Integrated Accounting Systems Sage 50 Accounts Republic of Ireland. Examination Paper 2015/16

Transcription

1 Integrated Accounting Systems Sage 50 Accounts Republic of Ireland Examination Paper 2015/16 1

2 2 nd Year Examination: Exam Paper 2015/2016 Paper: IAS Sage 50 Accounts (Republic of Ireland) Exam Duration: 35 Hours 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 2015 The provisions of the Finance Act 2016 should be ignored All names and addresses mentioned are entirely fictitious This examination paper is copyright and may not be reproduced Candidates should allocate their time carefully On completion of this examination: 1 Ensure that you have correctly completed the examination cover sheet and any other documentation provided by the invigilator 2 Ensure that all printouts (Payroll Accounts and Excel) are in the order requested in each section and are correctly submitted to the invigilator 3 Ensure that PDF reports have been correctly saved and submitted to the invigilator 4 Ensure that there is a folder (created in the location as indicated by the invigilator) showing your exam number * as the folder name Ensure that you have saved a backup of your Sage Micropay Sage 50 Accounts and Excel data into the created folder It is the student s responsibility to ensure that all work is saved and submitted as required above Accounting Technicians Ireland cannot be held responsible for any marks lost as a result of the above not being completed correctly * NB: Ensure that you use your exam number; you must not use your student registration number or college registration number

3 Integrated Accounting Systems Examination 2015 / 2016 (ROI) START OF EXAM PAPER Company Information: Business Name: THE ENTERTAINING MOVIE COMPANY LTD Address: 42 Darwin Lane Dublin 2 Telephone: Fax: Website: VAT Reg No: Employer Reg No: Directors: Business: info@themoviecompanyltdie wwwthemoviecompanyltdie IE A IE A Barry and Iris Allen Supply and retail of Movies DVDs and Blue-Ray Discs Business Profile: The majority of The Entertaining Movie Company Ltd s sales are on credit with some cash sales The Company is registered for VAT VAT is charged on sales at the standard rate of 23% The company accounts for VAT on a Sales Invoice basis The accounting year of The Entertaining Movie Company Ltd is April to March Assume that today is the 3 rd of August 2015 and you have recently been employed as the company s accounting technician As part of your duties you will be responsible for the administration of the payroll system and the preparation of the monthly management accounts There are currently five employees paid on a monthly basis and all employees receive payment on a back month basis A draft set of accounts up to 31 st July 2015 were produced by your predecessor using Sage 50 Accounts 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 - 3 -

4 Integrated Accounting Systems Examination 2015 / 2016 (ROI) Section A Payroll: Log in to Sage Micropay and restore the setup Sage Micropay dataset from the location indicated by the invigilator (The user name is USER1 the payroll name is ATI and both passwords are PASS) You have been advised that (unless stated otherwise) all employees are entitled to 167 days holidays per month worked and on average an employee will work 260 days in a year You are required to: 1 Adjust the company narrative (in Company details) to include your examination number You do not need to change the company name Update the payroll period to July 2015 and record all payroll information provided below setting up any new pay elements that may be required You are to assume all other employees NOT mentioned below but on the payroll of the company earned their usual monthly salary value (1 Mark) 2 Set yourself up as a new employee identified by your examination number only Insert your exam number in the first name field and complete the surname field with the word student You commenced employment on Wednesday 1 st July 2015 and your annual salary is A copy of your P45 from your previous employer is attached refer to Appendix A Standard PRSI code A applies and you may assume that you are paid by cheque (3 Marks) 3 Iris Allen has decided to contribute per month to a pension scheme and the Company will additionally contribute 7500 per month on her behalf effective from 1 st of July 2015 Update the payroll package for these changes 4 John Ramsey travelled 840 business kilometres in July bringing his total business kilometres in 2015 to 6520 He is to be reimbursed for this expense based on current civil service rates (refer to table below) assuming engine capacity is over 1500cc Official Motor Travel in a calendar year Engine Capacity: Up to 1200 cc Engine Capacity: 1201 cc cc Engine Capacity: 1501 cc and over Up to 6437km 3912 cent 4625 cent 5907 cent 6438km and over 2122 cent 2362 cent 2846 cent John has also increased his working week from four days to five days effective from July 1 st and you should update his salary payment accordingly (3 Marks) 5 Oliver Thompson was absent from work for 5 days in July 2015 due to illness It is company policy not to pay sick leave Create a separate pay element (deduction) record the appropriate value and reduce the insurable weeks recorded in July for this employee to 3 weeks 6 It has been agreed that the company will pay medical insurance on Felicity Cassidy s behalf of 1740 per annum Calculate the notional pay for the purpose of deducting PAYE PRSI and USC over a period of 12 months commencing in July 2015 and update the payroll package to account for this benefit 7 Print the Gross to Net report a payslip for the new employee only and the Control Summary report When you have completed processing the payroll for July 2015 ensure that you backup the Sage Micropay dataset into a folder created in the location indicated by the invigilator which should be titled with your examination number Section A Total: (15 Marks)

