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

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Qualifications: LEVEL 2 Certificate in Bookkeeping (QCF) (Accreditation number: 601/0730/3) LEVEL 2 Certificate in Manual Bookkeeping (QCF) (Accreditation number: 601/0480/6) Sample Assessment

1 Qualifications: LEVEL 2 Certificate in Bookkeeping (QCF) (Accreditation number: 601/0730/3) LEVEL 2 Certificate in Manual Bookkeeping (QCF) (Accreditation number: 601/0480/6) Sample Assessment Material - Examination Question Paper Paper No: E0026 Units: 2005: Maintaining the Journal H/505/ : Maintaining Control Accounts K/505/ : Processing Ledger Transactions and Extracting a Trial Balance M/505/1125 Time Allowed: 2 hours and 30 minutes Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU Tel: , Fax: , mail@iab.org.uk 09/13

2 INTERNATIONAL ASSOCIATION OF BOOK-KEEPERS QUALIFICATION: LEVEL 2 BOOKKEEPING QCF General Information and Instructions 1. This question paper contains three questions. You must answer ALL THREE questions. 2. You must enter your Unique Learner Number, Candidate Number and Name of Examination Centre in the boxes provided on the front cover of your Answer Booklet. 3. Time allowed: 2 hours and 30 minutes 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. Blank pages are provided in your Answer Booklet (page 14) 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. L2 Bookkeeping QCF SAM exam 1 QP V3 Page 2

3 Maintaining the Journal Question One Question One is in four parts (Parts A, B, C and D) Question One (Part A) Use the Journal to Account for Wages and Salaries The employees of Nature s Basket are paid on each Friday of the month. All items are processed through a Wages Control Account. When postings to the Wages Control Account for the week are complete, the balance on the Wages Control Account is transferred to the Wages and Contributions Account. The information provided for the week ended 15 January 201Y (week 41) is as follows: Total gross pay 44, Less deductions: PAYE (income tax) deductions National Insurance deductions (employees) Pension fund deductions (employees) Social club voluntary deductions Net Wages paid by cheque 28, National Insurance contribution (employer) Pension fund contribution (employer) You are required to complete the following tasks: REQUIRED: You are required to complete the following task: Task A - Complete the Journal entries required for postings to the Wages Control Account for the week ended 15 January 201Y (week 41) and then clear the balance on the Wages Control Account to the Wages and Contributions Account. The Journals have been partially completed to assist you in this task and all Journal entries should clearly identify which account you are posting to, the amount and include a suitable narrative to earn full marks. (9 marks) Note: The following proforma is provided for your use in completing the above task: Journal (see page 1 and 2 of your Answer Booklet) L2 Bookkeeping QCF SAM exam 1 QP V3 Page 3

4 Question One (Part B) Use the Journal to Open Double Entry Books of Account Tanya Halliday is the proprietor of a business trading in the name of Sweet Supplies. To date the books of the business have been kept on a single entry basis. The business has expanded rapidly in the last few months and it has been decided that as from 1 May 201Y, the start of a new financial year for the business, double entry records are to be kept. The following information is available as at 1 May 201Y: Cash Bank (DR balance) Bank loan Fixtures and Fittings ,111 10,000 16,000 Vehicles 20,000 Value Added Tax (CR balance) 7,500 Sales Ledger Control (total trade debtors) 23,200 Purchase Ledger Control (total trade creditors) 18,500 REQUIRED: You are required to complete the following task: Task A Complete the Journal entry provided on page 3 of the Answer Booklet from which double entry books can be opened. You will need to calculate and insert as a balance the capital claim of the owner of the business. (3.5 marks) Note: The following proforma is provided for your use in completing the above task: Journal (see page 3 of your Answer Booklet) L2 Bookkeeping QCF SAM exam 1 QP V3 Page 4

5 Question One (Part C) Use the Journal to Correct Errors and Eliminate a Suspense Account Balance. At Stanley Motors, a trial balance was prepared and it was found that the credit balance exceeded the debit balance. The bookkeeper therefore added a 10,150 debit into a suspense account to make the trial balance agree. A review of the books of accounts then found the following errors: 1. A cheque for 564 for rates (outside the scope of VAT) was entered as Debit Rates 470 Debit VAT 94 Credit Bank A cheque for 28,200 inclusive of VAT for purchase of a new breakdown truck for use in the business was entered as Debit Vehicle (cost)23,500 Credit VAT 4,700 Credit Bank 28, A cheque for 480 being payment for computer expenses was entered into the bank account as follows, but the debit entry was not completed Credit Bank 480 (including VAT of 80) 4. Stanley Motors sublets a part of its workshop space. A rent receipt of 1,256 (exempt from VAT) has been entered as follows: Debit Bank 1,256 Credit Rent Receivable 1,526 REQUIRED: You are required to complete the following tasks: Task A Prepare the Journal entries required to correct the bookkeeping errors listed above. Date your Journal entries ember 201Y and provide a suitable narrative for each entry. To earn full marks you must clearly identify the account names, the amount you are debiting or crediting and include a suitable narrative. (8.5 marks) Task B Enter the difference in books balance as at ember 201Y into the Suspense Account provided in the Answer Booklet. (0.5 marks) L2 Bookkeeping QCF SAM exam 1 QP V3 Page 5

