Qualifications LEVEL 1 Award in Manual Bookkeeping (QCF) (Accreditation number: 500/9406/3) IAB ID 160

Transcription

1 Exam ID 159 Qualifications LEVEL 1 Award in Manual Bookkeeping (QCF) (Accreditation number: 500/9406/3) IAB ID 160 LEVEL 1 Award in Bookkeeping (QCF) (Accreditation number: 500/9006/9) IAB ID 150 Examination Units: Unit ID 157: Preparing and processing bookkeeping documents - M/600/8740 Unit ID 158: Recording Credit transactions - A/600/8742 Unit ID 156: Making and receiving payments - J/600/8744 Unit ID 155: Maintaining petty cash records - R/600/8746 JANUARY 2011 (incorporating VAT at 20%) QUESTION PAPER Time Allowed: 2 hours Suite 30, 40 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU Tel: , Fax: , education@iab.org.uk IAB (QCF)/L1/JAN2011 v4 1

2 INTERNATIONAL ASSOCIATION OF BOOK-KEEPERS LEVEL 1 BOOKKEEPING EXAMINATION General Information and Instructions 1. You must enter your IAB Student Number, Candidate Number and Name of Examination Centre in the boxes provided on the front cover of your Answer Booklet. 2. Time allowed: 2 Hours. 3. All answers are to be written in ink. 4. Cross out errors neatly, or use correcting fluid in moderation. 5. The use of silent non-programmable calculators is permitted. 6. Blank pages are provided in your Answer Booklet for workings if required. 7. NOTE this Question Paper and the Answer Booklet have information and data printed on both sides of the pages contained within the booklets. IAB (QCF)/L1/JAN2011 v4 2

3 SECTION A PREPARING AND PROCESSING BUSINESS DOCUMENTS THERE ARE FOUR TASKS IN THIS SECTION OF THE PAPER YOU MUST COMPLETE ALL TASKS DATA AND TASKS You are employed as a bookkeeper for Workers Direct, who buy and sell specialist workwear on a credit basis. One of your duties is to prepare the invoices and credit notes to be issued to trade customers and the checking of invoices and credit notes received from trade suppliers. Today s date is 31 January information: The following documents are provided for your An extract from the customer file giving relevant customer account information An extract from Workers Directs current price list Two delivery notes and a goods returned note. These are to be used in preparing two invoices and a credit note which are to be issued to trade customers today Workers Direct Customer Files (Extract) Customer Account No SL SS12 SL WP26 SL CD34 Customer Trading Name and Address Safety Shop 10 Kingsway DD1 7HG Workwear Plus 23 Arbroath Road DD1 4FG Clothing Direct 2 Reedlands Court DD1 2SD Terms of Trade Payment Net 21 days Payment Net 30 days Payment Net 14 days IAB (QCF)/L1/JAN2011 v4 3

4 Product Code Workers Direct Price List (Extract) Product Description Mens Clothing: MC 045 Black Safety Trousers MC 046 Grey Safety Trousers MC 086 Jackets MC 102 Fleeces MC 115 Embroidered Shirts Womens Clothing: WC 201 Jackets WC 234 Fleeces WC 241 Embroidered Shirts Product Price (Excluding VAT) General Safety: GS 543 Safety Gloves per pack GS 544 Safety Glasses per pack GS 567 Disposable Gloves per pack GS 573 Safety Hats per pack Note: All products listed above are subject to VAT at standard rate (20%) Delivery Note 1 DELIVERY NOTE No: DN 5234 Workers Direct VAT Reg No: Abbey Road DD1 5FK Order No: SS 2367 Date: 31 January 2011 To: Safety Shop 10 Kingsway DD1 7HG Quantity Description Code 20 packs Safety Gloves GS packs Disposable Gloves GS 567 Delivered To: Above address Terms: Net 21 days VAT: All goods supplied above are subject to VAT at standard rate (20%) IAB (QCF)/L1/JAN2011 v4 4

