level 2 certificate in manual and computerised2).pdf · iab l2 bookkeeping (qcf) assignment 1 qp...

International Association of Book-keepers, Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU Tel: 01732 897750 email: [email protected] website www.iab.org.uk V4 10/15 BC/TA

Qualifications Level 2 Certificate in Bookkeeping (QCF) (Accreditation number: 601/0730/3)

Level 2 Award in Manual Bookkeeping (QCF) (Accreditation number: 601/0480/6)

Level 2 Certificate in Manual and Computerised Bookkeeping (QCF) (Accreditation number: 601/3789/7)

Paper No: A1003(2)

Assignment 1

Unit 2002 Preparing and Recording Financial Documentation - (H5051106)

2015/16 Assessment

Question paper

Suggested time: 2 hours

International Association of Book-keepers, Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU Tel: 01732 897750 email: [email protected] website www.iab.org.uk V4 10/15 BC/TA

INTERNATIONAL ASSOCIATION OF BOOK-KEEPERS QUALIFICATION TITLE: LEVEL 2 CERTIFICATE IN BOOKKEEPING UNIT TITLE: Preparing and recording financial documentation This Assignment consists of all tasks relevant to meet all assessment criteria relating to this unit. 1. You must enter your Unique Learner Number (if applicable), Student number, Name of

Centre and Date of Assessment in the boxes provided on the front cover of your Answer Booklet.

2. On completion of the assignment you must sign your name in the Answer Booklet to

confirm it is your own unaided work. 3. Suggested time: 2 hours 4. All answers are to be written in ink. 5. Cross out errors neatly, or use correcting fluid in moderation. 6. The use of silent non-programmable calculators is permitted. 7. A blank page is provided at the end of your Answer Booklet for workings if required. 8. NOTE – this Question Paper and the Answer Booklet have information and data printed on

both sides of the pages contained within the booklets.

IAB L2 Bookkeeping (QCF) Assignment 1 QP 2013_14 v2 Page 2

Scenario Thelmsford Ltd is an accounting practice offering a wide range of services to its business clients including bookkeeping/accounting services, and general help and advice with day-to-day financial matters. You are employed by Thelmsford Ltd as an Accounts Assistant. You are based in the company’s town centre office and carry out tasks as instructed by the Accounts Manager. You are now presented with all relevant information, and are required to complete the tasks in accordance with the Assignment instructions. The Standard Rate of Value Added Tax (VAT) assumed in this examination is 20%.


ASSIGNMENT INFORMATION It is Monday 4th November and you are at the premises of Lingsford Craft Supplies to assist the Accounts Manager while a member of staff is on leave. Lingsford Craft Supplies is registered for VAT, and maintains a sub-divided bookkeeping system including analysed Sales and Purchase Day Books, and Sales and Purchase Returns Day Books, which are totalled weekly. You are provided with the day books in your Answer Booklet. REQUIRED: You are required to complete the following tasks: Task A - Using the purchase orders, goods returned note, extract from the Price List and information contained within the Customer File given on pages 5, 6 and 7 of this Question Booklet, you are to prepare two sales invoices to be issued to the customers to which goods have been supplied, and one credit note to be issued to the customer who has returned goods. In completing the invoices and the credit note, number them using the next consecutive invoice and credit note numbers. Pro-forma invoices and credit notes to be used in completing this task are given on pages 2, 3 and 4 of your Answer Booklet. You must date the invoices you prepare 1 November 201Y and date the credit note 3 November 201Y. Note – Lingsford Craft Supplies does not offer prompt payment discounts to any of its credit customers. Task B - Enter the sales invoices and credit note prepared in Task A above into appropriate day books. These are provided on page 5 of your Answer Booklet. You should note that the day books are already partially completed. Task C - Total the Sales Day Book and Sales Returns Day Book. Task D – You are presented with three supplier invoices and one credit note on pages 7, 8 and 9 of this Question Booklet. The invoices and credit note details, including the goods descriptions unit prices and trade discount percentages quoted on the invoices and credit note, have already been checked against supporting documentation and all details are correct. You are now required to check the arithmetic accuracy of the invoices and the credit note. To do so you must check each of the gross goods, trade discount, and net goods amount calculations. You must also check the VAT calculations and invoice and credit note sub-totals and totals. Should you discover any errors in the checking process you must record details of the errors found, and the action to be taken where errors are discovered, on the Supplier Invoices and Credit Note Errors form provided on page 6 of your Answer Booklet. It is the policy of Lingsford Craft Supplies to return invoices and credit notes containing errors to suppliers. Task E – Following the completion of Task B above, enter any of the invoices and credit notes received which do not contain errors into the appropriate Day Books, these are provided on pages 6 and 7 of your Answer Booklet. When entering any of the invoices or the credit note in the day books use the date on the invoices or credit note. You should note that the day books provided are already partially completed. Task F - Total the Purchase Day Book and Purchase Returns Day Book. Task G - Three cheques have arrived in today’s post from credit customers, and there is also a cheque received in payment of a cash sale. The cheques are provided on pages 9 and 10 of this Question Booklet. Examine each of the four cheques and, using the Errors on Cheques form provided on page 7 of your Answer Booklet, give details of any errors you find, state also any action which is required in respect of any cheques identified as containing errors.


