CPPREP4005 & CPPEP4125 - AT2 - T1:

CASE STUDY

You work at Connect Skills Real Estate Pty Ltd at 888 Scott Street Epping. Licence #: 1789L

Part of your job is to manage the company's trust account.

You have recently been on an extended holiday, and during your absence, one of your agency partners had been entering the trust account transactions for the agency.

Being that you are ultimately responsible for the trust account, you decide to manually reconcile the trust account entries against the bank statement for April 2021.

Before commencing the task, your partner advises you that three recent trust account transactions have not yet been recorded in the trust account spreadsheet.

You decide to process these before doing your reconciliation. The transactions to be entered are listed in Table #1 (attached to question).

In reviewing the trust account transactions against the bank statement, you identify five transactions that need review/amendment.

The five transactions are listed in Table #2. (attached to the question)

Table #1: Transactions to be entered into the trust account.
Date	Transaction Description
02/04/2021	Ted Johnson has listed his house with the agency to sell. The address is: 44 Hope St, Epping. He has agreed to an advertising campaign. The first payment for the advertising of $350.00 is received on 02/04/2021 by cheque (#3217) for Creditor Invoice #2106. Receipted by W. Rhonda the receptionist. Ensure you: Complete the transaction receipt. Record the transaction in the journal. Record the transaction in the ledger.
03/04/2021	Tenant Bill Fredericks pays rent for the property at 47 Robert St of $1,500 by cheque #7642 which receipted by Property Manager, A. Walters. The landlord of 47 Robert St is John Jones. Ensure you: Complete the transaction receipt. Record the transaction in the journal for both the tenant and the landlord. Record the transaction in the ledger for both the tenant and the landlord.
06/4/2021	Pay Creditor Invoice 01206 ABC Signs $350 for Vendor Johnson's Signs at 44 Hope Street Epping

Table #2: Transactions to reviewed and amended.

1. Record the transfer of $600.00 from LF107a to LF106a (in the Trust Ledger-Tab 3) to pay for the Air Conditioning expense.

2. One of BAC Commercial's cheques is dishonoured at the bank. Find the dishonoured payment in the bank statement transaction listing. Record the dishonoured cheque in the ledger in both the landlord and tenant records.

3. Review the receipts written for the month of April by Property Manager, A. Walters. Locate and amend information missing on the receipt.

4. On 30/04/2021, Bill Fredericks of 47 Robert St dropped a $1500.00 rent cheque into the office. A receipt was completed by is missing the date and the cheque number (#7646). Complete the missing information on the receipt.

5. Finish by checking and updating the Trust Account Management Worksheet, then check the 'Trust Account Reconciliation Statement' in tab 4 of the worksheet and fill out the area inRED

6. Complete the Landlord Statement for all rent paid to John Jones for rental property 47 Robert Street Epping for the month of April 2021.

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