5 Delivery Note 2 DELIVERY NOTE No: DN 5235 Workers Direct VAT Reg No: Abbey Road DD1 5FK Order No: WP 1276 Date: 31 January 2011 To: Workwear Plus 23 Arbroath Road DD1 4FG Quantity Description Code 5 Jackets MC Fleeces MC 102 Delivered To: Above address Terms: Net 30 days VAT: All goods supplied above are subject to VAT at standard rate (20%) Goods Returned Note (Goods returned by trade customer) GOODS RETURNED NOTE No: GRN (1) 312 (Goods Inwards) VAT Reg No: Workers Direct 25 Abbey Road DD1 5FK Goods Returned by: Clothing Direct Date of Return: 31 January 2011 Quantity Product Description Product Code 1 Black Safety Trousers MC 045 Reason for Return Faulty zip IAB (QCF)/L1/JAN2011 v4 5

6 REQUIRED Task 1 Prepare the two sales invoices to be issued to Safety Shop and Workwear Plus NB: The last sales invoice prepared was numbered WD 2367 (10 marks) Task 2 Prepare the credit note to be issued to Clothing Direct NB: The last credit note prepared was numbered CN 178 (4 marks) Note: The following proformas are provided for your use in completing the above tasks: Sales invoices (see pages 1 and 2 of your Answer Booklet). Take care in using these sales invoices as they are already addressed for you to the trade customers to whom they are to be issued. Credit note (see page 3 of your Answer Booklet). The credit note is already addressed for you to the trade customer to whom it is to be issued. IAB (QCF)/L1/JAN2011 v4 6

7 Checking Invoices and Credit Notes Received When Workwear Direct receive invoices from trade suppliers for goods purchased from them on credit, the invoice is checked against the original purchase order and the delivery note before being passed for payment. This includes the arithmetic accuracy of each calculation. A slip is attached to each invoice received. Where the invoice details, price extensions and totals are correct the words passed for payment are written on the slip in the action required section. The supplier account code and a purchase invoice number are also allocated to the invoice and written on the slip. Where, however, the invoice contains errors the words contains errors return to supplier are written on the slip in the action required section and no supplier account code or purchase invoice number are allocated to the invoice. Credit notes received from suppliers for goods returned to them are also checked against supporting documentation and for arithmetic accuracy. A slip is attached to each credit note received. Where the credit note details, price extensions and totals are correct the words take credit are written on the slip in the action required section. The supplier account code is also written on the slip. Where, however, the credit note contains errors the words contains errors return to supplier are written on the slip in the action required section and no supplier code is allocated. It is not necessary to allocate the credit note a number. Provided below is an extract from the supplier files kept by Workers Direct: Workers Direct Supplier Files (Extract) Supplier Account Code PL OS156 PL UP067 PL SG235 Supplier Trading Name and Address Office Supplies Unit 5 Brampton Trading Estate DD1 6LK Uniforms Plus 22 Mount Street DD1 2FD Safety Gear Co. 10 Chariot Drive DD2 3DF Terms of Trade Trade Discount 5% Payment Net 90 days Trade Discount 15% Payment Net 30 days Trade Discount 20% Payment Net 60 days IAB (QCF)/L1/JAN2011 v4 7

8 The following purchase orders, delivery notes and goods returned note relate to invoices and a credit note received today (31 January 2011), and now need to be checked. Purchase Orders PURCHASE ORDER Order No: PO 2754 Workers Direct 25 Abbey Road VAT Reg No: DD1 5FK To: Office Supplies Date: 12 January 2011 Quantity Description Code 20 Embroidered Jumpers J Embroidered Jackets J Embroidered T-Shirts J 3582 Deliver To: Signed: Above address N Day (Head Buyer) PURCHASE ORDER Order No: PO 2761 Workers Direct 25 Abbey Road VAT Reg No: DD1 5FK To: Uniforms Plus Date: 18 January 2011 Quantity Description Code 50 Brown Safety Trousers T Black Safety Trousers T Green Safety Trousers T 201 Deliver To: Signed: Above address N Day (Head Buyer) IAB (QCF)/L1/JAN2011 v4 8

9 PURCHASE ORDER Order No: PO 2765 Workers Direct 25 Abbey Road VAT Reg No: DD1 5FK To: Safety Gear Co. Date: 20 January 2011 Quantity Description Code 50 packs Safety Glasses G packs Safety Gloves G packs Safety Hats H 124 Deliver To: Signed: Above address N Day (Head Buyer) IAB (QCF)/L1/JAN2011 v4 9

