1 IAB L2 Cert QCF Jan 2011 QP (final) Exam ID 208 Qualifications: Level 2 Award in Manual Bookkeeping (QCF) (Accreditation number: 500/9259/5) – IAB ID 210 Level 2 Certificate in Bookkeeping (QCF) (Accreditation number: 500/9053/7) – IAB ID 200 Level 2 Certificate in Applied Bookkeeping (QCF) (Accreditation number: 500/9262/5) – IAB ID 230 Examination Units: Unit ID 206: Maintaining the Journal – T/600/8772 Unit ID 205: Maintaining Control Accounts – K/600/8770 Unit ID 155: Maintaining Petty Cash Records – R/600/8746 Unit ID 207: Processing Ledger Transactions and Extracting a Trial Balance – F/600/8760 January 2011 (incorporating VAT at 20%) QUESTION PAPER Time Allowed: 2 hours and 30 minutes Suite 30, 40 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU Tel: 0844 330 3527, Fax: 0844 330 3514, Email: [email protected]
Transcript
1 IAB L2 Cert QCF Jan 2011 QP (final)
Exam ID 208 Qualifications: Level 2 Award in Manual Bookkeeping (QCF) (Accreditation number: 500/9259/5) – IAB ID 210
Level 2 Certificate in Bookkeeping (QCF) (Accreditation number: 500/9053/7) – IAB ID 200
Level 2 Certificate in Applied Bookkeeping (QCF) (Accreditation number: 500/9262/5) – IAB ID 230
Examination Units: Unit ID 206: Maintaining the Journal – T/600/8772 Unit ID 205: Maintaining Control Accounts – K/600/8770 Unit ID 155: Maintaining Petty Cash Records – R/600/8746 Unit ID 207: Processing Ledger Transactions and Extracting a Trial Balance – F/600/8760
January 2011 (incorporating VAT at 20%)
QUESTION PAPER Time Allowed: 2 hours and 30 minutes Suite 30, 40 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU Tel: 0844 330 3527, Fax: 0844 330 3514, Email: [email protected]
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INTERNATIONAL ASSOCIATION OF BOOK-KEEPERS LEVEL 2 BOOKKEEPING EXAM General Information and Instructions 1. This question paper contains four questions. You must answer ALL FOUR questions. 2. You must enter your Unique Learner Number, Candidate Number and Name
of Examination Centre in the boxes provided on the front cover of your Answer Booklet.
3. Time allowed: 2 hours and 30 minutes 4. All answers are to be written in ink. 5. Cross out errors neatly, or use correcting fluid in moderation. 6. The use of silent non-programmable calculators is permitted. 7. Blank pages are provided in your Answer Booklet (page 17) for workings if
required. 8. NOTE – this Question Paper and the Answer Booklet have information and data
printed on both sides of the pages contained within the booklets.
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Scenario Grangemoor Bookkeeping Co. is a small family run bookkeeping company offering bookkeeping services to clients. You are employed by Grangemoor Bookkeeping Co. as a Bookkeeper. You are based in the company‟s head office and work directly for the proprietor, Amy Grangemoor, and carry out tasks as instructed. You are now presented with a series of memos, notes, emails and other relevant information, and are required to complete the tasks in accordance with the examination instructions. The Standard Rate of Value Added Tax (VAT) assumed in this examination is 20%.
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Question One – Maintaining the Journal There are two parts to this Question. Both parts should be completed. PART ONE
You have received the memo below from the proprietor.
MEMO Date: 10 Jan 2011
From: Amy Grangemoor To: Bookkeeper Subject: Trial Balance Enclosures: Trial Balance at 31 December 2010
Our client Ellie‟s Wholesale has provided us with a list of account balances at 31st December 2010 (see page 5 of this question paper). The business is registered for VAT and the standard rate of VAT is currently 20%. Ellie‟s Wholesale have advised us that since the account balances have been prepared some errors have been found as follows:
1. The bank has notified Ellie‟s Wholesale that a cheque for £550 has been returned. This should be written off as a bad debt. Do not take VAT into consideration.
2. A payment for advertising of £50.00 was processed as a bank payment however this had been paid in cash.
3. A payment on account for £1,200 received from Sophie‟s Warehouse Ltd
had been credited to Sophie & Co‟s Sales Ledger Account in error.
