AIN2601 - Exam Papers

October/November 2014

3.1. Disadvantages

Start-up and operating costs. (Hardware, software and personnel) Database systems are complex to design and use. Because databases are complex, it is very time-consuming to design a proper

database. Database or database management software failure will affect all application

software linked to that specific database.

3.2

Type of MIS output report Example of reportFinancial MIS payment summariesManufacturing MIS inventory informationMarketing MIS sales informationHR MIS payroll administration

3.3 XBRL stands for Extensible Business Reporting Language and is used when financial information is exchanged in XML format. XBRL can broadly be defined as the electronic communication of financial and business information to all stakeholders.

3.4

3.4.1 Data mining: Data mining software is used to analyse data sets in order to uncover previously unknown trends, patterns and relationships between data.

Online analytical processing (OLAP): Online analytical processing (OLAP) software enables users to interactively and rapidly analyse large data sets from various viewpoints.

OLAP is mainly used to summarise data, say, per month and per region, the number of smart phones sold to persons aged 20 to 30 years. Data mining is used to break down data in order to uncover trends, patterns and relationships.

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3.4.2 Multidimensional model

3.5 DBMS enables users to design, create and maintain the database structure and the database control the organisation, storage and retrieval of data in the database capture, maintain (delete, insert and amend) and manipulate the data in the

database share data between multiple users simultaneously execute queries and generate outputs control the movement of the data between authorised users and the database

control and monitor access to the database analyse and monitor database performance

Question Four4.1 The customer account for Lilies and Lace is setup incorrectly on the early terms. The early terms should be 10% within 10 days from period end but in the screenshot it shows as setup for 10% within 10 days from invoice date which is incorrect.4.2 .

General ledger account description

Debit/Credit Amount

Bank Debit R5130 (R5700*0.9)Trade receivables (Lilies and Lace)

Credit R5700

VAT Debit R70Settlement discount granted Debit R500

4.3 Foreign key: When a primary data field of a database file is entered into another database file to create a relation between the two database files, the primary data field in the other database file is known as a foreign key.A foreign key does not uniquely identify a record and may have duplicates in a database file. The use of foreign keys prevents the duplication of data.

4.4 Account

4.5 The customer is not required to be a registered VAT vendor to purchase from Polka Mazurka. Polka is a registered VAT vendor – all customers will be required to pay VAT on purchases and all payments will be captured in the Bank inclusive column and this raise output on VAT on all sales.

4.6

4.6.1 Setup

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4.6.2 Edit

4.6.3 Process

4.6.4 View

4.6.5 File

4.7

4.7.1 Balance forward processing

4.7.2 They pay regularly and on time.

They only buy once a month (low number of transactions).

4.8

4.8.1 Quotation

4.8.2 Sales order

4.8.3 Delivery note

4.8.4 Sales invoice

4.9

4.9.1 outstanding quotation report

4.9.2 outstanding/open sales order report

4.9.3 credit note analysis reports

4.10

4.10.1 Decrease

4.10.2 Increase

4.10.3 Increase

4.10.4 Decrease

Question 5

5.1 =PMT((B$4/12),(B$5*12),$B16,$C16,0)*-1

5.2 =$D16*(1/1.14)

5.3 =MID($A16,7,3)

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5.4 =RIGHT($A16,1)

5.5 =VLOOKUP(F16,A$9:C$13,3,TRUE)

5.6 =IF($G16="B",2,1)

6

6.1 =ROUND(B$12-(B$12*B$9),0)

6.2 =($B$3*B$13)*$B$4*B$14

6.3 =IF(B$11>5000000,B$19*0.115,B$19*0.09)

6.4 =($B$5*B$12*B$14)*-1

6.5 – a password required for opening or reading workbooks– a password required to make changes to the workbook structure– a password required for changing the content in a sheet or cell

MJ 2014

Question 3

3.1

The quality of information is directly linked to the quality of raw data entered – in other words, inaccurate data will lead to inaccurate information and incomplete data will lead to incomplete information, which in turn will result in ineffective decisions.

3.2 A database can be defined as an organised collection of related data that is managed and stored electronically and can provide data to different application software in the organisation.

