The following fictional data has been used for the construction and reconciliation of the accounts and ledgers used in this assignment
John Edwards has listed his house for sale at 3 Third St Sampleville with your agency. He has agreed to an advertising campaign with an initial payment of $350.00.
2/4/2013
The first advertising payment is received and you will start with Receipt no.1206
John Jones of 10 Circuit St Sampleville has 3 rental properties with the company.
They are: 65 James St ($1200 per month rent), 15 Clydesdale Ave ($1350 per month rent), and 47 Gregory St ($1500 per month rent).
James Smithson has a commercial property he rents through your agency. It is located at 34 Water Pde. It is rented to BAC Commercial for $2000 per month.
3/4/2013
The tenant Fred Williams pays rent for the property at 47 Gregory St with a cheque 8/4/2013
The tenant Richard Barnes pays rent for the property at 65 James St by cash 13/4/2013
BAC Commercial pays rent by EFT
15/4/2013
The tenant Kim Perry pays rent by EFT for 15 Clydesdale Ave
Bill Dykes signs a contract to buy John Edwards’s house for $535,000.00. He agrees to pay 10% deposit. He pays 2% at the signing of the contract with the balance of the deposit to be paid in 3 days. The contract is due to settle in 30 days.
20/4/2013
Bill Dykes initial deposit is deposited
23/4/2013
Bill Dykes pays the rest of the deposit
The air conditioning unit needs replacing at 47 Gregory St. This will cost $1900. The tenant wants it done immediately. So John Jones agrees to this and asks you take the necessary funds from the rental at 47 Gregory St and the balance from the rental at 65 James St. You need to transfer the funds so that the account can be paid and you need to allow for the commission to be paid to the office in the figuring.
28/4/2013
The unit is repaired and Chq no 1434 is paid that day to Aircold Air-conditioning
You pay the rent owing to James Smithson with Chq no 1435
You pay the rent owing to John Jones with Chq no 1436
You pay the commission for both to the General Account using Chq no 1437 30/4/2013
You receive an account from the Agency general account for the advertising fee of $350.00 for John Edwards’s house. You pay with Chq no 1438
Sale of a house at 150 Black St Sampleville for D & S Gregson is finalised. The sale price was for $388,000.00. The agency has held the deposit of $38,800 in its trust account. You now need to finalise this account and pay the commission to the agency and send the remaining funds to the Solicitor, Allen & Hemsley, for settlement. The commission is 2.5% of the value plus a $20.00 accounting fee is to be added as well. The Purchaser is B. Archer of 40 Black Rd Sampleville.
3/5/2013
You use Chq no 1439 for Allen & Hemsley
And Chq no 1440 for the commission
The tenant Fred Williams pays rent for the property at 47 Gregory St with a cheque
5/5/2013
Bill Frederick’s cheque is dishonoured
You receive a 10% deposit from R. Sanchez of 14 Dapto St Sampleville, for the house of A. Jackson at 69 Peter Crescent. Contract price is $569,000.00.
7/5/2013
Sanchez deposit is deposited
Bill Frederick pays his rent by cash
8/5/2013
The tenant Richard Barnes pays rent for the property at 65 James St by cash 13/5/2013
BAC Commercial pays monthly rent by EFT
15/5/2013
The tenant Kim Perry pays the rent for 15 Clydesdale Ave by EFT
Bill Dykes settles the sale of John Edwards’s house for $535,000.00. You now need to finalise this account and pay the commission to the agency and send the remaining funds to the Solicitor, Reddy and Co Pty Ltd, for settlement. The commission is 2.5% of the value. There will be a $20.00 accounting fee added as well.
