QUESTION PAPER

LEVEL 2 Certificate in Computerised Book-keeping

JUNE 2007

Qualification Accreditation Number 100/5314/1

Unit Accreditation Number Y/103/2527

Candidates Instructions:

• Time allowed: 10 minutes reading time plus 2 hours

• Candidates should answer all Tasks.

• All written answers should be in pen or word processed.

Burford House, 44 London Road, Sevenoaks, Kent TN13 1AS

Tel: 01732 458080 Fax: 01732 455848 email: education@iab.org.uk

Level 2 Cert.CB June 2007 v3

 Level 2 Certificate in Computerised Book-keeping
JUNE 2007

Time allowed: 10 minutes reading time plus 2 hours.

Scenario

A new business, Bullen’s Beers, is being set up by Jerry Bullen. The

business will be registered for VAT (Standard Accounting) and will be trading
on both a credit and cash basis.

Sales will be divided into 2 categories – sales of drinks and sales of foodstuffs.
The latter is VAT zero rated.

Purchases will be divided into 2 categories – purchases of drinks and

purchases of foodstuffs. The latter is VAT zero rated.

Required

1. You are to assume the role of Accounts Clerk and carry out the
instructions in the order that they are given using a commercial
Accounting software package. Jerry is relying on you to input the
data accurately. You should ensure that every transaction has a unique
reference.

2. Print the following at the end of the month:

a. Trial Balance
b. Summary Audit Trail
c. Address Lists for customer and suppliers
d. Detailed Aged Debtors and Creditors Analyses
e. Nominal activity reports for each category of sales and
purchases
f. Nominal activity report of the bank and petty cash transactions
g. Reconciled and unreconciled bank transactions

3. a) Jerry is concerned that the data for his business can be accessed
by anyone in the office. Explain 3 ways which would ensure the
security of data on the system. (6 Marks)
b) He has heard comments about health and safety in the office,
particularly as regards IT equipment. Describe two measures he
should be aware of as regards this issue. (4 Marks)

The business was started on 1st January 2007.

Set this as your Financial Year Start Date.

Level 2 Cert.CB Page 1 June 2007v1

The name and address of Bullen’s Beers is as follows:

Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT

Enter this information onto your Accounting program and, after the
name Bullen’s Beers, add your Examination Entry number.

Set up the following Nominal Accounts, using an account reference relevant

to the package you are using:

Nominal Code Name

Capital
Drawings
Sales – Drinks
Sales – Foodstuffs
Purchases – Drinks
Purchases – Foodstuffs

Set up the following Supplier Accounts, using an appropriate account

reference:

Allan Wholesale Rollitts Ltd. Larkham & Son

26 Epsom Road The Malt House 126 Sheffield Road
Clifton New Beech Road Rotherham
YO31 8CT Rossendale SF12 4VN
BB5 9SN

Set up the following Customer Accounts, using an appropriate account

reference:

Wragg Wines Jones & Evans Stockton Bros

Sandringham Court Unit 6 Harpers Lane
Tamworth Seaview Estate Bolton
B86 5RJ Rhyl BL2 7FR
LL44 7TY
Hatton Wholesale
35 Falstone Drive
Christchurch
BH21 3HR

Level 2 Cert.CB Page 2 June 2007v1

 Jerry put in place the finance for the new business.

Date Details
1 Jan Jerry paid £10,000 of his own money into the Business Bank current
account

1 Jan Received Bank Loan of £15,000 paid into the current account.
Arranged loan repayment to be paid on 24th of each month by
Standing Order. This amounts to £400 per month, £320 being
capital repayment and £80 being loan interest. Set this up and post
the payment at the appropriate time.

A book was set up (extract below) in which a list of all cheques paid out
would be recorded. From this Cheque Log, enter these details onto the
system:

Cheque Log
Date Cheque Payee Details Net VAT Gross
no. £ £ £ √
3 Jan 20001 Cash Petty 150.00
Cash
3 Jan 20002 Sheffield Rates 2,500.00 Exempt 2,500.00
Council
6 Jan 20003 Martin’s Purchase 3,000.00 525.00 3,525.00
Garage of
delivery
van
11 Jan 20004 Raymond’s Racking 2,000.00 350.00 2,350.00
Racking

Level 2 Cert.CB Page 3 June 2007v1

During the month, the following Invoices were sent out to customers. Enter these
transactions:

Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
Telephone: 01290 587429

Invoice To: Invoice No. BB 001

Jones & Evans Invoice Date 01.01.2007
Unit 6
Seaview Estate
Rhyl
LL44 7TY
VAT Rate Net
140 Kegs of Beer 17.5% 7,700.00

7,700.00
VAT 1,313.81
Invoice Total 9,013.81

Terms: 2.5% discount if paid within 21 days

VAT Reg. No. 389 4261 65

Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
Telephone: 01290 587429

Invoice To: Invoice No. BB 002

Hatton Wholesale Invoice Date 03.01.2007
35 Falstone Drive
Christchurch
BH21 3HR
VAT Rate Net
40 Cases Italian wines (assorted) 17.5% 2,400.00
10 dozen cut sandwiches Zero 520.00
2,920.00
VAT 420.00
Invoice Total 3,340.00

