Integrated Accounting System
Sage 50 Accounts
Northern Ireland
Exam Paper 2011/12
2nd Year Examination: Exam Paper 2011/12
Paper: IAS Sage 50 Accounts (Northern Ireland)
INSTRUCTIONS TO CANDIDATES
PLEASE READ CAREFULLY
For candidates answering in accordance with the law and practice of Northern
Ireland.
Candidates should answer the paper in accordance with the appropriate provisions
up to and including the Finance Act 2011. The provisions of the Finance Act 2012
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:
•
P46,
•
P32.
1
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
Company Information
Business Name:
Hard Music Shop Ltd.
Address:
12 High Street
Belfast
BT5 6GR
Telephone:
028-9079 0908
Fax:
028-9079 0909
E-mail:
info@musicshop.co.uk
VAT Reg. No.:
GB-818905679
Employer Reg. No.:
GB-818905679
Directors:
Mr. Neil Martin
Ms. Sarah Marshall
Business:
Suppliers of music equipment and related ancillary products.
Type of Business Entity:
Private Limited Company
Business Profile
Hard Music Shop Ltd. was incorporated as a Private Limited Company in 2004. Neil Martin
and Sarah Marshall are the directors and shareholders of the company.
The majority of Hard Music Shop 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 20%. The
company accounts for VAT on a Sales Invoice basis.
The accounting year of Hard Music Shop Ltd. is September to August. Assume that today is
the 5th of December 2011 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 30th November 2011 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.
2
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
Section A - Payroll:
You are required to:
1. Restore the setup Sage 50 payroll files from the location indicated by the invigilator.
(Create a new company or restore over an existing company if necessary).
(1 Mark)
2. Prepare and calculate the November 2011 payroll based on the information below.
(Ensure that you set the period to November before you begin.)
(2 Marks)
3. Set yourself up as a new employee, identified by your examination number only (e.g.
2XXXXX). Insert your examination number in both the forename field and the surname
field.
You commenced employment on Monday 21st November 2011. You have been contracted
on a part time basis. You will be paid a rate of £8.95 p/hr plus payment of time and a half
for overtime hours worked. You are to be paid for 28.5 hours worked in November, plus 5
hours overtime. You are to be paid by cheque and you have not yet received a copy of
your P45 from your previous employer. Your P46 is attached on page 11. Your National
Insurance Category is A.
(4 Marks)
4. Neil Martin is to receive a decrease in his annual salary of £5,000 effective from the 1st
November 2011. Neil is also to be reimbursed £230 for receipted travel expenses incurred
by him on a recent business trip to Edinburgh. Update the payroll package for these
changes.
(2 Marks)
5. Sarah Marshall is to receive backdated payment owing to her in November 2011 for three
days sick leave that was incorrectly deducted from her in October 2011. Sarah also
started a private pension effective from the 1st November 2011. She is to contribute 5% of
her basic monthly gross salary and Hard Music Shop Limited will also contribute 3% from
this date. Update the payroll package for these changes.
(2 Marks)
6. Stephen Byrne left the company on the 15th November 2011. At this date Stephen had
taken 3 days more holidays than he was due and the company wishes to reclaim any
overpayment made. He is to be paid half a month’s salary for November and commission
of 5% on his sales which totaled £6,000 in November. Update the payroll package for
these changes.
(2 Marks)
7. Hard Music Shop Limited pay employees Mileage Allowance Payments (MAPS) in line
with HMRC guidelines at the following rates:
•
•
First 10,000 miles per annum = 45p per mile
Above 10,000 miles per annum = 25p per mile
Josh Stevens travelled 673 business miles in November bringing his total business miles
in 2011 to 10,600. Calculate the MAPS due to Josh and update the payroll package for
this change.
(2 Marks)
3
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
8. Print the payment summary report 1 & 2 (in landscape format), a payslip for the new
employee only and the current NI contributions report for November 2011 to the print
facility indicated by the invigilator.
(2 Marks)
9. Complete the P32 return on page 12 for November 2011 and ensure that it is submitted
to the invigilator at the end of the exam.
(2 Marks)
10. Backup the Sage 50 Payroll dataset for Hard Music Shop Ltd. to the location indicated by
the invigilator.
(1 Mark)
Total:
NB:
(20 Marks)
Assume all other employees NOT mentioned above are calculated as normal.
On average an employee works 260 days per annum.
