Practice assessment 3 - osbornebooksshop.co.uk

1 Practiceassessment 3 Clifton card WarehouseInstructions to candidatesThis assessment asks you to input data into a computerised accounting package and produce documentsand reports. There are 13 tasks and it is important that you attempt all time allowed to complete this computerised accounting assessment is 2 hours, plus 15 minutesreading time up to a maximum of 1 hour may be scheduled by your tutor to allow for delays due tocomputer issues such as printer is important that you print allreports and documents specified in the tasks so your work can beassessed. A checklist has been provided at the end of the assessment to help you check that alldocuments and reports have been your computerised accounting system allows for the generation of PDFs, these can be generated insteadof hard copy prints. Screenshots saved as image files are also acceptable. DataClifton card Warehouseis an existing business that supplies cards, gift wrap and decorations to shopsacross the region.

2 The owner is Nathan Pearsonwho operates as a sole trader. The business has previously kept manual books but from 1 July 20XX, the accounts are to are employed as an accounts can assume that all documentation has been checked for accuracy and authorised by and credit sales are analysed in fourways: Greetings cards Gift wrap Decorations Online salesAll stock is stored in a rented unit, where goods are despatched from. Nathan likes to analyse hispurchases as follows: purchases gift cards purchases decorations/gift wrapSome nominal ledger accounts have already been allocated account codes. You may need to amendaccount names or create other account business is registered for VAT (Standard Accounting). The rate of VAT charged on all goods andservices sold by Clifton card Warehouse is 20%.All expenditure should be analysed as you feel you start you should: Set the financial year to start on 1 July of the current year.

3 Set the software date as 31 July of the current year. Set up the company details by entering the name Clifton card Warehouseand the address: 340 Briarwood Road, Granby, GD7 6CA. In a training environment you should add your name afterthe business name to identify your printouts. The VAT number is 542 2478 12 and the standard rate VAT of 20% is charged on all accounting software workbookTask 1(a)Set up customer records for each of the customers with opening balances as at 1 July 20XX.(b)Generate a customer activity report on screen. Check it for accuracy and, if necessary, correct anyerrors. You do not need to print the customer activity report. Practice assessment 3 41 Customer Account Code:AGC01 Company name:Ashford Gift Centre Address: 50 Leahurst Road, Limely Bridge,LW6 4WJ Contact name:Phoebe MayTelephone:0145 652798 Payment terms:30 daysCredit limit: 5, balance: 4, Account Code:BGC01 Company name: Brooklane GardenCentre Address:125 Woodbank Lane, LimelyBridge, LK5 1VI Contact name:Sarah MillerTelephone:0145 758201 Paymentterms:30 daysCredit limit: 7, balance: Customer Account Code:CC01 Company name:Cossall Cards Address:68 Granby Road, Granby, GB1 4 KLContact name: Agnes NowakTelephone:0152 415234 Payment terms:30 daysCredit limit: 3, balance: 1, Account Code:MP01 Company name:Michelle Proctor Ltd Address:414 Cardale Road, Granby,GB7 5 RDContact name:Raj SinghTelephone:0152 778995 Payment terms:30 daysCredit limit: 9, balance.

4 3, 42using accounting software workbookTask 2(a)Set up supplier records for each of the suppliers with opening balances as at 1 July 20XX.(b)Generate a supplier activity report on screen. Check it for accuracy and, if necessary, correctany errors. You do not need to print the supplier activity report. Supplier Account Code: BW01 Company name: Burton Wholesale Address:57 Ged Drive, Chadderdale,CH7 4KU Contact name: Priya MalikTelephone:0123 142124 Payment terms:30 daysCredit limit: 12, balance: 6, Account Code:JFCS01 Company name:JF card Supplies Address:144 Standhill Parkway, BuxtonRoad, Chadderdale, CH2 4 TFContact name: Jasmin FisherTelephone:0123 872365 Payment terms:30 daysCredit limit: 7, balance: 2, Account Code:SCS01 Company name:Stonebridge CardSupplies Address:48 Hilton Road, Chadderdale,CH6 5YR Contact name:Samia MasoodTelephone:0123 874215 Payment terms:30 daysCredit limit: 3, balance: Account Code:WW01 Company name:Woolerton Warehouse Address:Unit 23, Colwick Parkway,Parkdale Road, Granby, GB4 9 IOContact name:Emilie DurandTelephone:0152 748214 Payment terms:30 daysCredit limit: 11, balance.

5 6, assessment 3 43 Task 3(a)Using the list of nominal ledger balances below, set up nominal ledger records for each , amend or create nominal ledger codes where required.(b)Generate a trial balance on screen. Check it for accuracy and, if necessary, correct any errors. Youdo not need to print the trial Trial Balance as at 1 March 20 XXAccount nameNote Debit Credit Bank 4, Bank deposit 6, cash - cost34, Furniture - accumulated depreciation5, ledger control account19, ledger control account 115, on sales28, on purchases21, , Greetings cards3 NILS ales - Gift wrap3 NILS ales - Decorations3 NILS ales - Online sales3 NILBank interest received 3 NILG eneral rates3 NIL Purchases (Gift cards)3 NILP urchases (Decorations/Gift wrap)3 NILBank charges3 NILD onations3 NILC leaning3 NILO ffice stationery3 NILT ravel and subsistence3 NILA dvertising3 NILT otals56, 56, accounting software workbookTask 4 Enter the following sales invoices and sales credit notes into the computer.

