Level 2 Certificate in Computer is Ed Book Keeping Jan 08 Question Paper

8/8/2019 Level 2 Certificate in Computer is Ed Book Keeping Jan 08 Question Paper

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Level 2 Cert.CB January2008v4

International Association of Book-keepers

LEVEL 2 Certificate in Computerised Book-keeping

JANUARY 2008

Qualification Accreditation Number 100/5314/1

Unit Accreditation Number Y/103/2527

Candidates Instructions:

Time allowed: 10 minutes reading time plus 2 hours

Candidates should answer all Tasks.

All written answers should be in pen or word processed.


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Level 2 Cert.CB Page 1 January 2008/4

Level 2 Certificate in Computerised Book-keepingJANUARY 2008

Time allowed: 10 minutes reading time plus 2 hours.

Scenario

A new business, Robs Wholesale,is being set up by Rob Smith. Thebusiness will be registered for VAT (Standard Accounting) and will be tradingon both a credit and cash basis.

Sales will be divided into 2 categories sales of toys and sales of books. Thelatter is VAT zero rated.

Purchases will be divided into 2 categories purchases of toys and purchases

of books. The latter is VAT zero rated.

Required

1. You are to assume the role of Accounts Clerk and carry out theinstructions in the order that they are given using a commercial

Accounting software package. Robis relying on you to input thedata accurately.You should ensure that every transaction has aunique reference.

2. Print the following at the end of the month:a. Trial Balanceb. Summary Audit Trailc. Address Lists for customer and suppliersd. DetailedAged Debtors and Aged Creditors Analysese. Nominal activity reports for each category of sales and

purchasesf. Nominal activity report of the bank and petty cash transactionsg. Reconciled and unreconciled bank transactions

3. a) Rob is concerned about the accuracy of his data. Explain threeways in which data can be verified for its accuracy after it has beeninput. (6 Marks)b) Rob also wants to use the computer to its maximum advantage.Identify two other reports you could provide which will help himmanage his business more effectively. (4 Marks)

The business was started on 1st January 2008.

Set this as your Financial Year Start Date.


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The name and address ofRobs Wholesale is as follows:

Robs WholesaleUnit 4Priory Road Industrial Estate

PaigntonTQ4 7EV

Enter this information onto your Accounting program and, after thename Robs Wholesale, add your Examination Entry number.

Set up the following Nominal Accounts, using an account reference relevantto the package you are using:

Nominal Code NameCapital

Drawings

Sales ToysSales BooksPurchases ToysPurchases Books

Set up the following Customer Accounts, using an appropriate accountreference:

Torbay Books12 Hyde RoadTorquayTQ1 4VC

CI Shipping LinesHarbour RoadWeymouthDC16 2MP

Seaside Kiosks Ltd.7 Polters LaneBournemouthBH1 9HN

Set up the following Supplier Accounts, using an appropriate accountreference:

Book Importers Ltd.276 Old Kent RoadLondonSE1 5AW

Northern News5 Grange RoadLiverpoolL1 4CR

Alan Bennett & Co3 Elm CloseWorcesterWC3 7DH

Kings Wholesale3 First Drive

DorchesterDC3 9HR


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Rob put in place the finance for the new business.

Date Details

1 Jan Rob paid 15,000 of his own money into the Business Bank currentaccount

1 Jan Received Bank Loan of 20,000 paid into the current account.Arranged loan repayment to be paid on 23rd of each month byStanding Order. This amounts to 500 per month, 400 beingcapital repayment and 100 being loan interest. Set this up andpost the payment at the appropriate time.

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

Cheque LogDate Cheque

no.Payee Details Net

VAT

Gross

2 Jan 30001 Cash Petty

Cash200.00

3 Jan 30002 TorbayCouncil

Rates 1,000.00 OutsideScope

1,000.00

5 Jan 30003 ABProperties

FirstPaymentforPurchaseofBusiness

Unit

5,000.00 ZeroRated

5,000.00

10 Jan 30004 JonesMotors

Hire ofDelivery

Van

1,000.00 175.00 1,175.00


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During the month, the following invoices were sent out to customers. Enterthese transactions:

