Integrated Accounting SysSage 50 Accounts Northern Ireland

Exam Paper 2014/15

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2nd Year Examination: Exam Paper 2014/15

Paper: IAS Sage 50 Accounts (Northern Ireland)

INSTRUCTIONS TO CANDIDATES

PLEASE READ CAREFULLY For candidates answering in accordance with the law and practice of Northern Ireland. Candidates should answer the paper in accordance with the appropriate provisions up to

and including the Finance Act2014. The provisions of the Finance Act 2015 should be

ignored. All names and addresses mentioned are entirely fictitious. This examination paper is copyright and may not be reproduced. Candidates should allocate their time carefully.

On completion of the examination:

1. Ensure that you have correctly completed the examination cover sheet and any other

documentation provided by the invigilator.

2. Ensure that all printouts (Payroll, Accounts and Excel) are in the order requested in each

section and are correctly submitted to the invigilator.

3. Ensure that PDF reports have been correctly saved and submitted to the invigilator.

4. Ensure that there is a folder, created in the location indicated by the invigilator, showing your exam number * as the folder name. Confirm that you have saved a backup of your Sage 50 Payroll, Sage 50 Accounts and Excel data into this folder.

It is the student’s responsibility to ensure that all work is saved and submitted as required above. Accounting Technicians Ireland cannot be held responsible for any marks lost as a result of the above not being completed correctly.

* NB: Ensure that you use your exam number;

You should not use your student registration number or college registration number.

Integrated Accounting Systems Examination -Sage 50 Accounts (ROI) 2014/2015

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START OF EXAM PAPER

Company Information:

Business Name: Cute Teddy Bears Ltd.

Address: 45 Phoenix Street, Belfast, Co. Antrim BT1 4QG

Telephone: 028 9032 1234

Fax: 028 9032 1235

E-mail: info@teddybears.co.uk

Website: www.teddybears.co.uk

VAT Reg. No.: GB-818905679

Employer Reg. No.: 002/818905679

Directors: Mr. James Munroe Ms. Julie Munroe

Business: Supply and Retail of Teddy Bears and other toys.

Type of Business Entity: Private Limited Company

Business Profile:

Cute Teddy Bears Ltd. was incorporated as a Private Limited Company in 1996.James and Julie Munroe are the directors and shareholders of the company.

The majority of Cute Teddy Bears Ltd.’s sales are on credit, with some cash sales. The company is

registered for VAT. VAT is charged on sales at the standard rate of 20%.The company accounts for

VAT on a Standard VAT Accounting basis.

The accounting year of Cute Teddy Bears Ltd. is June to May. Assume that today is the 2

nd of

September 2014 and you have recently been employed as the company’s accounting technician. As part of your duties you will be responsible for the administration of the payroll system and the preparation of the monthly management accounts. There are currently five employees paid on a monthly basis and all employees receive payment on a ‘back month’ basis. A draft set of accounts up to 31st August 2014 were produced by your predecessor using Sage 50

Accounts. You are aware that there are some additional entries still to be posted and there are a

few changes suggested by the directors before finalising the management accounts.

Integrated Accounting Systems Examination -Sage 50 Accounts (ROI) 2014/2015

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Section A – Payroll: You are required to: 1. Log in to Sage 50 Payroll and restore the setup Sage 50 Payroll dataset from the location

indicated by the invigilator. Update the payroll period to August 2014 and record all payroll information provided below, setting up any new pay elements that may be required. You are to assume that any employees NOT mentioned below, but on the payroll of the company, earned their usual salary value. All employees are entitled to 1.67 days holidays per month worked and on average an employee will work 260 days in a year.

(1 Mark)

2. You should set yourself up as a new employee identified by your exam number only. Insert your exam number in the surname field and complete the first name field with the word ‘student’. You commenced employment on Monday 4

thAugust 2014 and a copy of your P45 from your

previous employer is attached (refer to Appendix A). Your date of birth is 25/12/1982, Starting Declaration B and National Insurance code A applies. Your annual salary has been agreed at £32,500 per annum (assume that you are paid by cheque) and you are to receive a full month’s salary for August.

(3 Marks)

3. In August 2014, Julie Munroe increased her working week from four days to five days effective from August 1

st. Based on her current salary increasing on a pro rata basis, calculate and pay the

appropriate salary amount for August. In addition she is to be reimbursed for vouched travel expenses of £23.00 incurred in August.

