 Think Realty s 12,500.00 &F,05F.40 Harvey cP 6F,05F.40 0.00 Shatconent :% Aecomnn? — flaveey Fo Rustiag 16 MeWilliam SH+ Penrvi?h — SALE At Fe serHSerent [ /5 e avre feRs5e #> conftrm /D (o»»m/.../—ca/ W we Mceblillhom S#* Pemei Fb sias now been A Ccount goa as Fders: * Deposit in Trus+ — % BO o0o0-00 : — 3$0r00 : Heleriadnmt vid Out - 3555 (o (ki) oA.C}j Adlfé"""/" P ol ess our Setn ce — 1Balarnce af /J:jcom/lf' ~ $ 67,05 740 . 564£7ue fo Harvey - $¢£7 057 4o (D..,Lm‘) M%e«i %/ W”s—(/j «@S ‘/’b’—f""’"“‘f’w#fi el 15 Ao nillian SE. $H Thountes $ 17 sOO»0O0 (D&bf‘/') 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 34 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125

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Statement Fo parchases Statemen a/ accouwnt — H«rvay fo Augtin 16 McWilljam 54 Penrith —SALE . / M Nl//:' 4 We are please do coafirmn Fhat 772 settlem eat for S5 < am St . wl Aac °M/\+ O A R Penrith has naocew been compieted 4 = ) folloved:, e Deposit helod in Hrest — $80 000-°9 o Rustin /o fnteres+ — 303 00 (‘Deb'\‘\"\ e Ral\ance % Pececount - SUWZ-e©O s @ heque ro pustina ~ g\3=00 ANe hepe g 3’2/"’.7 Ygor- ~eo properif K pleast ted «us ero~ 1L jow PP § M%-H/&-rj e\s€e, MS. ASSESSOR USE ONLY S D NS L__I d. Explain the process you would undertake to identify and handle unclaimed trust monies. ~Loceate an smelarmed Frust money oA has been Hrelodd Sfode 12 Accernt for oves 2L gemurs = Araasbes funds : o +le ce o SAte Reyenr€ with owners ”‘fir - ASSESSOR USE ONLY S E NS E e. How would you maintain the security of trust accounts? ~ have carfran fi/’o/ﬂ/f— N Ao Aas access H= tte Ffrust meaey ( lym 7~ 7%e acccss) ~Lpirdem ~ Securc jo%f@w& PN g,abo{ Sec_uur:'/—q fi, accessS = M§"\/°""lj‘ o /'.CMch e C/\,ocr‘?—& ;“f&/V’Sf_S‘ e Fres aecoa hi, ASSESSOR USE ONLY s [] s [ THIS IS THE END OF THE ASSESSMENT 2. CPPREP4125-Transact in trust accounts Version 1.0 12 May 2020 Page 35 of 35 DOCUMENT LOCATION: Sharepoint/NSW/CPP41419/CPPREP4125