Download - My Project
Documents to be annotated
1. Purchase Order
2. Delivery Note
3. Invoice
4. Statement
5. Remittance Advice
6. Cheque
Highlighting the key elements of each document, text boxes and arrows. Sample of these
documents can be found in the PROGAREA for your course, Unit 15 in a pdf file called Financial
Documents.
Create a diagram that shows the flow of financial documents between the buyer and seller. Starting point is a quotation, the last document being the payment. Repeat for a situation whereby goods are returned because they are faulty.
Moving Stationery Limited
Customers Accounts
A/c No BC741 Qty Unit Description
Customer Berry & Co 16 reams A4 Green Paper
Address Liverpool Street 10 boxes Paperclips
Mansfield 2 each Staplers
Nottinghamshire 1 each Toner Cartridge - Black HP4001
NG14 5UP
PO No 12 - 29384
A/c No CC914 Qty Unit Description
Customer Chloe & Company 3 reams A4 White Paper
Address East Coast Road 6 boxes Blue Pens
Dewsbury 1000 DL Envelopes
West Yorkshire
BD34 6YL
PO No CH9011
A/c No AA154 Qty Unit Description
Customer The Archer's Arms 5 each Order pads - food
Address Hutton Road 1 box Till Rolls
The Dock 100 Payslips
Milton Haven
SA43 5YK
PO No WD9011
A/c No EE676 Qty Unit Description
Customer Edward the Engineers Limited 40 reams A4 White Paper
Address Great Main Road 1 box Black Pens
Strawberry Industrial Estate 2 boxes C4 Envelopes
Wolverhampton
WV39 2SD
PO No 99/H/8331
A/c No SR017 Qty Unit Description
Customer No 17 Restaurant 14 reams A4 Yellow Paper
Address 59 Oswald Way
Warwick
Warwickshire This is a new customer - agreed a 10% discount
CV7 5TY
PO No Fred Rubble
Order
Order
Order
Order
Order
Moving Stationery Limited Unit 67
Higher Industrial Park Global Road Scunthorpe DN17 4RT
Tel 01724 859781 www.movingstat.biz
Customer Invoice No.
Date
Purchase Order No.
INVOICE
Qty Product Code
Description Unit Price £
Total £
Sub Total
VAT
Terms of Trading – 30 days from date of invoice Invoice Total
VAT No. 657 4556 12
Moving Stationery Limited Unit 67
Higher Industrial Park Global Road Scunthorpe DN17 4RT
Tel 01724 859781 www.movingstat.biz
Customer Credit Note No.
Date
Purchase Order No.
CREDIT NOTE
Qty Product Code
Description Unit Price £
Total £
Sub Total
VAT
Terms of Trading – 30 days from date of invoice Credit Note Total
VAT No. 657 4556 12
Moving Stationery Limited
Sales Day Book
DateInvoice
No.Customer Net VAT Gross
Totals
Sales Returns Day Book
DateCredit
Note No.Customer Net VAT Gross
Totals
Moving Stationery Limited Name
Customers Accounts
BC741 Berry & CoDate Ref Details Dr Cr Balance
22-Feb-12 11453 Sales Invoice 45.98 45.98
06-Mar-12 11659 Sales Invoice 202.00 247.98
14-Mar-12 Chq13456 Payment Received 45.98 202.00
23-Mar-12 12097 Sales Invoice 151.00 353.00
31-Mar-12 12293 Sales Invoice 22.60 375.60
31-Mar-12 CN568 Returned Goods 67.80 307.80
CC914 Chloe & CompanyDate Ref Details Dr Cr Balance
31-Jan-12 10924 Sales Invoice 125.00 125.00
06-Feb-12 CN456 Overcharge 25.00 100.00
28-Feb-12 Chq1456 Payment Received 100.00 -
AA154 The Archers ArmsDate Ref Details Dr Cr Balance
23-Mar-12 11997 Sales Invoice 151.00 151.00
26-Mar-12 11999 Sales Invoice 22.60 173.60
31-Mar-12 12016 Sales Invoice 72.50 246.10
EE676 Edward the Engineer LimitedDate Ref Details Dr Cr Balance
22-Feb-12 11401 Sales Invoice 760.00 760.00
28-Feb-12 11469 Sales Invoice 154.00 914.00
06-Apr-12 Chq124569 Payment Received 760.00 154.00
HH532 Harold & Hilda LimitedDate Ref Details Dr Cr Balance
28-Dec-11 9874 Sales Invoice 320.00 320.00
30-Jan-12 10974 Sales Invoice 196.00 516.00
31-Mar-12 CN577 Faulty Goods 320.00 196.00
08-Apr-12 BACS Payment Received 196.00 -
10-Apr-12 12393 Sales Invoice 126.00 126.00
Date Ref Details Dr Cr Balance
Moving Stationery Limited
Customers Debtors List
£
BC741 Berry & Co
CC914 Chloe & Company
AA154 The Archers Arms
EE676 Edward the Engineers Limited
HH532 Harold & Hilda Limited
SR017 No 17 Restaurant
Total
Moving Stationery Limited
Notes from the Credit Controller
HH532 Harold & Hilda Limited
Requires a credit note for an error on their last invoice. They have been charged the
Magenta price for a Yellow HP4001 toner cartridge.