3.3 Advantages:– Data can be accessed, inserted and/or deleted without changing the database structure.– The database structure can be easily customised for most types of data storage.– Data does not need to be duplicated.– Most users easily understand the structure.– It is easy to search for and extract data from the database

3.4 Logical. The CoA must have a logical flow in the major categories, subcategories and the related account number blocks and individual account numbers. For example, the balance sheet accounts will be first, followed by the income statement accounts. The categories, subcategories and the related GL accounts will not be mixed, but follow each other logically.• Consistent. The account number structure and format must be consistent between

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the accounts used.• Account description. The account description should clearly but briefly explain thenature of the GL account.• Draft. Create a draft structure on paper first before implementing it in the AIS. It is easier to change the draft than the implemented CoA.• Feedback. Obtain feedback from the different role players on the draft CoA. They may have insights you have not yet considered and which could influence the CoA materially. • Sign-off. Obtain sign-off from applicable management on the final CoA before implementing it.

3.5

3.5.1

Primary data field: Each file has a unique data field (known as the primary data field) that can be used to uniquely identify each data record in a database file. A primary data field is also known as a primary key

3.5.2 A

3.5.3

Foreign key: When a primary data field of a database file is entered into another database file to create a relation between the two database files, the primary data field in the other database file is known as a foreign key.A foreign key does not uniquely identify a record and may have duplicates in a database file. The use of foreign keys prevents the duplication of data.

3.5.4 G

Question 4

4.1 The menu bar

The toolbar

The system navigator

The explorer

4.2 False

4.3 remark

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4.4

General Account Number Debit/Credit Amount8000/000 – Customer Control Account (trades receivable)

Credit 604200

9500/000 – VAT Debit 742001000/001 – Sales (Sales revenue)

Debit 530000

7700/001 – Inventory Debit 5415002000/001 – Cost of Sales Credit 541500

4.5

4.5.1. Process

4.5.2 View

4.5.3 Setup

4.5.4 Process

4.5.5 Change

Question 5

5.1 Supplier Age analysis

5.2 By setting up normal payment terms Phil could establish which accounts are due or overdue.

5.3 The remittance shows balances as per balance forward processing and should be a remittance for open item processing. The open item processing contains more detail than balance forward processing.

5.4 Remittances are useful to help settle account disputes between customers and suppliers.

5.5 Eight

5.6 If a transaction is processed in the wrong accounting period, the financial and business information will be incorrect and this can lead to incorrect decisions being made. It will give rise to incorrect monthly financial information.

5.7 supplier master file, inventory master file, purchase transaction file, VAT reference file, VAT transaction file, general ledger master files.

5.8

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5.8.1 490

5.8.2 530

Question 6

6.1 =LEFT(B$11,2)

6.2 =B11&”-“&B13

6.3 =PV(B17,B18,B16,0,1)

6.4 =VLOOKUP(B$19,$D$3:$F$9,3,TRUE)

6.5 =IF((B$12/12)<3,$B$4*B$21, $B$5*B$21)

6.6 =SUM(B$21:B$22)

6.7 =B$23+($B$6*B$23)

6.8 =B$24/(1+$B$3)

6.9 =MAX(B$25:F$25)

6.10 Complexity. • Frequency of use and updating. • Number of users using a spreadsheet. • Time in use.

OCT/NOV 2013

3.1 Requirement analysis: future growth of the organisation, all role players input,

prioritisation of requirements, the number of users; the number of suppliers and customers; input, processing and output methods (real-time, batch, etc.); processing speed; features; standard and customisable reports; and security.

Budget: budget for initial investment, training and implementation, customisation, the succeeding years’ maintenance, support and licence fee costs.

Implementation period: budget and plan for the time to implement the AIS.

3.2

Enterprise level software

3.3SAP ERP3.4

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Ease of use. Because this software is used daily, it should be easy to understand and use.

Integration. Flexibility. Scalability. Can this product grow with the organisation? Costs. Implementation. Upgrades.

3.5

Audit trail

3.6

• The database model type used should support the requirements of the organisation.• The acquired DBMS and database should closely match the requirements of the organisation.• The DBMS and database should be able to evolve to meet future organisational needs.• The performance of the DBMS and database.• The cost of the DBMS and database• Different DBMS and databases will require different levels of specialised staff skills.• The hardware needed to run the DBMS and database should be considered. • Can the DBMS and database be integrated with the rest of the organisation’s information systems?• The database size must be adequate for the organisation’s future data requirements and the database should easily be expandable. • The number of concurrent users the DBMS and database can handle • The DBMS and database vendor should be a reputable organisation and financially stable

3.7

Conceptual level

3.8

DML

Question four

4.1

General Ledger account Debit/Credit Amount

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numberTrade Payables credit R7740.60 (7000*0.97*1.14)

