Diploma in Computerised Book-keeping - IAB€¦ · IAB Level 2 Award in Computerised Bookkeeping...

Qualifications: Level 2 Award in Computerised Bookkeeping QCF (Accreditation number 500/9261/3) – IAB ID 220

Level 2 Certificate in Bookkeeping (QCF) (Accreditation number: 601/0730/3) – Apprenticeship Framework

Paper No: E0027

Examination Units: 222: Setting up Accounting Software to manage Accounting Information (F/601/3649) 221: Process Routine Payments and Receipts using a Computerised Bookkeeping System (A/601/3651)

Sample Assessment Material VAT 20%

QUESTION PAPER

Time Allowed: 2 hours

Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU Tel: 0844 330 3527, Fax: 0844 330 3514, email:[email protected] 09/13

IAB Level 2 Award in Computerised Bookkeeping SAM (V4) 1

INTERNATIONAL ASSOCIATION OF BOOK-KEEPERS

IAB LEVEL 2 COMPUTERISED BOOKKEEPING Unit Titles: Setting up Accounting Software to Manage Accounting Information – F6013649 Process Routine Payments and Receipts Using a Computerised System – A6013651

General Information and Instructions

The following Instructions should be followed: 1 You must enter your Candidate Number, Student Number, Name of

Centre, Date of Examination and Software used on the front cover of your Answer Booklet.

2 Time Allowed: TWO HOURS. 3 The use of silent non-programmable calculators is permitted. 4 NOTE - This Question Booklet has information and data printed on both sides

of the pages.

5 THE VAT RATE FOR THIS PAPER IS 20% AND THEREFORE COMPUTERS SHOULD BE SET TO 20% PRIOR TO STARTING THE QUESTION PAPER.

6 If possible, you should generate your own printouts, check them and

staple them into the Answer Booklet. However, if the examination centre is not set up for you to do that, you should save your reports in PDF format into a folder bearing your name and candidate number. The invigilator or technician will then print all the PDF reports in that folder and staple them into the Answer Booklet.


Scenario A new business, Greg’s Wholesale, is being set up by Greg Smith. The business will be registered for VAT (Standard Accounting) and will be trading on both a credit and cash basis. Sales will be divided into 2 categories – sales of flowers and sales of fruit. The latter is VAT zero rated. Purchases will be divided into 2 categories – purchases of flowers and purchases of fruit. The latter is VAT zero rated. Required You are to assume the role of Accounts Clerk and carry out the instructions in the order that they are given using a commercial Accounting software package. Greg is relying on you to input the data accurately. You should ensure every transaction has a unique reference.

The business was started on 1st January 2011. Set this as your Financial Year Start Date.

The name and address of Greg’s Wholesale is as follows: Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ

Enter this information onto your Accounting program and, after the name Greg’s Wholesale, add your Examination Entry number.

Note: this paper has been produced using 20% as the standard rate of VAT.


Set up the following Nominal Accounts, using an account reference relevant to the package you are using. Greg has established budget figures for sales, as shown. Enter these as you set up the accounts.

Nominal Code Name Budget figures

Comment

Capital

Drawings

Sales – Flowers £90,000.00 spread equally over the year Sales – Fruit £30,000.00

Purchases – Flowers

Purchases – Fruit

Set up the following opening balances as at 1st January 2011:

Nominal Account DR CR

Bank 1,000.00

Petty Cash 200.00

Capital 1,200.00

Set up the following Customer Accounts, using an appropriate account reference:

The Flower Pot The Grange Sidmouth EX23 8AJ

Tropical Fruits 41 Newgate Street Chester CH1 2NP

Exotica 34 River Street Bristol BS4 6OT

Set up the following Supplier Accounts, using an appropriate account reference:


The Fruit Company 7 Old Road Taunton TA4 10MW

Blooms 15 Rochester Drive Dover DV4 7RZ

Memories Wilton Lane Brighton BN5 9CW


Greg put in place the finance for the new business.