Raise the credit note, dated today.
Record the credit note in the Sales Returns Day Book and update Harold & Hilda’s account.
Moving Stationery Limited
Price List
Product Code Description Packaged Price
P4W A4 Paper White per ream 3.50
P4G A4 Paper Green per ream 4.95
P4Y A4 Paper Yellow per ream 4.70
P4LB A4 Paper Light Blue per ream 5.10
PEBLK Pens - Black Box of 50 3.15
PEBLU Pens - Blue Box of 50 3.20
TILL Till Rolls Box of 24 19.00
SPS Standard Payslips Packs of 50 7.50
OPDS Order Pads (Food) Each 1.55
EC4 C4 Envelopes Box of 100 9.50
EC5 C5 Envelopes Box of 100 7.90
EDL DL Envelopes Box of 250 13.50
TC1 Toner Epson Acu 9500 Each 49.50
TC2BLK Toner HP4001 - Black Each 79.90
TC2BLU Toner HP4001 - Blue Each 102.95
TC2MAG Toner HP4001 - Magenta Each 105.00
TC2YLL Toner HP4001 - Yellow Each 101.52
STP Stapler - General Use Each 2.60
CLIP2 Paper Clips Box of 500 3.75
All prices exclude VAT
Invoice No
Date
Qty Unit Price £
10 25.00 250.00
3.5 65.00 227.50
477.50
10% Discount 47.75
Net 429.75
VAT 85.95
VAT Reg 123 456 55 Total 515.70
Invoice No
Date
Qty Unit Price £
21 21.75 456.75
-
456.75
6% Discount 27.41
Net 429.35
VAT 85.87
VAT Reg 123 456 56 Total 515.21
Invoice No
Date
Qty Unit Price £
3 25.00 75.00
9 65.00 585.00
660.00
10% Discount 66.00
Net 594.00
VAT 118.80
VAT Reg 123 456 55 Total 712.80
Description
Red Paint
Antique Green Paint
OLD LOOK PAINTSEmulsion Road, Dulux
INVOICE
To
Moving Stationery Limited
Higher Industrial Estate
Scunthorpe
06/5564
05/04/2012
Description
8m Rods
Bear MetalEssentials Lane, Metal Village
INVOICE
To
Moving Stationery Limited
Higher Industrial Estate
Scunthorpe
96451
25/04/2012
Description
Red Paint
Antique Green Paint
OLD LOOK PAINTSEmulsion Road, Dulux
INVOICE
To
Moving Stationery Limited
Higher Industrial Estate
Scunthorpe
06/5591
15/04/2012
Invoice No
Date
Qty Unit Price £
6 69.00 414.00
1 21.00 21.00
435.00
0% Discount -
Net 435.00
VAT 87.00
VAT Reg 123 456 57 Total 522.00
Invoice No
Date
Qty Unit Price £
11 25.00 275.00
3.5 65.00 227.50
502.50
10% Discount 50.25
Net 452.25
VAT 90.45
VAT Reg 123 456 55 Total 542.70
Invoice No
Date
Qty Unit Price £
2 69.00 138.00
1 21.00 21.00
159.00
0% Discount -
Net 159.00
VAT 31.80
VAT Reg 123 456 57 Total 190.80
Description
Red Triggers
Unique Widget
LockStock'sSmoke Road, Barrel
INVOICE
To
Moving Stationery Limited
Higher Industrial Estate
Scunthorpe
1000111
15/04/2012
Description
Red Paint
Antique Green Paint
OLD LOOK PAINTSEmulsion Road, Dulux
INVOICE
To
Moving Stationery Limited
Higher Industrial Estate
Scunthorpe
06/5599
25/04/2012
Description
Red Triggers
Unique Widget
LockStock'sSmoke Road, Barrel
INVOICE
To
Moving Stationery Limited
Higher Industrial Estate
Scunthorpe
1000199
25/04/2012
Moving Stationery Limited
Suppliers Accounts
LockstockDate Ref Details Dr Cr Balance
02-Feb-12 999155 Invoice 230.00 230.00-
01-Mar-12 999280 Invoice 25.00 255.00-
07-Mar-12 PYMT Cheque 6366 230.00 25.00-
Bear MetalDate Ref Details Dr Cr Balance
02-Feb-12 95965 Invoice 17.50 17.50-
27-Feb-12 999280 Invoice 25.00 42.50-
07-Mar-12 PYMT Cheque 6367 42.50 -
Old Look PaintsDate Ref Details Dr Cr Balance
02-Feb-12 06/5546 Invoice 17.50 17.50-
27-Feb-12 06/5549 Invoice 25.00 42.50-