4
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
Section B - Integrated Accounts and Double Entry:
You are required to:
1. Restore the Sage 50 Accounts dataset for Music Shop Ltd. from the data location as
indicated (creating a new company if necessary). Please note that the username is
“manager” and there is no password.
(1 Mark)
2. Change the company name so it reads: “Hard” Music Shop Ltd. – your examination
number (e.g. 2XXXXX)
(1 Mark)
3. Post the salary journal for the month of November 2011 using the information produced
in section A. (You should set up any new nominal codes required.)
(5 Marks)
4. Set up the following new product. The details are as follows:
Description:
Code:
Cost Price:
Sales Price (Ex VAT):
Top 50 00’s Hits-Album
T00
£8.33
£18.50
(1 Mark)
5. Generate a quotation, for Music Central, from Sage 50 Accounts similar to that on page
8. Print the quotation to the print facility indicated by the invigilator, and ensure that it is
submitted to the invigilator at the end of the exam.
(2 Marks)
6. Later that day, Music Central contacted you to make the following amendments to the
quotation produced in question 5.
Product
Top 50 80's Hits- Album
Top 50 90's Hits- Album
Top 50 00's Hits- Album
New Order Quantity
8
10
20
Amend the quotation and convert to a sales invoice from Sage 50 Accounts dated 10th
November 2011. Ensure that the sales invoice is posted/updated. Print the sales invoice
to the print facility indicated by the invigilator, and ensure that it is submitted to the
invigilator at the end of the exam.
(2 Marks)
5
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
7. Set up a new supplier account for Thomas & Co. Accountants. The supplier details are as
follows:
Supplier Code:
Supplier Name:
Address:
Telephone:
Contact name:
Email:
VAT no:
THO01
Thomas & Co. Accountants
Unit 4A
Low Lane
Belfast
BT5 6GR
028-7936 7253
David Davis
info@thomasandcoaccountants.co.uk
GB 692909261
8. Enter the purchase invoice on page 9.
(1 Mark)
(2 Marks)
9. On the 21st of November 2011 the directors paid the full amount outstanding on Music
Madness Ltd.’s supplier account by personal credit card. Enter and allocate an
appropriate journal on the creditor’s ledger to reflect that the supplier invoice has now
been paid by the directors.
(3 Marks)
10. On the 24th of November 2011 the directors sent a euro draft for €5,132.09 to Media Mad
Ltd. costing £4,523.94 for payment of invoice number 9498. A bank charge of £22.50 is
included in this figure and the difference is the currency gain/loss. Enter all of the above
through the purchase ledger and allocate this payment against the invoice and related
charges.
(3 Marks)
11. The company entered into a new lease on 1st November 2011 in order to purchase new
computer equipment at a cost of £9,360. Interest of £1,440 in total will be charged over 3
years. Ignoring VAT implications, you are required to:
(i) Capitalise the new asset and show the lease liability at the date of acquisition i.e.
1st November 2011.
(4 Marks)
(ii) Calculate, set up and post a recurring cash payment for the monthly lease
repayment starting on 1st November 2011 and to be processed monthly.(3 Marks)
(iii) Calculate, set up and post the recurring monthly journal to charge lease interest to
the Profit and Loss Account on the same date as (ii) above.
(3 Marks)
Students should also note the following before attempting this question:
- Students should put their examination number as the transaction reference
when creating the recurring transaction,
- Students should set up any new nominal codes required.
6
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
12. Enter the following petty cash vouchers for the month ended 30th November 2011:
Receipt
No.
Net
Amount
£
VAT
£
Total
£
03/11/2011 Ink Cartridges
(Printing and Stationery)
1042
19.90
3.98
23.88
21/11/2011 Taxis
(Travel expenses)
1043
15.00
0.00
15.00
Date
Details
(2 Marks)
13. Before attempting to reconcile the bank account you notice the following:
(i) On 30th November 2011, the directors cashed a petty cash cheque for £150 using
cheque number 500532. Enter this cheque in Sage 50 Accounts on 30th November
2011.
(2 Marks)
(ii) Enter any amounts from the attached bank statement on page 10 that may not
have been recorded, then reconcile the cashbook balance to the bank statement
for November 2011.
(6 Marks)
14. Provide for depreciation for the month of November based on the following fixed assets
depreciation policies:
–
–
–
–
–
–
–
Land and Buildings – 2% p.a. straight line
Plant and Machinery – 10% p.a. straight line
Furniture and Fixtures – 20% p.a. straight line
Computer Equipment – 33 1/3 % p.a. straight line
Office Equipment – 20% 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 and no deprecation in the year of disposal.