6 Task C Post the Journal entries prepared to correct errors in Task A above to the following accounts which are provided on pages 5 and 6 of the Answer Booklet. Date your postings 31 December 201Y and to gain full marks please ensure you include the date, details and amount for each entry into the following accounts: Suspense Account Rates Account VAT Account Computer Expenses Account Rent Receivable Account (4.5 marks) Note The Suspense Account, Rates Account, VAT Account, Computer Expenses Account and Rent Receivable Account show the balances (as listed on the trial balance before the correction of any errors) brought forward (b/f) as at ember 201Y Task D Show the elimination of the Suspense Account Balance as at ember 201Y by closing off the account and balance off the Rates Account, VAT Account, Computer Expenses Account and Rent Receivable Account as at ember 201Y bringing down the corrected account balances as at that date. Please ensure you include the date, details and amount for each entry in the accounts to gain the marks on offer(2.75 marks) Note: The following proformas are provided for your use in completing the above tasks: General Ledger (extract) Suspense Account, Rates Account, VAT Account, Computer Expenses Account and Rent Receivable Account (see page 5 and 6 of your Answer Booklet) Journal (see page 4 and 5 of your Answer Booklet) (Total of 16 marks for Question 1 Part C) L2 Bookkeeping QCF SAM exam 1 QP V3 Page 6

7 Question One (Part D) Use the Journal to Write Off a Bad Debt You are presented on page 7 of the Answer Booklet with the Sales Ledger Control Account, Bad Debts Account and VAT Control in the General Ledger of Milford Motor Supplies. The bookkeeper of the business maintains double entry records for the business and the business is registered for VAT. Double entry takes place in the General Ledger with the personal accounts of trade debtors and trade creditors being kept in the subsidiary Sales Ledger and Purchase Ledger respectively as memorandum accounts. As at 31 May 201Y the balance on the Sales Control Account as per the General Ledger of Milford Motor Supplies was 85,650. The balance on the Bad Debts Account was 2,900 and the VAT Control Account as at 31 May 201Y was 6,750 (Credit). A review of trade debtors as at 31 May 201Y resulted in the credit controller advising that the balance on the account of a trade debtor (Gainford Garages) should be written off as a bad debt. The customer owed Milford Motor Supplies 1,050 (inclusive of VAT at the standard rate of 20%) for goods invoiced to them seven months ago. Gainford Garages are now in liquidation and it is very unlikely that the amount owing will be collected. REQUIRED: You are required to complete the following tasks: Task A Prepare the Journal entry to write off the balance on the account of Gainford Garages as a bad debt and claim the VAT bad debt relief. The date of the journal has been provided for you in the Answer Booklet but you must ensure that you include the correct details, amount and narrative to earn the marks on offer. (3 marks) Task B Post the entry from the Journal prepared in Task A above to the Sales ledger Control Account, Bad Debts Account and VAT Control Account in the General Ledger of Milford Motor Supplies. You are not required to balance off either of the ledger accounts having made the postings from the Journal but you must ensure that you enter the correct date, details and amount into each account to earn the marks on offer. (1.5 marks) Note: The following proformas are provided for your use in completing the above tasks: Journal (see page 7 of your Answer Booklet) General Ledger (extract) Sales Ledger Control Account, Bad Debts Account and VAT Control Account (see page 7 of your Answer Booklet) (33 marks in total for Question 1) L2 Bookkeeping QCF SAM exam 1 QP V3 Page 7

8 Question Two Maintaining Control Accounts Fine Furniture Ltd prepares a sales ledger control account and a purchase ledger control account at the end of each month as a checking device. Attached is a list of balances. Fine Furniture Ltd - List of Customer Account Balances per Subsidiary Sales Ledger as at ember 201Y (Complete): Customer Balance Aspirations Ltd 8,284 Barney Paterson 320 Kings Head Hotel 6,118 Pat s Place 1,023 Redbury Golf Course 2,666 Robert Forescue 9,441 Robson, Bell and Swaye 922 Snobs 11,500 The Home Shop 3,225 Wendovers 3,314 Fine Furniture Ltd - List of Supplier Account Balances per Subsidiary Purchase Ledger as at ember 201Y (Complete): Supplier Balance Breeze Designs 268 Flanagan Fittings Ltd 8,390 Johnson Bed Company 1,037 Pategonia Imports 960 Rinseal Finishes 11,765 W P Silverdale & Son 1,612 Treddick Timber Products 2,119 Woods Plc 5,881 Provided below are details of the balances on the Sales Ledger Control Account, Purchase Ledger Control Account and VAT Control Account per the General Ledger of Fine Furniture Ltd as at 1 December 201Y. These balances appear within the ledger accounts as balances brought down in the General Ledger provided (see page 8 of the Answer Booklet) Fine Furniture Ltd Control Account Balances Brought Down as at 1 December 201Y Control Account Sales Ledger Control Account 45,500 Purchase Ledger Control Account 38,450 VAT Control Account (CR) 12,235 The following totals are extracted from the Day Books of Fine Furniture Ltd as at the month end ember 201Y: L2 Bookkeeping QCF SAM exam 1 QP V3 Page 8