(Supplier invoice amount including VAT (net oftrade discount and price differences)

VAT debit R950.60 (R7000*0.97*0.14) (Supplier invoice VAT amount)

GRN Accrual Debit R7000.00 (Original GRN accrual amount excluding VAT)

Inventory Credit R239.40 (7000*1.14*0.03) (Trade discount)

4.2

Supplier master file

Vat transaction file

Purchase transaction file

Inventory master file

Question Five

5.1 .1 Use the Setup Assistant

5.1.2 the setup assistant guides you through a series of screens and creates a working company and sets up all the required parameters. Once the setup assistant creates a company you can work in it immediately. It is the most efficient and effective way to start a new company in Pastel.

5.2 The inventory item was set up incorrectly as a physical item and not as a service item.

5.3

5.3.1 01

5.3.2 Tax reference

5.3.3 Only capturing the VAT number after the verification of the VAT number is a way to ensure that all VAT numbers are verified. Passwords can be used to restrict edit access to the system, thereby ensuring that only verified supplier VAT numbers are recorded.

5.3.4 If organisations know the credit limit they have at each supplier, it will enable them to plan and spread their inventory purchases to optimise their cash flow.

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5.4.1 A preferred supplier is one from whom we will always first try to buy before we contact any other supplier for the same inventory item.

5.4.2 This supplier may have the lowest prices, the best quality, on-time delivery and preferential payment terms.

5.4.3 “Warn if Preferred Supplier Not Used” control on the “Setup – Inventory” screen.

5.5

5.5.1 File

5.5.2. Process

5.5.3 Change

5.5.4 View

5.5.5 Setup

Question 6

May June 2013

Question 3

3.1

– Do not share the password with anyone.– Do not write the password down and place it where people can find it.– Do not use an obvious password (eg birthdays or names) that someone couldeasily guess.– Use a combination of letters and numbers.– Include uppercase and lowercase letters, numbers and symbols in the password.– Use numbers to represent letters, for instance, 3 for your E and 1 for i.– Passwords should be eight or more characters in length.– Change passwords regularly if needed.

3.2

Type Processing3.2.1. Input: Batch Data is collected and entered into the DB

at the end of the week3.2.2 Processing: Batch Master file is updated at the end of the

month3.2.3 Output: Interactive Users able to request information

themselves

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3.2 Primary data field: Each file has a unique data field (known as the primary data field) that can be used to uniquely identify each data record in a database file. A primary data field is also known as a primary key.

3.4 Student ID number

3.5 The database administrator’s role includes functions such as the following:– Implement and maintain database management standards and conventions.– Ensure applications software complies to database management standards and conventions by establishing programming standards. – Define the database structures.– Design and create databases in line with database management standards and conventions– Implement, maintain and evaluate database access policies and security controls.– Monitor data and database security and access.– Monitor and maintain database performance.

3.6

3.6.1. Object-oriented model: In an object-oriented model, the data and the operations to be performed on the data are both stored in the database. Can store and process a wider range of data types than only text and numerical data – it also stores and processes images, audio and video data.

3.6.2. Multidimensional model: A multidimensional model is similar to a relational model, but whereas a relational model stores data in a two-dimensional table, a multidimensional model stores data in a three- or more dimensional table, creating a cube-like data structure. Data can be viewed in a spreadsheet-like format, which make it easier to understand where data with many interrelationships are stored and processed. Owing to the spreadsheet-like format, this data structure is easy to maintain. This model type is mainly used for data warehouses and makes online analytical processing (OLAP) and business intelligence software (BIS) possible.

3.6.3 Relational model: In a relational model, data is stored in two-dimensional rows and columns (ie tables). A table is also known as a relation, and each database has several tables. Every table has its own primary key and the database uses this primary key to link (relate) the table to the other tables in the database. MySQL,

Microsoft SQL Server and Oracle are examples of relational model databases.