6 Sales InvoiceINVOICEC lifton card Warehouse340 Briarwood Road, Granby, GD7 6CA invoice no00895date2 July 20 XXItemQuantityTotalRolls of wrapping paper @ 40p per roll 160 of blue balloons @ 20p per pack 250 of helium balloons @ per pack 500 @ 20% invoice : Phoebe MayAshford Gift Centre 50 Leahurst RoadLimely BridgeLW6 4WJ VAT registration number 542 2478 12 Notes:1 As you have already entered opening balances for customers and suppliers you may not need toenter these balances, you will need to check whether your accounting software requires you tomake a separate The accounting software you are using may not require you to post these balances individually. Theopening balance on the account is 7, (credit) if posting as a single brought forward These nominal accounts are needed for transactions taking place in July 20XX. In the rest of the assessment , you will only make entries to the nominal ledger accounts you created inTask 3.

7 You will not be required to make entries to any accounts other than those you have alreadycreated. Practice assessment 3 45 Sales InvoiceINVOICEC lifton card Warehouse340 Briarwood Road, Granby, GD7 6CA invoice no00896date6 July 20 XXItemQuantityTotalAssorted greetings cards @ per card 5000 3, @ per banner 75 3, @ 20% invoice 3, : Raj SinghMichelle Proctor Ltd 414 Cardale RoadGranbyGB7 5 RDVAT registration number 542 2478 12 INVOICEC lifton card Warehouse340 Briarwood Road, Granby, GD7 6CA invoice no00897date6 July 20 XXItemQuantityTotalCandles @ each 205 decorations @ each 110 greetings cards @ each 300 1, @ 20% invoice 1, : Sarah Miller Brooklane Garden Centre 125 Woodbank LaneLimely BridgeLK5 1VI VAT registration number 542 2478 12 Sales Invoice46using accounting software workbookSales Credit NoteCREDIT NOTEC lifton card Warehouse340 Briarwood Road, Granby, GD7 6CA credit note no0074date8 July 20 XXItemQuantityTotalDamaged greetings cards returned @ each 10 @ 20% credit note.

8 Agnes NowakCossall Cards 68 Granby RoadGranbyGB1 4 KLVAT registration number 542 2478 12practice assessment 3 47 Task 5 Using the information from the purchases day book and purchase returns day book below, enter thesetransactions into the Supplier Invoice Gross VAT Net Gift Decorations20 XXnumbercards /Gift wrap03-Jul JF card Supplies INV 3079 Woolerton Warehouse WW 417 Stonebridge card Supplies1784 Woolerton Warehouse 32546 Supplier Invoice Gross VAT Net Gift Decorations20 XXnumbercards /Gift wrap14-Jul Stonebridge card Burton Wholesale accounting software workbookTask 6(a)You have received the following email. Enter this transaction into the card Warehouse also have online sales. All payments made by customers are done througha secure online payment system called make payments to Clifton card Warehouse at the of end each week using FasterPayments Enter the following Online cash sales listing receipts into the accounting ending Amount received from CashQuick (Including VAT at the standard rate) 8 July 20XX 3, July 20XX 3, July 20XX 1, July 20XX 2, (b)Enter the following cash purchases into the methodDetailsAmount10 JulyCheque no: 024226 Farnborough Furniture Purchase of assets display table and shelving 1, including VAT14 July Cheque no: 024227 Cromford Cards Selection of greetingscards for resale including VAT16 July Cheque no.

9 024228 Full page article in theGranby News advertisingClifton card Warehouse plus VATpractice assessment 3 49 Task 7(a)Enter the following BACS payments received from customers into the payments received listingDate Customer nameAmount Details10 July Michelle Proctor Ltd3, Payment of opening balance13 July Cossall Cards1, Payment of opening balanceless credit note 0074 for July Ashford Gift Centre4, Payment of opening balance30 July Ashford Gift Centre1, Payment on account(b)Enter the following cheque received into the payments received listingDate Customer nameAmount Details24 July Brooklane Garden Centre1, Invoice 00897(c)Print a statement of account for Michelle Proctor Ltd dated 31 July 20XX, showing all transactionsthat have taken place during the accounting software workbookTask 8(a)Enter the following payments to suppliers into the stubsDate22/07/XXPayStonebridgeCard Supplies 2, pay the balance asat 1 July and invoice1784, less credit noteCN41 Date23/07/XXPayWoolertonWarehouse 6, pay the balance asat 1 JulyDate23/07/XXPayBurton Wholesale 6, pay thebalance as at 1 Julypractice assessment 3 51 Task 9(a)You have received the following email.

10 Set up this recurring entry into the computer but do notprocess the first : Accounts AssistantFrom: Nathan PearsonDate: 3 July 20XX Subject: Recurring entry for business rates from Granby CouncilHelloI have received confirmation today that the business rates will be per month to betaken by direct debit out of the bank account on the 15th of the month for 12 months. Pleasecan you set up a recurring entry? VAT is not regardsNathan(b)Print/save a screenshot of the screen setting up the recurring entry. Save this as Evidence 5a.(c)You have received the following email regarding an error in yesterday s email. Edit the recurringentry. EmailTo: Accounts AssistantFrom: Nathan PearsonDate: 4 July 20XX Subject: Error in my email dated 3 July regarding recurring entryHelloApologies, it would appear I emailed you the incorrect amount yesterday for the business ratesdirect debit. The amount should be for per month, still to be taken on the 15th of eachmonth but it should only be for 10 months.