20/5/2013
You use Chq no 1441 for Solicitor, Reddy and Co Pty Ltd and Chq no 1442 for the commission 30/5/2013
You pay James Smithson (Chq no 1443 – $1855.00) and John Jones (Chq no 1444 – $3,751.50) the rents owing to them less the commissions and statement fees
You pay the General Account the commission owing with Chq no 1445 – $443.50
TIP: Use the dates to cross-reference and locate each transaction and read the case study text to calculate the monetary amounts for each transaction
REAL ESTATE BANK
Your Home Real Estate Pty Ltd
Bank Statement from 1 April 2013 to 31 May 2013
| Date | Details | DR | CR | Balance |
| 31/05/13 | General Account chq no 1445 | $443.50 | $62,506.50 | |
| 20/05/13 | General Account chq no 1442 | $13,395.00 | $62,950.00 | |
| Jones & Co chq no 1441 | $40,105.00 | $76,345.00 | ||
| 15/05/13 | Deposit-Sharp | $1,350.00 | $116,450.00 | |
| 13/05/13 | Deposit-BAC | $2,000.00 | $115,100.00 | |
| 8/05/13 | Deposit-Richards | $1,200.00 | $113,100.00 | |
| 7/05/13 | Deposit-Sanchez | $56,900.00 | $111,900.00 | |
| Deposit-Fredericks | $1500.00 | $55,000.00 | ||
| Adjustment dis chq-Fredericks | $1,500.00 | $53,500.00 | ||
| 3/05/13 | Deposit-Fredericks | $1,500.00 | $55,000.00 | |
| General Account chq no 1440 | $9,720.00 | $53,500.00 | ||
| Allen & Hemsley chq no 1439 | $29,080.00 | $63,220.00 | ||
| John Jones chq no 1436 | $1,851.50 | $92,300.00 | ||
| James Smithson chq no 1435 | $1,855.00 | $94,151.50 | ||
| Aircold Air Cond chq no 1434 | $1,900.00 | $96,006.50 | ||
| General Account chq no 1438 | $350.00 | $97,906.50 | ||
| General Account chq no 1437 | $443.50 | $98,256.50 | ||
| 23/04/13 | Deposit-Sykes | $42,800.00 | $98,700.00 | |
| 20/04/13 | Deposit-Sykes | $10,700.00 | $55,900.00 | |
| 15/04/13 | Deposit-Sharp | $1,350.00 | $45,200.00 | |
| 13/04/13 | Deposit-BAC | $2,000.00 | $43,850.00 | |
| 8/04/13 | Deposit-Richards | $1,200.00 | $41,850.00 | |
| 3/04/13 | Deposit-Fredericks | $1,500.00 | $40,650.00 | |
| 2/04/13 | Deposit-Johnson | $350.00 | $39,150.00 | |
| 1/04/13 | Opening Balance | $38,800.00 | ||
| Your Home Real Estate Pty Ltd | |
| Trust Account Reconciliation Statement | as at |
| (TAR) | |
30 April 2013
$ $
Trust Cash Journal
Balance brought forward from Add total receipts for Deduct total payments for Balance as at
Bank Statement
Balance as at
Add deposits not credited as at
Deduct cheques not yet presented as at
Details John Jones chq no 1436
James Smithson chq no 1435
Aircold Air Cond chq no 1434
General Account chq no 1438
General Account chq no 1437
Total Trust Account money as at
Trust Ledger Balances
Total of Trust Account Ledgers as at
| 31/03/13 | $38,800.00 | |
| April | $59,900.00 | $98,700.00 |
| April | $6,400.00- | |
| 30/04/13 | $92,300.00 | |
| 30/04/13 | $98,700.00 | |
| 30/04/13 | $0.00 | $98,700.00 |
30/04/13
$1851.50
$1855.00
$1900.00
$350.00
$443.50 $6,400.00-
30/04/13 $92,300.00
30/04/13 $92,300.00
| Total Trust Account money as at |
| Trust Ledger Balances |
| Total of Trust Account Ledgers as at |
| Bank Statement |
| Trust Account Reconciliation Statement (TAR) |
| Trust Cash Journal |
Your Home Real Estate Pty Ltd
as at 31 May 2013
$ $
| Balance brought forward from | 30/04/13 | $92,300.00 | |
| Add total receipts for | May | $62,950.00 | $155,250.00 |
| Deduct total payments for | May | -$98,350.00 | |
| 31/05/13 | |||
| Balance as at | $56,900.00 | ||
| Balance as at | 31/05/13 | $62,506.50 | |
| Add deposits not credited as at | 31/05/13 | 0.00 | $62,506.50 |
Deduct cheques not yet presented as
| at | 31/05/13 | |
