LEVEL 1 AWARD IN BOOKKEEPING SKILLS ... - OCR

OXFORD CAMBRIDGE AND RSA EXAMINATIONS

LEVEL 1 AWARD IN BOOKKEEPING SKILLS (COMPUTERISED)

05525

UNIT C1: RECORD ROUTINE BOOKKEEPING TRANSACTIONS USING A COMPUTERISED SYSTEM SAMPLE ASSESSMENT – CANDIDATE

TIME: 1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES

1

You have TEN minutes to read through this question paper before the start of the examination.

2

You must write the following assignment code in the appropriate boxes on the front of the Submission Cover Sheet: SAM.

3

You should answer all questions.

4

You should attach your printouts to the Submission Cover Sheet provided.

5

You must carry out the printing of all documents yourself. All printouts must contain your name.

6

Printing may be undertaken outside the 1½ hours allowed for this examination but no amendments may be made to the text after that time has expired.

7

Any printouts generated that are additional to those required must be clearly marked as additional with a line drawn through and attached to your Submission Cover Sheet.

QCA Accreditation Number: R/601/3641 This document consists of 15 printed pages and 1 blank page 05525/01/C1/SAMPLE/CANDIDATE

© OCR 2010

Registered Company Number: 3484466

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2 SCENARIO You are employed as a bookkeeper by Hargreaves Hardware, a paint and hardware supply business. The business is a partnership and the partners are Mary Hargreaves and Harriet Dunn. Recently, a new computerised accounting system was installed, and the outstanding nominal balances and sales and purchase invoices and credit notes/returns were transferred to the new system. The company's current financial year starts on 1 January 2010 (year ending 31 December 2010). All Sales Invoices and Sales Credit Notes/Returns are analysed to two separate nominal accounts: paint and hardware. Similarly, Purchase Invoices and Purchase Credit Notes/Returns are analysed to two separate nominal accounts: paint and hardware. The bookkeeping entries up to the end of January 2010 have been dealt with, and the system is ready for you to process transactions for February 2010. BUSINESS DETAILS (BOLD ITEMS WILL ALREADY HAVE BEEN ENTERED BY THE TUTOR): Business Name

Hargreaves Hardware

Address

Tower Market Buildings, High Cross Street, Whitstable, Kent MA13 5DH

VAT Scheme

Standard (the VAT Reg No is 724 6298 20)

Current year starts

1 January 2010 (year ending 31 December 2010)

VAT Rates in use

17.5%, 5.0%, 0.0%, VAT Exempt and Transactions Not Involving (not liable to) VAT

Terminology - to help avoid any misunderstanding WE MAY USE THE TERM . . . Sales Ledger Purchase Ledger Nominal Ledger Sales/Purchase Daybooks Returns Daybooks Trade Debtors/Creditors Payment ‘On Account’ Part-payment

… Debtors Ledger containing the accounts of Customers Creditors Ledger containing the accounts of Suppliers General Ledger containing Real, Nominal and Control Accounts Sales/Purchase Journals Sales/Purchase Credit or Returns Journals Sales/Purchase Ledger Accounts and/or Balances (owing/owed) A payment or receipt which is not to be allocated against outstanding items A payment or receipt to be allocated against an outstanding invoice/item WHICH MAY ALSO BE KNOWN AS

IMPORTANT NOTES: You are strongly advised to carry out the tasks in this examination paper in the order in which they appear. You must ensure your name is shown on each report submitted for assessment. On the next page you will find a Nominal Ledger Account listing which shows the balances of all the Nominal Ledger Accounts as at the end of January 2010. It is important that you do not open or use any additional Nominal Ledger Accounts unless instructed to do so.