Task H – The account of a credit customer JK Bead Shop in the sales ledger of Lingsford Craft Supplies carried a debit balance of £1,506 as at 1 October 201Y. Details of the transactions taking place between Lingsford Craft Supplies and JK Bead Shop in October month 201Y are provided on page 9 of this Question Booklet. You are required to complete a Statement of Account made up to 31 October 201Y to be issued to JK Bead Shop. You should date the Statement of Account 31 October 201Y. A pro-forma Statement of Account for your use in completing this task is provided on page 8 of your Answer Booklet. You should note that the balance of £1,506 on the account of JK Bead Shop as at 1 October 201Y has already been entered on the Statement of Account for you. Task I - Using the Supplier Statement received today from Bramcote Craft Supplies which is provided on page 10 of this Question Booklet, and the ledger account of Bramcote Craft Supplies extracted from the purchases ledger of Lingsford Craft Supplies, which also appears on page 10 of this Question booklet, you are required to reconcile the closing balance on the supplier Statement of Account to the closing balance on their ledger account. You are provided with a pro-forma form to be used for the purpose of completing this task on page 9 of your Answer Booklet. Task J – Following the reconciliation in Task I above prepare a Remittance Advice and cheque to be issued to Bramcote Craft Supplies to clear the balance on their account as shown in the purchase ledger as at 31 October 201Y. You should date the remittance advice and cheque using the date 4 November 201Y. The address to which the Remittance Advice and cheque is to be sent is – Bramcote Road, Southwell, Teeside, TE54 7YN. The following are provided in your answer booklet for your use in completing the above tasks:

Blank invoices and credit note Sales Day Book, Sales Returns Day Book Purchase Day Book, Purchase Returns Day Book Supplier Invoices and Credit Note Errors form Errors on Cheques form Statement of Account Supplier Reconciliation Statement form Remittance Advice Cheque


Lingsford Craft Supplies – Purchase Order Received (all goods supplied as ordered)

PURCHASE ORDER No: 002613

Date: 1 November 201Y

To: Lingsford Craft Supplies From: JK Bead Shop

Unit 20, Lingsford Way Teeside

Bleinham Way Beresford

TE1 5PQ BW2 4HQ

Code Description Quantity

SE06 Sequins 22

BK03 Bead Kits 6

AB01 100g Pack of Assorted Beads 200

Lingsford Craft Supplies – Purchase Order Received (goods supplied as ordered)

PURCHASE ORDER No: 036171

Date: 1 November 201Y

To: Lingsford Craft Supplies From: Teeside Crafts

Unit 20, Lingsford Way Teeside

South Street Teeside

TE1 5PQ TE1 5TQ

Code Description Quantity

LC01 Lingsford Craft Supplies 201Y Catalogue 1

CCK01 Calligraphy Craft Kit 250

JK02 Jewellery Kits 360


Lingsford Craft Supplies – Goods Returned Note (goods returned by customer as described)

Lingsford Craft Supplies Unit 20, Lingsford Way

Teeside TE1 5PQ

GOODS RETURNED NOTE

Customer: Timsford Wholesale 90a Lenton Way Shelton Teeside TE6 7PA

Goods Returned Note No: 1061

Customer Order No: 670 Date: 3 November 201Y

Product Code

Quantity Description Reason for return

JK02

60

Jewellery Kits

Damaged in transit

Lingsford Craft Supplies – Extract from Price List (prices include carriage but exclude Vat)

VAT Standard Rated Items

Details Product Code List Price (Standard-rated, excluding VAT)

£

200g Pack of Assorted Beads AB02 1.50

Calligraphy Craft Kit CCK01 15.00

Sequins SE06 1.50

Coloured Enamel Wire CEW03 3.20

Jewellery Kits JK02 4.00

100g Pack of Assorted Beads AB01 0.70

Storage Drawers SD06 12.20

Bead Kits BK03 24.00

Cold Enamelling Introduction Pack CEIP02 16.00

Beeswax Candle Making Kit BCMK04 13.50

20 Piece Glitter Set GS08 5.00

VAT Zero Rated Items

Details Product Code List Price (Zero-rated)

£

Lingsford Craft Supplies 201Y Catalogue LC01 2.00


Lingsford Craft Supplies – Extract from Customer File

Customer Account

Reference Trade

Discount Terms

JK Bead Shop Bleinham Way Beresford BW2 4HQ

JKB004 5% Net 14 days

Teeside Crafts South Street Teeside TE1 5TQ

TEE006 3% Net 30 days

Timsford Wholesale 90a Lenton Way Shelton Teeside TE6 7PA

TIM004 5% Net 30 Days

Invoices and Credit Notes received from suppliers (Please note trade discounts where applicable are shown on the invoices/credit notes):

INVOICE

Craft Mania Wholesale Unit 32, North Side

Teeside

TC1 2KJ To:

Lingsford Craft Supplies

Unit 20, Lingsford Way

Teeside

TE1 5PQ

Invoice No. 24156

Order No. PO2410

Invoice date 01.11.1Y

Details Unit price

£

Gross

£

10% Trade

Discount

£

Net

£: p

15 Craft Display Units 15.50 232.50 23.25 209.25

20 Craft Packs 4.00 800.00 80.00 720.00

40 Packs of white card 0.90 36.00 3.60 32.40

Net total

VAT

Total amount due

961.65

192.33

1,153.98

Carriage paid

Terms of trade: Trade discount 10%, Net 14 days

E&OE VAT Reg No. 541 2541 7845


INVOICE

Main Street Supplies 451 Main Street

Teeside

TE2 3JU To:



Teeside

TE1 5PQ

Invoice No. M/5165

Order No. LCS695


Details Unit price

£

Gross

£

15% Trade

Discount

£

Net

£ : P

10 Mosaic Fun Kits

10.50

105.00

15.75

89.25

12 Tissue Paper Flower Kits

7.20

86.40

12.96

73.44

Net total

VAT

Total amount due

162.69

32.53

195.22 Carriage paid

Terms of trade: 15% Trade discount, Net 30 days E&OE VAT Reg No. 541 4578 120

INVOICE

The Bag Wholesale 54 McLean Road

Clifton

Teeside

TL5 2BG To:



Teeside

TE1 5PQ

Invoice No. 15420

Order No. LCS254


Details Unit price

£

Gross

£

10% Trade

Discount

£

Net

£ : P

350 Small Paper Bags

0.20

70.00

7.00

63.00

250 Medium Paper Bags

0.30

75.00

7.50

76.50

Net total

VAT

Total amount due

139.50

27.90

167.40 Terms of trade: 10% Trade discount, Net 30 days

Carriage paid

E&OE VAT Reg No. 571 5410 200


Credit note

Main Street Supplies 451 Main Street

Teeside

TE2 3JU To:



Teeside

TE1 5PQ

Credit Note CN414


Details Unit price

£

Gross

£

15% Trade

Discount

£

Net

£

2 Mosaic Fun Kits

10.50

21.00

3.15

17.85

Net total

VAT

Total amount due

17.85

3.57

14.28

Terms of trade: Trade discount 15%, Net 30 days E&OE VAT Reg No. 541 4578 120

Cheques received:

Teeside Bank Plc 21-78-89

Wheatley Road, Teeside, TW3 8QE Date: 1 November 20 1Y

Pay Lingsford Craft Supplies

Payee

Nine Hundred and eighty pounds and 20 pence

£ 908.20

only

Account

C. Johnstone

Teeside Crafts

214569 21-78-89 54785123

North East Bank Plc 41-85-74

Main Branch, Coalville, CA7 8PY Date: 1 November 20 1Y

Pay Lingsford Craft Supplies (Cash Sales)

Payee

Three hundred and four pounds only

£ 304.00

Account

R Fuller

CJK Ltd 1004

120456 41-85-74 65478125


Lingsford Craft Supplies – Transactions with Customer JK Bead Shop in October 201Y

Date 201Y

Details Amount £

1 October Balance b/f 1,506

Sales Invoices

8 October LCS3101 980



Credit Note


Payments received

2 October 1,506

22 October 553

Central Bank Plc 14-84-96

Wollaton Street, London W3 9RD Date: 1 November 20 1Y

Pay Lingsford Craft Supplies

Payee

Six hundred and twenty pounds and ninety five

£ 620.95

pence only

Account

L Harris

LH Ltd

002145 14-84-96 51201245

Teeside Bank Plc 21-78-89

Wheatley Road, Teeside, TW3 8QE Date: 1 November 20 1Y

Pay Linford Arts and Crafts

Payee

One hundred and eight pounds and fifty five

£ 108.55

pence only

Account

Spencer Supplies 100

4

124648 21-78-89 54710003


Lingsford Craft Supplies – Purchase Ledger (extract)

Purchase Ledger (extract) DR Bramcote Craft Supplies CR

201Y Details £ 201Y Details £ 05.10 Credit Note 241 96 1.10 Balance brought down 986

29.10 Payment 986 3.10 Invoice 4801 453

30.10 Balance c/d 2,487 10.10 Invoice 4815 1,452

17.10 Invoice 4826 542

22.10 Invoice 4910 136

3,569 3,569

01.11 Balance b/d 2,487

Statement of Account from Bramcote Craft Supplies

STATEMENT OF ACCOUNT

From: Bramcote Craft Supplies To: Lingsford Craft Supplies

Bramcote Road Unit 20, Lingsford Way

Southwell Teeside

Teeside TE1 5PQ

TE54 7YN

Statement Date:

31 October 201Y Account reference: LCS002

Date Details Debit Credit Balance

201Y £ £ £

1 Oct Balance b/down 986

2 Oct Sales (Invoice 4801) 453 1439

3 Oct Sales Returns (Credit Note 241) 96 1343




27 Oct Sales Returns (Credit Note 755) 106 3367


Amount due 4212

VAT Reg No. 541 1424 178

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