Integrated Accounting Systems Sage 50 Accounts Republic of Ireland. Exam Paper 2012/13

Transcription

1 Integrated Accounting Systems Sage 50 Accounts Republic of Ireland Exam Paper 2012/13 1

2 2 nd Year Examination: Exam Paper 2012/2013 Paper: IAS Sage 50 Accounts (Republic of 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 2013 should be ignored. All names and addresses mentioned are entirely fictitious. This exam paper is copyright and may not be reproduced. Candidates should allocate their time carefully. The following inserts are enclosed with this paper: P30 Company Bank Statement (2)

3 Company Information Business Name: Classical Music Rocks Ltd. Address: 12 High Street Blackrock Co Dublin Telephone: Fax: VAT Reg. No.: Employer Reg. No.: Directors: Business: Type of Business Entity: IE J IE J Mr. James Jordan Ms. Jennifer Walsh Suppliers of music material and related ancillary products. Private Limited Company Business Profile Classical Music Rocks Ltd. was incorporated as a Private Limited Company in James Jordan and Jennifer Walsh are the directors and shareholders of the company. The majority of the company s sales are made 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 Classical Music Rocks Ltd. is September to August. Assume that today is the 5 th of December 2012 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. A draft set of accounts up to 30 th November 2012 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 Section A Payroll: You are required to: 1. Restore the setup Sage Quickpay dataset from the location indicated by the invigilator. Update the payroll period to November 2012 and record all payroll information provided below. (1 Mark) 2. Set yourself up as a new employee identified by your examination number only. Insert your examination number in the surname field and leave the forename blank. You commenced employment on Monday 26 th November You have not yet received a copy of your P45 from your previous employer. Your PPS number is R and your date of birth is October 9 th You will be paid at a rate of 12.00p/h and overtime will be paid at time and a half. You are to be paid for 39 standard hours worked in November with overtime of 4.5 hours, and are to receive 1 PRSI week. 3. Lisa Collins has decided to contribute 5% of her basic monthly salary to a pension fund effective from the 1 st November She is also due to be reimbursed of vouched expenses this month to cover travel expenses incurred on a recent trip. 4. It has been agreed that the company will pay medical insurance of 900 per annum on behalf of Jennifer Walsh. Calculate the notional pay, for the purpose of deducting PAYE, PRSI and USC, over a period of 10 months. Jennifer is also to receive a once-off bonus of 2,000 in November. 5. Patrick Daly received an additional tax credit of 150 per annum in November 2012 which is effective on a cumulative basis. He has decided to contribute 35 per month to the VHI scheme administered by the company, effective from November 1 st. 6. Ben Adams is to receive an increase in his annual salary, effective from September 1 st 2012; his revised annual salary is to be 38,000. The increase took some time to finalise with the Board of Directors. Calculate, and pay, any back dated payments that are owed, in addition to the revised salary value for November. 7. Print the gross to net report, a payslip for the new employee only, and the company cost report for November. 8. Complete the attached P30 return (refer to Appendix 1) for November When you have completed processing the payroll for November 2012 ensure that you backup the Sage Quickpay dataset into a folder on the desktop titled with your examination number. (1 Mark) Section A Total: (20 Marks) NB: Assume all other employees NOT mentioned above are calculated as normal. All employees are entitled to 1.67 days holidays per month worked. On average an employee will work 260 days in a year. (4)

5 Section B - Integrated Accounts and Double Entry: You are required to: 1. Restore the setup Sage 50 accounts dataset for Music Rocks Ltd from the location indicated by the invigilator. (1 Mark) 2. Change the company name so it reads: Classical Music Rocks Ltd followed by your examination number. (1 Mark) 3. Post the salary journal for November 2012 using the information you produced in Section A. (You should set up any new nominal codes required.) (5 Marks) 4. Set up the following new Customer: Code: SYN01 Synergy Sounds Limited Unit C3, Network Enterprise Park, Kilcoole, Co Wicklow Contact Name: Kelly Harmer VAT Number: IE H 5. Synergy Sounds Limited wish to purchase 20 x Music of the 60s CDs (Code: T60) and 30 x Music of the 90s CDs (Code: T90), at the listed Sales price. Generate a Sales Invoice in Sage 50 Accounts dated 18 th November 2012 and numbered Ensure that the invoice is posted and printed and is submitted with your other reports at the end of the examination. 6. You have just been informed that MegaMusic has gone out of business and won t be in a position to pay any of its debts. Write off the balance owed to Classical Music Rocks Ltd as a bad debt on the debtor s ledger, accounting for VAT at 23%, and allocate same against all outstanding invoice(s) at 30 th November The company took out a short term loan with Loan Bank Plc on the 1 st November The loan amount is 12,000 and it is to be repaid over 24 months. The bank will be charging interest of 1,350 in total, which will be charged on a monthly basis. You are required to: (i) Lodge/Transfer the funds to First Bank Plc and show the loan liability at the date of drawdown i.e. 1 st November (ii) Calculate, set up and post an appropriate recurring journal for the monthly loan repayment starting on November 2 nd and to be processed monthly. (iii) 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. (Assume loan interest is charged evenly throughout the loan period). Please note the following, before attempting this question: No interest suspense accounts are required. Please use your exam number as the transaction reference on the recurring transactions. You should also set up any new bank accounts/nominal codes required. (5)