Date Details 1 Jan Greg paid £20,000 of his own money into the Business Bank current

account.

A book was set up (extract below) in which a list of all cheques paid out would be recorded. From this Cheque Log, enter these details onto the system:

Cheque Log Date Cheque

no. Payee Details Net

£ VAT £

Gross £

√

1 Jan 200 Fixtures 2000

Shop Fixtures and Fittings

8,333.34 1,666.66 10,000.00

2 Jan 201 Cash Petty Cash

200.00

3 Jan 202 Morton Properties plc

Rent 5,000.00 1,000.00 6,000.00

4 Jan 203 South West Computers Limited

Computer and printer

4,000.00 800.00 4,800.00

4 Jan 204 James Garage

Delivery Van

10,000.00 2,000.00 12,000.00

7 Jan 205 Shopfitters Ltd.

Racking & Shelving

4,800.00 960.00 5,760.00


During the month, the following Invoices were sent out to customers. Enter these transactions:

Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ

Telephone: 01392 859684

Invoice To: Invoice No. 1001 The Flower Pot The Grange Sidmouth EX23 8AJ

Invoice Date 03.01.2011

VAT Rate Net Assorted winter blooms

20% 500.00

500.00 VAT @ 20% 100.00

Invoice Total 600.00

Terms: 30 days net VAT Reg. No. 123 4567 89


Telephone: 01392 859684

Invoice To: Invoice No. 1002 Tropical Fruits 41 Newgate Street Chester CH1 2NP


VAT Rate Net Roses & daffodils Mixed Caribbean fruits

20% Zero

860.00 250.00

1,110.00 VAT @ 20% 166.84

Invoice Total 1,276.84

Terms: 3% cash discount for payment within 20 days VAT Reg. No. 123 4567 89



Telephone: 01392 859684

Invoice To: Invoice No. 1003 Exotica 34 River Street Bristol BS4 6OT


VAT Rate Net Mixed Primrose plants

20% 780.00

780.00 VAT @ 20% 156.00



Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ 01392 859684

Invoice To: Invoice No. 1004 The Flower Pot The Grange Sidmouth EX23 8AJ


VAT Rate Net Mixed Orchids Mangos and Pineapple

20% Zero

2,350.00 200.00

2,550.00 VAT @ 20% 470.00




Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ 01392 859684

Telephone: 01392 859684

Invoice To: Invoice No. 1005 Tropical Fruits 41 Newgate Street Chester CH1 2NP


VAT Rate Net Anthurium - various Papaya & Mango

20% Zero

740.00 1,260.00

2,000.00 VAT @ 20% 143.56


Terms: 3% cash discount for payment within 20 days VAT Reg. No. 123 4567 89


Telephone: 01392 859684

Invoice To: Invoice No. 1006 Exotica 34 River Street Bristol BS4 6OT


VAT Rate Net 200 - Orchid Gift Packs 150 kgs – North African Grapes

20% Zero

1,500.00 550.00

2,050.00 VAT @ 20% 300.00




During the month, the following Credit Note was sent out. Enter this transaction:


Telephone: 01392 859684

Credit Note: Credit Note No. C001 The Flower Pot The Grange Sidmouth EX23 8AJ

Credit Note Date 10.01.2011

VAT Rate Net Damaged flowers on our invoice TW1001

20%

85.50

85.50 VAT @ 20% 17.10




During the month, the following invoices were received from Suppliers. Enter these transactions:


Invoice To: Invoice No. F298 Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ


VAT Rate Net Mixed winter blooms

20%

580.00

580.00 VAT @ 20% 113.68


Terms: Cash discount of 2% for payment within 20 days VAT Reg. No. 101 8962 97

The Fruit Company 7 Old Road Taunton

TA4 10MW

Invoice To: Invoice No. FC986 Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ


VAT Rate Net Mango & Pineapple

Zero

236.95

236.95 VAT Zero


Terms: Net monthly account VAT Reg. No. 684 2984 27


Blooms 15 Rochester Drive

Dover DV4 7RZ

Invoice To: Invoice No. 68 Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ


VAT Rate Net Orchids – mixed plants and blooms

20%

362.90

362.90 VAT @ 20% 72.58



Memories Wilton Lane

Brighton BN5 9CW

Invoice To: Invoice No. 896 Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ


VAT Rate Net Assorted mixed blooms Caribbean Fruits

20% Zero

1,062.50 250.90

1,313.40 VAT @ 20% 208.25




The Fruit Company 7 Old Road Taunton

TA4 10MW

Invoice To: Invoice No. FC1006 Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ


VAT Rate Net Assorted Flowers Mixed tropical fruits

20% Zero

680.50 650.00

1,330.50 VAT @ 20% 136.10


Terms: Net monthly account VAT Reg. No. 684 2984 27


Invoice To: Invoice No. F304 Greg’s Wholesale 4 Princess Way Exeter EX1 6MQ


VAT Rate Net Anthurium & Orchids 20%

1,260.50

1,260.50 VAT @ 20% 247.05




During the month, the following monies have been received from Customers:

£

16 Jan Cheque (no. 380) received from Exotica. There was no indication as to which invoice this covered and should, therefore, be treated as a payment on account.

500.00

18 Jan Cheque (no 184) received from Tropical Fruits, in full settlement of our invoice 1002, having taken the discount offered.

1,251.04

18 Jan Cheque (no. 589) received from The Flower Pot. This covered our invoice 1001, taking into account our credit note C001

497.40

23 Jan Cheque (no. 601) received from The Flower Pot. This covered our invoice 1004 and The Flower Pot’s invoice F298. This should therefore be processed as a contra entry.

2,326.32

24 Jan Cheque (no. 420) received from Exotica. This covered our invoice 1003 being the balance outstanding following the payment received 16th January treated as a payment on account.

436.00

In addition, on 22 January, local traders bought some fruit from Greg’s market

stall. The amount received was £175.00 and was paid directly into the bank.


You have already entered some cheques (ticked) from the Cheque Log – enter the remaining cheque payments.

Cheque Log Date Chq

no. Payee Details Net

£ VAT £

Gross £

√

1 Jan 200 Fixtures 2000

Shop Fixtures and Fittings

8,333.34 1,666.66 10,000.00 √

2 Jan 201 Cash Petty Cash 200.00 √

3 Jan 202 Morton Properties plc

Rent 5,000.00 1,000.00 6,000.00 √

4 Jan 203 South West Computers Limited

Computer and printer

4,000.00 800.00 4,800.00 √

4 Jan 204 James Garage

Delivery Van

10,000.00

2,000.00 2,000.00 √

7 Jan 205 Shopfitters Ltd.

Racking & Shelving

4,800.00 960.00 5,760.00 √

17 Jan 207 Memories A part payment of their invoice 896. Awaiting credit note for damaged goods.

1,000.00

18 Jan 208 Greg Smith Drawings 800.00

26 January

Received notification from the Bank that the cheque received from Tropical Fruits had been returned unpaid due to insufficient funds. Process this as a Customer Returned cheque.

31 January

Greg took some fruit at a selling price of £25.00 for his own use. Make the journal entry to reflect this.

31 January

You have received notification from the Bank that a cheque for £35.00 relating to market sales has been returned. Using the Journal, process this as a bad debt.


Produce reports at 31st January 2011: Trial Balance Summary Audit Trail Nominal Account Activity for both categories of Sales

THE ABOVE REPORTS MUST BE PRINTED BEFORE STARTING THE NEXT SECTION, OR ALTERNATIVELY SAVE THE REPORTS AND PRINT OUT AT THE END OF THE EXAM IN THE PRINTING TIME ALLOWED TURN TO THE NEXT PAGE


During the month, Petty Cash has been spent and the Vouchers below written out. Enter this expenditure.