5 Integrated Accounting Systems Examination 2015 / 2016 (ROI) Section B - Integrated Accounts and Double Entry: Login to Sage 50 Accounts and restore the Sage 50 Accounts dataset for The Movie Company Limited from the location indicated by the invigilator (There are no passwords required) You are required to: 1 Adjust the company name so it reads: Entertaining followed by your examination number (1 Mark) 2 Post the salary journal for July 2015 using the information you produced in Section A (You should set up any new nominal codes required) (5 Marks) 3 Generate print and post a sales credit note for Films and Music Ltd based on the details shown below and allocate the credit note against invoice Ensure that the printed credit note is submitted with your other reports at the end of the examination Sales Credit Note The Entertaining Movie Company Ltd THANK YOU FOR 42 Darwin YOUR Lane BUSINESS! Dublin 2 VAT Reg: A To: Films and Music Limited Date: 25 th July 2015 Bridge St Westport Co Mayo Number: Code Description Qty DRA01 Drama Movies DVD Bundle Unit Price Net Amount VAT Amount Vat Analysis: SUBTOTAL 3000 Rate Net VAT VAT % TOTAL On the 31 st of July 2015 the company sent a US dollar draft (issued from the current account) for $13824 to Fast Films USA costing for payment of PI 3035 A bank charge of 750 is included in this figure and the difference is the currency gain/loss Enter all of the above through the purchase ledger and allocate the payment against the invoice and related charges

6 Integrated Accounting Systems Examination 2015 / 2016 (ROI) 5 Post the invoice shown below relating to Purchases received from All Types of Film Ltd: INVOICE ALL TYPES OF FILMS LTD! Unit 5 Guinness Enterprise Centre Taylor s Lane Dublin 8 To: The Entertaining Movie Company Limited 42 Darwin Lane Dublin 2 Ireland VAT Reg No: K Invoice Number: 7052 Date: 27 th July 2015 Qty Details VAT Unit Price Net Amount 30 Thrilling Movies 23% SUBTOTAL VAT 5175 TOTAL The company took out a short term loan with Loan Bank Plc on 7 th July 2015 The loan amount is and it is to be repaid over 18 months The bank will be charging interest of 1350 in total which will be charged on a monthly basis Assuming that loan interest accrues evenly over the life of the loan you are required to: (i) (ii) (iii) Create a new bank record for Loan Bank Plc in Sage 50 Accounts and lodge / transfer the funds to Premier Bank at the date of drawdown ie 7 th July 2015 (3 Marks) Calculate set up and post an appropriate recurring journal for the monthly loan repayment starting on 31 st July 2015 and to be processed monthly You are instructed to use your examination number as the reference on the recurring journal (3 Marks) Calculate set up and post an appropriate recurring monthly journal to charge the loan interest to the Profit and Loss Account on the same date as (ii) above (You are instructed to use your examination number as the reference on the recurring journal) (3 Marks) 7 Enter the following payment for Vehicle Insurance: PREMIER BANK PLC 52 College Green Dublin 2 Date 15/07/2015 Pay: Cash Eight hundred and twenty five euro only Cheque number: Barry & Iris Allen The Entertaining Movie Company Ltd - 6 -