28-Feb-12 06/5555 Invoice 17.50 60.00-
05-Mar-12 06/5556 Invoice 25.00 85.00-
07-Mar-12 PYMT Cheque 6370 60.00 25.00-
Date Ref Details Dr Cr Balance
-
-
-
You are responsible for keeping the Cash Book of Moving Stationery Limited. On 1st April 2012, there was an opening balance of £1250.00 in the bank account. You are required to 1 Enter details of the receipts following this sheet into the cash book 2 Enter details of payments 3 Total and balance the Cash Book 4 Reconcile the Cash Book with the Bank Statement 5 Starting with the balance as per the Cash Book, list any unpresented cheques and
sub-total the Bank Reconciliation Statement 6 Enter details of bank lodgements not yet on the Bank Statement 7 Calculate the balance as per the Bank Statement
Banked on 11th April
2012
Delightful Bank PLC 09/04/2012 40-40-24 Cross Street Leeds
Pay Moving Stationery Limited
One Hundred and fifty one pounds only £151.00
Berry & Co
H I Ranger
125564 40-40-24 01448811
Banked on 15th April
2012
First Bank PLC 15/04/2012 40-40-69 Happy Street Liverpool
Pay Moving Stationery Limited
One Hundred and seventy three pounds and £173.60
60pence
The Archers Arms
B Rubble
967780 40-40-69 01465811
Banked on 21st April
2012
First Bank PLC 20/04/2012 40-40-69 Happy Street Liverpool
Pay Moving Stationery Limited
One Hundred and Fifty Four Pounds Only £154.00
Edward the Engineers
F Flintstone
967791 40-40-69 01448811
Banked on 29th April
2012
First Bank PLC 28/04/2012 40-40-69 Happy Street Liverpool
Pay Moving Stationery Limited
Seventy Two Pounds and 50pence £72.50
The Archers Arms
B Rubble
167790 40-40-11 01448811
Banked on 30
th April
2012 Payment on
Account
Milly Bank PLC 29/04/2012 30-40-69 High Street Hull
Pay Moving Stationery Limited
Thirty Two Pounds Only £32.00
Harold & Hilda
G Washington
779011 30-40-69 01448851
Banked on 30th April
2012
First Bank PLC 30/04/2012 40-11-69 Happy Street Liverpool
Pay Moving Stationery Limited
Fifty Nine Pounds 22 Pence £59.22
No 17 Restaurant
B Ralph
771190 40-11-69 09938811
05 April 2012 05 April 2012 07 April 2012
To To To
Lockstock Old Look Paints Bear Metal
£25.00 £25.00 £515.21
1022925 1022926 1022927
28 April 2012 28 April 2012 29 April 2012
To To To
North Lincs Sueham Solid Insurance
Council Solicitors
(Rates - General
Expenses) (Legal Fees) (Insurance)
£458.00 £69.50 £54.25
1022928 1022929 1022930
29 April 2012 30 April 2012 30 April 2012
To To To
Old Look Paint Lockstock Lockstock
£515.70 £522.00 £190.80
1022931 1022932 1022932
Stoney Ground Bank plc
STATEMENT
Moving Stationery Limited Account 430771006
Sheet 47
Date 30/04/2012
Date Details Paid Received Balance
2006
01-April Balance 1250.00
08-April 1022925 25.00 1225.00
08-April 1022926 25.00 1200.00
11-April 1022927 515.21 684.79
11-April Cheques 151.00 835.79
15-April Cheques 173.60 1009.39
21-April Cheques 154.00 1163.39
28-April Cheques 72.50 1235.89
28-April 1022928 458.00 777.89
28-April 1022929 69.50 708.39
28-April 1022930 54.25 654.14
30-April 1022931 515.70 138.44
30-April Bank Charges 52.25 86.19
30-April Bank Interest 7.45 93.64
