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


Sales Day Book

DateInvoice

No.Customer Net VAT Gross

Totals

Sales Returns Day Book

DateCredit

Note No.Customer Net VAT Gross

Totals

Purchases Day Book

DateInvoice

Note No.Supplier 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



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




EE676 Edward the Engineer LimitedDate Ref Details Dr Cr Balance



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


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

Harold & Hilda Limited

32 Sunbeam Way

Luddington

North Lincolnshire

DN12 3RT


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.


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


Higher Industrial Estate

Scunthorpe

06/5564

05/04/2012

Description

8m Rods

Bear MetalEssentials Lane, Metal Village

INVOICE

To



Scunthorpe

96451

25/04/2012

Description

Red Paint

Antique Green Paint


INVOICE

To



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



Scunthorpe

1000111

15/04/2012

Description

Red Paint

Antique Green Paint


INVOICE

To



Scunthorpe

06/5599

25/04/2012

Description

Red Triggers

Unique Widget

LockStock'sSmoke Road, Barrel

INVOICE

To



Scunthorpe

1000199

25/04/2012


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-


-

-

-


-

-

-

-

-


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


2012

First Bank PLC 15/04/2012 40-40-69 Happy Street Liverpool


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



One Hundred and Fifty Four Pounds Only £154.00

Edward the Engineers

F Flintstone

967791 40-40-69 01448811


2012



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


Thirty Two Pounds Only £32.00

Harold & Hilda

G Washington

779011 30-40-69 01448851


2012



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


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


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

CASH BOOK

DR CR

Date Details Bank Date Details Bank

01/04/12 Balance B/fwd 1250.00

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


Gas for Forklift Stationery

VAT

Cleaning Materials incl VAT


Description


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


DVD for Training Course Diesel

Pens for Conference Room Whiteboard VAT


No VAT receipt

Description

Milkman


Description

Train Fare

Window Cleaner Taxi

No VAT No VAT receipt



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

my project

Documents

sales invoice

customer invoice

date of invoice credit

moving stationery limited

customer credit note

date purchase order

reams a4 yellow paperaddress

new customer