4. A cheque for PAYE (HMRC Liability) had been entered as Credit – Bank £675
5. Cash sales of £1,500 had been entered as follows: Debit – Bank £1,500 Credit – VAT £250 Credit – Sales £1,200
6. Cash payment to cover cleaning of £30 had been entered as £25 in error.
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Ellie’s Wholesale – List of Account Balances as at 31 Dec 2010
£
Bank – Current Account 1,786
Cash 250
Sales 82,575
Trade Debtors 8,552
Purchases 23,567
Trade Creditors 3,575
Value Added Tax (VAT) 1,675 (CR)
Capital 5,900
Insurance 1,200
Light, Heat and Power 3,651
Repairs and Renewals 867
Bad Debts 1,050
Rates 3,100
Cleaning Costs 875
Stationery 252
Telephone 675
Staff Wages 4,800
PAYE 1,525 (CR)
Motor Expenses 3,300
Advertising 450
Rent 8,750
Shop Equipment (Cost) 3,500
Delivery Vehicles (Cost) 28,000
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Question One – Maintaining the Journal (continued) REQUIRED A Prepare Journal entries as at 31 December 2010 to open a double entry set of bookkeeping records using suitable narrative using the list of balances on page 5. A Suspense Account should be used to record any difference. B Record the balance of the Suspense Account into the General Ledger given on page 2 of the Answer Booklet.
C Prepare Journal entries using suitable narratives dated 31 December 2010 to correct the errors listed on page 4. Page 2 and 3 of the answer booklet should be used. D Post the Journal entries to eliminate the Suspense Account and balance off the Suspense Account. E Redraft the Trial Balance as at 31 December 2010 using the corrected account balances. Page 4 of the answer booklet should be used.
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Question One – Maintaining the Journal (continued) PART TWO The wages for Grangemoor Bookkeeping Co. for the month of January have been calculated. All items are processed though a Wages Control Account and then the balance on the Wages Control Account is transferred to the Wages and Contributions Account.
31 January - Net Wages paid from the Bank Current Account by BACS £2,900.00
The statutory and voluntary deductions have been calculated as follows:
Income Tax deducted £665.78 Employee‟s NIC deducted £497.33 Employer‟s NIC £453.77
“Payroll Giving” deducted £ 15.00
You are required to complete the following tasks: A Complete the Journal entries required for posting to the Wages Control Account for the month of January. This should consist of a HMRC Liability Account, Employer‟s NIC Account and a Payroll Giving Account. Use the Journals provided on page 5 of your answer booklet to assist you. B Complete the Journal entry to clear the balance on the Wages Control Account for the month of January to the Wages and Contributions Account using the Journal on page 6 of your answer booklet. The Journal entry should be dated 31 January 2011 and include a suitable narrative.
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Question Two – Maintaining Control Accounts You have received the following email:
Green & Co. – Control Accounts Schedules of Debtors and Creditors Customer and Supplier transactions for December 2010 Totals from the Books of Prime Entry
Please find details of our Control Account balances as at 1st December 2010: Sales Ledger Control Account £52,500 DR Purchase Ledger Control Account £29,350 CR To enable the Sales Ledger Control and Purchase Ledger Control Accounts to be
prepared we have attached a list of the company‟s transactions for the month of December 2010
You are required to complete the following tasks: REQUIRED A Prepare Sales Ledger Control and Purchase Ledger Control Accounts using the
blank accounts given on page 7 of your answer booklet and the information given on page 9 of this question paper. Opening balances should be dated 1 December 2010 and all other entries dated as at 31 December 2010. You should show the balances brought down as at 31 December 2010.
B Total the individual account balances and reconcile these with the total Sales and
Purchase Ledger balances as at 31st December 2010 using page 8 of your Answer Booklet.
C Prepare a VAT Control Account as at 31 December 2010 using the information from the books of prime entry. You must show the balances brought down as at 31 December 2010 and use the VAT Control Account provided on page 8 of your Answer Booklet.
