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Level 2 Certificate in Computer is Ed Book Keeping Jan 08 Question Paper
Transcript of 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 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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Level 2 Cert.CB Page 3 January 2008/4
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
Invoice Date 02.01.2008
VAT Rate NetAssorted toysAssorted paperback books
17.5%Zero
840.68630.20
1,470.88VAT 147.11
Invoice Total 1,617.99
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
Invoice Date 07.01.2008
VAT Rate NetSundry toys 17.5% 380.95
380.95VAT 66.66
Invoice Total 447.61
Terms: Nett monthly accountVAT Reg. No. 386 4103 25
Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EVTelephone: 01803 588330
Invoice To: Invoice No. RW 004CI Shipping LinesHarbour Road
WeymouthDC16 2MP
Invoice Date 10.01.2008
VAT Rate NetToys per delivery note 27
Assorted paperback books17.5%Zero
1,200.00225.00
1,425.00VAT 210.00
Invoice Total 1,635.00
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
Invoice Date 14.01.2008
VAT Rate Net
New issue books Zero 2,750.00
2,750.00VAT 0.00
Invoice Total 2,750.00
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 006Seaside Kiosks Ltd.7 Polters LaneBournemouth
BH1 9HN
Invoice Date 20.01.2008
VAT Rate NetSundry toys supplied
Assorted paperback books17.5%Zero
341.0080.60
421.60VAT 59.67
Invoice Total 481.27
Terms: Nett monthly accountVAT Reg. No. 386 4103 25
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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
Invoice Date 03.01.2008
VAT Rate NetSelection of books Zero 3,150.00
3,150.00VAT 0.00
Invoice Total 3,150.00
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
Invoice Date 4.01.2008
VAT Rate NetAssorted toysAssorted paperback books
17.5%Zero
1,420.00425.00
1,845.00VAT 241.04
Invoice Total 2,086.04
Terms: 3% discount if paid within 21 daysVAT Reg. No. 349 5541 44
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Northern News5 Grange RoadLiverpoolL1 4CR
Invoice To: Invoice No. NN 1826Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EV
Invoice Date 9.01.2008
VAT Rate NetBooks per delivery note 329 Zero 315.00
315.00VAT 0.00
Invoice Total315.00
Terms: Nett monthly accountVAT Reg. No. 510 4728 21
Kings Wholesale
3 First DriveDorchesterDC3 9HR
Invoice To: Invoice No. 3169Robs WholesaleUnit 4Priory Road Industrial EstatePaigntonTQ4 7EV
Invoice Date 18.01.2008
VAT Rate NetWholesale toysWholesale paperback books
17.5%Zero
750.20460.00
1,210.20VAT 131.28
Invoice Total 1,341.48
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)
Amount including VAT (where applicable)
20.00
Signed .. Total 20.00
Petty Cash VoucherNo. PCV 3Date 10.1.2008 VAT Rate: Exempt
Expense Details
Postages
Amount including VAT (where applicable)
15.00
Signed .. Total 15.00
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Petty Cash VoucherNo. PCV 4Date 14.1.2008 VAT 17.5%
Expense Details
Carriage on deliveries tocustomers
Amount including VAT (where applicable)
18.00
Signed .. Total 18.00
Petty Cash VoucherNo. PCV 5Date 18.1.2008 VAT Rate Zero
Expense Details
Minor repairs to buildingroof
Amount including VAT (where applicable)
25.00
Signed .. Total 25.00
Petty Cash VoucherNo. PCV 6Date 22.1.2008 VAT Rate Zero
Expense Details
Tea, coffee, etc
Amount including VAT (where applicable)
8.00
Signed .. Total 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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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