(3 Marks)

4. Lisa Daniels has decided to contribute £150 to a pension scheme every month, and the Company will additionally contribute £75 per month on her behalf, effective from 1

st of August 2014. Update

the payroll package for these changes. (3 Marks)

5. Craig Hennessy was absent from work for five days in August 2014, as he was attending a

wedding overseas. He has exceeded his holiday entitlements so it has been agreed that the week in question will be deducted from his salary for the month. Create a separate pay element to record this deduction and update the payroll package to account for this information.

(3 Marks)

6. The company paid medical insurance on behalf of Ger Jameson. This is a taxable benefit and as

a consequence Ger has been issued with a new tax code of 975L. In addition the company has decided to give Ger an annual car allowance of £7,500, payable monthly and commencing in August 2014. Update the payroll package for these changes.

(3 Marks)

7. Print the payment summary report 1 & 2 (in landscape format) for August and a payslip for the new employee. When you have completed processing the payroll for August 2014 ensure that you backup the Sage 50 Payroll dataset into a folder, created in the location indicated by the invigilator, which should be titled with your exam number.

(4 Marks)

Section A Total: (20 Marks)

Integrated Accounting Systems Examination -Sage 50 Accounts (ROI) 2014/2015

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Section B - Integrated Accounts and Double Entry: You are required to: 1. Restore the Sage 50 Accounts dataset for Teddy Bears Ltd. from the location indicated by the

invigilator. (If required: The logon name is manager and there is no password). (1 Mark)

2. Adjust the company name so it reads: Cute Teddy Bears Ltd., followed by your exam number.

(1 Mark) 3. Using existing nominal accounts, you are required to post the salary journal for August 2014 using

the information you produced in Section A. (5 Marks)

4. Create a new Customer record according to the following information:

Code: RED01 Name: Reddy Teddy Ltd Address: 23 Coolmine View, Belfast Tel: 028 8024 4465

Contact Name: Mark Reddy Credit Limit: £100,000

(2 Marks)

5. The following invoice was created in Microsoft Word and sent to Reddy Teddy Ltd. Post the details of this invoice to Sage 50 Accounts:

(2 Marks)

6. On the 28th of August 2014 the company sent a euro draft (issued from the current account) for

€6,231.75 to The Button Factory costing £5,230.22 for payment of PI/1015. A bank charge of £7.50 is included in this figure and the difference is the currency gain/loss. Enter all of the above through the purchase ledger and allocate the payment against the invoice and related charges.

(3 Marks)

Cute Teddy Bears Ltd 45 Phoenix Street, Belfast, Co. Antrim BT1 4QG

VAT Reg. No: 818905679

QTY DESCRIPTION NET

10 Little Grey Teddy Bears 250.00

10 Little White Teddy Bears 250.00

Net: 500.00

VAT: 100.00

Gross: 600.00

Invoice Date: 10th August 2014

Invoice Ref: NC1001

Integrated Accounting Systems Examination -Sage 50 Accounts (ROI) 2014/2015

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7. Post the following purchase invoice, which relates to the purchase of office equipment:

MAGIC MATERIALS USA Unit C3

520 Taylor Street San Francisco, CA 94102

To: Cute Teddy Bears Ltd 45 Phoenix Street Belfast, Co. Antrim BT1 4QG

For the supply of 3 x Integrated Office Fit-out Units Each @ $750

$2,250

Total Due: $2,250

£1 = $1.3756 (3 Marks)

8. The company took out a short term loan with Lending Bank PLC on August 4

th2014. The loan

amount was £8,000 and it is to be repaid over 18 months. The bank is charging total interest of £450 on this loan, which will be charged on a monthly basis. You are required to:

(i) Set up the new bank account and record the capital drawdown on 4

th August.

(3 Marks)

(ii) Calculate, set up and post an appropriate recurring journal for the monthly loan repayment starting on August 31

st2014 and to be processed monthly. You are

instructed to use your exam number as the reference on the recurring transaction. (3 Marks)

(iii) Assuming that Loan interest is charged evenly throughout the Loan period, you are to calculate, set up and post a recurring monthly journal, using the existing

nominal account for Loan Interest, to charge the expense to the Profit and Loss

Account on the same date as (ii) above. You are instructed to use your exam number as the reference on the recurring transaction.