3 Hargreaves Hardware NOMINAL LEDGER LISTINGS AND TRIAL BALANCE AS AT 30 JAN 2010 N/C

NAME

0050 1100 1103 1200 1220 2100 2109 2200 2201 3000 3200 4000 4001 4009 4050 4051 4400 5000 5009 5050 6201 7200 7502 7504 7906 8100 9998 9999

Motor Vehicles Debtors Control Account Prepayments Bank Current Account Cash Account Creditors Control Account Accruals Sales Tax Control Account Purchase Tax Control Account Capital Profit and Loss Account Sales - Paint Sales - Hardware Discounts Allowed Sales Returns - Paint Sales Returns - Hardware Credit Charges (Late Payments) Purchases - Paint Discounts Taken Purchase Returns - Paint Advertising Heat, Light & Power Telephone, Fax & Internet Office Stationery Exchange Rate Variance Bad Debt Write Off Suspense Account Mispostings Account TOTALS

DR £ 6,328.50 9,703.11

CR £

33,783.00 500.00 13,508.49 1,445.15 1,993.35 34,283.00 2,721.48 5,816.16 196.48 83.20 4,124.92 95.40 695.37 174.50 287.25

57,869.68

57,869.68

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4 INSTRUCTIONS Assessment Criteria 1

2

Open the accounting software application. Restore the backup file to your accounting software and set an appropriate program date.

1.1

You are required to add two new customer records:

1.1

(a)

(b)

3

Ref: Name: Address:

WS4 Wilkinson & Sons Myrtle Springs Matlock S41 6JE

Contact: Tel:

John Wilkinson 01205 598234

Ref: Name: Address:

FS6 Factory Supplies Channel Estate Penzance TR16 8SS

Contact: Tel:

Ramsey Tolkin 01777 974565

You are required to add two new supplier records: (a)

(b)

Ref: Name: Address:

LB20 The Lock & Bolt Co Blackfriars Crescent Matlock S41 6HG

Contact: Tel:

Harry Hawthorne 01205 845620

Ref: Name: Address:

FG8 Fittings Galore plc Arlington Parade Cambridge CB23 2JS

Contact: Tel:

Ruth Sampson 01853 775645

1.1

5 Assessment Criteria 4

5

You are required to create four new nominal accounts: (a)

0040 Fixtures & Fittings

(b)

5001 Purchases – Hardware

(c)

5051 Purchase Returns – Hardware

(d)

7301 Repairs & Servicing

Enter the purchase invoices and purchase returns/credit notes on pages 7 – 9.

1.1

2.1

Ensure that the dates, references, amounts, VAT rates and values are accurately entered and the correct purchase ledger and nominal ledger accounts are identified and updated. 6

Enter the sales invoices and sales returns/credit notes on pages 10 – 12.

2.1

Ensure that the dates, references, amounts, VAT rates and values are accurately entered and the correct sales ledger and nominal ledger accounts are identified and updated. 7

Enter the customer cheques and cash received, to be found on page 13, using the procedure appropriate to your accounting software.

3.2, 3.3

The PAY number is used as the reference for all cheques received. Cheques are banked on the same day as they are received. 8

Identify any customer invoice(s) which will be 60 days old or over on 28 February 2010. Print letters to relevant customers requesting full payment of each invoice, ensuring the invoice date, reference and amount are printed on each letter. Number letter(s) P1.

3.1, 7.1

Note: If your software does not print the invoice details on overdue letters, please add the invoice dates, references and amounts manually. 9

Enter the details of supplier cheques and cash paid to be found on page 14, using the procedures appropriate to your accounting software.

4.2, 4.3

10

Identify any purchase invoices which will be 60 days old or over on 28 February 2010. These must be paid by cheque, using the cheque number sequence already in use, dating the cheques 28 February 2010.

4.1, 4.2, 4.3

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6 Assessment Criteria 11

12

Two errors have been found relating to the January 2010 transactions. Please correct these. (a)

The sales invoice to Nuts and Bolts Co, Ref 2692 and dated 29 January 2010, has been incorrectly entered. The amounts should be £168.40 Net, £29.47 VAT and £197.87 Gross, and not £143.32 Net, £25.08 VAT and £168.40 Gross as processed.

