A WA agency cancels trust receipt number 4127 after writing the wrong amount on it. How should the cancelled receipt be dealt with?
Correct Answer
B) Enter its number in the journal marked 'cancelled' and keep the original
Under section 68(6) of the Real Estate and Business Agents Act 1978, the WA handbook says each receipt number must be entered in the cash journal in strict numerical sequence. If a receipt is cancelled, the number must still be entered with the word 'cancelled' beside it, and the original cancelled receipt should be kept for the auditor.
Why This Is the Correct Answer
Cancelled receipts stay in the sequence, marked 'cancelled', with the original kept.
Why the Other Options Are Wrong
Background Knowledge for Finance Taxation
Exam Tip for Finance Taxation
Common Mistakes to Avoid on Finance Taxation Questions
More Finance Taxation Questions
A small agency does both sales and property management and banks sales deposits and rent into one general trust account. What do the rules of conduct require?
In NSW, above what purchase price does a foreign person start paying surcharge purchaser duty on residential land?
In NSW, stamp duty on residential property purchases is calculated based on:
A landlord asks his agent to withdraw $600 in cash from the trust account so he can collect it at the office. What should the agent tell him?
An agency held trust money during the year ending 30 June 2026. By when must its trust account audit report be lodged?
- → Which of these amounts received by a NSW sales agency is trust money under the Property and Stock Agents Act 2002?
- → An agency records every sales deposit it holds in a single ledger headed 'Sales deposits'. What does the Regulation require instead?
- → A property manager receipts $1,800 cash rent on Tuesday and locks it in the office safe for the agency's usual Friday banking run. Is this compliant, assuming Wednesday banking was practicable?
- → A supplier obtains a court judgment against a NSW agency for unpaid office fit-out costs and tries to enforce it against the agency's trust account. What is the position?
- → A licensee in charge is going on leave and wants her Class 2 senior property manager to approve trust payments while she is away. Can she delegate this?
- → At the end of August an agency balances its trust cash book and reconciles it to the bank statement. By when must it prepare the trial balance of all trust ledger accounts?
- → An agency is clearing out old files. How long must it keep its trust account records and its trust account auditor's reports?
- → A property manager is handed a tenant's rent in cash at the office. When must a trust receipt be prepared?
- → A vendor and purchaser agree that the 10% deposit on a long settlement should earn interest for them. How can the agent hold it so the interest is not paid to the Statutory Interest Account?
- → An agency closes one of its trust accounts after merging its sales operations. What must the licensee do about the closure?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Related Study Resources
Previous Question
At month end a Melbourne property manager wants to move the agency's management fee from a landlord's trust ledger to the commission ledger. When is this transfer allowed?
Next Question
A WA agency has earned $4,000 in management fees held in trust. The principal wants to pay the office rent straight from the trust account using that money. What does the handbook say?