(6 Marks)
15. Reverse the accountancy accrual at 30th of November 2011 as the invoice has now
been received. (Please note that the accrual for accountancy was previously entered
net of VAT)
(2 Marks)
16. Backup the Sage 50 Accounts dataset for Hard Music Shop Ltd. to the location
indicated by the invigilator.
(1 Mark)
Total: (50 Marks)
7
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
QUOTATION
DATE: 10TH NOVEMBER 2011
Hard Music Shop Limited
12 High Street
Belfast
BT5 6GR
To
Music Central
Unit 12
The Grange
Lisburn
BT27 5EA
CODE
DESCRIPTION
QTY
UNIT
PRICE
£
VAT
AMOUNT
£
T80
Top 50 80's Hits-Album
5
18.50
1
92.50
T90
Top 50 90's Hits-Album
5
18.50
1
92.50
T00
Top 50 00's Hits-Album
5
18.50
1
92.50
SUBTOTAL
277.50
RATE
NET
VAT
VAT
55.50
20%
277.50
55.50
TOTAL
333.00
VAT Number: GB-818905679
THANK YOU FOR YOUR BUSINESS!
8
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
Thomas & Co. Accountants
Unit 4A
Low Lane
Belfast
BT5 6GR
Tel: 028-7936 7253
VAT No. GB 692909261
26th November 2011
Invoice No.: 107265
Invoice To:
Hard Music Shop Limited
12 High Street
Belfast
BT5 6GR
Details
Total
£
Preparation of financial statements for the year ended 31st August 2011.
2,200.00
Outlay to included printing and post
13.25
Payment due upon receipt of invoice.
Rate
Net
20%
£2,213.25
Vat
£442.65
NET £ 2,213.25
VAT
£ 442.65
Total £2,655.90
9
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
92-36-76
First Bank Plc.
Main Street,
Newry,
BT34 4FW
STATEMENT OF ACCOUNT
Hard Music Shop Ltd
12 High Street
Belfast
BT34 2QU
30-Nov-11
Statement No: 173
Account No.
28374693
DATE
Nov – 11
PARTICULARS
DEBIT (£)
CREDIT (£)
1 Balance b/fwd
BALANCE
( ) Denotes
Debit
66,552.08
Lease - DD
300.00
Lodgement 100424
8,690.78
2 Govt Duty
25.00
74,942.86
74,917.86
3 Lodgement 100425
9,726.66
84,644.52
8 Lodgement 100426
8,034.92
92,679.44
14 Lodgement 100427
7,234.34
99,913.78
18 EFT Charges
15.00
99,898.78
10,672.74
89,226.04
21 NIE – DD
1,854.81
87,371.23
23 PAYE/ NIC – DD
5,786.73
81,584.50
24 Euro Bank Draft
4,523.94
77,060.56
19 S/O VAT 100 - DD
25 Bank Charges
23.64
BT - DD
297.64
30 Cheque 500532
76,739.28
150.00
30 Net Salaries
11,185.87
10
65,403.41
Integrated Accounting Systems - Sage 50 Accounts (NI)
11
2nd Year Paper
2nd Year Paper
Examination Number:
Integrated Accounting Systems - Sage 50 Accounts (NI)
12
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
Section C - MS Excel:
You are required to prepare a month by month budget for the 3 months from 1st December
2011 to 29th February 2012 based on the actual figures for September 2011.
1. Export the Trial Balance for September 2011 from the Sage 50 Accounts dataset into an
MS Excel worksheet and save the file as ‘Budget for 3 months ended 29th February
2012”
Ensure that you:
• Remove all rows that do not include profit and loss items,
• Unwrap and unmerge all cells as necessary,
• Ensure all the figures for September 2011 are in the same column,
• Remove all columns that contain no data.
Ensure that the Nominal Accounts are listed under the relevant financial headings and
that a formula is inserted at the bottom of each category to show the total:
• Sales (Total Sales),
• Cost of Sales (Total Cost of Sales),
• Operating Expenses (Total Operating Expenses),
• Gross Margin and Net Profit/Loss should also be calculated and shown.