6 8. Post the invoice shown below, relating to the purchase of office equipment, from Media Mad Limited: To: Classical Music Rocks Ltd 12 High Street, Blackrock, Co Dublin 1 INVOICE MEDIA MAD LIMITED THANK YOU FOR YOUR BUSINESS! Unit 1, Hall Farm Wetherby LS23 7AW United Kingdom Qty Details VAT Audio Visual Equipment per PO number 649-A Invoice Number: Date: 1st November 2012 Unit Price Amount 0 14,450 14,450 SUBTOTAL 14,450 VAT 0.00 TOTAL 14,450 1 = GBP Enter the following petty cash vouchers for the month ended 30 th November Date Details Analysis Receipt No Net VAT Total 03/11/2012 CopyCity Printing /11/2012 Clean Wizard Cleaning The petty cash imprest was restored to 250 on November 29 th using cheque number ; enter this cheque into Sage 50 Accounts on this date. (4 Marks) 10. Before attempting to reconcile the bank account you notice the following: (i) Enter the following purchase payment and write off the minor payment discrepancy to discount received. Allocate the payment to invoice FIRST BANK PLC 52 Main Street Donnybrook, Dublin 4 Date 29/11/2012 PAY: ZBox Ltd Two thousand, five hundred and three euro only 2, Cheque number: James Jordan Classical Music Rocks Ltd (6)

7 (ii) Lodgement No from Games Store & More on November 14 th has been entered incorrectly as 7, instead of 9, The lodgement was incorrectly allocated against invoice number only. Amend/delete this lodgement and record it correctly. Allocate this receipt against invoice numbers and (iii) Enter any amounts from the attached bank statement (refer to Appendix 2) that may not have been recorded. (4 Marks) (iv) Print the Bank Reconciliation Report available in the Bank Reconciliation Window and reconcile the account to the bank statement for November Provide for depreciation based for November on the following based on fixed the following assets depreciation fixed assets policies: depreciation policies: Plant and Machinery 10% p.a. straight line Furniture and Fixtures 20% p.a. straight line Computer Equipment 33.3% p.a. straight line Office Equipment 10% p.a. straight line Motor Vehicles 20% p.a. straight line Leased Assets over the life of the lease It is also the company s policy to charge a full year s depreciation in the year of acquisition with no deprecation in the year of disposal. (6 Marks) 12. As a result of a stocktake on the 30 th November 2012 it is noted that the stock value should be 72, Adjust the value at 30 th November 2012 to reflect this amount. 13. Enter a contra entry on the customer Account for Synergy Sounds Limited to reflect that the balance owing has been offset against their existing supplier account with Classical Music Rocks Ltd. 14. Print the following reports from Sage 50 Accounts to the location indicated by the invigilator: A trial balance at 30 th November 2012, A detailed audit trail by posting number starting at posting 227 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 as at 30 th November 2012 (detailed), A Customer details report for the new Customer (SYN01) only. (10 Marks) 15. Backup the dataset for Classical Music Rocks Limited into a folder on your desktop titled with your examination number. (1 Mark) Section B Total: (60 Marks) (7)