Moving Stationery Limited operates an analytical petty cash book using the Imprest system. On the 1st April 2012 there was an opening balance of £400.00 As the Petty Cash Cashier you are required to perform the following tasks: 1 Enter the details of the attached petty cash vouchers and the
receipts that have been sorted into date order.
2 Total and cross cast the petty cash book
3 Balance the petty cash as at 30th April 2012 and bring down the balance ready for 1st May 2012
4 Prepare the petty cash reimbursement request ready for authorisation by the director, the amount needed to return to the original £400.
5 Prepare the cheque for petty cash reimbursement for signing by the director and date the cheque 30th April 2012
Receipts Date Details Voucher NoTotal
PaymentVAT Travel Fuel Training Cleaning
Other
Expenses
400.00 01-Apr Balance b/fwd
Petty Cash Book
No 1236 No 1237Date 02/04/2012 Date 04/04/2012
Amount
£
Amount
£
12.00 91.60
12.00 91.60
Signature Des Knee Signature M Mouse
Authorised Iris Wizkey Authorised G Boddington
No 1238 No 1239Date 05/04/2012 Date 08/04/2012
Amount
£
Amount
£
17.50
6.00 3.50
6.00 21.00
Signature M Mouse Signature M Mouse
Authorised Iris Wizkey Authorised G Boddington
No 1240 No 1241Date 09/04/2012 Date 09/04/2012
Amount
£
Amount
£
7.50 36.00
1.50
9.00 36.00
Signature M Mouse Signature Des KneeAuthorised Iris Wizkey Authorised Iris Wizkey
No 1242 No 1243Date 15/04/2012 Date 17/04/2012
Amount
£
Amount
£
39.50 6.60
39.50 6.60
Signature J Smith Signature M Mouse
Authorised Iris Wizkey Authorised Iris Wizkey
Description
Gas for Forklift
VAT
(incl VAT)
(local caterer not VAT registered)
Petty Cash Voucher Petty Cash Voucher
Description Description
Office Lunch Petrol for lawnmower
includes VAT
Description Description
Gas for Forklift Stationery
VAT
Cleaning Materials incl VAT
Petty Cash Voucher Petty Cash Voucher
Description
Petty Cash Voucher Petty Cash Voucher
incl VAT
Petty Cash Voucher
Description
Diesel
Petty Cash Voucher
Description
Postage Stamps
No 1244 No 1245Date 25/04/2012 Date 26/04/2012
Amount
£
Amount
£
14.50 15.80
14.50 15.80
Signature J Smith Signature J Smith
Authorised G Boddington Authorised G Boddington
No 1246 No 1247Date 26/04/2012 Date 27/04/2012
Amount
£
Amount
£
3.95 15.80
3.95 15.80
Signature Des Knee Signature Des Knee
Authorised G Boddington Authorised G Boddington
No 1248 No 1249Date 28/04/2012 Date 29/04/2012
Amount
£
Amount
£
13.20 18.00
3.60 3.60
16.80 21.60
Signature M Mouse Signature Des KneeAuthorised Iris Wizkey Authorised G Boddington
includes VAT
Description Description
DVD for Training Course Diesel
Pens for Conference Room Whiteboard VAT
Petty Cash Voucher Petty Cash Voucher
No VAT receipt
Description
Milkman
Petty Cash Voucher Petty Cash Voucher
Description
Train Fare
Window Cleaner Taxi
No VAT No VAT receipt
Petty Cash Voucher Petty Cash Voucher
Description Description
Now you have updated the Cash Book and Produced the Bank Reconciliation, update your Customers and Suppliers Accounts. Produce a New List of
1. Customer Balances 2. Supplier Balances
Customers
Account No. Customer Balance Outstanding
Total
Suppliers
Account No. Supplier Balance Outstanding
Total
You are responsible for producing the financial statements of Moving Stationery Limited. The financial statements are