Terms: Nett monthly account

VAT Reg. No. 389 4261 65
Level 2 Cert.CB Page 4 June 2007v1
 Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
Telephone: 01290 587429

Invoice To: Invoice No. BB 003

Wragg Wines Invoice Date 09.01.2007
Sandringham Court
Tamworth
B86 5RJ

VAT Rate Net

15 kegs best bitter 17.5% 1,485.00

1,485.00
VAT 259.87
Invoice Total 1,744.87

Terms: Nett monthly account

VAT Reg. No. 389 4261 65

Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
Telephone: 01290 587429

Invoice To: Invoice No. BB 004

Stockton Bros Invoice Date 10.01.2007
Harpers lane
Bolton
BL2 7FR
VAT Rate Net
20 cases mixers 17.5% 900.00
18 boxes biscuits Zero 125.00

1,025.00
VAT 157.50
Invoice Total 1,182.50

Terms: Nett monthly account

VAT Reg. No. 389 4261 65

Level 2 Cert.CB Page 5 June 2007v1

 Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
Telephone: 01290 587429

Invoice To: Invoice No. BB 005

Jones & Evans Invoice Date 15.01.2007
Unit 6
Seaview Estate
Rhyl
LL44 7TY
VAT Rate Net

25 kegs lager 17.5% 2,750.00

4 dozen packs sandwiches Zero 208.00
2,958.00
VAT 469.22
Invoice Total 3,427.22

Terms: 2.5% cash discount for payment within

21 days VAT Reg. No. 389 4261 65

Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
Telephone: 01290 587429

Invoice To: Invoice No. BB 006

Stockton Bros Invoice Date 18.01.2007
Harpers lane
Bolton
BL2 7FR
VAT Rate Net
10 cases assorted wines 17.5% 240.00

240.00
VAT 42.00
Invoice Total 282.00

Terms: Nett monthly account

VAT Reg. No. 389 4261 65

Level 2 Cert.CB Page 6 June 2007v1

During the month, the following Credit Note was sent out. Enter this
transaction:

Bullen’s Beers
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
Telephone: 01290 587429

Credit Note: Credit Note No. BBC 001

Hatton Wholesale Credit Note Date 05.01.2007
35 Falstone Drive
Christchurch
BH21 3HR
VAT Rate Net
1 dozen packs sandwiches Zero 52.00

52.00
VAT 0.00
Invoice Total 52.00

Terms: Nett monthly account

VAT Reg. No. 389 4261 65

Level 2 Cert.CB Page 7 June 2007v1

During the month, the following invoices were received from Suppliers. Enter
these transactions:

Rollitts Ltd.
The Malt House
New Beech Road
Rossendale
BB5 9SN

Invoice To: Invoice No. RI 9667

Bullen’s Beers Invoice Date 02.01.2007
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
VAT Rate Net
300 kegs beer 17.5% 9,580.00

9,580.00
VAT 1,642.97
Invoice Total 11,222.97

Terms: Cash discount of 2% for payment within 14 days

VAT Reg. No. 319 4322 77

Allan Wholesale
26 Epsom Road
Clifton
YO31 8CT

Invoice To: Invoice No. AW 883

Bullen’s Beers Invoice Date 4.01.2007
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
VAT Rate Net
14 dozen assorted cut sandwiches Zero 420.00

420.00
VAT 0.00
Invoice Total 420.00

Terms: 30 days nett

VAT Reg. No. 348 5594 44

Level 2 Cert.CB Page 8 June 2007v1

 Larkham & Son
126 Sheffield Road
Rotherham
SF12 4VN
Invoice To: Invoice No. L 2826
Bullen’s Beers Invoice Date 8.01.2007
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
VAT Rate Net
100 kegs lager 17.5% 5,500.00
20 cases biscuits Zero 315.00

5,815.00
VAT 962.50
Invoice Total 6,777.50

Terms: Nett monthly account

VAT Reg. No. 572 9966 21

Rollitts Ltd.
The Malt House
New Beech Road
Rossendale
BB5 9SN

Invoice To: Invoice No. 9702

Bullen’s Beers Invoice Date 18.01.2007
The Tithe Barn
58 Whitecroft
Barnsley
SF14 6PT
VAT Rate Net
50 kegs beer 17.5% 2,750.00

2,750.00
VAT 481.25
Invoice Total 3,231.25

Terms: 30 days nett

VAT Reg. No. 319 4322 77

Level 2 Cert.CB Page 9 June 2007v1

During the month the following credit note was received:

Allan Wholesale
26 Epsom Road
Clifton
YO31 8CT

Credit To: Credit Note AHC 99

Bullen’s Beers Credit Note 18.01.2007
The Tithe Barn Date
58 Whitecroft
Barnsley
SF14 6PT
VAT Rate Net
2 dozen packs of sandwiches Zero 60.00

60.00
VAT 0.00
Total 60.00

Terms: To be deducted from payment of next

invoice.
VAT Reg. No. 348 5594 44

Level 2 Cert.CB Page 10 June 2007v1

During the month, Petty Cash has been spent and the Vouchers below written
out. Enter this expenditure.