10 Delivery Notes DELIVERY NOTE No: DN 3287 Office Supplies VAT Reg No: Unit 5 Brampton Trading Estate Order No: PO 2754 DD1 6LK To: Workers Direct Date: 16 January 2011 Quantity Description Code 20 Embroidered Jumpers J Embroidered Jackets J Embroidered T-Shirts J 3582 Deliver To: Workers Direct 25 Abbey Road DD1 5FK Goods Received By: A Harper Terms: Trade discount 5%. Net 90 days Carriage Paid VAT: All goods supplied above are subject to VAT at standard rate (20%) DELIVERY NOTE No: DN 876 Uniforms Plus VAT Reg No: Mount Street Order No: PO 2761 DD1 2FD To: Workers Direct Date: 23 January 2011 Quantity Description Code 50 Brown Safety Trousers T Black Safety Trousers T Green Safety Trousers T 201 Delivered To: Workers Direct 25 Abbey Road DD1 5FK Goods Received By: A Harper Terms: Trade discount 15%. Net 30 days Carriage Paid VAT: All goods supplied above are subject to VAT at standard rate (20%) IAB (QCF)/L1/JAN2011 v4 10

11 DELIVERY NOTE No: DN 3265 Safety Gear Co. VAT Reg No: Chariot Drive Order No: PO 2765 DD2 3DF To: Workers Direct Date: 25 January 2011 Quantity Description Code 50 packs Safety Glasses G packs Safety Gloves G packs Safety Hats H 124 Delivered To: Workers Direct 25 Abbey Road DD1 5FK Goods Received By: A Harper Terms: Trade discount 20%. Net 60 days Carriage Paid VAT: All goods supplied above are subject to VAT at standard rate (20%) On pages 4, 5 and 6 of your Answer Booklet you will find invoices received from Office Supplies, Uniforms Plus and Safety Gear which relate to the purchase orders and delivery notes given above. REQUIRED Task 3 (i) Check the details of each invoice quantities, descriptions and codes, against the quantities, descriptions and codes on the purchase orders and delivery notes. (ii) Check the arithmetic accuracy of each invoice. You can assume that the unit prices on each of the invoices have already been checked against supplier list and catalogue prices are correct. You are required to check: all price extensions (quantity x unit price) all invoice sub-totals and totals that the correct trade discounts have been applied that the VAT on each invoice is correct that the correct terms of trade have been quoted on each invoice Where invoices are found to be correct complete the slip shown beneath each invoice in accordance with Workers Direct policy for passing invoices received from trade suppliers for payment. NB: The last supplier invoice received and passed for payment today was numbered P 1765 (4.5 marks) IAB (QCF)/L1/JAN2011 v4 11

12 Goods Returned Note Goods returned to trade supplier GOODS RETURNED NOTE No: GRN (0) 6543 (Goods Outwards) VAT Reg No: Workers Direct 25 Abbey Road DD1 5FK Goods Returned To: Safety Gear Co. Date of Return: 26 January 2011 Quantity Description Product Code 1 pack Safety Glasses G pack Safety Hats H 124 Reason for Return: Damaged On page 7 of your Answer Booklet you will find the credit note received from Safety Gear Co. which relates to the goods returned note presented above. REQUIRED Task 4 (i) Check the details of the credit note quantities, descriptions and codes, against the quantities, descriptions and codes on the goods returned note. (1.5 marks) (ii) Check the arithmetic accuracy of the credit note. You can assume that the unit prices on the credit note have already been checked against the unit prices on the original invoice and are correct. You are required to check: all price extensions (quantity x unit price) all credit note sub-totals and totals that the correct trade discount has been applied that the VAT on the credit note is correct If the credit note is found to be correct complete the slip shown beneath the credit note in accordance with Workers Direct policy for taking credit in respect of goods returned to trade suppliers. IAB (QCF)/L1/JAN2011 v4 12