Robs Wholesale

Unit 4Priory Road Industrial EstatePaigntonTQ4 7EVTelephone: 01803 588330

Invoice To: Invoice No. RW 001Torbay Books12 Hyde RoadTorquayTQ1 4VC

Invoice Date 01.01.2008

VAT Rate NetToys - per delivery note 12 17.5% 1,826.29

1,826.29VAT 313.20

Invoice Total 2,139.49

Terms: 2% discount if paid within 14 daysVAT Reg. No. 386 4103 25

Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EVTelephone: 01803 588330

Invoice To: Invoice No. RW 002CI Shipping LinesHarbour RoadWeymouthDC16 2MP


VAT Rate NetAssorted toysAssorted paperback books

17.5%Zero

840.68630.20

1,470.88VAT 147.11


Terms: Nett monthly accountVAT Reg. No. 386 4103 25


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Robs WholesaleUnit 4Priory Road Industrial Estate

PaigntonTQ4 7EVTelephone: 01803 588330

Invoice To: Invoice No. RW 003Seaside Kiosks Ltd.7 Polters LaneBournemouthBH1 9HN


VAT Rate NetSundry toys 17.5% 380.95

380.95VAT 66.66

Invoice Total 447.61



Invoice To: Invoice No. RW 004CI Shipping LinesHarbour Road

WeymouthDC16 2MP


VAT Rate NetToys per delivery note 27

Assorted paperback books17.5%Zero

1,200.00225.00

1,425.00VAT 210.00


Terms: Nett monthly account

VAT Reg. No. 386 4103 25


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Robs WholesaleUnit 4Priory Road Industrial EstatePaignton

TQ4 7EVTelephone: 01803 588330

Invoice To: Invoice No. RW 005Torbay Books12 Hyde RoadTorquayTQ1 4VC


VAT Rate Net

New issue books Zero 2,750.00

2,750.00VAT 0.00




Invoice To: Invoice No. RW 006Seaside Kiosks Ltd.7 Polters LaneBournemouth

BH1 9HN


VAT Rate NetSundry toys supplied

Assorted paperback books17.5%Zero

341.0080.60

421.60VAT 59.67

Invoice Total 481.27



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During the month, the following credit note was sent out. Enter thistransaction:

Robs Wholesale

Unit 4Priory Road Industrial EstatePaigntonTQ4 7EVTelephone: 01803 588330

Credit Note: Credit Note No. RWC 001CI Shipping LinesHarbour RoadWeymouthDC16 2MP

Credit Note Date 15.01.2008

VAT Rate NetSpoiled toys water damagedSpoiled books water damaged

17.5%Zero

30.0040.00

70.00VAT 5.25

Credit Total 75.25

VAT Reg. No. 386 4103 25


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

Book Importers Ltd.276 Old Kent RoadLondonSE1 5AW

Invoice To: Invoice No. BI 966Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EV


VAT Rate NetSelection of books Zero 3,150.00

3,150.00VAT 0.00


Terms: 30 daysVAT Reg. No. 312 4145 78

Alan Bennett & Co3 Elm CloseWorcesterWC3 7DH

Invoice To: Invoice No. AB 856Robs WholesaleUnit 4

Priory Road Industrial EstatePaigntonTQ4 7EV


VAT Rate NetAssorted toysAssorted paperback books

17.5%Zero

1,420.00425.00

1,845.00VAT 241.04




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Northern News5 Grange RoadLiverpoolL1 4CR

Invoice To: Invoice No. NN 1826Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EV


VAT Rate NetBooks per delivery note 329 Zero 315.00

315.00VAT 0.00

Invoice Total315.00


Kings Wholesale

3 First DriveDorchesterDC3 9HR

Invoice To: Invoice No. 3169Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EV


VAT Rate NetWholesale toysWholesale paperback books

17.5%Zero

750.20460.00

1,210.20VAT 131.28


Terms: 30 days nettVAT Reg. No. 312 4168 75


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During the month the following credit note was received:

Kings Wholesale

3 First DriveDorchesterDC3 9HR

Credit To: Credit Note KWC 991Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EV

Credit Note Date 23.01.2008

VAT Rate NetDamaged paperback books Zero 40.00

40.00VAT 0.00

Total 40.00

Terms: To be deducted from payment of next invoice.VAT Reg. No. 312 4168 75


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

Petty Cash Voucher

No. PCV 1Date 1.1.2008 VAT Rate: 17.5%

Expense Details

Diesel for delivery van

Amount including VAT (where applicable)

30.00

Signed .. Total 30.00

Petty Cash VoucherNo. PCV 2Date 4.1.2008 VAT Rate: 17.5%

Expense Details

Carriage on deliveries fromsuppliers.