Petty Cash Voucher

No. PCV 1
Date 1.1.2007 VAT Rate: 17.5%

Expense Details Amount including VAT (where applicable)

Diesel for delivery van £25.00

Signed ……………….. Total £25.00

Petty Cash Voucher

No. PCV 2
Date 5.1.2007 VAT Rate: 17.5%

Expense Details Amount including VAT (where applicable)

Carriage on deliveries from £15.00

suppliers.
(This is to be treated as
part of the cost of
purchases, but must be
shown separately)

Signed ……………….. Total £15.00

Petty Cash Voucher

No. PCV 3
Date 9.1.2007 VAT Rate: Exempt

Expense Details Amount including VAT (where applicable)

Postages £10.00

Signed ……………….. Total £10.00

Level 2 Cert.CB Page 11 June 2007v1

 Petty Cash Voucher
No. PCV 4
Date 12.1.2007 VAT 17.5%

Expense Details Amount including VAT (where applicable)

Carriage on deliveries to £12.00

customers

Signed ……………….. Total £12.00

Petty Cash Voucher

No. PCV 5
Date 18.1.2007 VAT Rate Zero

Expense Details Amount including VAT (where applicable)

Minor repairs to van £15.00

Signed ……………….. Total £15.00

Petty Cash Voucher

No. PCV 6
Date 20.1.2007 VAT Rate Zero

Expense Details Amount including VAT (where applicable)

Tea, coffee, etc £9.00

Signed ……………….. Total £9.00

Level 2 Cert.CB Page 12 June 2007v1

 During the month, the following moneys have been received from Customers:
Cheque
amount
£
20 Jan Cheque (no. 863) received from Jones and Evans in full 8,821.31
settlement of our invoice BB 001, having taken the
discount offered.
25 Jan Cheque (no 386) received from Hatton Wholesale in full 3,340.00
settlement of our invoice BB 002
29 Jan Cheque (no. 108) received from Stockton Bros. This was 1,000.00
a part payment of our invoice BB 004.

In addition, on 17 January, a local trader bought some beer for a party for
cash. The amount received was £380.00 (including VAT) and was paid directly
into the bank.

You have already entered some cheques (ticked) from the Cheque Log –
enter the remaining cheque payments.
Cheque Log
Date Cheque Payee Details Net VAT Gross
no. £ £ £ √
3 Jan 20001 Cash Petty 150.00 √
Cash
3 Jan 20002 Sheffield Rates 2,500.00 Exempt 2,500.00 √
Council
6 Jan 20003 Martin’s Purchase 3,000.00 525.00 3,525.00 √
Garage of
delivery
van
11 Jan 20004 Raymond’s Racking 2,000.00 350.00 2,350.00 √
Racking
15 Jan 20005 Rollits Ltd. Settlement of invoice RI 9667, 11,031.37
taking account of the discount
offered
29 Jan 20006 Larkham & Payment on account. 5,000.00
Son
31 Jan 20007 Cash Jerry’s drawings 850.00
31 Jan 20008 Cash Reimburse Petty Cash box 136.00
with amount spent and
increase float by £50.00.

Level 2 Cert.CB Page 13 June 2007v1

The wages for January have been calculated. Enter these transactions.

• 31 January - Net Wages paid from the Bank Current Account by BACS
£386.90

• The Income Tax and National Insurance have been calculated as

follows:

Income Tax deducted £76.09

Employee’s NIC deducted £83.65
Employer’s NIC £95.42

These will not be sent off to HM Revenue & Customs until 15th
February; therefore, enter these figures into the system by Journal
Entries.

29th January
Jerry took some sandwiches own use. These had a selling price of
£10.00 (Zero rated for VAT).

Make the journal entry to reflect this.

Level 2 Cert.CB Page 14 June 2007v1

 The Bank Statement below has been received; reconcile it to your
computer records.

JAH BANK PLC

Account Number: 6598362 STATEMENT OF ACCOUNT
Sheet No. 1
Bullen’s Beers Sort Code: 27-55-39
The Tithe Barn
58 Whitecroft Telephone: 021 199358
Barnsley Facsimile: 021 199359
SF14 6PT

Date Particulars Payments Receipts Balance

1 Jan Counter Credit 10,000.00 10,000.00

Trf – Business Loan 15,000.00 25,000.00
4 Jan 20001 150.00 24,850.00
8 Jan 20003 3,525.00 21,325.00
8 Jan 20002 2,500.00 18,825.00
12 Jan 20004 2,350.00 16,475.00
15 Jan 20005 11,031.37 5,443.63
17 Jan Counter Credit 380.00 5,823.63
22 Jan Counter Credit 8,821.31 14,644.94
24 Jan Business Loan Account DD 400.00 14,244.94
27 Jan Counter Credit 3,340.00 17,584.94
31 Jan BACS 386.90 17,198.04

When you have finished, return to page 1. Print out as instructed and write
your answer to question 3.

Level 2 Cert.CB Page 15 June 2007v1