(3 Marks) 9. Enter the following petty cash vouchers for August 2014:

Date Details Ref Net VAT Gross

12/08/2014 Stamps 140801 60.00 0.00 60.00

23/08/2014 Cleaning Materials 140802 15.00 3.00 18.00

On 31

st August the petty cash imprest was restored to £75.00 using cheque number 50016. Enter

an appropriate adjustment in Sage 50 Accounts to reflect the revised petty cash balance. (2 Marks)

10. Record the following lodgement from BoyZone Games Ltd, allocating the payment to Invoice 100947, and write off any remaining value on the Debtor’s account to Discount:

Premier Bank Date: 30/08/2014

LODGEMENT SLIP Total Value: € 4,788.00

Ref: 100027 Cute Toys Limited

(2 Marks)

� �

Invoice No: 32578 Invoice Date: 12/08/2014

�

£

Integrated Accounting Systems Examination -Sage 50 Accounts (ROI) 2014/2015

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11. On August 15

th James Munroe decided to provide the Company with a Directors’ Loan of £5,000,

which he lodged to the Deposit Account. Record this receipt in Sage 50 Accounts. (2 Marks)

12. You are instructed to reconcile the bank account:

(i) Enter any amounts from the attached bank statement (refer to Appendix B) that may not have been recorded.

(4 Marks)

(ii) Print the Bank Reconciliation Report available in the Bank Reconciliation Window and then reconcile the account to the bank statement for August 2014.

(2 Marks)

13. You are instructed to provide for depreciation based on the following fixed assets depreciation

policies:

– Property – 10% p.a. straight line

– Plant and Machinery – 10% p.a. straight line

– Office Equipment – 20% p.a. straight line

– Furniture and Fixtures – 10% p.a. straight line

– Motor Vehicles – 20% p.a. reducing balance

– Leased Assets – over the life of the lease

The depreciation expense for each relevant category of fixed assets should be posted to the existing separate nominal ledger accounts in the Profit and Loss. It is also the company’s policy to charge a full year’s depreciation in the year of acquisition with no deprecation in the year of disposal.

(6 Marks) 14. As a result of a stocktake on the 31

st August 2014 it is noted that the closing stock value should be

£16,500.00.Enter the appropriate adjustments in Sage 50 Accounts to ensure that the opening stocktake value is introduced into the Trading Account for August 2014, and that the correct closing stocktake value is reported in the Balance Sheet as at 31

st August 2014.

(2 Marks) 15. The electricity invoice for August has not been received. You should accrue for this expense,

estimating the adjustment to be equal to the net value of the invoice received from Northern Ireland Electricity in July.

(2 Marks)

16. The Directors have reviewed the Aged Debtors report and have decided to reflect their concerns

over possible bad debts. Using existing nominal accounts, you are required to establish a bad debt provision calculated at 5% of total outstanding debtor balances.

(2 Marks) 17. Print the following reports from Sage 50 Accounts to the location indicated by the invigilator:

• A detailed audit trail by posting number starting at posting 198 and ending at the last posting number in Sage 50 Accounts, (in portrait format),

• A print list detailing recurring journals,

• A complete and detailed aged debtors analysis report as at 31st August 2014,

Ensure that all dates have been posted correctly, throughout the audit trail, and backup the Sage

50 Accounts dataset for Cute Teddy Bears Ltd. into the folder created in Section A which should

be titled with your exam number. (10 Marks)

Section B Total:(60 Marks)

Integrated Accounting Systems Examination -Sage 50 Accounts (NI) 2014/2015

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Section C- Excel: You are required to prepare a month by month budget for the 3 months from 1

st September 2014 to

30th November 2014 based on the actual figures for June 2014.

1. Export the Profit and Loss Report for June 2014 from the Sage 50 Accounts dataset into an Excel

worksheet and save the file as an Excel workbook titled with your Exam number:

• Unmerge the details on the spreadsheet if necessary,

• All nominal account descriptions should appear in column A,

• All values for June 2014should appear in column B; delete any YTD information,

• Column B should be named “June 2014”,

• Delete any reference to direct expenses,

• Insert narratives for total sales, total purchases and total overheads,

• Ensure that there is a blank row inserted after each ‘total’ line.