7 Integrated Accounting Systems Examination 2015 / 2016 (ROI) 8 On 15 th July 2015 the directors restored the petty cash imprest amount to 250 using personal funds Enter an appropriate adjustment in the bank module to reflect the revised petty cash balance and resulting liability 9 Record the following lodgement from Mimic Me Movies Ltd allocating the payment to Invoice and write off any remaining value on the Debtor s account to Discount: Premier Bank Date: 31/07/2015 LODGEMENT SLIP Total Value: Ref: The Entertaining Movie Co Ltd 10 The Directors are concerned that they have not received payment from Private Ryan Films Limited and have asked you to issue them with a statement of account as at 31 st July 2015 You should produce and print a plain paper Customer statement and ensure that this document is submitted with your other reports at the end of the examination (You are not required to update the communication history) 11 Lodgement number on the 30 th June 2015 was mistakenly reconciled which means the closing bank balance for July 2015 was instead of the correct figure of You should unreconcile that payment so that the accounts will show the correct opening bank balance figure for July 12 You are instructed to reconcile the bank account: (i) Enter any amounts from the attached bank statement (refer to Appendix 2) that may not have been recorded (4 Marks) (ii) Print the Bank Reconciliation Report (using the Report facility) available in the Bank Reconciliation Window and then reconcile the account to the bank statement for July 13 Provide for depreciation for July based on the following fixed assets depreciation policies: Furniture and Fixtures 20% pa straight line Computer Equipment 333% pa straight line Office Equipment 10% pa straight line Motor Vehicles 20% pa reducing balance Leased Assets pro rata over the life of the lease The depreciation expense for each relevant category of fixed assets should be posted to the existing separate nominal ledger accounts in the Profit and Loss With the exception of leased assets it is company policy to charge a full year s depreciation in the year of acquisition with no deprecation in the year of disposal (6 Marks) 14 As a result of a stocktake on the 31 st July 2015 it is noted that the stock value should be Record the accurate values for Opening and Closing Stock in the P&L for July and ensure that the correct value is reported in the Balance Sheet at 31 st July The Directors have reviewed the Aged Debtors report and have decided to reflect their concerns over possible bad debts Using existing nominal accounts you are required to establish a bad debt provision calculated at 3% of total outstanding debtor balances - 7 -

8 Integrated Accounting Systems Examination 2015 / 2016 (ROI) 16 The payment of for vehicle insurance at item 7 above is in respect of the insurance premium for June 2015 to May 2016 You should enter an adjustment to Sage 50 accounts dated 31 st July to ensure that the expense incurred to date is correctly reported in the management accounts and to reflect the appropriate prepayment in the Balance Sheet at the end of July When all entries have been made you are to print the following reports from Sage 50 Accounts to the location indicated by the invigilator: A detailed audit trail by posting number starting at posting 240 and ending at the last posting number in Sage 50 Accounts (in portrait format) A print list detailing recurring journals An aged debtors analysis report for all customers as at 31 st July 2015 (detailed) (10 Marks) 18 Ensure that all dates have been posted correctly throughout the audit trail and backup the Sage 50 Accounts dataset for The Entertaining Movie Company Limited into the folder created in Section A which should be titled with your examination number (1 Mark) Section B Total: (60 Marks)