Question Four

4.1

4.1.1 Process4.1.2 Setup

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4.1.3 Edit4.1.4 Change4.1.5 File4.2 Ten price lists4.3 Ninety nine (99)

4.4

4.4.1 M (add a new customer account)

4.4.2 E (Menu bar)4.4.3 D (Close the edit customer function)4.4.4 I (go to the last record)4.4.5 C (search according to the customer account Code)

4.5 Net value of the sales invoice: (R800*2*0.95)*1.14 = R1732.8 (5% invoice discount)Amount to pay = 1732.8*0.9 = R1559.52 (10% EPT – 10 within 5 days of invoice)

4.6.1 The bank opening balance must be captured in the cashbook against the suspense account 9990/001 to ensure the opening balance reflects on the bank reconciliation and clear the take-on suspense ^ Pastel only allows us to see transactions entered via the cash book on the bank reconciliation. If we were to use the bank account 8400/000 the trial balance would balance, but we will not be able to do a bank reconciliation for the cash book.

4.6.2 The reconciling items were already processed in the previous financial year and are therefore already included in the take-on opening balance. These cheques and receipts (outstanding items) must be visible when doing the bank reconciliation but without affecting the opening bank/cash book balance . We need to debit everything that we credit, so that there is no impact on the balance(or We therefore use the 8400/000 account for both the debit and credit entry so that there is no impact on the take-on opening balance). We will have to do this debit and credit through the cash book so that it is visible on the bank reconciliation ^.

4.6.3 The VAT implications have already been taken into account when the transaction occurred or VAT implications have already been taken into in the take on opening balance.

Question Five

5.1

General Ledger account description Debit/Credit AmountTrade receivables Debit R2280 (5*R400*1.14)

Sales amount including VAT (net of any trade discount granted)

VAT Credit R280 (2280 – 2280/1.14)VAT amount (based on the sale amount net of

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any trade discount granted)Sales revenue Credit R2000

Sale amount excluding VAT (net of any tradediscount granted)

Inventory Credit R1500 (R350 * 5)Amount based on inventory valuation methodexcluding VAT

Cost of Sales Debit R1500Amount based on inventory valuation methodexcluding VAT

Question 6

6.1 =$B$3&”123”&B$11

6.2 =MID(B$11,3,1)

6.3 =($B$4*B$13)

6.4 =Vlookup(B$11,$D$4:$E$7,2,False)

6.5 =(B$14-B$13)*B$15

6.6 =ROUND(B$16/1.14,2) =B$16/(1+$B$5)

6.7 =ROUND(SUM(B17:E17),2)

6.8 =IF($B$19<=$B$6,$B$19*$B$8,$B$19*$B$7)

6.9 =PMT($B$23/12,$B$24*12,$B$21,10000,0)*-1

6.10 #DIV/0!: This error occurs when the formula calls for division by a cell that either contains the value 0 or, as is more often the case, is empty. Division by zero is not possible according to mathematical principles.#NAME?: This error occurs when Microsoft Offi ce Excel does not recognise text in a formula.#NULL!: This error occurs most often when you insert a space where you should have used a commato separate cell references used as arguments for functions.#NUM!: This error occurs when Microsoft Offi ce Excel encounters a problem with a number in the formula, such as the wrong type of argument in a Microsoft Offi ce Excel function or a calculation that produces a number too large or too small to be represented in the worksheet.

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#REF!: This error occurs when Microsoft Offi ce Excel encounters an invalid cell reference, suchas when you delete a cell referred to in a formula or paste cells over cells referred to in a formula.#VALUE!: This appears when you use the wrong type of argument in a function, the wrong type ofoperator or when you try to do a mathematical operation that refers to cells containing text entries.#N/A!: This error occurs when a value is not available to a function or formula.

Question Paper One

Question Four

4.1

4.1.1 Setup4.1.2 File4.1.3 View4.1.4 Edit4.1.5 Process

4.2 Terms are not set to 60 days for the customer on the invoiceThere is an invoice discount of 5% which is not in the customer informationThere is no 5% discount added for the two chocolate line itemsThe invoice is of a value above the credit limitPayment due date is not 60 days from date of the invoice.

4.3GL account Debit/

CreditAmount

Trade Receivables Credit R5415 (5700*0.95)Sale return amount including VAT (net of any trade discount granted on the inventory returned)

VAT Debit R665(R5415- (5415/1.14))VAT amount (based on the sale amount net of any trade discount granted on the inventory)

Sales Revenue Debit R4750Sale return amount excluding VAT (net of any trade discount granted on the inventory)

4.4 Credit Note

4.5 01/11/2009

4.6

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4.6.1 Warning! Current balance exceeds credit limit.4.6.2 By doing a temporary exceeding of a credit limit. This temporary exceeding of a credit limit must always be authorised by a designated person(s) with the applicable authority.