13 SECTION B RECORDING CREDIT TRANSACTIONS THERE ARE FOUR TASKS IN THIS SECTION OF THE PAPER YOU MUST COMPLETE ALL TASKS DATA AND TASKS You are employed as a Bookkeeper by Aqua Bathrooms Ltd. The bookkeeping system used by Aqua Bathrooms Ltd includes the keeping of the following day books: Sales day book Sales returns day book Purchase day book Purchase returns day book Information is taken from invoices and credit notes issued and received and entered in the day books on a daily basis. At the end of each day s trading the day books are totalled and cross checked for arithmetic accuracy. The Day Books are provided on pages 8 and 9 of your answer booklet. You will notice that they have already been partly written-up. Today s date is 31 January Information from several invoices and credit notes issued and received today have yet to be entered in the day books. The following details have been taken from the invoices and credit notes not yet recorded in the day books. Sales Invoices Issued Customer Bathrooms R Us (account code SL B127) Invoice number S 4367 Goods sub total 15,000 Trade discount (15%) 2,250 Net goods 12,750 VAT 2,550 Invoice total 15,300 Customer Jenkings & Co (account code SL J236) Invoice number S 4368 Goods sub total 18,000 Trade discount (20%) 3,600 Net goods 14,400 VAT 2,880 Invoice total 17,280 IAB (QCF)/L1/JAN2011 v4 13

14 Credit note Issued Customer Showers Direct (account code SL S102) Credit note number CN 345 Goods sub total 4,000 Trade discount (20%) 800 Net goods 3,200 VAT 640 Credit note total 3,840 Invoices Received Supplier Dolphin & Co (account code PL D237) Supplier invoice number D 3501 Our invoice number P 4567 Goods sub total 23,000 Trade discount (15%) 3,450 Net goods 19,550 VAT 3,910 Invoice total 23,460 Supplier Manor Bathrooms (account code PL M278) Supplier invoice number MB 189 Our invoice number P 4568 Goods sub total 10,000 Trade discount (20%) 2,000 Net goods 8,000 VAT 1,600 Invoice total 9,600 Credit Note Received Supplier The Bathroom Warehouse (account code PL B246) Supplier credit note number CN 372 Goods sub total 5,000 Trade discount (10%) 500 Net goods 4,500 VAT 900 Credit note total 5,400 IAB (QCF)/L1/JAN2011 v4 14

15 REQUIRED Task 1 Task 2 Task 3 Task 4 Enter the sales invoices above into the sales day book. Total the day book and cross check the totals for arithmetic accuracy. (6 marks) Enter the credit note above into the sales returns day book. Total the day book and cross check the totals for arithmetic accuracy. (4.5 marks) Enter the purchase invoices above into the purchase day book. Total the day book and cross check the totals for arithmetic accuracy. (6.5 marks) Enter the credit note above into the purchase returns day book. Total the day book and cross check the totals for arithmetic accuracy. (4.5 marks) Note: The following proformas are provided for your use in completing the above tasks: Sales day book (see page 8 of your Answer Booklet) Sales returns day book (see page 8 of your Answer Booklet) Purchase day book (see page 9 of your Answer Booklet) Purchase returns day book (see page 9 of your Answer Booklet) IAB (QCF)/L1/JAN2011 v4 15

16 SECTION C MAKING AND RECEIVING PAYMENTS THERE ARE FIVE TASKS IN THIS SECTION OF THE PAPER YOU MUST COMPLETE ALL TASKS DATA AND TASKS You work in the Finance Department for The Make-Up Chain and your daily duties include: making payment to suppliers checking daily receipts from cash sales preparing cash for banking Paying Suppliers Trade suppliers are paid by cheque. A remittance advice is issued with each cheque. Today s date is 31 January 2011 and the following two invoices are to be paid taking into account the credit note received. Supplier Supplier Invoice Number Invoice Total Total Goods Value VAT Wonder Mask WM Lauder & Co LC , Supplier Supplier Credit Note Number Credit Note Total Total Goods Value VAT Wonder Mask CN REQUIRED Task 1 Task 2 Note: Prepare the remittance advices to be issued to the trade suppliers above in settlement of the two invoices and credit note to be paid today. (2.25 marks) Prepare the cheques to be issued to each supplier in respect of settlement of the above invoices and credit note. (3 marks) The following proformas are provided for your use in completing the above tasks: Remittance advices (see page 10 of your Answer Booklet). Note the remittance advices provided are already addressed for you to each of the trade suppliers to whom they are to be issued. Cheques (see page 10 of your Answer Booklet) IAB (QCF)/L1/JAN2011 v4 16