9 Integrated Accounting Systems Examination 2015 / 2016 (ROI) Section C - Excel: You are required to: 1 Prepare month by month expense budget projections for the 3 month period from 1 st July 2015 to 30 th September 2015 based on the actual figures for April 2015 Export the Trial Balance Report for April 2015 from the Sage 50 Accounts dataset into an Excel worksheet and save the file as an Excel workbook: Delete all balance sheet information and all Sales and Cost of Sales Accounts Delete the nominal code numbers all nominal code descriptions should appear in Column A & all values should appear in Column B Column A should be labelled Expenses and column B should be labelled Apr-15 (3 Marks) 2 Based on the information shown below you are asked to indicate the anticipated variances for Jul - Sept in Column C These should be shown as a percentage (eg +/- 5%) or fixed value (eg +/- ) In columns D-F you should then prepare the month by month budget for Jul Sept 2015 calculating your formulas* using the variances indicated in Column C Due to recent adjustments to staffing levels all payroll costs will increase by 4% in Q2 Cost saving initiatives have been implemented and it is anticipated that all other expenses will decrease by 3% with the exception of Depreciation Depreciation should be based on the April 2015 figures The monthly loan interest (as indicated in Section B) should be accounted for in the budget for Quarter 2 Insert formulas in Column G to show the total value for the 3 months ending 30 th September 2015 for all nominal accounts and name this column Total Expenses Ensure each column in the budget spreadsheet is appropriately named * Where no specific instruction is given you may use any appropriate Excel formula of your choice 3 Format the budget spreadsheet in the following way: All text and figures should be in Verdana font and in font size 10 Bold and Bottom Border the information in Row 1 (7 Marks) Format all monetary values to ensure they are in comma style with no decimal places Ensure all information is visible Insert a header to title the page Expenses for The Entertaining Movie Company Insert today s date as a footer on the right section and your examination number on the left section (4 Marks) 4 Select the information in the budget spreadsheet and create a Pivot Table: The Pivot Table should be placed in a New Worksheet Put the Expenses into Row labels Put the information for Jul Aug and Sept into the Values area The value field setting should be set to show the sum of each nominal account within each monthly period (4 Marks) - 9 -

10 Integrated Accounting Systems Examination 2015 / 2016 (ROI) 5 Format the Pivot Table in the following way: All text and figures should be in Tahoma style and in font size 12 All values should be in comma style with no decimal places Ensure all information is visible Using any Word Art title the page Expenses for Quarter 2 followed by your Exam Number (3 Marks) 6 Print the following reports: One printout of the budget worksheet showing figures as normal One printout of the budget worksheet adjusted to show formulas instead of figures One printout of the Pivot Table Ensure that all Excel printouts are in Landscape format and that each report prints on one page only On completion of your activity ensure that you have saved the Excel Workbook into the folder created in Section A which should be titled with your examination number (4 Marks) Section C Total: (25 Marks) TOTAL EXAM MARKS: (100 MARKS) On completion of your examination: Ensure that you have correctly completed the examination cover sheet and any other documentation provided by the invigilator Ensure that all printouts (Payroll Accounts and Excel) are in the order requested in each section and are correctly submitted to the invigilator Ensure that PDF reports have been correctly saved and submitted to the invigilator Ensure that there is a folder created in the location indicated by the invigilator showing your examination number as the folder name Confirm that you have saved a backup of your Sage Micropay Sage 50 Accounts and Excel data into this folder It is the student s responsibility to ensure that all work is saved and submitted as required above Accounting Technicians Ireland cannot be held responsible for any marks lost as a result of the above not being completed correctly END OF EXAM

