assessment 4005

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School

TAFE College *

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Course

MISC

Subject

Accounting

Date

Jun 26, 2024

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docx

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Uploaded by JusticeMule4433

Knowledge Assessment 1 of 1 Short answer research questions Criteria Unit code, name, and release number CPPREP4005 - Prepare to work with real estate trust accounts (1) Qualification/Course code, name, and release number CPP41419 - Certificate IV in Real Estate Practice (1) 901-00022V01 Statement of Attainment in Real Estate Practice (Assistant Agent) Student name – Student number - Date –

Version: 3_200422 Date created: 30/10/2019 Date modified: 27 May 2020 For queries, please contact: Technology and Business SkillsPoint Location: Ultimo © 2020 TAFE NSW, Sydney RTO Provider Number 90003 | CRICOS Provider Code: 00591E This assessment can be found in the: Learning Bank The contents in this document is copyright © TAFE NSW 2020, and should not be reproduced without the permission of the TAFE NSW. Information contained in this document is correct at time of printing: 22 April 2020. For current information please refer to our website or your teacher as appropriate. Document title: CPPREP4005_AE_Kn_1of1_LMS Page 30 of 31 Resource ID: TBS_19_001_CPPREP4005_AE_Kn_1of1_LMS STUDENT NAME:

Assessment instructions Table 1 Assessment instructions Assessment details Instructions Assessment overview The objective of this assessment is to assess your knowledge required to work with real estate trust accounts within established agency controls. Assessment Event number 1 of 1 Instructions for this assessment This is a knowledge based assessment that will assess your knowledge of the unit. This assessment includes:  16 x short answer research questions  Appendix 1 - Accounting documents for Azure Beach Realty Group  Assessment feedback Submission instructions On completion of this assessment, you are required to submit it online. Ensure you have added your name at the bottom of each page of this assessment. It is important that you keep a copy of all assessments submitted to TAFE NSW and complete the online assessment declaration when submitting the assessment. What do I need to do to achieve a satisfactory result? To achieve a competent result for this assessment you must complete all tasks at a satisfactory level. What do I need to provide? Computer with internet access. Assessment conditions This is an unsupervised assessment. What assessor must provide? Electronic copy of this assessment task. Due date/time allowed This assessment may take approximately up to six hours to complete. The due date will be informed by your local delivery point. Refer to the Unit Assessment Guide (UAG) or Training Plan. Supervision This is an unsupervised assessment. Your teacher/assessor may ask for additional evidence to verify the authenticity of your submission and confirm that the assessment task was completed by you. Assessment feedback, review or appeals Your teacher/assessor will provide feedback no later than 10 days after all assessment activities have been conducted and you will be requested to acknowledge the outcome. If you would like to request a review of your results or if you have any concerns about your results, contact your teacher/assessor or Head Teacher. You have three weeks from the date you receive your results in which to make an appeal and request a review. Document title: CPPREP4005_AE_Kn_1of1_LMS Page 30 of 31 Resource ID: TBS_19_001_CPPREP4005_AE_Kn_1of1_LMS STUDENT NAME:

Assessment details Instructions You will receive a response within ten days of the receipt of the request. Appeals are addressed in accordance with Every Students Guide to Assessment. Document title: CPPREP4005_AE_Kn_1of1_LMS Page 30 of 31 Resource ID: TBS_19_001_CPPREP4005_AE_Kn_1of1_LMS STUDENT NAME:

Part 1: Short answers Read the question carefully. 1. Examine the Property and Stock Agents Act 2002 (NSW) and list the number and name of 10 sections of the Act that apply to trust accounting. (220-250 words) 85 Interpretation 86 Trust money to be paid into trust account 87 Approval of authorised deposit-taking institutions 88 Trust money not available to pay licensee’s debts 89 Licensee to notify trust account becoming overdrawn 90 Internet earned on trust accounts to be paid to Statutory Internet Account 91 Monthly returns by authorised deposit-taking institutions 92 Overdrawn trust accounts 93 Dishonoured cheques 94 Annual certification by auditor 2. Examine the Property and Stock Agents Regulation 2014 (NSW) and list the number and name of 10 clauses that apply to trust accounting. (150 - 170 words) 21 . Additional requirements for strata managing agents 22 . Computer systems control 23 . Receipts for trust money 24 . Payment of trust money by cheque or electronic funds transfer 25 . Trust deposits 26 . Record of trust account transactions 27 . Journal 28 . Trust account ledger 29 . Trust account ledger trial balance 30 . Furnishing of particulars of trust account or transactions 31. (Repealed) 3. (a) Explain the purpose of trust accounts in real estate operations. Address the following areas in your explanation:  What is a trust account? (20-30 words) A trust account is a financial account that holds funds on behalf of the client or a third party.  Why must we have separate accounts for property sales and property management? (20-30 words) Managing separate accounts makes it easier to correctly meet different tax obligations. Also, it is so they do not mix them up, property sales account holds deposits and property management acoount holds rental money and bonds.  Why can we not put that money in our general account? (30-50words) Because it is money that you are handling on behalf of someone else, such as rental payments or bond payment unlike non-trust money where it is paid directly to you. Document title: CPPREP4005_AE_Kn_1of1_LMS Page 30 of 31 Resource ID: TBS_19_001_CPPREP4005_AE_Kn_1of1_LMS STUDENT NAME:

(b) What is the difference between sales trust money, property management trust money and general business trading money? Provide two examples for each type of trust money to support your analysis. (150 - 200 words) Sales trust money is all the money held on behalf of vendors and buyers such as deposits and money received in advance for property marketing. Property management trust money is money held on behalf of the landlord such as security deposit, any expenses paid in advance and rent. Genral business trust money is money held such as salaries, office supplies and commission paid to employees. 4. Different Australian states and territories have different rules and regulations when it comes to trust accounts. What are the rules when a licensee opens a bank account with an approved financial institution in NSW? (100 - 150 words) - Licensees need to notify the aiuthorised deposit-taking institution in writing that the account is a ‘trust account’. - If the trust account is held by a corporation, the account must be in the name of the corporation. - The name of the licensee, firm or corporation needs to appear as a prefix of the account name, foolowed by any other necessary identifier of the trust account. - The words ‘trust account’ must also appear in the name of the trust account and all cheques drawn on the trust account. 5. According to the Property and Stock Agents Regulation 2014 (NSW) , licensees can keep manual or computerised trust accounts. (a) Analyse and list two records of trust account transactions that must be kept by a licensee. (150 - 200 words) Licensee must maintain regular bank reconciliation statements that reconcile the trust account ledger with the corresponding bank statements. This process involves comparing the entries in the ledger with the transactions recorded by the bank, identifying any discrepancies, and ensuring that the ending balance in the ledger matches the banks balance and money coming and going. A licensee is required to maintain a log of all daily payments and receipts for money coming into and going out of their trust account. The document should resemble a cash book with sequentially numbered pages that display the following information on their corresponding pages: (a) the order in which the receipts were issued or canceled, and (b) the sequence in which the checks were drawn or canceled, and (c) the sequential reference numbers or other methods of transfer identification in the event that monies were received or disbursed via electronic funds transfer. The licensee shall record the information required by subsection 24(3) for a check and by clause 24(5) for an electronic funds transfer in the record whenever monies are sent out of the trust account. The licensee shall balance the cash book or other record at the end of each designated month and do the following: (a) The licensee is required to provide a statement at the conclusion of each designated month that compares the amount of the licensee's trust account to the balance of the relevant cash book or other record. Document title: CPPREP4005_AE_Kn_1of1_LMS Page 30 of 31 Resource ID: TBS_19_001_CPPREP4005_AE_Kn_1of1_LMS STUDENT NAME:

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