8 Section C - MS Excel: You are required to: 1. Prepare a month by month budget for the 3 months from 1 st December 2012 to 28 th February 2013 based on the actual figures for September Export the Trial Balance for September 2012 from the Sage 50 Accounts dataset into an MS Excel worksheet and save the file as an Excel workbook titled Budget for 3 months ended 28 th February 2013 : Remove all rows that do not include profit and loss items, Ensure all the figures for September 2012 are in the same column, Delete any account numbers. 2. In the same worksheet, in new columns: Prepare a month by month budget template for the 3 months from December 2012 to February 2013, Separate all Sales, Cost of Sales and Overhead Accounts into three separate groups. Insert formulas to show totals for gross profit and net profit. Insert formulas into the month by month budget template to reflect the monthly income/expense for the 3 months from December 2012 to February 2013, taking into account all of the following information: Due to seasonal fluctuations it is anticipated that all Sales and Cost of Sales values will decrease by 2% from the September 2012 values, Due to salary adjustments, staff costs will increase by 5% in December 2012 and will then remain static. Directors Remuneration is unchanged from September 2012 levels. ER PRSI should be 10.75% of staff salaries each month, All other expenses should be decreased by 5% from the September 2012 values, with the exception of depreciation, Depreciation should be based on the September 2012 figures, while also taking into account the additional depreciation for the new fixed assets addition as outlined in Section B. (Refer to the company s fixed assets depreciation polices in Section B), The monthly loan interest (as indicated in Section B) should be accounted for in the budget for Quarter 2. Calculate the total budgeted figures for the 3 months ending 28 th February (Students should use the absolute formula throughout where possible/appropriate) (6 Marks) 3. Format the whole spreadsheet to the following: Bold all gross profit and net profit information, All figures (except percentages) to be comma style with two decimal places, All text and figures should be in Arial style, italics and in font size 10, Adjust columns to an appropriate width size ensuring all figures and text is visible, Bold, centre and underline all month headings, Using any Word Art, title the page Budget for 3 months ending 28 th February 2013 in font size 20, Insert today s date as a footer on the right section and your examination number on the left side section. Both should be in bold and italics. (4 Marks) (8)

9 4. In a new worksheet, create a column chart based on the total figures for the 3 months ending 28 th February 2013 for the expense codes from Travel Expenses to Bank Charges. The column chart should be formatted as follows: The Y-axis should be formatted to the following: (i) No decimal places (ii) Major unit to be 50 The X-axis should be formatted to the following: (iii) All text should be in Uppercase and in Bold (iv) All text should be horizontal Series should appear on the bottom and be titled Expenses. The column chart should be titled Other Operating Expenses for Qtr 2, Insert your examination number as a header in the centre section. (4 Marks) 5. Print the following from the MS Excel spreadsheet entitled Budget for 3 months ending 28 th February 2013 : 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 chart. Ensure that each report prints in landscape format, and prints on one page only. On completion ensure that you have saved the Excel Workbook into a folder on the desktop titled with your examination number. (4 Marks) Section C Total: (20 Marks) On completion of the examination: 1. Ensure all printouts (Payroll, Accounts and Excel) are in the order requested in each section and are correctly submitted to the invigilator. 2. Ensure that there is a folder on your desktop showing your examination number as the folder name. Confirm that you have saved a backup of your Sage Quickpay, Sage 50 Accounts and MS Excel workbook 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. TOTAL EXAM MARKS: (100 MARKS) (9)

10 In all correspondence please quote: Registration No: Notice No: Collector-General Sarsfield House Francis Street Limerick Classical Mulhall Transport Music Limited Rocks Ltd 12 DeLonge High Street House Whittle Industrial Estate Blackrock Carlow, Ireland Co Dublin Enquiries: P30 Monthly PAYE/PRSI return Period: Payment due not later than: Please do not photocopy this form or payslip or use it for any other period or customer. Always return the payslip even for nil returns. BANK GIRO CREDIT TRANSFER Payslip P30 To: BANK OF IRELAND COLLEGE GREEN DUBLIN For: COLLECTOR-GENERAL PAYE/PRSI A/C No Name: I declare that the amounts shown below are the amounts I am liable to remit to the Collector-General for the above period(s). Signed: Date: Registration No: Notice No: Period: Date Rec d: PAYE,,.00 CHEQUES Receiving PRSI TOTAL,,,, Brand & TOTAL Initials Please do do not fold this payslip or write or mark below this line P30 A APPENDIX 1 (10)

11 FIRST BANK PLC 52 Main Street, Donnybrook, Dublin 4 Account Number STATEMENT OF ACCOUNT Classical Music Rocks Limited 12 High Street Blackrock, Co Dublin 30th November 2012 DATE PARTICULARS DEBIT CREDIT BALANCE ( ) denotes Debit Nov-12 1 Balance b/f 63, Loan Drawdown 12, , Lodgement , To - Loan Bank PLC Govt Duty , Lodgement , , Lodgement , , Lodgement , DD - VHI Scheme , ROS - VAT Payment 11, , DD - ESB 1, DD - Pension Fund , DD - Eircom Bank Charges , Cheque , Lodgement , Staff Salaries 13, , Nov Closing Balance 85, APPENDIX 2 (11)

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