Integrated Accounting System Sage Line 50 Northern Ireland. Pilot Paper 2009

Transcription

1 Integrated Accounting System Sage Line 50 Northern Ireland Pilot Paper

2 Accounting Technicians Ireland (Formerly The Institute of Accounting Technicians in Ireland) 2 nd Year Examination: Pilot Paper 2009 Paper: IAS Sage Line 50 (Northern Ireland) INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY For candidates answering in accordance with the law and practice of the Republic of Ireland. Candidates should answer the paper in accordance with the appropriate provisions up to and including the Finance Act The provisions of the Finance Act 2010 should be ignored. Candidates should allocate their time carefully. The following inserts are enclosed with this paper: P45 and P30 All names and addresses mentioned are entirely fictitious. This pilot paper is copyright and may not be reproduced. 1

3 Company Information Business Name: Blue Garden Supplies NI Limited. Address: Unit 21, Prince Regent Road, Belfast, BT5 6GR Telephone: Fax: VAT Reg. No.: Employer Reg. No.: Directors: Business: Type of Business Entity: GB GB Mr. Damien Cummins Mrs. Margaret Cummins Suppliers of garden machinery, equipment and related ancillary products. Private Limited Company Business Profile Blue Garden Supplies NI Ltd was incorporated as a Private Limited Company in Damien Cummins and Margaret Cummins are the directors and shareholders of the company. Blue Garden Supplies NI Ltd operates mainly credit sales and some cash sales. The company is registered for VAT. VAT is charged on sales at the standard rate of 17.5%. The company accounts for VAT on a Standard VAT Accounting basis. The accounting year of Blue Garden Supplies Ltd is June to May. Assume that today is the 3 rd of September 2009 and you have recently been employed as the accounting technician. As part of your duties you will be responsible for the administration of the payroll and the preparation of the monthly management accounts. There are currently five employees paid on a monthly basis. A draft set of accounts up to 31 st August 2009 were produced by your predecessor using Sage Line 50 V15. You are aware that there are some additional entries still to be posted and there are a few changes suggested by the directors before finalising the management accounts. 2

4 Section A - Payroll: You are required to: 1. Copy the Sage 50 payroll files from the enclosed medium, following the instructions accompanying the software. (1 Marks) 2. Set yourself up as a new employee. You commenced employment on Monday 25 th of August Your annual salary is 40,000. You are to be a quarter of a month s salary for August A copy of your P45 from your previous employer is attached on page 9. Your date of birth is 12 th August 1978 and your address is Apt. 18, The Waterfront, Belfast BT7 3GT. Your national insurance category is A. (4 Marks) 3. Damien Cummins is to receive commission of 4,800 for August Margaret Cummins is to receive an increase in her annual salary from 65,000 to 75,000 from 1 st August Update the payroll package for this increase. She was also issued with a new tax code of 598L. 5. Mark Jennings left the company on 15 th August. He is to be paid half a month s salary for August. He is also to receive a bonus of 1,000 for August (3 Marks) 6. Philip Byrne is to be reimbursed actual/vouched travel expenses of 250 for August 2009 that he incurred. 7. Prepare and calculate the August 2009 payroll. Print the gross to net and the NI contributions report for August (5 Marks) 8. Complete the P32 return on page 10 for August (1 Marks) Total: (20 Marks) Section B - Integrated Accounts and Double Entry: You are required to: 1. Restore the dataset for Garden Supplies NI Limited from the data location as indicated (creating a new company if necessary) 2. Change the company name so it reads: Blue Garden Supplies NI Ltd your name (e.g. John Traynor) (1 Mark) 3. Post the salary journal for the month of August 2009 from the gross to net report and the NI contributions report produced in question 1. (You should set up any new nominal codes required.) (5 Marks) 3