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Question Two – Maintaining Control Accounts (continued) Attachments Green & Co. - December 2010 - Transactions
£ Sales Day Book 41,200
Sales Returns Day Book 2,900
Purchase Day Book 31,875
Purchase Returns Day Book 1,850
Cash Book – Receipts from Debtors 49,500
Cash Book – Discounts Allowed 1,125
Cash Book – Payments to Creditors 28,750
Cash Book – Discounts Received 648
Bad Debt written off re: credit customer 2,600
Debtors as at 31 December 2010
Account £ Smiths Moore 1,789
Robert & Clark 6,543
Inspirations Ltd 8,322
Cruise Ltd 12,087
Admirals 3,455
Westside Storage 4,566
Abacus Hire Ltd 813
Creditors as at 31 December 2010
Account £ Clock & Co 8,546
West & Jones Ltd 2,985
Fascinations Ltd 3,100
Southalls Ltd 6,545
Admirals 2,350
Maple Advertising Ltd 2,750
Westside Property Co 3,701
VAT totals from the Books of Prime Entry as at 31 December 2010
£ VAT – Sales Day Book 7,650
VAT – Sales Returns Day Book 430
VAT – Purchase Day Book 5,876
VAT – Purchase Returns Day Book 320
VAT – Cash Book Receipts 2,700
VAT – Cash Book Expenses 1,850
VAT – Petty Cash Expenses 122
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Question Three – Maintaining Petty Cash Records
THERE ARE SIX TASKS IN THIS SECTION OF THE PAPER YOU MUST COMPLETE ALL TASKS DATA AND TASKS You work for a newsagents and one of your responsibilities is that of petty cashier. The business is registered for VAT. A petty cash imprest system is operated for the business with an imprest balance of £300. The Petty Cash Book is balanced off on a weekly basis with the imprest balance being restored each Friday by means of a cheque drawn on the bank. You write up the petty cash book each Monday to account for petty cash expenditure in the previous week. The following eight petty cash vouchers were prepared in respect of petty cash expenditure in the week Monday 24 January to Friday 28 January 2011:
Claimant: B. Clarke Claimant: J. Ryder Authorised by: K. Sienna Authorised by: K. Sienna
No: 027 No: 028
Petty Cash Voucher
Petty Cash Voucher
Date: 26/01/11 Date: 26/01/11
AMOUNT AMOUNT
£ p £ p
Casual Wages 35 00 Delivery Vehicle Repair 27 60
(sundries)
35
00
(includes VAT) 27
60
Claimant: L. West Claimant: B. Clarke Authorised by: K. Sienna Authorised by: K. Sienna
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No: 029 No: 030
Petty Cash Voucher
Petty Cash Voucher
Date: 27/01/11 Date: 27/01/11
AMOUNT AMOUNT
£ p £ p
Stationery VAT
7 1
00
40
Paper for Printing VAT
6
1
00
20
8
40
7
20
Claimant: L. West Claimant: J. Ryder Authorised by: K. Sienna Authorised by: K. Sienna
No: 031 No: 032
Petty Cash Voucher
Petty Cash Voucher
Date: 28/01/11 Date: 28/01/11
AMOUNT AMOUNT
£ p £ p
Milkman (sundries) (zero rated for VAT)
4
50
Shop refreshments (sundries) (zero rated for VAT)
15
00
4
50
15
00
Claimant: B. Clarke Claimant: L. West Authorised by: K. Sienna Authorised by: K. Sienna
REQUIRED Task A Enter the petty cash vouchers for the week Monday 24 January 2011
to Friday 28 January 2011 into the petty cash book.
Task B Sub-total the petty cash expenditure analysis columns and cross check them for arithmetic accuracy.
The owner of the business has decided he wants to reduce the amount of petty cash float held to £200.
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Task C
Balance off the petty cash book as at 28 January 2011 carrying down and bringing down the petty cash balance as at that date. Restore the petty cash balance to the new imprest amount of £200 and show the balance carried forward as at 28 January 2011.
Note: The following proforma is provided for your use in completing the above task:
Petty Cash Book (see page 9 of your Answer Booklet) Your duties as petty cashier include responsibility for the safe-keeping of the petty cash float. You keep the float in a lockable box which you then lock away each evening in the office safe. On the Friday of each week, having balanced off the petty cash book but before you restore the petty cash imprest balance, you check the contents of the petty cash box against the balance per the petty cash book. At close of business on Friday 28 January 2011 the petty cash box contained the following notes and coins: Denominations Quantity (Notes and Coins) In Box £10 Notes 10 £5 Notes 5 £2 Coins 8 £1 Coins 6 50p Coins 5 20p Coins 4 10p Coins 3 5p Coins 3 2p Coins 20 1p Coins 15 REQUIRED Task D Prepare the form „Reconciliation of Petty Cash Book Balance with
Contents of Petty Cash Box‟ as at Friday 28 January 2011, thereby reconciling the balance per the petty cash book with the contents of the petty cash box as at that date.
