CPPREP4005 – Prepare to work with real estate trust accounts (Release 1)

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Written Questions

RTO 32426

What you need to do:

Answer the questions below by writing in the space provided.

You are required to answer all questions correctly. If correct, you will see ‘Satisfactory’ or if incorrect you will see ‘Not Satisfactory’ in your grades section of your learner portal next to the assessment name. The assessor will provide feedback and a Record of Results in the assessment task once graded. You will be required to resubmit your work for any ‘Not Satisfactory’ assessment tasks.

What you will need:

Use the learner material provided in your online student portal as well as research materials such as books, internet, magazines, workplace documentation etc. to assist you in gaining the knowledge required to answer the questions. Remember that the assessment is completely self-paced and open book, so you are able to use whatever resources you have to answer the questions.

What you need to submit:

Your answers to these questions.

How to Submit your Assessment:

Upload your completed document into the “CPPREP4005 – Written Questions” Online Assessment in your learner portal. You can drag and drop the file into the window or use the add file icon in the top left of the submission window and select the file your wish to upload by using the browse/choose file option.

Click on finish attempt to submit it for grading.

Written Questions

Question 1

1.1

What is the name of the relevant legislation (including sections if applicable) in your state/territory that outlines the requirements for operating a real estate trust account?

1.2

Research and list the sections of the legislation relevant to the following areas of trust accounting:

	Part	Division (if applicable)	Section/Clause
Receipts	Click or tap here to enter text.	Click or tap here to enter text.	Click or tap here to enter text.
Banking	Click or tap here to enter text.	Click or tap here to enter text.	Click or tap here to enter text.
Payments	Click or tap here to enter text.	Click or tap here to enter text.	Click or tap here to enter text.
Cashbook	Click or tap here to enter text.	Click or tap here to enter text.	Click or tap here to enter text.
Ledgers	Click or tap here to enter text.	Click or tap here to enter text.	Click or tap here to enter text.
Reconciliations	Click or tap here to enter text.	Click or tap here to enter text.	Click or tap here to enter text.

Question 2

List 5 examples of transactions that would NOT be entered into a trust account accounting system. (e.g. payment of wages to office staff).

Question 3

Complete the following table.

Give (2) reasons that inaccuracies/discrepancies can occur in trust accounts and a treatment to address these.

Source of Discrepancy	Treatment Strategy to Address the Discrepancy
E.g. Dishonoured cheque	Ensure that a reversal is completed in the cashbookDo not accept cheques as method of payment

Question 4

List (4) transactions you are likely to be handling on behalf of your clients / Principals and group the transactions according to whether they are a receipt or a payment.

Receipts	Payments
e.g. Rent paid into the agency from tenant	e.g. Rent Payment to Landlord at the end of the month

Question 5

What is the purpose of trust accounts in real estate?

Question 6

What are the requirements under the legislation in relation to being able to operate a real estate trust account?

Question 7

What is the difference between a trust account and a general account?

Question 8

Explain the roles and responsibilities of the real estate personnel regarding the trust account activities listed below.

Receipting rent from a tenant
Ending of month disbursement of funds to the landlord
Receipting deposit from a purchase
Problems with the trust account
Issue a cheque for the balance of funds at settlement of a property.

Question 9

Refer to the relevant legislation and outline the responsibilities of the licensee relating to account transactions and audits.

(Refer to the correct section of legislation as part of your answer.)

Question 10

Read the following case and explain the impacts of trust inaccuracies on clients and agency.

Question 11

In 200 – 300 words, outline the monthly trust accounting processes required to be undertaken by the real estate agency (including the applicable timeframes) in line with legislation requirements in your state or territory.

Question 12

List the name(s) and explain the different types of trust account(s) that can be used in real estate in your state/territory?

Question 13

What processes need to be implemented and authorities notified of discrepancies in trust accounting?

Question 14

What security arrangements need to be in place for trust accounts to ensure integrity, security, confidentiality and privacy of the information?

Question 15

What are (3) examples of trust records?

Question 16

What are the requirements under the legislation relating to manual and electronic/computer based accounting systems. As part of your answer identify the section of the legislation and the specific requirements.

(Any information direct from the legislation can be copy and pasted as part of your answer.)

Question 17

In 25-100 words, explain what role you will be going into and what legislative requirements/limitation are associated regarding your involvement in trust account activities.

(What are you permitted and not permitted to do as far as trust account activities).

Question 18

Refer to the correct legislation and relevant section to answer the following questions. What are the legislative requirements pertaining to;

Issuing receipts

Banking of trust money.

Question 19

Conduct research to answer this question.

What is the name of a software package that can be utilised for trust accounting and what is its function/purpose?

Question 20

In 50-100 words explain the reason behind conducting internal and external trust account audits.

Question 21

What are at least (2) methods in which trust moneys can be provided/deposited into the trust account?

Question 22

What are the (2) ways that trust monies can be disbursed out of the trust account?

Question 23

Explain in 50-100 words what is a Cashbook Receipts Cashbook.

In the table below write (2) examples of standard transactions into the cashbook receipts journal that you would expect to see in your day to day real estate activity.

Date money received	Date Receipt Issued	Name of person (Payee)	Code or client	Description of the matter	Amount received	Account Receipt Number	Date Banked
02/08/2013	02/08/2013	Ted Johnson	Ted Johnson	Advertising payment – 2 Second St, Byron Bay	$ 350.00	1206	02/0/2013

Question 24

Explain in 50-100 words what is a Cashbook Payments Journal.

In the table below write (2) examples of standard transactions into the cashbook payments journal that you would expect to see in your day to day real estate activity.

Date Payment made	Amount	Cheque number or EFT number	Payment made to	Identifier or name of payer	Description of matter	Ledger identifier debited
paid
28/04/2013	$1900.00	1434	Aircold Airconditioning	John Jones	Airconditioning Repair at 47 Robert St, Byron Bay	JJ47

Question 25

Explain in 25-50 words what are trust account ledgers.

What are the standard trust account transactions you would expect to see in a ledger in your day to day real estate activity?

Question 26

In 25-100 words explain what is a trust account;

Trial balance

Bank reconciliation

Question 27

Provide (1) example for each of the following which is generated using standard trust account transactions in day to day real estate operations and outline the types of information these contain.

Report

Statement

Question 28

What are source documents? In your answer include 1 example of a source document relevant to trust accounts.

Question 29

What is a transfer journal and give 1 example of its use?

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