1. Profit and Loss Account - (Income Statement) 2. Balance Sheet – (Statement of Financial Position)
You have been provided with the following balances for the 31st of May 2012
Moving Stationery Limited Trial Balance - Year to 31st May 2012
DR CR
Bank 2 785 Capital
37 000
Light & Heat 1 256 Office Expenses 5 500 Petty Cash 125 Plant & Equipment (net) 27 800 Profits from previous years
25 600
Purchase Ledger Control Account
15 695
Purchases 89 990 Rent & Rates 2 566 Repairs & Renewals 12 991 Sales
178 250
Sales Ledger Control Account 45 990 Stock - Opening 6 500 VAT
2 958
Vehicle Cost (net) 25 000 Wages and Salaries 39 000
259 503 259 503
1. Enter the details from the trial balance above into the specimen Profit and Loss Account, and Balance
Sheet. a. Ensure that every balance is used (tick them off) b. Complete the instructions of adding or subtracting where appropriate c. Remember to enter the month end date on both financial statements d. Do not write in the grey areas
Profit and Loss Account for Moving Stationery Limited
For the year to ________________________________
Sales Turnover
Opening Stock
Plus Purchases
Less Closing Stock 12 500
Equals Cost of Goods Sold
Gross Profit
(Sales less the Cost of Goods Sold)
Wages and Salaries
Light & Heat
Offices Expenses
Rent & Rates
Repairs and Renewals
Total Expenses
Net Profit
Balance Sheet for Moving Stationery Limited
As at ________________________________
Fixed Assets
Plant & Equipment
Vehicle
Total Fixed Assets
Current Assets
Closing Stock
12 500
Sales Ledger Control Account
Bank
Petty Cash
Total Current Assets
Current Liabilities Purchases Ledger Control Account
VAT
Total Current Liabilities
Net Current Assets
(Total Current Assets less Total Current
Liabilities)
Net Assets
(Net Current Assets plus Total Fixed Assets)
Capital
Profits from previous years
Profit from this year
Total Capital
Tasks
1. Explain why it is important to the business to produce a profit & loss account and balance sheet on a regular basis. Include an explanation of how these documents contribute to the strategic planning and decision making.
2. Evaluate how financial recording systems contribute to managing the business’s finances.
3. Now that you have recorded the accounting records for Moving Stationery Limited, you will have gained knowledge of some accounting procedures.
4. To demonstrate your understanding your line manger has asked you to explain how recording financial transactions help to prevent fraud taking place in the business.
BTEC Business Level 2
Unit 15 – Bookkeeping for Business
International Accounting Standards
2011-2012
Below are a number of accounting terms, which have recently been updated in order that they are common
throughout the world.
Given the original UK term, complete the table below stating the new international accounting term.
Original Term New International Term
Profit & Loss Account
Balance Sheet
Sales
Stock
Trade Debtors
Trade Creditors
Capital
Bank
Where did you research the new terms? Give the details of the books, journals and websites you have used.
Who must use the International Terms?
Who can use the International Terms?
Name: Type here