(3 Marks)
2. In the same worksheet in new columns:
- Set up a month by month budget template for the 3 months from December 2011
to February 2012,
- Insert formulas to the month by month budget template to reflect the monthly
income/expense for the 3 months from December 2011 to February 2012, taking
into account all of the following information:
•
Sales and all cost of sales accounts should be 3% higher per month
based on the September 2011 figures,
•
Staff salaries should be 5% lower based on the September 2011
figures. Directors’ Remuneration is to stay at September 2011
levels. ER NIC should be 13.8% of staff salaries,
•
Depreciation should be based on the September 2011 figures while
also taking into account the additional depreciation for the new fixed
asset additions as outlined in Section B. (Refer to the company’s
fixed assets depreciation polices set out on page 7.)
•
Provision should be made for the monthly lease interest as outlined
in Section B,
•
All other operating expenses are to be 2% lower per month based
on the September 2011 figures.
- Insert formulas to show totals for income, cost of sales, gross margin, total
operating expenses, net profit etc.,
- Calculate the total budgeted figures for the 3 months ending 29th February 2012.
(Students should use the absolute formula throughout where possible)
(5 Marks)
13
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
3. Format the whole spreadsheet to the following:
- Adjust all columns to the appropriate width size to ensure all figures and text is
visible,
- Border all “total” figures,
- All figures to be comma style, have no decimal places and have a “£” sign, (with
the exception of percentages),
- All text and figures should be in Arial style and in font size 10.
- Bold and underline all month headings,
- Using any Word Art, title the page “Budget for 3 months ending 29th February
2012” in font size 20 and paste at the top of your page,
- Insert today’s date as a footer on the right section and your examination number
(e.g. 2XXXXX) on the left side section. Both should be in italic and font size 11,
- Insert gridlines on the page.
(4 Marks)
4. In a new worksheet, create a “column” chart showing projections based on the total
figures for the 3 months ending 29th February 2012 for the expense codes from Travel
Expenses to Cleaning. The column chart should be formatted as follows:
- Column chart should be titled “Other Operating Expenses for Qtr 2”,
- The Y-axis should be formatted to the following:
(i)
No decimal places,
(ii)
Major unit to be £200,
(iii)
Include £ sign.
- The X-axis should be formatted to the following:
(i)
All text should be in upper caps,
(ii)
All text to be horizontal.
- Series should appear on the bottom and be titled “Expenses”,
- Insert your examination number (e.g. 2XXXXX) as a header in the centre section.
(5 Marks)
5. On completion of the above MS Excel tasks:
- Print the following worksheets to the print facility indicated by the invigilator:
•
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 graph.
(Ensure each page prints on one page only and in landscape.)
-
Save the MS Excel file “Budget for 3 months ending 29th February 2012” to the
location indicated by the invigilator.
(3 Marks)
Total:
14
(20 Marks)
Integrated Accounting Systems - Sage 50 Accounts (NI)
2nd Year Paper
Printing:
Upon completion of Section B and Section C (Integrated Accounts & MS Excel), print the
following to the print facility indicated by the invigilator:
Sage 50 Accounts Reports:
• A trial balance as at 30th November 2011,
• A detailed audit trail by posting number starting at posting 229 and ending at the last
posting number in Sage 50 Accounts, (must be printed in portrait format)
• A print list detailing all recurring journals,
• An aged creditors report as at 30th November 2011 (detailed),
• An un-reconciled bank transaction report for First Bank Plc. as at 30th November 2011
(showing both outstanding receipts and payments),
• A supplier address list report for Thomas & Co. Accountants.
Ensure all reports are clearly labeled and are submitted to the invigilator at the end of the
exam.
Total: (10 Marks)
On completion of the examination, ensure that a backup of your Sage 50 Payroll, Sage 50
Accounts and MS Excel data has been correctly saved in a folder, using your Examination
Number as the folder name, in the location indicated by the invigilator.