(b)

The purchase invoice, Ref RS109, dated 10 January 2010 for the sum of £694.10 Net, £121.47 VAT and £815.57 Gross to The Paint Room was posted to the account of Rainbow Spectrum in error. The reference should be 72/10.

Carry out a bank reconciliation of the main Bank Current Account, as at 28 February 2010, using the Bank Statement provided on page 15.

5.1

6.1, 6.2

Mark bank transactions as reconciled. 13

Produce printouts of the following reports: Please note: ALL printouts should be assembled in the requested order. Do not staple reports together.

14

(a)

A trial balance as at 28 February 2010. Number it P2.

(b)

A summary audit trail showing ALL transactions. Number it P3.

(c)

A Bank Statement showing ALL reconciled transactions as at 28 February 2010. Number it P4.

(d)

A detailed customer activity report/transaction history showing ALL transactions as at 28 February 2010. Number it P5.

(e)

A detailed supplier activity report/transaction history showing ALL transactions as at 28 February 2010. Number it P6.

(f)

A Nominal Activity Report for the 1200 Bank Account and 1220 Cash Account showing ALL transactions as at 28 February 2010. Number it P7.

(g)

A customer address list. Number it P8.

(h)

A supplier address list. Number it P9.

Ensure that all data is secure and exit from the accounting software application.

7.1

PURCHASES - HARDWARE

TOTAL DUE Terms: 30 days

30

294.00 345.45

91.50

202.50

White de luxe window handle @ £4.50 each Lockable pad bolt @ £3.05 each

45

51.45

16.01

35.44

VAT 17.5%

145 8763 09

VAT No: Net

5/487

3356 04 Feb 2010

Inv No: Date: Our Ref:

DESCRIPTION

Hargreaves Hardware Tower Market Buildings High Cross Street Whitstable Kent MA13 5DH

INVOICE

The Lock & Bolt Co Blackfriars Crescent Matlock S41 6HG 01205 845620

Material for Task 5: Purchase invoices and credit notes

Lesley 734 5623 33

VAT No:

Net VAT at 17.5% TOTAL DUE 30 days

REPAIRS & SERVICING 369.50 64.66 434.16

12.75

356.75

NET

TS528 06 February 2010 Inv No: Date: Our Ref:

5 Litres hydraulic fluid @ £2.55 per litre

Servicing van @ £356.75

DESCRIPTION


INVOICE

Tom Sanders & Son, Turret Works, 52 Maplin Street Sheffield S2 7PL 07447 862454

7

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AMOUNT DUE

Sub Totals

PURCHASES - HARDWARE

148 Stripping knife @ £2.15 each

£538.39

458.20

318.20

140.00

50 x 5 Litre wood primer @ £0.56 per L

PURCHASES - PAINT

£ NET

80.19

55.69

24.50

£ VAT 17.5%

VAT No: 556 5487 22

Inv No: RS379 Date: 11 February 2010 Our Ref: 584

INVOICE


Rainbow Spectrum 15 High Gate, Fore Street York YO6 8RT 01674 845922


Inv No: Date: Our Ref:

VAT No: 867 6645 21

Sub total Invoice Total

FIXTURES & FITTINGS

3 Friction slide storage unit @ £94.18 each

DETAILS

To:

Fittings Galore plc Arlington Parade Cambridge CB23 2JS 01853 775645

331.98

282.54

282.54

NET

RS646

49.44

49.44

VAT

535/2 15 February 2010

INVOICE

8


Cr No: Date: Our Ref: VAT No:

Sub total Credit Note Total

PURCHASE RETURNS - PAINT

4 x 5 Litre wood primer @ £0.56 per L

PURCHASE RETURNS - HARDWARE

25 Stripping knife @ £2.15 each

DETAILS

To:

CREDIT NOTE

64.95 76.32

11.20

53.75

NET

11.37

1.96

9.41

VAT 17.5%

C/RS43 23 February 2010 RS379 556 5487 22

Rainbow Spectrum 15 High Gate, Fore Street York YO6 8RT 01674 845922

Credit No: Date: Cust Ref:

Sub Total VAT at 5% CREDIT TOTAL

E676

17.35 0.87 8.22

NET £ 17.35

CREDIT NOTE

R465P 26 February 2010

Vat Reg No:145 8763 09

HEAT, LIGHT & POWER

Incorrect tariff on Invoice P4610

DETAILS

Hargreaves Hardware Tower Market Buildings High Cross Street Whitstable, Kent MA13 5DH

Mid-country Power 54 Medway Court Brentwood Matlock CM62 8GL

9

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Wilkinson & Sons Myrtle Springs Matlock S41 6JE

Inv No: Date: Order No:

Sub totals Total Due

VAT Reg No: 724 6298 20

SALES - HARDWARE

35 Victorian brass finger plate @ £8.50 each

SALES - PAINT

14 Litre satin wood stain @ £12.47 per L

DESCRIPTION

To:

Tel: 01843 745822

MA13 5DH

Tower Market Buildings High Cross Street Whitstable Kent

Hargreaves Hardware

£554.69

472.08

297.50

174.58

£ NET

W747

82.61

52.06

30.55

£ 17.5% VAT

2693 03 February 2010

INVOICE

Material for Task 6: Sales invoices and credit notes

Jones & Jane Ltd Southern Gardens 20 Bridge Road Canterbury CT84 2DU



SALES - PAINT

VAT Reg No: 724 6298 20

10 x 5 Litre clear wood preserver @ £4.25 per L

12 Litre matt quick dry varnish @ £12.48 per L

DESCRIPTION

To:

Tel: 01843 745822

MA13 5DH


Hargreaves Hardware

£425.66

362.26

212.50

149.76

£ NET

232/J

63.40

37.19

26.21

£ 17.5% VAT

2694 09 February 2010

INVOICE

10


VAT Reg No: 724 6298 20

£624.32

531.34

213.84

72 Flitch fastener @ £2.97 each

SALES - HARDWARE

317.50

£ NET

021037

92.98

37.42

55.56

£ 17.5% VAT

2695 17 February 2010

125 Packs twin wheel castors @ £2.54 per pack

DESCRIPTION


Factory Supplies Channel Estate Penzance TR16 8SS


SALES - PAINT

VAT Reg No: 724 6298 20

£1,152.68

981.00

598.50

30 x 5 Litre decking protector @ £3.99 per L

£ NET

P8892

171.68

104.74

66.94

£ 17.5% VAT

2696 25 February 2010

382.50


INVOICE

45 Litre teak oil @ £8.50 per L

DESCRIPTION

To:

Tel: 01843 745822

Tel: 01843 745822

The Ironworks 12 Chiswick Grove Faversham Kent MA14 8QD

MA13 5DH

MA13 5DH

To:


Tower Market Buildings High Cross Street Whitstable Kent INVOICE

Hargreaves Hardware

Hargreaves Hardware

11

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Sub totals Credit Total

VAT Reg No: 724 6298 20

£76.06

64.73

22.38

2 Chest handle @ £11.19 each (wrong size)

SALES RETURNS - HARDWARE

42.35

£ NET

5 Hooded drawer pull @ £8.47 each (wrong finish)

DESCRIPTION

NB443

11.33

3.92

7.41

£ VAT 17.5%

CR247 21 February 2010

Allen & Dale Industries Apricot Lane West Street Penzance TR6 5TE

Sub totals Credit Total VAT Reg No: 724 6298 20

SALES RETURNS - HARDWARE

10 Aluminium casement stays @ £1.69 each

SALES RETURNS – PAINT

£83.13

70.75

16.90

53.85

£ NET

A99/2

12.38

2.96

£ 17.5% VAT 9.42

CR248 22 February 2010

CREDIT NOTE Credit No: Date: Order No:

5 Litre gloss varnish @ £10.77 per L (damaged)

DESCRIPTION

To:

Tel: 01843 745822

Tel: 01843 745822

Credit No: Nuts and Bolts Co Date: 24 Priory Avenue Order No: Upper Heysham Swadlincote MD18 2DF