4.74.7.1 Open Item Processing4.7.2 She buys frequently and has many queries4.7.3 All take on balances are shownList the details of transactions not yet paid togetherMost recent payment transactions

4.8 Contra in detail - Each transaction generates its own contra entry. If you view a detailed ledger of the sales account, for example, you would see the transaction and its balancing entry. This makes it easier to trace contra account transactions but it uses more disk space and makes reports longer.

Contra in Summary - The system generates one contra entry for the whole batch of transactions. This saves space and keeps reports smaller and quicker.

4.9 VAT reference fileVAT transaction fileCustomer MasterfileCredit note transaction file

Question 5

5.1 =LEFT(A10,3)

5.2 =B10&D10

5.3 =IF(D10=”COM”,$B$3,$B$4)

5.4 =(G10*H10)+G10

5.5 =(G10*H10)/(1+$B$5)

5.6 =Round((J10*F10),2)

5.7 =IF(F10>=AVERAGE($F$10:$F$16),(0.05*(SUM($K$10:$K$16))),0)

5.8 =MIN(F10:F16)

5.9 =AVERAGE(F10:F16)

Question 6

6.1 =VLOOKUP(B16,$A$4:$B$11,2,FALSE)

6.2 =PMT($B$13,$B$14,0,$B18,0)

Question Paper 2

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4.14.1.1 Setup4.1.2 Setup4.1.3 Process4.1.4 View4.1.5 File

4.2 Good received notePurchase orderSupplier invoiceCredit to supplier

4.3 PAY supplier

GL account Debit/Credit

Amount

9000/000Trade Payables

Credit R1,140,000Supplier invoice amount including VAT

9500/000VAT

Debit R140,000Supplier invoice VAT amount

GRN accrual Debit R1,000,000Original GRN accrual amountexcluding VAT

4.4 00

4.5 36

Question 5

5.15.1.1 The Farm Factory. The payments are matched to the supplier and the specific supplier invoices.5.1.2 Dozing for Africa. The payments are not match to specific supplier invoices.

5.2 It allows a company to optimise their cash flow.

5.3 From end of period. From date of invoice.

5.4 R1,140,000 * 0.95 = R1,083,000

Question 7

7.1 =(RIGHT(D7,3)&D8)

7.2 =SUM(D12:F12)7.3 =MID(A22,4,3)7.4 =IF(B22<500,$B$4,$B$5)7.5 =ROUND(D22/(1+C22),0)7.6 =VLOOKUP( A22,$B$12:$G$17,6,FALSE)

Question 8

8.1 =FV($B$5/4,$B$6,2000,0,1)8.2 =ROUND(B12*0.5,0)8.3 =B19*(1+$B$9)

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8.4 =MAX(B20:D20)8.5 =IF($B$22<$B$7,”Will host the party”,”Keep saving Money”)

Question Paper 3

Question 4

4.14.1.1 Process4.1.2 View4.1.3 Setup4.1.4 Edit4.1.5 Utility

4.2

4.2.1 90

4.2.2 By reference By amountBy date

4.2.3 G - General Ledger,C - CustomerS –Supplier4.2.4 Suppliers do not normally pay their customers.

4.2.5 Debit – R71744.51

4.2.6. The payment would not be reflected in the correct period and the customer could be reflected as overdue on their account.

4.2.7 The Pastel manual recommends that the cash book transactions should not be updated until the bank reconciliation has been done. While this may work for a small organisation with an accountant coming in at the end of every month to quickly capture the few transactions, this is not recommended for any other organisation for the following reasons: • Only updated transactions are reflected in the general ledger. We will therefore have to wait for the bank reconciliation to be completed before drawing information from the system and making decisions.• We may have received payments from our customers during the month, but their accounts will not be updated until the cash book has been updated. Their outstanding balance could thus incorrectly reflect as exceeding their credit limit, and the organisation could be losing out on some sales (and customer goodwill).• The “Remittance Assistant” is a wonderful time saver to make payments to suppliers. However, if we have not updated the cash book payments made to them during the month, it will not work accurately and we may overpay the suppliers.• This encourages careless transaction capturing because any mistakes are simply corrected with the bank reconciliation (then again assuming the bank statement is 100% correct, which is not always the case). • This encourages the roles of capturer and reconciler to be performed by the same person. Bank reconciliation is a control procedure and these roles should therefore never be performed by the same person.

4.2.8 Transfer

4.2.9

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4.2.10 N – No to multicurrency

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AIN2601 - Exam Papers

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