Petty Cash Voucher No. PCV 1 Date 3.1.2011

VAT Rate: Exempt

Expense Details

Stamps various

Amount including VAT (where applicable)

£30.00

Signed ………………..

Total £30.00


VAT Rate: 20%

Expense Details

Date Stamp Envelopes & Wallet files


£15.00

£25.00


Total £40.00


VAT Rate: 20%

Expense Details

Carriage on deliveries from suppliers. This should be treated as part of the purchase cost of goods.


£30.00


Total £30.00



VAT 20%

Expense Details

Fuel for Delivery Vehicle


£50.00


Total £50.00


VAT Rate Zero

Expense Details

Tea & coffee


£12.00


Total £12.00


VAT Rate Zero

Expense Details

Repairs to office door


£15.00


Total £15.00


Cash Sales of £200.00 including VAT were made at a local market on 16th January for sales of flowers. Process £150.00 as a Bank Receipt and the remainder as a Petty Cash Receipt.

14 January Received Bank Loan of £15,000 paid into the current account. Arranged loan repayment to be paid on 26th of each month by Standing Order. This amounts to £650 per month, £500 being capital repayment and £150 being loan interest. Set this up and post the payment.

31 January Paid £80.00 including VAT for advertising on cheque numbered 210.

Petty Cash Voucher PCV5 dated 16th January should have been for £15.00. Make the necessary adjustment by Journal Entry to correct this error.

The wages for January have been calculated. Enter these transactions.

31 January - Net Wages paid from the Bank Current Account by BACS £750.98

The statutory and voluntary deductions have been calculated as follows:

Income Tax deducted £202.12 Employee’s NIC deducted £125.67 Employer’s NIC £147.25

“Payroll Giving” deducted £ 10.00 These will not be sent off to until 15th February; therefore, enter these figures into the system by Journal Entries.

31 January Identify the amount required to reimburse Petty Cash to £300.00 and transfer this amount from the Bank.


The Bank Statement below has been received; reconcile it to your computer records.

CENTRAL BANK PLC STATEMENTAccount

Number: 00825698


STATEMENT

Date

Particulars

Payments

Receipts

Balance

1 Jan

Opening balance Counter Credit

1,000.00

20,000.00

1,000.00

21,000.00

200 10,000.00 11,000.00 3 Jan 201 200.00 10,800.00 7 Jan 204 12,000.00 1,200.00 Dr 7 Jan 202 6,000.00 7,200.00 Dr 203 4,800.00 12,000.00 Dr 15 Jan 19 Jan

Credit Counter Credit

15,000.00 150.00

3,000.00 3,150.00

19 Jan Counter Credit 500.00 3,650.00 22 Jan 22 Jan

Counter Credit Counter Credit

1,251.04 497.40

4,901.04 5,398.44

22 Jan 22 Jan 22 Jan 22 Jan 24 Jan 25 Jan 26 Jan 26 Jan

205 Counter Credit 207 208 Counter Credit Counter Credit Business Loans Limited Returned Cheque

5,760.00

1,000.00 800.00

650.00 1,251.04

175.00

2,326.32 436.00

361.56 186.56

1,186.56 1,986.56

339.76 775.76 125.76

1,125.28

Dr Dr Dr Dr Dr

SSt Sheet No. 1

Sort Code: 18-28-74

Telephone: 01392 425317

Facsimile: 01392 425318


Produce the following reports as at 31st January 2011: Trial Balance Summary Audit Trail Customer Address List Supplier Address List Detailed Customer Activity Report for Exotica Customer Statement for Tropical Fruits Detailed Supplier Activity Report for Memories Detailed Aged Debtors Analysis Detailed Aged Creditors Analysis Bank Statement Nominal Activity Reports for Bank and Petty Cash Bank Receipts and Payments Day Books Budget Reports comparing budget to actuals

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Diploma in Computerised Book-keeping - IAB€¦ · IAB Level 2 Award in Computerised Bookkeeping...

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