STUDENT

RMIT Classification: Trusted

STUDENT – PRODUCT ASSESSMENT TASK

Assessment Number 2 of 2 Task Name Assessment 2

Administer subsidiary
accounts and ledgers

National unit/s code FNSACC312 National unit/s title Administer Subsidiary

Accounts and ledgers

National qualification code FNS40217 National qualification title Certificate IV in Accounting

and Bookkeeping

RMIT Program code C4398 RMIT Course code ACCT5420C

Section A – Assessment Information

Assessment duration and/or due date As per unit syllabus

Task instructions

Type of Product (tick which applies)

✘Project
Report
Portfolio
Case study

Summary and Purpose of Assessment

There is a total of two (2) assessment tasks you need to complete for this course. This is assessment task 2 of 2. Both
assessment tasks need to be “satisfactory” completed to be deemed Competent in this course. This assessment task is to be
completed individually.

The purpose of this assessment task is to assess your skills and knowledge to reconcile and monitor subsidiary accounts in
financial accounts receivable systems, identify bad and doubtful debts and plan a recovery action, record creditor invoices,
and remit payments to sundry creditors.

Assessment Instructions

What
This assessment comprises of 6 tasks (Tasks 1-6) listed below. Each task is a separate task, and you are required to complete
all the tasks.

 Download the assessment document from Canvas and complete the 6 task questions. Save in Microsoft Word format
and upload your assignment via Canvas.
 You MUST complete all sections; student name, ID, signature and date where appropriate on the information sheet

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that has been provided.

 When completing the tasks, you need to read each task questions and ensure accuracy throughout your workings.
 You need to perform a check on your final calculations, including reviewing against all internal and external financial
data sources were given in the questions and must ensure they follow all necessary protocols, policies and
procedures and accounting standards.

Where
You will be provided some class time to work on this assessment, however, it is expected that the majority of this assessment
will be completed outside of class.

How you will be assessed

You will be assessed against the criteria listed in the marking guide in Section B of this task. To achieve a satisfactory result,
you will need to address all criteria satisfactorily.

Conditions for assessment

 This is an individual assessment task and to be completed independently in your own time.
 You must not copy the work of others. (For more information regarding Academic Integrity please refer to RMIT
Academic Integrity Guidelines). If in any doubt about what kind of support is allowable then you need to seek
clarification from your assessor.
 Partially competed tasks will not be assessed, and you will be assessed as Satisfactory or Not Satisfactory.
 If you don’t answer all questions satisfactorily, you will be given another attempt to respond to the questions
that were incorrect.
 If you don’t answer the questions correctly on the second attempt, the RMIT teacher will contact you to discuss
the assessment.
 In certain circumstances, you may be eligible for an assessment adjustment (e.g., a disability or long-term medical or
mental health condition; an unavoidable employment, family, cultural, religious or elite sporting commitment known
in advance; other unexpected circumstance outside your control) or an extension of time.
 If you are unable to meet the submission deadline as stated in Canvas then you need to consult with your assessor as
soon as possible, preferably at least one (1) week before the assessment submission due date. Information found on
the web pages below will also help inform you of your rights and responsibilities.
 For a 7-day extension see https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/
assessment/extensions-of-time-for-submission-of-assessable-work
 For special consideration see https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/
assessment/special-consideration
 For reasonable adjustment see https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/
assessment/adjustments-to-assessment
 Failure to complete this assessment within the scheduled time will result in the task being assessed as Not
Satisfactory unless alternative arrangements have been made to complete the assessment prior to the date of
the assessment task.
 Information on recording and retaining assessments and dealing with assessment appeals can be found in the RMIT
Assessment Processes document
 If you have disability, long-term illness and/or mental health condition, you may be granted an adjustment to the
standard conditions via Equitable Assessment Arrangements
Instructions on submitting your Product Assessment

You must submit your responses to Tasks 1-6 and upload them on Canvas by the due date. Feedback and results will be
provided in Canvas in the Grades section via comments or rubrics.

You are required to submit these answers into a Word document and upload onto Canvas. Name your file as: < your student
number _your name_ Assessment 2 Administer subsidiary accounts and ledgers >.