5 4. An existing customer Garden World have changed address. Their new details are as follows: Unit 19 Belfast Industrial Estate Belfast BT9 3AD Tel: Fax: Amend their address. (1 Mark) 5. Generate a credit note from Sage Line 50 for Garden World similar to that on page 5 and allocate it against the correct sales invoice. 6. Enter the cheque payments on page 6 and allocate them against the appropriate invoic e numbers. 7. On 20 th of August the directors sent a euro draft for 10,000 to Doyle s Lawnmower and Machinery Sales Ltd costing 8, for payment of invoice number DLM0219. A bank charge of 8.75 is included in this figure and the difference is the currency loss. Allocate this payment against the invoice and related charges. (3 Marks) 8. The company entered into a lease agreement (Reference number: /001/70) on 5 th August 2009 for a new van at a cost of 21,600. Interest of 4,320 in total will be charged over five years. Ignoring VAT implications you are required to: (i) Capitalise the asset and show the lease liability at the date of acquisition i.e. 5 th August 2009 (5 Marks) (ii) (iii) Set up and post a recurring cash payment for the monthly lease repayment of 432 (ignore VAT) starting on 6 th August 2009 and to be processed monthly (3 Marks) Set up and post the recurring monthly journal to charge lease interest of 72 to the Profit and Loss Account on the same date as above. (3 Marks) (You should set up any new nominal codes required.) 9. Before attempting to reconcile the bank account you notice the following: (i) (ii) (ii) A lodgement for 1, on 25 th August 2009 from The Garden Shop was entered onto Sage Line 50 with the incorrect lodgement reference number of The correct lodgement reference number should be Delete this lodgement and record it correctly. Allocate this receipt against invoice number Lodgement number on 29 th August for 10,000 from Ennis Garden Centre was not posted to Sage Line 50. Enter this receipt and allocate it against invoice number Enter any amounts from the attached bank statement that may not have been recorded, then reconcile the account to the bank statement for August (6 Marks) 4

6 10. Enter the following petty cash vouchers for the month ended 31 st August 2009 (4 Marks) Net Date Details Receipt Amount VAT Total No. 07/08/2009 The Paper Store (Printing & stationary) 15/08/2009 CFB Supplies (PC/printer consumable) 18/08/2009 Cleaning Materials (Cleaning) 27/08/2009 Train ticket (Travel expenses) 11. Enter the extra adjustments detailed below for August 2009 (4 Marks) Dr ( ) Cr( ) i. Fix/Fittings Dep. Chg Fix/Fittings Acc Depn Being provision for August depreciation. ii. Comp Equip Dep. Chg Comp Equip Acc Dep Being provision for August depreciation. iii. Office Equip Dep. Chg Office Equio Acc. Dep Being provision for August depreciation. iv. Motor Vehicles Dep Chg 1, Motor Vehicles Acc.Dep 1, Being provision for August depreciation. 12. You should also provide for depreciation on the leased motor vehicles. Depreciation should be charged over the life of the lease. (3 Marks) 13. Interest of was earned on the deposit account on 27 th August for the three Months ended 31 st August (Total 50 Marks) 5

7 Section B Question 4 CREDIT NOTE Blue Garden Supplies NI Limited CREDIT NOTE NO.: 2028 DATE: 29 TH AUGUST 2009 Unit 21 Prince Regent Road Belfast BT5 6GR To Garden World Ltd 12 Main Street Belfast BT0 6JK DATE DESCRIPTION VAT AMOUNT 29/08/09 Re: Invoice no /08/09 APH03 Hedge Trimmers X SUBTOTAL VAT 7.93 TOTAL VAT Number: GB THANK YOU FOR YOUR BUSINESS! 6

8 Section B Question 5 First Date 28/08/09 Bank Plc 52 Main Street, Belfast, BT63RD Pay The Regency Cleaning Company Ltd Four hundred and eleven pounds and twenty five cent only. Damien Cummins Margaret Cummins "500507" Blue Garden Supplies NI Ltd Allocate this cheque against invoice number 290 First Date 28/08/09 Bank Plc 52 Main Street, Belfast, BT63RD Pay Cambridge Machinery Ltd Six thousand eight hundred and fifteen pounds only 6, Damien Cummins Margaret Cummins "500508" Blue Garden Supplies NI Ltd Allocate this cheque against invoice number

9 First BANK PLC Main Street, Belfast, BT63RD STATEMENT OF ACCOUNT Blue Garden Supplies NI Ltd Unit 21 Prince Regent Road, Belfast, BT5 6GR. Statement No: 531 Account Name: Account No. Blue Garden Supplies Aug-09 DATE PARTICULARS DEBIT ( ) CREDIT ( ) BALANCE (dr Denotes (Abbreviations Overleaf) Debit) Jul Balance b/fwd 13, Aug 09 2 Rent - DD 3, Petty Cash , Lodgement , , Lease - DD Govt Duty 7.50 Cheque , , Lodgement , , P32 July - DD 8, , Cheque , , Cheque , (3,653.81) 22 Euro Draft 8, EFT Charge (11,715.31) 24 BT - DD Cheque , Lodgment , (6,167.00) 29 Govt Duty 7.50 Lodgment , (4,563.92) 8