11 PLEASE COMPLETE THIS FORM IN CAPITAL LETTERS USING BLACK INK P45 T CERTIFICATE NO INCOME TAX - PAY AS YOU EARN - CESSATION CERTIFICATE Particulars of Employee Leaving PART 1 Surname of Employee Employee Address First Name PPS Number Date of Birth Payroll/Works No Employer Registered Number Date of Cessation Date of Commencement (if after 1 January) Mark box x if employee is deceased Name Address D D M M Y Y and state the name and address of the personal representative of the deceased employee if known Mark box x if employee was on Week 1/Month 1 basis at Date of Cessation Mark box x if employee was paid weekly or monthly Weekly Monthly Week/Month Number D D M M Y Y D D M M Y Y Mark box x if employee was on emergency basis at Date of Cessation P A Y E U S C P R S I L P T Weekly/Monthly Tax Credit Weekly/Monthly Cut-Off Point (a) Total Pay & Tax deducted from 1 January to Date of Cessation SAMPLE Total Pay Total Tax Deducted 00 (incl cent) (b) If employment started since 1 January enter Pay and Tax deducted (or Tax refunded) for this period of employment only Pay (this employment) Tax Deducted or Tax Refunded Mark box x if 00 the tax figure at (b) is a refund (c) Amount of Taxable LUMP SUM PAYMENT on termination included in either pay figure above - if applicable 00 (d) Total amount of taxable Illness Benefit included in pay figure above - if applicable 00 Weekly/Monthly USC Cut-Off Point 1 Weekly/Monthly USC Cut-Off Point 2 (e) Total Gross Pay for USC purposes & USC deducted from 1 January to Date of Cessation Total Gross Pay for USC purposes Total USC Deducted 00 (f) If employment started since 1 January enter Gross Pay for USC purposes and USC deducted (or USC refunded) for this period of employment only Gross Pay for USC purposes (this employment) USC Deducted or USC Refunded Mark box x if the USC figure at (f) is a refund PRSI - This Employment Only Total PRSI Employee s Share PRSI Classes other than Class A or Subclass A in this period Total amount of Local Property Tax deducted in this period of employment - if applicable 00 Total number of weeks of insurable employment Weekly/Monthly USC Cut-Off Point 3 Total number of weeks at Class A or Subclass A in this period I certify that the particulars entered above are correct Employer Trade name if different Address Date D D M M Y Y Phone Number RPC005622_EN_WB_L_1

12 PREMIER BANK PLC 52 College Green Dublin 2 Account Number: STATEMENT OF ACCOUNT The Entertaining Movie Company Ltd 42 Darwin Lane Dublin 2 DATE PARTICULARS DEBIT CREDIT Jul-15 1 Balance b/f BALANCE ( ) denotes Debit DD - Rent Lodgement Lodgement Lodgement Lodgement Cheque Cheque Loan Drawdown Lodgement Lodgement Petty Cash withdrawal Lodgment Bank Interest 1825 Govt Duty Cheque EFT - Mimic Me ROS - P Cheque Bank Fees Cheque DD - Eircom EFT - Staff Salaries Lodgment DD - ESB Jul Closing Balance

13 These pages are supplied to facilitate Workings Students should note that no marks will be awarded for workings shown on these pages

14 These pages are supplied to facilitate Workings Students should note that no marks will be awarded for workings shown on these pages END OF EXAM PAPER

15 IAS April nd year paper 2nd Year Examination: April 2016 Integrated Accounting Systems ROI Examiner s Comments Statistical Analysis By Question Question No Average Mark (%) 81% 81% 81% Nos Attempting Statistical Analysis - Overall Pass Rate 83% Average Mark 81% Range of Marks Nos of Students and over 538 Total No Sitting Exam 651 Total Absent Total Approved Absent Total No Applied for Exam General Comment: Overall there was a very strong performance in the Summer examinations of 2016 Candidates demonstrated a very balanced approach to the three integrated modules of Payroll Accounts and Excel and it was noted there was a particularly strong performance in the Excel section of the papers Unfortunately candidates continue to sacrifice marks when they do not pay close attention to the requirements of printing file management and data integrity Candidates should ensure that: All exam material submitted for correction should be well presented and in the requested order ie Payroll Accounts and Excel Computerised reports will be marked on their own merits no handwritten detail will be considered All reports should be produced according to the specific instruction provided (eg Detailed Landscape etc) and marks will be deducted if alternative reports are submitted Students do not have to write their student number on each report The use of highlighters is also strongly discouraged in the IAS examination Page 1 of 3