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For example, 23456789JohnSmith__ Assessment 2 Administer subsidiary accounts and ledgers.docx

Equipment/resources students must supply (if applicable): Equipment/resources to be provided by RMIT or the
workplace (if applicable):

 Access to a laptop or computer
 Internet access
 Access to Office 365 software as required. Student can
access office 365 for free as a student with RMIT. Please
see the link provided for more information on
https://www.rmit.edu.au/students/support-and-
facilities/it-services-for-students/office365-resources
 Access to Canvas and internet sites required for study in
this course · Appropriate software as required
 Access to Learn Now Learning Resources
 Access to Office 365 software as if required. Please see
the link provided for more information on
https://www.rmit.edu.au/students/support-and-
facilities/it-services-for-students/office365-resources

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Company Credit Policy

Snappy Pictures Ltd sell printing canvas. The company is owned and managed by the owner Andy Lim.

Standard credit terms are 30 days. At the end of the month an aged receivables report is printed, and overdue accounts are
reviewed. Monthly statement is issued at the end of the month.

The following company debt recovery process and collection policy for Accounts Receivable:

0 - 30 days (current) Invoice sent to customer with monthly statement

31 - 60 days (overdue Sent overdue sticker to next statement

account)

61 – 90 days (overdue Phone call to customer informing them that if payment is not made no further credit will
account) be given and credit facility will be put on hold

91 + days (overdue If customer’s debt is more than $50 a letter advising customer that their account will be
account) handed to Collections Agency unless payment is received within 14 days

Customer Delinquency
A debt that is 90 + days overdue and less than $150 will be written off as a bad debt.
A Debtor’s account is deemed delinquent when it has been outstanding for longer than 12 months and all attempts to recoup
the outstanding amount have been exhausted, the account will be written off as a bad debt as per the terms set in the
organisational credit policy for Snappy Pictures Pty Ltd.

Accounts Receivable report for Snappy Pictures Ltd as of 30 June 2020

Customer Invoice Date Total amount 0-30 Days 31-60 Days 61-90 Days 91+ Days

Max Gibson 29/05/20 $ 220.00 $ 220.00

Sam Murphy 15/04/20 $ 880.00 $ 880.00

Erica Baxter 20/03/20 $ 330.00 $ 330.00

Grand Total $ 1,430.00 $ 0.00 $ 220.00 $ 880.00 $ 330.00

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Task 1

(Read Chapter 3.3 Learning resources for guidance)

Using the information from Snappy Pictures’ Credit Policy and Aged Receivables report as of 30 June 2020 above, provide
your answer below on days overdue invoice, amount owing and the previous communication that has been actioned.

Overdue Accounts Review – Snappy Pictures

Customer Aging Amount Owing Previous Communications

Max Gibson 32 $220 Invoice sent with previous statement

Sam Murphy 76 $880 Invoice sent to customer with monthly statement

Sent overdue sticker to next statement.

Erica Baxter 102 $330 Invoice sent to customer with monthly statement
Sent overdue sticker to next statement
Phone call to customer informing them that if
payment is not made no further credit will be given
and credit facility will be put on hold

Task 2

Based on the organizational credit policy, what collection procedures would you take regarding the collection of monies as of
30 June 2020? It is recommended to follow the company credit policy for collecting procedures for the below debtors:
Customer Collection Procedures

Inv $220. Sent overdue sticker to next statement

Max Gibson

Inv $880. Phone call to customer informing them that if payment is not made no further
credit will be given and credit facility will be put on hold
Sam Murphy

Inv $330. If customer’s debt is more than $50 a letter advising customer that their account
will be handed to Collections Agency unless payment is received within 14 days
Erica Baxter

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Develop plans to pursue debt recovery or to initiate legal action for Sam Murphy, with measures completed in line with
Snappy Pictures organisational policies, guidelines and timeframes above.

Follow the instruction below to your supervisor, company management and your accounting colleagues outlining the debt
recovery plan for Sam Murphy:

- Make a simulated call to Sam Murphy

- Explain that the debt is outstanding for more than 60 days with the details
- Explain that the account is put on hold until the payment is being received
- After 12 months, if the debt is not recovered, write the debt off in journal entry (Task 5)

Task 3

Role-Play Simulation - Guidelines on making the audio file for simulated call to Sam Murphy: ( you need to submit 2
separate audio files)

This is a practical activity where you will participate in two role-play simulations. You, as a bookkeeper, will need to engage in
an interaction with the debtor Sam Murphy and an accountant in your company.