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12 Section C - MS Excel: 1. You have been asked to prepare a budget for the year ending 31 st May 2010 based on the actual figures of June 2009 to August Export the Trial Balance for the 3 months ended 31 st August 2009 from the Sage Line 50 dataset into an MS Excel worksheet entitled Budget Using those 3 months figures multiply by 4 to get full year s projected figures. 2. On a separate worksheet entitled Variables, enter the variables detailed below. a) Sales should increase by 15% b) Cost of sales should increase by 9% c) Salaries are to be increased by 15% d) All other expenses are to be increased by 8% with the exception of rent and depreciation. e) Rent is to increase from 42,000 per annum to 45,000 per annum. Depreciation should be based on the 2009 figure but after taking into account the additional depreciation for the new motor vehicle addition as outlined in question B part 7. You may assume a full year s depreciation is charged in the year of acquisition. Provision should be made for lease interest on the new motor vehicle as outlined in question B part 7. (7 Marks) 3. In a separate column entitled Budget 2010 apply to the projected figures for 2010, using a formula, the variable changes detailed above. All figures in the Budget 2010 column should be rounded. In a separate column show the monthly budgeted figures rounded. (4 Marks) 4. Format your spreadsheet so it looks exactly the same as shown on page 11. (4 Marks) 5. Return to the Sage Line 50 dataset and input the above budget figures for Print the MS Excel spreadsheet entitled Budget 2010 (1 Mark) Total: (20 Marks) 11

13 2009 Variables Budget 2010 Monthly Budget % SALES TYPE A 969, % 1,115,005 92,917 COST OF SALES Purchases 449, % 490,359 40,863 Delivery & Packing 17, % 18,993 1,583 Total Cost of Sales 467, ,352 42,446 GROSS MARGIN Sales Less Cost of Sales 502, ,653 50,471 OPERATING EXPENSES Staff Salaries 127, % 147,200 12,267 Dir's Salaries 134, % 155,250 12,937 Employer's PRSI 30, % 34,507 2,876 Staff Training % Coffee Tea & Milk % Rent 42, ,000 p/a 45,000 3,750 Rates 7, % 8, Heat and Light 1, % 1, Cleaning 3, % 3, Repairs and maintenance % Printing and Stationery 2, % 3, PC/Printer Consumables 1, % 1, Telephone 3, % 3, Post and Packing 2, % 2, Other Donations % Bank Charges % Insurance 3, % 4, Travel expenses 4, % 4, Advertising 7, % 7, Business Entertaining 1, % 1, Legal Fees 1, % 2, Accountant's Fees 5, % 6, Fix/Fittings: Depn Chrge 3, , Comp. Equip: Depn Chrge 2, , Office Equip Depn Chrge 1, , Motor Vehicles Depn Chrge 13, ,370 1,448 Bank Interest Payable % 52 4 Currency gains/losses % Corporation Tax Charge 19, % 20,650 1, , ,726 40,227 Net Profit (Loss) 76, ,927 10,244 12

14 Printouts: Upon completion of Section B and Section C (Integrated Accounts & MS Excel), print out the following: Sage Line 50 Printouts: A trial balance as at 31 st August 2009; An Audit Trail Reports by posting number starting at posting 265 and ending at the last posting number in Sage Line 50. A customer address list for Garden World; An aged creditors reports as at 31 st August 2009 (detailed); A Reconciled and Unreconciled Transaction Reports printout for First Bank Plc as at 31 st August 2009 (showing both outstanding receipts and payments); A profit and loss account for the quarter June August 2009; Total: (10 Marks) On completion of the assignment, create a folder on your desk top using your name and student number as the folder name. Save a backup of your Sage 50 Payroll, Sage Line 50 and MS Excel data into this folder. Write your name clearly on all printouts and ensure the printouts are in the order shown above and then hand them to your lecturer. It is the student s responsibility that all of the above is completed. Accounting Technicians Ireland cannot be held responsible for any marks lost as a result of the above not being completed correctly. Total Exam Marks: (100 Marks) End of the Paper 13