MA13 5DH

MA13 5DH

To:


Tower Market Buildings High Cross Street Whitstable Kent CREDIT NOTE

Hargreaves Hardware

Hargreaves Hardware

12

13

Material for Task 7: Customer cheque and cash receipts PAY No: 745

39–28–71

Premier Banking plc 14 Harbour Street, Penzance TR14 8HU

Received and banked on

Pay

2 Feb 2010

Date

01 - 02 - 10

Hargreaves Hardware £ 850.00

Eight hundred and fifty pounds only

Allen & Dale Industries Cheque No

0015492 Cheque details: PAY No: 746

Sort Code

Account No

Georgina Allen

392871 00418934 On Account 89–29–79

UNION BANK PLC 5 The Leats, Tamworth TM3 8HT

received and banked on

Pay

19 Feb 2010

Date

16 Feb 2010

Hargreaves Hardware £ 1,200.00

One thousand, two hundred pounds only

Bromley DIY Cheque No

Sort Code

Account No

020559

892979

0034934

Cheque Details:

Fred FredMarch March

In part settlement of Inv 2679 (£1,489.29)

Hargreaves Hardware

Hargreaves Hardware

27 Feb 2010

28 Feb 2010

Received from The sum of

No: 74

Jones & Jane Ltd One hundred and sixty

Received

The Ironworks

from The sum of

No: 75

Eighty nine pounds 56p

eight pounds 03p

H Dunn

Cheque Cash

168

03

With Thanks In settlement of Inv 2691 (£168.03)

H Dunn

Cheque Cash

89

56

With Thanks In settlement of Inv 2684 (£187.32) and Credit Note CR246 (£97.76)

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14 Material for Task 9: Supplier cheque and cash payments Date: 1 Feb 2010 Pay:

Date: 22 Feb 2010

Tom Sanders & Son

Pay:

(Trade Creditor) £

Arnold Granger Co Ltd

Date:

23 Feb 2010

Pay:

Henry Sanders plc

(Trade Creditor)

5,000.00

£

(Trade Creditor)

511.30

£

548.73

Cheque No: 5524

Cheque No: 5525

Cheque No: 5526

On Account

In settlement of Inv 1045 (£314.72) Inv 1156 (£196.58)

In part settlement of Inv S242 (£748.73)

The Paint Room 17 Feb 2010 Received from The sum of

No: 186

Hargreaves Hardware One hundred and

Mid-country Power 23 Feb 2010 Received from The sum of

seventeen pounds 38p

C Littlejohn

Cheque Cash

117

38

WITH THANKS

In settlement of Inv 68/10 (£229.48) Cr Note C95/10 (£112.10)

No: 56/34

Hargreaves Hardware One hundred and eighty three pounds 22p

N Davies

Cheque Cash

183

22

WITH THANKS

In settlement of Inv P4610 (£183.22)

15 Material for Task 12: Bank statement

Premier Bank plc 134 High Street Whitstable Kent MA4 6TH Hargreaves Hardware Tower Market Buildings High Cross Street Whitstable, Kent MA13 5DH Date 2010

30 Jan 04 Feb 07 Feb 23 Feb 25 Feb 26 Feb

Details

Balance brought forward CHQ 5524 DEP 745 DEP 746 CHQ 5526 CHQ 5525

STATEMENT OF ACCOUNT Branch Code 21-29-87 Account No 1763986 Statement Date 28 February 2010 Page No 144

Debits Withdrawals

Credits Deposits

850.00 1,200.00

33,783.00 28,783.00 29,633.00 30,833.00 30,284.27 29,772.97

Total Credits 2,050.00

Balance 29,772.97

5,000.00

548.73 511.30 Total Debits 6,060.03

Balance DR = Overdrawn

CHQ = cheque; DEP = deposit; SO = standing order; DD = direct debit; CT = credit transfer; BC = bank charges BACS = bankers’ automated clearing system

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