9 Fine Furniture Ltd Totals Extracted from the Day Books as at ember 201Y Day Book Transaction Details Balance Sales Day Book Net Sales 42,675 VAT on Sales 8,535 Invoice Totals 51,210 Sales Returns Day Book Net Sales Returns 2,900 VAT on Sales Returns 580 Credit Note Totals 3,480 Purchase Day Book Net Purchases 25,000 VAT on Purchases 5,000 Invoice Totals 30,000 Purchase Returns Day Book Net Purchases Returns 2,350 VAT on Purchases Returns 470 Credit Note Totals 2,820 The Cash Book of Fine Furniture Ltd was balanced off as at ember 201Y and totals of amounts received from credit customers and paid to credit suppliers, together with cash discounts allowed and received in December 201Y, have already been posted to the Sales Ledger Control Account and Purchase Ledger Control Account in the General Ledger. The totals of VAT on cash sales and cash purchases in December month 201Y have also already been posted as at 31 December 201Y from the Cash Book to the VAT Control Account in the General Ledger. REQUIRED: You are required to complete the following tasks: Task A Make postings of totals from the Day Books above, as at ember 201Y, to the Sales Ledger Control Account, Purchase Ledger Control Account and VAT Control Account in the General Ledger provided. To gain full marks please ensure you include the date, details and amount for each entry. (4 marks) Task B Balance off each of the three Control Accounts in the General Ledger, as at 31 May 201Y, bringing down the account balances as at that date. To gain full marks please ensure you include the date, details and amount for each entry (8 marks) Task C Prepare a reconciliation of the balances per the Sales Ledger Control Account and Purchase Ledger Control Account as at ember 201Y, with the balances per the personal accounts of customers and suppliers per the subsidiary Sales Ledger and Purchase ledger as at that date. (5 marks) Note: The following proformas are provided for your use in completing the above tasks: Sales Ledger and Purchase Ledger Control Accounts (see page 8 of your Answer Booklet) Value Added Tax (VAT) Control Account (see page 9 of your Answer Booklet) Forms for the reconciliation of the personal account balances to the control account balances (see page 9 of your Answer Booklet) (17 marks in total for Question 2) L2 Bookkeeping QCF SAM exam 1 QP V3 Page 9

10 Question 3 - Processing ledger transactions and extracting a trial balance Balanced Beauty is a business owned by Janine Todd. The business is registered for VAT. The books of account of the business are kept on a double entry basis. A General Ledger and Cash Book are maintained as part of the double entry bookkeeping system. The personal accounts of trade debtors and trade creditors are kept in the subsidiary Sales Ledger and subsidiary Purchase Ledger respectively. The personal accounts of trade debtors and trade creditors are kept only as memorandum accounts and are therefore outside the double entry system. A Sales Ledger Control Account and a Purchase Ledger Control Account are kept within the General ledger. You are presented with a list of General Ledger account balances brought forward as at 24 December 201Y, which will need to be entered into the general ledger accounts provided on pages 10,11 and 12 of your answer booklet. Invoices and credit notes issued and received are listed in Day Books (Sales Day Book, Sales Returns Day Book, Purchase Day Book and Purchase Returns Day Book), at the end of each week of trading the Day Books are totalled and postings are made into the bookkeeping system. The Cash Book is kept in an analysed format and separate pages are kept for the purpose of recording and analysing receipts and payments. At the end of each week the Cash Account and Bank Account columns of the Cash Book are balanced off and all other analysis columns are totalled. Postings of totals from the analysis columns are then made into the books of account. As well as the general ledger account balances, you are provided below with the Day Books of Balanced Beauty for the week ended ember 201Y. The Day Books have been totalled for you. Account balances as at 24 December 201Y GENERAL LEDGER Balance b/down 24 Dec 201Y Sales Hair and Beauty Treatments 28, Sales - Hair and Beauty Products 12, Sales Returns Hair and Beauty Treat 1, Sales Returns Hair and Beauty Prod Sales Ledger Control 1, Value Added Tax 1, (CR) Postage and Stationery Travel Sundries Wages 21, Purchases 6, Utilities Capital 1, L2 Bookkeeping QCF SAM exam 1 QP V3 Page 10

