Using Accounting Software

Transcription

1 Osborne Books Tutor Zone Using Accounting Software Practice assessment Osborne Books Limited, 2016

2 2 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Assessment information The time allowed to complete this assessment is 2 hours plus 15 minutes reading time. Additional time of up to 1 hour may be allowed for delays caused by computer issues. This assessment consists of 13 tasks and it is important that you attempt all of them. You must save all reports and documents specified in the tasks. Use the evidence number given in the assessment and your name as the filename. You should also ensure that your name appears on all reports and documents. Unless the assessment asks for a specific format, you can choose the format which will best enable the marker to review and assess your work. During the assessment you will only make entries to the nominal ledger accounts you created in Task 3. You will not be required to make any entries to any accounts other than those you have already created. Data information Sounds Electric is an existing business that offers recording studio facilities to musicians and broadcasters. The owner is Alex Miller who operates as a sole trader. The business has previously kept manual books but from 1 July 20-X, the accounts are to be computerised. Information relating to the business: Business name: Business address: Business owner: Accounting period end: VAT rate: Sounds Electric* 8 Beeching Terrace Westbridge WE1 4NR Alex Miller 30 June (each year) Standard rate VAT of 20% charged on all sales *In a training environment where reports are printed out, add your name after the business name to identify your printouts. You are employed as an accounting technician to carry out bookkeeping tasks for July 20-X only, the first month that the business will be using accounting software and the start of a new accounting period. You can assume that all documentation has been checked for accuracy and authorised by Alex Miller.

3 p r a c t i c e a s s e s s m e n t 3 Sales Alex analyses cash and credit sales in three ways: studio time recording and editing products online Purchases Alex analyses goods for resale in two ways: studio materials products online Before you start you should: Set the software date as 31 July of the current year. Set the financial year to start in 1 July of the current year. Task 1 Refer to the customer listing below and set up customer records to open sales ledger accounts for each customer, entering opening balances at 1 July 20-X. Customer name and address Customer account code Customer account details as at 1 July 20-X Blue-eyed Boys BLU001 Opening balance: 1, Star Agency Payment terms: 30 days 113 Salt Lane Chilton CH7 9ST Casey Productions CAS001 Opening balance: 2, Oakwood Drive Payment terms: 30 days Westbridge WE14 9TQ Wellswood Community School WEL002 Opening balance: 3, Kingsway Drive Payment terms: 30 days Westbridge WE7 3PB

4 4 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Task 2 Refer to the supplier listing below and set up supplier records to open purchases ledger accounts for each supplier, entering opening balances at 1 July 20-X. Supplier name and address Supplier account code Supplier account details as at 1 July 20-X David Jarvis Carpentry JAR001 Opening balance: Prince William Avenue Payment terms: 30 days East Park Chilton CH6 1XZ Stage Electronics STA002 Opening balance: Theatre House Payment terms: 30 days Lidgate Way Bristleton BR4 8UF Wiretech Ltd WIR001 Opening balance: 1, Unit 40 Payment terms: 30 days Southfields Industrial Estate Chilton CH12 4BN

5 p r a c t i c e a s s e s s m e n t 5 Task 3 Refer to the list of nominal ledger accounts in the trial balance below: Set up nominal ledger records for each account, entering opening balances as at 1 July 20-X and making sure you select, amend or create appropriate nominal ledger account codes. Opening Trial Balance as at 1 July 20-X Account name Note Debit Credit Studio equipment cost 25, Studio equipment accumulated depreciation 10, Office Equipment cost 2, Office Equipment accumulated depreciation Bank current account 10, Petty cash Sales ledger control account 1 7, Purchases ledger control account 1 2, Sales tax control account 2 4, Purchase tax control account 2 1, Bank loan 9, Capital 19, Drawings 3 NIL Sales studio time 3 NIL Sales recording and editing 3 NIL Sales products online 3 NIL Purchases studio materials 3 NIL Purchases products online 3 NIL General rates 3 NIL Travelling 3 NIL Postage and carriage 3 NIL Repairs and renewals 3 NIL Cleaning 3 NIL Bank charges 3 NIL Totals 46, , As you have already entered opening balances for customers and suppliers you may not need to enter these balances. 2. If you are posting VAT as a single brought forward balance, the opening balance on the account is 3, (credit). 3. These nominal accounts are needed for transactions taking place in July 20-X. In the rest of the assessment, you will only make entries to the nominal ledger accounts you created in this task. You will not be required to make any entries to any accounts other than those you have already created.

6 6 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Task 4 Refer to the following summaries of sales invoices and sales credit notes. Enter these transactions into the computer. Summary of sales invoices Date Customer Invoice Gross VAT Net Studio Recording 20-X number time & editing 15 July Casey Productions , , , July Wellswood School , , , July Blue-eyed Boys , , , Totals 8, , , , , Summary of sales credit notes Date Customer Credit Gross VAT Net Studio Recording 20-X note no time & editing 7 July Blue-eyed Boys Totals

7 p r a c t i c e a s s e s s m e n t 7 Task 5 Refer to the following purchases invoices and purchases credit notes. Enter these transactions into the accounting software, ensuring you enter all the information below and select the correct nominal code. INVOICE Sounds Electric 8 Beeching Terrace Westbridge, WE1 4NR 13 July 20-X Wiretech Ltd Unit 40, Southfields Industrial Estate Chilton CH12 4BN VAT registration number Invoice No Supplying products for online sales % Total David Jarvis Carpentry 10 Prince William Avenue East Park Chilton CH6 1XZ VAT registration number Invoice No. W701 INVOICE Sounds Electric 8 Beeching Terrace Westbridge, WE1 4NR 21 July 20-X Repairs to sound-proofing in studio % Total