| Details | James smithson Chq No 1443 | $1855.00 |
| John Jones Chq No 1444 | $3751.50 |
$5,606.50-
31/05/13 $56,900.00
31/05/13 $56,900.00
TCRJ – April
| Date | Particulars | Property | Rec | Amount | Bank | |
| address | No. | $ | $ | |||
| 2/04/13 | John Edwards | 3 Third St | 1206 | $350.00 | $350.00 | |
| prepaid advert | Sampleville | |||||
| 3/04/13 | Fred Williams | 47 Gregory St | 1207 | $1,500.00 | $1,500.00 | |
| rent | Sampleville | |||||
| 8/04/13 | Richard Barnes | 65 James St | 1208 | $1,200.00 | $1,200.00 | |
| rent | Sampleville | |||||
| 13/04/13 | ABC Commercial | 34 Water Pde | 1209 | $2,000.00 | $2,000.00 | |
| rent | Sampleville | |||||
| 15/04/13 | Kim Perry | 15 Clydesdale Ave | 1210 | $1,350.00 | $1,350.00 | |
| rent | Sampleville | |||||
| 20/04/13 | Bill Dykes 2% | 3 Third St | 1211 | $10,700.00 | $10,700.00 | |
| dep | Sampleville | |||||
| 23/04/13 | Bill Dykes 8% | 3 Third St | 1212 | $42,800.00 | $42,800.00 | |
| dep | Sampleville | |||||
| 30/04/13 | Total | $59,900.00 | $59,900.00 | |||
| TCRJ – May | ||||||
| Date | Particulars | Property | Rec | Amount | Bank | |
| address | No. | $ | $ | |||
| 3/05/13 | Fred Williams | 47 Gregory St | 1213 | $1500.00 | $1500.00 | |
| rent | Sampleville | |||||
| 5/05/13 | Fred Williams | 47 Gregory St | 1213 | $1500.00- | $1500.00- | |
| dis chq | Sampleville | |||||
| 7/05/13 | Fred Williams | 47 Gregory St | 1214 | $1500.00 | $1500.00 | |
| rent | Sampleville | |||||
| 7/05/13 | R. Sanchez | 69 Peter Cres | 1215 | $56,900.00 | $56,900.00 | |
| 10% dep | Sampleville | |||||
| 8/05/13 | Richard | 65 James St | 1216 | $1200.00 | $1200.00 | |
| Barnes rent | Sampleville | |||||
| 13/05/13 | BAC Commercial | 34 Water Pde | 1217 | $2000.00 | $2000.00 | |
| rent | Sampleville | |||||
| 15/05/13 | Kim Perry | 15 Clydesdale | 1218 | $1350.00 | $1350.00 | |
| rent | Ave Sampleville | |||||
| 31/05/13 | Total | $62,950.00 | $62,950.00 | |||
TCPJ – April
| Date | Particulars | Property | Rec | Amount | Bank | |
| address | No. | $ | $ | |||
| 28/04/13 | Aircold | 47 Gregory St | 1434 | $1,900.00 | $1,900.00 | |
| Air-conditioning | Sampleville | |||||
| 30/04/13 | James Smithson | 34 Water Pde | 1435 | $1,855.00 | $1,855.00 | |
| Sampleville | ||||||
| John Jones | 65 James St | 1436 | $601.00 | – | ||
| Sampleville | ||||||
| 15 Clydesdale | $1,250.50 | $1,851.50 | ||||
| Ave Sampleville | ||||||
| General Account | Commission | 1437 | $443.50 | $443.50 | ||
| Payable | ||||||
| General Account | 3 Third St | 1438 | $350.00 | $350.00 | ||
| Sampleville | ||||||
| Total | $6,400.00 | $6,400.00 | ||||
| TCPJ – May | ||||||
| Date | Particulars | Property | Rec | Amount | Bank | |
| address | No. | $ | $ | |||
| 3/05/13 | Allen and | 150 Black St | 1439 | $29,080.00 | $29,080.00 | |
| Hemsley | Sampleville | |||||
| General Account | 150 Black St | 1440 | $9,720.00 | $9,720.00 | ||
| Sampleville | ||||||
| 20/05/13 | Jones & Co | 3 Third St | 1441 | $40,105.00 | $40,105.00 | |
| Pty Ltd | Sampleville | |||||
| General Account | 3 Third St | 1442 | $13,395.00 | $13,395.00 | ||
| Sampleville | ||||||
| 30/05/13 | James Smithson | 34 Water Pde | 1443 | $1,855.00 | $1,855.00 | |
| Sampleville | ||||||
| John Jones | 47 Gregory St | 1444 | $3,751.00 | – | ||
| Sampleville | ||||||
| 65 James St | – | |||||
| Sampleville | ||||||
| 15 Clydesdale Ave | $3,751.00 | |||||
| Sampleville | ||||||
| General Account | Commission | 1445 | $443.50 | $443.50 | ||
| Payable | ||||||
| 31/05/13 | Total | $98,350.00 | $98,350.00 |
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