Details of the role-play simulations with the Debtor and accountant

 Participate in each role-play with at least another person/student in the class. For role-play 1, you will take on the
role of a bookkeeper who is calling the other student/person will take on the role of the debtor Sam Murphy. In role-
play 2, you will continue in your role as bookkeeper and the other person will take on the role of the accountant in
your company and during this interaction you will be discussing the response from the debtor to the accountant.
 Each interaction in role-paly 1 and role-play 2 must be recorded in an audio format e.g. mp3.
 Each role-play simulation (and the audio recording) should be approximately 1-2 minutes.
 After you prepare the files, you are required to upload with your audio recording on Canvas under Assignments for
record-keeping and auditing purposes.
 You need to check your audio files recording carefully before filing (uploading) on Canvas from the source
documents given to you for accuracy.
 In role-play 2 you must record a conversation with the accountant where the accountant asks you about the
conversation with the debtor “Sam Murphy”

Role play 1: Conversation with the Debtor

 Use clear wordings of what purpose you are calling for to the debtor. The debtor must ask a question for
clarification. Use questioning and active listening when the debtor asks for clarification.
 Explain the situation that the payment from them is quite late and the account is being put on hold until the money
is received.
 Always interact in a professional conversation

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Role play 2: Conversation with the accountant must contain the following:
 Use clear instructions when approaching the accountant. You must ask the accountant at least 2 questions requiring
clarification.
 Use questioning and active listening when the accountant asks for the details of conversation with Sam Murphy.
 Interact in a professional conversation as you are providing notes to the accountant which will be kept on the system
as a trail of the communication
Answer:

Task 4

A year has passed and after sending the letter of demand and turn over the debt to the collection agency in last June, Erica
Baxter’s outstanding amount still unpaid. As per the company’s credit policy, if the debt has been outstanding for more than
12 months, the debt needs to be written off.

Prepare the appropriate journal entry that you would make on 30 June 2021. Discuss whether organisation recovery practices
have been exhausted.

(Read Chapter 3.6 Learning resources for guidance)

Answer:

All organisations recovery have been exhausted. More than 12 months has passed and therefore Debt is to be written odd
as uncollectable bad debt.

General Journal

Date Particulars Debit Credit

30/03/20 Bad Debts 300

GST Collected 30

Accounts Receivable Control - Erica 330

Debt written off as uncollectable

Task 5

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To ensure customers pay on time and a full amount, a business must have a credit policy or collection policy. List three clear
written guidelines that should be written in the credit and collection policy of an organisation
(Read Chapter 3.3 Learning resources for guidance)

Answer:

- The terms and conditions relating to the supply of goods on credit.

- The collection procedures.
- The steps to be taken in case of customer delinquency.

Task 6

Use the PDF format link of the ACCC website provided on Debt Collection Guidelines for Collectors and Creditors to answer
the following question.

As you are aware, there are several laws which outline responsibilities and provide guidance to businesses in collecting debts.
Visit the website link provided (PDF format website link):

https://www.accc.gov.au/system/files/Debt%20collection%20guideline%20for%20collectors%20and%20creditors%20-
%20April%202021.pdf

What are the responsibilities and guidance required when collecting debts under the Privacy Act 1988? Answer this question
after you review the Debtor and Third Parties information in Section 8 of the ACCC website. Use your own words to
summarise the information.

Answer :

Summary of Section 8 Privacy obligations to the debtor and third parties

A debtor’s personal information is legally protected by the OAIC, this information must be treated with respect as improper
use may cause harm to the individual.

Sensitive information must not be collected about an individual unless it deemed necessary for the services being provided to
function, this information is not to be collected unless the debtor is informed and provided permission to do so.

The purpose and consequences of collecting the information required must be conveyed to the individual as it required.

You are obligated to exercise caution when handling any personal or sensitive information that is provided to you. Exercise
caution at all times when handling this information as the ramifications of its exposure can prove to be threatening to an
individual or group of peoples. This can range from identity theft to exposure of key elements to a company’s function. You
must observe and follow all privacy laws and stipulations in regard to a debtor’s personal information.

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Section B – Marking Guide

Assessment 2: TASK 1-6 To reconcile and monitor subsidiary accounts in financial accounts receivable systems,
identify bad and doubtful debts and plan a recovery action, record creditor invoices, and
remit payments to sundry creditors.

Task Criteria for assessment Satisfactory Not Comments

Satisfactory

Task 1 Student has provided number of days overdue ☐ ☐

invoice, amount owing and the previous
communication that has been actioned.

Task 2 Student has provided collection procedures for ☐ ☐

monies outstanding according to organisational
policies provided.

Task 3 The student has made 2 separate audio files as ☐ ☐

per the instructions

Task 4 The student has prepared a general journal entry ☐ ☐

to write off the debt from Erica Baxter

Task 5 The student has listed three clear written ☐ ☐

guidelines that should be part of the credit and
collection policy

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Task 6 The student has referred to the ACCC website ☐ ☐

PDF format and has accurately provided the
responsibilities and guidance required when
collecting debts under the Privacy Act 1988.

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