8 8 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Stage Electronics Theatre House Lidgate Way Bristleton BR4 8UF VAT registration number Invoice No INVOICE Sounds Electric 8 Beeching Terrace Westbridge, WE1 4NR 24 July 20-X 2 x RP 240 Headphones (studio materials) % Total CREDIT NOTE Sounds Electric 8 Beeching Terrace Westbridge, WE1 4NR 20 July 20-X Wiretech Ltd Unit 40, Southfields Industrial Estate Chilton CH12 4BN VAT registration number Credit Note No Products for online sales returned % Total

9 p r a c t i c e a s s e s s m e n t 9 Task 6 Sounds Electric sells products online. Payments by online customers are made through a secure online payment system called Monimate. Monimate makes payments to Sounds Electric weekly using Faster Payments. (a) Refer to the following listing and enter these receipts into the accounting software. Online sales bank receipts listing for July 20-X Date Amount received from Monimate* 4 July July July July *All online sales include VAT at the standard rate (b) You have received the following . Enter this transaction. To: Accounting technician From: Alex Miller Date: 29 July 20-X Subject: Drawings I have arranged a BACS transfer of 1,000 to my personal bank account. Please record this transaction.

10 1 0 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Task 7 Refer to the following summary of payments received from customers. Enter these transactions into the accounting software and allocate them as shown in the details column. Wellswood Community School - remittance advice To: Date: Sounds Electric 25 July Amount: 3, Paid by: Detail: BACS Payment of balance as at 1 July Blue-eyed Boys - remittance advice To: Date: Sounds Electric 26 July Amount: 1, Paid by: Detail: Cheque enclosed Payment on account

11 p r a c t i c e a s s e s s m e n t 1 1 Task 8 Refer to the following summary of payments made to cash and credit suppliers. Enter these transactions into the accounting software and allocate them (where applicable) as shown in the details column. Date Type Supplier Details 18 July Cheque David Jarvis Carpentry Pays balance as at 1 July 23 July BACS Wiretech Ltd Pays balance as at 1 July less credit note July Cheque Westbridge Cleaning* Carpet cleaning including VAT *Westbridge Cleaning is not a credit supplier and does not have an account for Sounds Electric

12 1 2 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Task 9 Refer to the following standing order/direct debit schedule. (a) (b) (c) Set up a recurring entry for rates Save a screenshot of the screen setting up the recurring entry prior to processing. Save it as Evidence 5. Process the first payment Standing order / direct debit schedule Details Amount Frequency Total number Payment start Payment finish of payments date 20-X date 20-X General rates (VAT not applicable) Monthly 6 15 July 15 December

13 p r a c t i c e a s s e s s m e n t 1 3 Task 10 Refer to the petty cash vouchers below which have all been authorised by Alex Miller. Enter these transactions into the accounting software. Petty Cash Voucher Date 15 July 20-X No 68 Cleaning materials VAT 2.82 Total Receipt attached Petty Cash Voucher Date 20 July 20-X No 69 Stamps (VAT not applicable) Receipt attached Petty Cash Voucher Date 26 July 20-X No 70 Travel to exhibition (VAT not applicable) Receipt attached

14 1 4 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Task 11 Enter the following journal into the computer. J July 20-X Dr Cr Sales studio time Sales recording and editing Being correction of posting error

15 p r a c t i c e a s s e s s m e n t 1 5 Task 12 Refer to the following bank statement. Using the accounting software and the transactions you have already posted: (a) Enter any additional items on the bank statement that have yet to be recorded into the accounting software (ignore VAT on these transactions). (b) Reconcile the bank statement and save a screenshot of the bank reconciliation screen showing reconciled items. Save this as Evidence 6. If the bank statement does not reconcile, check your work and make the necessary corrections. STATEMENT OF ACCOUNT Westlays Bank PLC 1 Main Street Chilton CH2 4NR Account Sounds Electric 8 Beeching Terrace Westbridge, WE1 4NR Date 31 July 20-X Date Details Paid out Paid in Balance 01-Jul Opening balance 10, Jul Monimate 2, , Jul Monimate 3, , Jul Bank charges , Jul Rates , Jul Monimate 2, , Jul , Jul BACS Wiretech 1, , Jul Monimate 1, , Jul BACS Wellswood 3, , Jul Sundry credit 1, , Jul A Miller 1, ,655.59

16 1 6 u s i n g a c c o u n t i n g s o f t w a r e t u t o r z o n e Task 13 Document and reports A document showing all transactions with each customer during July 20-X A document showing the balance owed by each customer as at 31 July 20-X The following information must be evidenced within these documents: Customer name Account code Payment terms A document showing all transactions with each supplier during July 20-X A document showing the balance owed to each supplier as at 31 July 20-X The following information must be evidenced within these documents: Supplier name Account code Payment terms Audit trail, showing full details of all transactions, including details of receipts/payments allocated to items in customer/supplier accounts and details of items in the bank account that have been reconciled Trial balance as at 31 July 20-X A screenshot of the recurring entry screen including all relevant input details A screenshot of the bank reconciliation screen showing reconciled items Save/print as: Evidence 1a Name Evidence 1b Name Depending on your software, you may need to save/print one or more documents Evidence 2a Name Evidence 2b Name Depending on your software, you may need to save/print one or more documents Evidence 3 Name Evidence 4 Name Evidence 5 Name Evidence 6 Name