17 CHECKING AND BANKING DAILY TAKINGS Customers can pay for their purchases in cash (notes and coins), by cheque (supported by a valid cheque guarantee card) or by debit or credit card (Switch or Visa). Debit and credit card transactions are processed using the Electronic Funds Transfer at Point of Sale (EFTPOS) system. This system ensures that the payment is transferred automatically to the bank account of The Make-Up Chain. At the end of each day s trading The Make-Up Chain EFTPOS terminal produces an end of day report giving grand total summary of all the debit and credit card transactions processed that day. Cash (notes and coins) and cheque sales are processed through a separate till to card sales. At the end of each day s trading a till reading showing the total cash and cheque takings is produced. The contents of the till are then counted and the opening cash float is deducted, the balance being the day s cash sales which should agree to the total as shown by the till reading. Cash (notes and coins) and cheques are then prepared for banking. The process of reconciling the daily takings by cash (notes and coins) and cheques to the till reading figure, and of preparing notes, coins and cheques for banking, is undertaken by completing a Daily Takings and Cash for Banking Form, from which a Paying-in Slip is then prepared. You are now presented with the following information in respect of sales on the 31 January 2011: 1 At the close of business 31 January 2011 the till contents were: Notes and Coins Cheques Number in Hand Denomination Drawer Amount Notes K. Carter Notes D. Piers Notes E. Knowles Coins N. Radford Coins A. Skinner p Coins J. Gould p Coins T. Lewis p Coins Total p Coins 10 2p Coins 14 1p Coins 2 The till reading taken from the till used for the purpose of processing cash (notes and coins) and cheque sales showed daily takings at close of business on 31 January 2011 to be 1, IAB (QCF)/L1/JAN2011 v4 17

18 3 The till used for the purpose of cash (notes and coins) and cheque sales contains a cash float at the beginning of each day with a cash float of 100 made up as follows: Cash (Notes and Coins) Number Denomination Amount 7 10 Notes Notes Coins p Coins p Coins p Coins p Coins p Coins p Coins REQUIRED Task 3 Task 4 Task 5 Note: Check the daily sales in the form of cash (notes and coins) and cheques per the till reading at point 2, against the notes, coins and cheques in the till at the close of business on 31 January 2011 as listed in point 1. Complete the Daily Takings and Cash for Banking Form provided which has been partly completed for you. (12.25 marks) Prepare the Paying-in Slip provided, thereby banking the cash (notes and coins) and cheque takings for 31 January You should sign the payingin slip in the name of A Student. (4.5 marks) You have just received a cheque from a non credit customer which is shown on page 13 of your Answer Booklet together with the receipt issued for this. If there are any errors state the error/s and necessary action to be taken. (1 mark) The following proformas and space for your answers, are provided for your use in completing the above tasks: Daily Takings and Cash for Banking Form (see page 11 of your Answer Booklet) Paying-in Slip, Cheque received and receipt (see pages 12 and 13 of your Answer Booklet). Stating the errors (see page 13 of your Answer Booklet) IAB (QCF)/L1/JAN2011 v4 18

19 SECTION D MAINTAINING PETTY CASH RECORDS THERE ARE SIX TASKS IN THIS SECTION OF THE PAPER YOU MUST COMPLETE ALL TASKS DATA AND TASKS You work for a newsagents and one of your responsibilities is that of petty cashier. The business is registered for VAT. A petty cash imprest system is operated for the business with an imprest balance of 300. The Petty Cash Book is balanced off on a weekly basis with the imprest balance being restored each Friday by means of a cheque drawn on the bank. You write up the petty cash book each Monday to account for petty cash expenditure in the previous week. The following eight petty cash vouchers were prepared in respect of petty cash expenditure in the week Monday 24 January to Friday 28 January 2011: No: 025 No: 026 Petty Cash Voucher Petty Cash Voucher Date: 24/01/11 Date: 25/01/11 AMOUNT AMOUNT p p Shop repairs Advertising (sundries) (includes VAT) (includes VAT) Claimant: B. Clarke Claimant: J. Ryder Authorised by: K. Sienna Authorised by: K. Sienna No: 027 No: 028 Petty Cash Voucher Petty Cash Voucher Date: 26/01/11 Date: 26/01/11 AMOUNT AMOUNT p p Casual Wages Delivery Vehicle Repair (sundries) (includes VAT) Claimant: L. West Claimant: B. Clarke Authorised by: K. Sienna Authorised by: K. Sienna IAB (QCF)/L1/JAN2011 v4 19