Note: The following pro-forma is provided for your use in completing the
above task: Form – Reconciliation of Petty Cash, Cash Book Balance with Contents
of Petty Cash Box (see page 10 of your Answer Booklet) The petty cash float is restored on the Friday of each week by means of a cheque drawn on the business bank account.
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As the petty cashier you prepare and sign a cheque requisition which you issue to the main cashier requesting the issue of a cheque made payable to „cash‟ for an amount necessary to restore the petty cash imprest balance. REQUIRED Task E Prepare and sign the cheque requisition (A Student) to be issued to
the main cashier on Friday 28 January 2011 for the amount necessary to restore the petty cash imprest balance.
Note: The following pro-forma is provided for your use in completing the
above task: Cheque requisition (see page 10 of your Answer Booklet) As petty cashier your duties also include the preparation of petty cash vouchers in respect of petty cash claims submitted to you. Petty cash vouchers are written up from receipts provided to you by claimants. Today‟s date is Monday 31 January 2011 and you have received the following receipt from Ellie Cooper the purchasing shop manager. The receipt is in respect of advertising costs incurred today by Ellie. She is now requesting that you reimburse her for the amount she has spent. She has left the receipt on your desk with a note telling you that she will call back to see you later in the day to sign the petty cash voucher and pick up the monies due to her:
Market Advertising. Receipt
Date: 31 January 2011 £ p Advertising Total 45 00 VAT at 20% 9 00
Total amount due 54 00
Received with thanks VAT Reg No: 876 3276 55
REQUIRED Task F Prepare a petty cash voucher in respect of the above petty cash claim.
You can sign the voucher (A Student) as having authorised the claim. Ellie Cooper will sign the voucher as claimant when she returns to your office.
NB: The last petty cash voucher you authorised was numbered 032 Note: The following pro-forma is provided for your use in completing the
above task:
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Petty cash voucher (see page 11 of your Answer Booklet)
Question Four – Processing ledger transactions and extracting a trial balance
You are responsible for updating the Ledgers for The Confectionery Store who is a client of Grangemoor Bookkeeping Co. The Confectionery Store operates a double entry bookkeeping system and the records have been completed up to the 30 November 2010. Therefore the transactions for December now need to be completed and finalised and all balances transferred to the appropriate ledger accounts. You have been provided with the following information: Account Balances as at 30 November 2010 Sales Day and Sales Returns Day Books for December 2010 Purchase Day and Purchase Returns Day Books for December 2010 Cash Book Summary Petty Cash Book Summary You are required to complete the following tasks: REQUIRED A Enter the opening balances into the Sales, Purchase and General Ledger given on pages 12 to 16 of your answer booklet B Post the entries from the Sales Day Book and Sales Returns Day Book given on page 16 to the customers accounts in the Sales Ledger and the balances to the relevant accounts in the General Ledger. Entries should be dated using the invoice/credit note date. C Post the entries from the Purchase Day Book and Purchase Returns Day Book given on page 16 to the supplier accounts in the Purchase Ledger and the balances to the relevant accounts in the General Ledger. Entries should be dated using the invoice/credit note date. D Post the totals for the Cash Book (receipts and payments) given on page 17 to the relevant accounts in the Sales, Purchase and General Ledger. Entries should be dated 31 December 2010. E Balance of the Sales, Purchase and General Ledger accounts and bring down the balances as at 1 January 2011. Note: Cash and Bank balances are the closing balances shown in the Cash Book. F Extract a Trial Balance as at 31 December 2010 using the form provided on page 17 of your answer booklet.
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Account Balances as at 30 November 2010 DR CR
Sales Ledger Balances (Memo only)
Sweet & Co. 1,256.00
The Sweet Shop Ltd 760.00
Pick & Mix 525.00
Purchase Ledger Balances (Memo only)
Humbugs Co. 356.78
Penny Sweets Ltd 523.99
Sweets Galore 422.75
General Ledger
Sales 17,546.83
Sales Returns 123.78
Sales Ledger Control 2,541.00
Purchases 12,098.25
Purchase Returns 144.56
Purchase Ledger Control 1,303.52
VAT 657.88
Bank 5,567.33
Petty Cash 157.00
Advertising 176.55
Wages 550.00
Capital 2,000.00
Sundry 438.88
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Sales Day Book
DATE 2010
CUSTOMER INV NO. TOTAL VAT SALES
02.12 Sweet & Co CS755 216.00 36.00 180.00
07.12 Pick & Mix CS756 347.83 57.97 289.86
12.12 The Sweet Shop Ltd CS757 654.00 109.00 545.00