16 IAS April nd year paper Backups of all completed material (ie a solution Payroll dataset solution Accounts dataset and solution Excel workbook) must be submitted to the invigilator Payroll: In general candidates scored well in the Payroll section although the performance was somewhat lower than previous years: Students should pay careful attention to the calculations involved in each payroll item eg Redundancy Sick Leave Holiday Pay etc The calculation of reimbursed mileage (item 4 Entertaining paper) and motor BIK (item 3 Exciting paper) frequently resulted in the wrong value included in payroll calculations Additionally it is crucial to be familiar with which pay elements should and should not be subject to tax PRSI USC etc Timesheets were frequently not updated particularly for the employee that did not require any adjustment The tax credit certificate (item 6 Exciting paper) posed some difficulty with a high number of students not accounting for the previous pay and tax Accounts: Nearly all requirements of the papers were well approached and adequate preparation for the paper meant that students were well rewarded for their studies and revision A small number of items continue to pose difficulties and can result in lost marks so careful attention should be paid to the following items Regarding Presentation: The company name should be adjusted according to the specific instruction given on the face of the paper so that each report can be easily identified Any recurring journals should be referenced with an exam number as requested A detailed audit trail (as requested in Section B) in portrait format is mandatory and candidates will lose a number of marks if the incorrect report is submitted The audit trail should run from the indicated audit trail transaction and no limit should be applied in respect of dates If debtor or creditor reports are requested it is necessary to have an starting date (which often defaults in the software) and an ending date (ie at the end of the reporting period) so that all details can be viewed All dates should fall within the management accounting period When posting transactions: Students are reminded to post the salary journal in a way that distinguishes each pay element ie Director s remuneration Staff Salaries Pension costs and contributions etc There was a common tendency to post the various expenses to one combined account which means that full marks will not be awarded BIK was frequently treated incorrectly (ie it was not netted off the gross pay) and this will result in lost marks It is crucial to post any documents generated within Sage 50 Accounts; it was a common error not to update the nominal ledger for the Sales invoice (item 4 Exciting paper) or the Credit note (item 3 Entertaining paper) Careful attention should be paid to accurate nominal selection when posting transactions The payment for a travel pass (Item 7 Exciting paper) was often posted to an expense account rather than an asset account which is an error of principle The payment for vehicle insurance (Item 7 Entertaining paper) was frequently posted to the general insurance nominal code which is an error of commission Page 2 of 3

17 IAS April nd year paper The adjustment for depreciation was particularly well handled this year; however a large number of students did not identify the correct value for the reducing balance motor vehicle depreciation as they are not using the values at the start of the accounting year The bank reconciliation exercise still poses problems and results in easy marks being lost; common mistakes include: o o o o Treating Supplier payments as Expense outlays (eg recording a payment for a telephone expense rather than a creditor payment to Eircom) Posting P30 and Net wage payments to expense accounts instead of liability accounts Not identifying the correct impact of bank transfers (ie whether money is coming into or out of the current account) Not printing the correct Bank Reconciliation Report or not printing the report at all Adjusting for Bad Debts and establishing a provision for bad debts proved to be difficult for a significant number of candidates with a wide variety of techniques adopted that were entirely incorrect; it is therefore very likely that this topic will be revisited in upcoming examinations Excel: Candidates demonstrated an increased level of comfort and skill with Microsoft Excel in this session and secured very good marks In general students were either prepared for this section and scored highly; or struggled with the requirements and sacrificed a significant number of marks Due to the fact that this section of the syllabus now constitutes 25% of the overall exam it means that this section can be the difference between failing and passing the Exam It should be noted that all the Excel reports in this sitting were requested in landscape format and marks were sacrificed if portrait format was applied or if reports printed on more than one page each Conclusion: The performance in this sitting was very strong and as stated students reaped the rewards when they had devoted sufficient time and attention to the subject Students should note that they should NOT use the suspense account unless specifically requested to do so and marks will be deducted for inappropriate use of that account Attention to detail and a high level of first-time accuracy is critical Multiple entries of the same transaction should be avoided Where errors do occur students should delete the incorrect entry or make an appropriate adjustment (clearly labelled eg Correction ) to ensure that the integrity of the overall answer is maintained and that marks are not lost As always students are reminded to pay particular attention to the following items when preparing for success in their IAS examination: Practice Performance & Presentation Page 3 of 3