It is the student’s responsibility that all work is saved 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)
End of Exam Paper
15
Summary Suggested Solution IAS (Hard Music) – Sage NI Please Note: Due to the nature of this subject, it is not possible to provide solution dataset files as these will not work correctly with more recent versions of the software. For this reason, a number of system reports are provided here as a summary. dsads\
dsads\
Date:
Time:
dsads\
Hard Music Shop Ltd - NI Solution
Audit Trail (Detailed)
06/07/2012
12:19:47
Date From:
Date To:
01/01/1980
31/12/2019
Transaction From:
Transaction To:
229
99,999,999
Exclude Deleted Tran:
No
No
Type A/C
229
JD
230
231
232
233
234
235
236
237
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
JD
JD
JD
JD
JC
JC
JC
SI
PI
PC
PI
PC
PA
JD
JC
JD
BP
JD
JC
CP
CP
JC
JD
N/C
Dp
Details
7002
229
7002
0
Wages and Salaries - Nov 11
7003
230
7003
0
Wages and Salaries - Nov 11
7006
231
7006
0
Wages and Salaries - Nov 11
7007
232
7007
0
Wages and Salaries - Nov 11
7400
233
7400
0
Wages and Salaries - Nov 11
2210
234
2210
0
Wages and Salaries - Nov 11
2220
235
2220
0
Wages and Salaries - Nov 11
2230
236
2230
0
Wages and Salaries - Nov 11
MUS03
237
238
239
4000
4000
4000
0
0
0
Top 50 80's Hits- Album
Top 50 90's Hits- Album
Top 50 00's Hits-Album
THO01
240
7601
0
26/11/2011 107265
Accounts for year end 31st August
MUS01
241
2204
0
MED01
242
MED01
243
MED01
244
Ref
0
Bank Draft Fee
22.50 from PA 244
0
FX Gain
4.13 to PI 174
Y
7,567.95
7,567.95 -
30/11/2011 W&S
6,821.20
6,821.20
0.00
0.00 T9
Y
6,821.20
6,821.20 -
30/11/2011 W&S
1,534.25
1,534.25
0.00
0.00 T9
Y
1,534.25
1,534.25 -
30/11/2011 W&S
105.00
105.00
0.00
0.00 T9
Y
105.00
105.00 -
30/11/2011 W&S
412.85
412.85
0.00
0.00 T9
Y
412.85
412.85 -
30/11/2011 W&S
4,975.38
4,975.38
0.00
0.00 T9
Y
4,975.38
4,975.38 -
30/11/2011 W&S
11,185.87
11,185.87
0.00
0.00 T9
Y
11,185.87
11,185.87 -
30/11/2011 W&S
280.00
280.00
0.00
0.00 T9
Y
280.00
280.00 -
10/11/2011 1
703.00
148.00
185.00
370.00
140.60
29.60 T1
37.00 T1
74.00 T1
N
0.00
0.00 N
0.00 N
0.00 N
2,213.25
2,213.25
442.65
442.65 T1
N
0.00
0.00 N
555.26
555.26
0.00
0.00 T9
Y
555.26
555.26 555.26
22.50
22.50
0.00
0.00 T9
Y
22.50
22.50 22.50
4.13
4.13
0.00
0.00 T9
Y
4.13
4.13 4.13
4,523.94
4,523.94
0.00
0.00 T9
Y
4,523.94
R
4,523.94 4,501.44
22.50
01/11/2011
9,360.00
9,360.00
0.00
0.00 T9
Y
9,360.00
9,360.00 -
01/11/2011
10,800.00
10,800.00
0.00
0.00 T9
Y
10,800.00
10,800.00 -
01/11/2011
1,440.00
1,440.00
0.00
0.00 T9
Y
1,440.00
1,440.00 -
01/11/2011 R10XXXX
300.00
300.00
0.00
0.00 T9
Y
300.00
R
300.00 -
01/11/2011 R10XXXX
40.00
40.00
0.00
0.00 T9
Y
40.00
40.00 -
01/11/2011 R10XXXX
40.00
40.00
0.00
0.00 T9
Y
40.00
40.00 -
03/11/2011 1042
19.90
19.90
3.98
3.98 T1
Y
23.88
23.88 N
21/11/2011 1043
15.00
15.00
0.00
0.00 T9
Y
15.00
15.00 -
30/11/2011 500532
150.00
150.00
0.00
0.00 T9
Y
150.00
R
150.00 -
30/11/2011 500532
150.00
0.00
Y
150.00
21/11/2011 44023
24/11/2011 Draft
24/11/2011 9498
24/11/2011 Draft
1200
0
Purchase Payment
4501.44 to PI 174
22.50 to PI 242
0035
0
New Computer Lease
2350
246
2350
0
New Computer Lease