(3 Marks)

2. Column C should be named “Variances”. Insert percentage values in column C to indicate the adjustments that will be applied in the September – November figures, based on the following information:

• Due to recent marketing activity it is anticipated that Sales values will increase by 10% progressively on a month to month basis each month,

• As a result of intended changes to the pricing model it is anticipated that Cost of Sales values will increase by 5% progressively on a month to month basis each month,

• Further to recent adjustments in staffing levels, wage costs will decrease by 3% in September 2014 and will then remain unchanged,

• All other expenses should be decreased by 4% from the June 2014 values, with the exception of depreciation,

• Depreciation should be based on the June 2014 figures, while considering the additional charge for depreciation on the new leased asset addition as outlined in Section B. (Refer to the company’s fixed assets depreciation polices in Section B). You are asked to indicate this additional charge on a new line in the budget spreadsheet,

• The monthly lease interest (as indicated in Section B) should also be accounted for, on a new line in overheads, in the budget for Quarter 2.

In columns D-F you should prepare a month by month budget template for the 3 months from September 2014 to November 2014. Insert formulas to calculate the budget projections for each month using the variance percentages and other information indicated above. You are asked to use the absolute formula throughout the budget calculations, where possible/appropriate. Ensure each column is appropriately named i.e. Sept 14 etc.

(5 Marks)

3. In Column G insert appropriate formulas to calculate the average budgeted figures for the 3 months ending 30

th November 2014 and name this column “Average Values for Q2”.

Insert formulas to show the updated totals for all (i) category totals (ii) gross profit and (iii) net profit, in each month, and in the Q2 averages column.

(2 Marks)

Integrated Accounting Systems Examination -Sage 50 Accounts (NI) 2014/2015

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4. Format the content of the spreadsheet in the following way:

• All text and figures should be in Verdana,

• Centre and underline all month headings,

• All monetary values to be comma style with no decimal places,

• Ensure that all Gross Profit and Net Profit information is in Bold font, and ensure all figures and text are visible,

• Using any Word Art, title the page “Budget for 3 months ending 30th November 2014”,

• Insert today’s date as a footer on the right section and your exam number on the left side section. Both should be in bold and italics.

(4 Marks)

5. In a new worksheet, create a 3-D Pie Chart based on the average figures for the 3 months ending 30

th November 2014, for all expense codes from Rent & Rates to the end of the

Overhead Accounts. The Pie Chart should be formatted as indicated below.

• Using the ‘Select Data’ option edit the series title to state “Other Monthly Expenses”,

• Insert your exam number as a centred footer.

(3 Marks) 6. You are asked to print each of the following reports in landscape format, and on one page only:

• One printout of the budget worksheet showing figures as normal,

• One printout of the budget worksheet adjusted to show formulas instead of figures,

• One printout of the Pie Chart.

On completion of your activity ensure that you have saved the Excel Workbook into the folder created in Section A which should be titled with your exam number.

(3 Marks)

Section C Total: (20 Marks)

TOTAL EXAM MARKS: (100 MARKS)

APPENDIX A

DATE PARTICULARS DEBIT CREDIT

Aug-14 Balance b/f

Lodgement 100021 17,640.00

Lodgement 100022 8,760.00

Rent - DD 3,250.00

Cheque 50012 8,113.05

EFT - "All Teddy Supplies Ltd" 1,260.00

4 Loan Drawdown 8,000.00

31st August 2014Belfast, BT1 4QG

BALANCE ( ) denotes Debit

38,853.29

PREMIER BANK PLC

Cute Toys Limited

45 Phoenix Street

Unit 7, Titanic Quarter, Belfast

STATEMENT OF ACCOUNT

1

3

62,003.29

52,630.24

60,630.24

Cheque 50013 855.00

10 Cheque 50015 916.80

11 Lodgement 100023 4,882.80

20 DD - Monthly Insurance Charge 210.00

Bank Charges 32.95

DD - BT 318.00

HMRC - P32 payment 7,388.06

28 Euro Draft 5,230.22

30 EFT - Staff Salaries 12,869.11

Lodgement 100024 1,440.00

Lodgement 100026 2,337.40

31 Loan Repayment 469.44

Lodgement 100025 10,040.34

Aug-14 Closing Balance

41,470.30

50,562.01

63,531.24

31 51,041.20

23 55,792.23

21

63,180.29

51,041.20

58,858.44

63,741.24

5 59,775.24

APPENDIX B

Cute Teddy Bears Limited

These pages are supplied to facilitate Workings.

Students should note that no marks will be awarded for workings shown on these pages.

END OF EXAM PAPER

These pages are supplied to facilitate Workings.

Students should note that no marks will be awarded for workings shown on these pages.