11 Balanced Beauty -Sales Day Book and Sales Returns Book For week ended 31 December 201Y Date 201Y Customer Sales Day Book Invoice Number Total VAT Hair and Beauty Treat. Hair and beauty products Calvin & Klein BB Touch n Feel BB Feel Good Beauty BB Midshire Sport Centre BB TOTALS Date 201Y Customer Sales Returns Day Book Credit note Number Total VAT Hair and Beauty Treat. Hair and beauty products Touch n Feel BB/CN Calvin & Klein BB/CN TOTALS L2 Bookkeeping QCF SAM exam 1 QP V3 Page 11

12 REQUIRED: You are required to complete the following tasks: Task A - Using the General Ledger account balances listed on page 10 of this question paper, enter the balances as balances b/down at 24 December 201Y, into the General Ledger accounts provided on pages of your answer booklet.. To gain full marks please ensure you include the date, details and amount for each entry. (6.5 marks) Task B - Make postings from the Sales Day Book and Sales Returns Day Book given on page 11 of this question paper to the appropriate accounts in the General ledger. Day Book totals should be processed using the date ember 201Y. To gain full marks please ensure you include the date, details and amount for each entry. (2 marks) Task C Using the Petty Cash Book given on page 13 of this question paper, post the totals of the analysis columns to appropriate accounts in the General ledger. Your entries should be dated ember 201Y. To gain full marks please ensure you include the date, details and amount for each entry. (1 mark) Task D - Using the Cash Book (receipts and payments pages) given on pages 14 and 15 of this question paper, post the totals of the analysis columns to appropriate accounts in the General ledger. Your entries should be dated ember 201Y. To gain full marks please ensure you include the date, details and amount for each entry. (2.5 marks) Task E - Balance off all the accounts within the General Ledger as at ember 201Y bringing down the account balances as at that date. To gain full marks please ensure you include the date, details and amount for each entry. (12.75 marks) Task F - Using the closing balances on the General Ledger accounts and the closing Cash Account, Bank Account and Petty Cash balance per the Cash Book and Petty Cash Book prepare a Trial Balance as at ember 201Y using the form provided on page 13 of your answer booklet. (8.25 marks) Note: The following proformas are provided for your use in completing the above tasks: General Ledger Accounts (see pages 10 to 12 of your Answer Booklet) Trial Balance (see page 13 of your Answer Booklet) (33 marks in total for Question 3) L2 Bookkeeping QCF SAM exam 1 QP V3 Page 12

13 Receipts Date 201Y 24 Dec 27 Dec 27 Dec 30 Dec 30 Dec Details Balance b/f Petrol Postage stamps Cleaning products Business Christmas cards Rail Fare Christmas gifts Balance c/fwd Balance b/fwd Balanced Beauty Petty Cash Book Voucher No Payments VAT Travel Analysis columns Postage and Stationery Sundries Balanced Beauty Cash Book Petty Cash Book L2 Bookkeeping QCF SAM exam 1 QP V3 Page 13

14 Date 201Y 24 Dec 29 Dec 29 Dec 29 Dec Details Balance b/down Calvin & Klein Cash Sales Cash to Bank Touch n Feel Cash Sales Cash to Bank Feel Good Beauty Cash Sales Cash to Bank Totals Balance b/down Cash , , , ,21.00 Bank Balanced Beauty Cash Book - Receipts 9, , , , , Debtors VAT Sales H & B Treat , Sales H & B Product s Contra , , , Balances 10, , , Balanced Beauty Cash Book Receipts L2 Bookkeeping QCF SAM exam 1 QP V3 Page 14

15 Date 201Y 24 Dec 24 Dec 29 Dec 29 Dec 29 Dec 29 Dec Details Wages Purchases Cash to Bank Wages Stationery Midshire Utilities Purchases Cash to Bank Sundries Cash to Bank Petty Cash Balance c/down Totals Cash , , , Bank , , Balanced Beauty Cash Book - Payments Cash Purch s VAT Sundries Postage & Stat Utilities Wages , Contra , , , Balances 11, , Balanced Beauty Cash Book Payments L2 Bookkeeping QCF SAM exam 1 QP V3 Page 15

Qualifications: Level 2 Award in Manual Bookkeeping QCF (Accreditation number: 500/9259/5) IAB ID 210

Exam ID 208 QUESTION PAPER Qualifications: Level 2 Award in Manual Bookkeeping QCF (Accreditation number: 500/9259/5) IAB ID 210 Level 2 Certificate in Bookkeeping QCF (Accreditation number: 500/9053/7)