(This is to be treated aspart of the cost ofpurchases, but must beshown separately)


20.00


Petty Cash VoucherNo. PCV 3Date 10.1.2008 VAT Rate: Exempt

Expense Details

Postages


15.00



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Petty Cash VoucherNo. PCV 4Date 14.1.2008 VAT 17.5%

Expense Details

Carriage on deliveries tocustomers


18.00


Petty Cash VoucherNo. PCV 5Date 18.1.2008 VAT Rate Zero

Expense Details

Minor repairs to buildingroof


25.00


Petty Cash VoucherNo. PCV 6Date 22.1.2008 VAT Rate Zero

Expense Details

Tea, coffee, etc


8.00



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During the month, the following moneys have been received from Customers:Chequeamount

12 Jan Cheque (no. 486) received from Torbay Books in full

settlement of our invoice RW 001, having taken thediscount offered.

2,102.96

28 Jan Cheque (no. 3160) received from CI Shipping Lines in fullsettlement of our invoice RW 002.

1,617.99

29 Jan Cheque (no. 21) received from Seaside Kiosks Ltd. Thiswas in respect of our invoice RW 003. It was decided towrite off the difference as discount.

445.00

In addition, on 19 January, Rob undertook a trade fair and made cash sales ofbooks 280.00. Of this, 100.00 was retained as petty cash. The balance was

paid into the bank.

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

Cheque LogDate Cheque

no.Payee Details Net

VAT

Gross

2 Jan 30001 Cash Petty

Cash200.00

3 Jan 30002 TorbayCouncil

Rates 1,000.00 OutsideScope

1,000.00

5 Jan 30003 ABProperties

FirstPaymentforPurchaseofBusinessUnit

5,000.00 ZeroRated

5,000.00

10 Jan 30004 JonesMotors

Hire ofDelivery

Van

1,000.00 175.00 1,175.00

15 Jan 30005 TradeShowsLimited

Hire of stand for trade fair,100.00 plus VAT 17.50.

117.50

24 Jan 30006 AlanBennett &Co.

Full settlement of their invoiceAB 856, taking advantage ofthe discount offered.

2,030.69

27 Jan 30007 BookImporters

Payment on account. 2,000.00

31 Jan 30008 AB

Properties

Balance of purchase price of

business unit. (Zero rated)

15,000.00

31 Jan 30009 Cash Reimburse Petty Cash box tobring float back to 200.00.

16.00


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

31 January - Net Wages paid from the Bank Current Account by BACS986.90 (this included 500.00 in respect of Robs personal drawings)

The Income Tax and National Insurance have been calculated asfollows:

Income Tax deducted 56.09Employees NIC deducted 18.65Employers NIC 21.42

These will not be sent off to HM Revenue & Customs until 15thFebruary; therefore, enter these figures into the system by JournalEntries.

29th JanuaryRob took some paperback books for his own use. These had a sellingprice of 15.00 (Zero rated for VAT).

Make the journal entry to reflect this.


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Level 2 Cert CB Page 15 January 2008/4

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

SEASIDE BANK PLCAccount Number: 2819045

Robs WholesaleUnit 4Priory Road Industrial EstatePaignton

TQ4 7EV

Date Particulars Payments Receipts Balance

1 Jan Counter Credit 15,000.00 15,000.00

TrfBusiness Loan 20,000.00 35,000.00

3 Jan 30001 200.00 34,800.006 Jan 30002 1,000.00 33,800.00

8 Jan 30003 5,000.00 28,800.00

14 Jan 30004 1,175.00 27,625.00

15 Jan Counter Credit 2,102.96 29,727.96

18 Jan 30005 117.50 29,610.46

19 Jan Counter Credit 180.00 29,790.46

23 Jan Business Loan Account DD 500.00 29,290.46

30 Jan 30007 2,000.00 27,290.46

When you have finished, return to page 1. Print out as instructed and writeyour answer to question 3.

STATEMENT OF ACCOUNTSheet No.1

SortCode:14-40-00

Telephone:01803 123000

Facsimile:01803 123001

Documents

Level 2 Certificate in Computer is Ed Book Keeping Jan 08 Question Paper