20 No: 029 No: 030 Petty Cash Voucher Petty Cash Voucher Date: 27/01/11 Date: 27/01/11 Stationery AMOUNT AMOUNT p p 7 00 Paper for Printing 6 00 VAT 1 40 VAT Claimant: L. West Claimant: J. Ryder Authorised by: K. Sienna Authorised by: K. Sienna No: 031 No: 032 Petty Cash Voucher Petty Cash Voucher Date: 28/01/11 Date: 28/01/11 Milkman (sundries) (zero rated for VAT) AMOUNT AMOUNT p p 4 50 Shop refreshments (sundries) (zero rated for VAT) Claimant: B. Clarke Claimant: L. West Authorised by: K. Sienna Authorised by: K. Sienna REQUIRED Task 1 Task 2 Task 3 Enter the petty cash vouchers for the week Monday 24 January 2011 to Friday 28 January 2011 into the petty cash book. Sub-total the petty cash expenditure analysis columns and cross check them for arithmetic accuracy. Balance off the petty cash book as at 28 January 2011 carrying down and bringing down the petty cash balance as at that date. Restore the petty cash balance to the imprest amount and show the balance carried forward as at 31 January (13.75 marks for Tasks 1-3) IAB (QCF)/L1/JAN2011 v4 20

21 Note: The following proforma is provided for your use in completing the above task: Petty Cash Book (see page 14 of your Answer Booklet) Your duties as petty cashier include responsibility for the safe-keeping of the petty cash float. You keep the float in a lockable box which you then lock away each evening in the office safe. On the Friday of each week, having balanced off the petty cash book but before you restore the petty cash imprest balance, you check the contents of the petty cash box against the balance per the petty cash book. At close of business on Friday 28 January 2011 the petty cash box contained the following notes and coins: REQUIRED Denominations Quantity (Notes and Coins) In Box 10 Notes 9 5 Notes 6 2 Coins 10 1 Coins 7 50p Coins 5 20p Coins 4 10p Coins 3 5p Coins 3 2p Coins 20 1p Coins 15 Task 4 Note: Prepare the form Reconciliation of Petty Cash Book Balance with Contents of Petty Cash Box as at Friday 28 January 2011, thereby reconciling the balance per the petty cash book with the contents of the petty cash box as at that date. (6.5 marks) The following proforma is provided for your use in completing the above task: Form Reconciliation of Petty Cash, Cash Book Balance with Contents of Petty Cash Box (see page 15 of your Answer Booklet) The petty cash float is restored on the Friday of each week by means of a cheque drawn on the business bank account. As the petty cashier you prepare and sign a cheque requisition which you issue to the main cashier requesting the issue of a cheque made payable to cash for an amount necessary to restore the petty cash imprest balance. IAB (QCF)/L1/JAN2011 v4 21

22 REQUIRED Task 5 Note: Prepare and sign the cheque requisition (A Student) to be issued to the main cashier on Friday 28 January 2011 for the amount necessary to restore the petty cash imprest balance. (1.25 marks) The following proforma is provided for your use in completing the above task: Cheque requisition (see page 15 of your Answer Booklet) As petty cashier your duties also include the preparation of petty cash vouchers in respect of petty cash claims submitted to you. Petty cash vouchers are written up from receipts provided to you by claimants. Today s date is Monday 31 January 2011 and you have received the following receipt from Ellie Cooper the purchasing shop manager. The receipt is in respect of advertising costs incurred today by Ellie. She is now requesting that you reimburse her for the amount she has spent. She has left the receipt on your desk with a note telling you that she will call back to see you later in the day to sign the petty cash voucher and pick up the monies due to her: REQUIRED Market Advertising. Receipt Date: 31 January 2011 p Advertising Total VAT at 20% 9 00 Total amount due Received with thanks VAT Reg No: Task 6 Prepare a petty cash voucher in respect of the above petty cash claim. You can sign the voucher (A Student) as having authorised the claim. Ellie Cooper will sign the voucher as claimant when she returns to your office. (1.5 marks) NB: The last petty cash voucher you authorised was numbered 032 Note: The following proforma is provided for your use in completing the above task: Petty cash voucher (see page 16 of your Answer Booklet) IAB (QCF)/L1/JAN2011 v4 22