2355
247
2355
0
New Computer Lease
1200
248
2350
0
Monthly Lease Repayment
7907
249
7907
0
Monthly Interest Charge
2355
250
2355
0
Monthly Interest Charge
1230
251
7500
0
Ink Cartridges
1230
252
7400
0
Taxis
1200
253
1200
0
Petty Cash
Paid V B
0.00
0.00 T9
24/11/2011 FX
7902
Tax T/C Pd
7,567.95
7,567.95
24/11/2011 Fees
7901
Net
30/11/2011 W&S
21/11/2011
Paid by Directors Loan
555.26 to PI 169
0035
245
1230
Date
24/11/2011 9498
24/11/2011 Fees
-
Bank Rec. Date
30/11/2011
30/11/2011
30/11/2011
Date:
Time:
dsads\
06/07/2012
12:19:47
No
Type A/C
254
255
PA
256
257
258
259
260
261
262
263
264
265
266
267
268
Hard Music Shop Ltd - NI Solution
Audit Trail (Detailed)
BP
BP
BP
JD
JC
JD
JC
JD
JC
JD
JC
JD
JC
BT01
255
N/C
1230
Dp
0
Details
Petty Cash
1200
0
Purchase Payment
297.64 to PI 176
Date
Ref
Net
150.00
Tax T/C Pd
0.00 T9
Paid V B
150.00 -
Bank Rec. Date
297.64
297.64
0.00
0.00 T9
Y
297.64
R
297.64 297.64
30/11/2011
15.00
15.00
0.00
0.00 T9
Y
15.00
R
15.00 -
30/11/2011
23/11/2011 DD
5,786.73
5,786.73
0.00
0.00 T9
Y
5,786.73
R
5,786.73 -
30/11/2011
30/11/2011 DD
11,185.87
11,185.87
0.00
0.00 T9
Y
11,185.87
R
11,185.87 -
30/11/2011
30/11/2011 Depn
533.33
533.33
0.00
0.00 T9
Y
533.33
533.33 -
30/11/2011 Depn
533.33
533.33
0.00
0.00 T9
Y
533.33
533.33 -
30/11/2011 Depn
563.91
563.91
0.00
0.00 T9
Y
563.91
563.91 -
30/11/2011 Depn
563.91
563.91
0.00
0.00 T9
Y
563.91
563.91 -
30/11/2011 Depn
86.94
86.94
0.00
0.00 T9
Y
86.94
86.94 -
30/11/2011 Depn
86.94
86.94
0.00
0.00 T9
Y
86.94
86.94 -
30/11/2011 Depn
260.00
260.00
0.00
0.00 T9
Y
260.00
260.00 -
30/11/2011 Depn
260.00
260.00
0.00
0.00 T9
Y
260.00
260.00 -
30/11/2011 Rev Accrua
2,213.25
2,213.25
0.00
0.00 T9
Y
2,213.25
2,213.25 -
30/11/2011 Rev Accrua
2,213.25
2,213.25
0.00
0.00 T9
Y
2,213.25
2,213.25 -
25/11/2011 DD
1200
256
7901
0
EFT Charges
1200
257
2210
0
Oct P32
1200
258
2220
0
November Net Wages
8003
259
8003
0
Depn Nov 11
0051
260
0051
0
Depn Nov 11
8002
261
8002
0
Depn Nov 11
0041
262
0041
0
Depn Nov 11
8005
263
8005
0
Depn Nov 11
0036
264
0036
0
Depn Nov 11
8005
265
8005
0
Depn Nov 11
0036
266
0036
0
Depn Nov 11
2109
267
2109
0
Reverse Accountancy Accrual
7601
268
7601
0
Reverse Accountancy Accrual
25/11/2011 85
16/11/2011 EFT
Integrated Accounting Systems (IAS)
Exam Paper 2011/2012 – Hard Music Shop Limited (NI)
Statistical Analysis – By Question
Question No.
1
2
3
Average Mark (%)
83%
83%
78%
Nos. Attempting
180
180
180
4
86%
180
Statistical Analysis - Overall
Pass Rate
Average Mark
Range of Marks
0-59
60-69
70 and over
Total No. Sitting Exam
Total Absent
Total Approved Absent
Total No. Applied for Exam
85%
82%
Nos. of Students
22
6
152
180
9
2
191
General Comment:
Overall presentation was again of an extremely varied standard. Candidates are reminded that all
exam material submitted for correction should be well presented and in clear order. Candidates
should note that the IAS exam is an assessment of the operation of computerised payroll and
accounting packages; therefore supporting workings will, under no circumstances, be afforded marks
where calculations have not been posted into the audit trail.
Payroll:
In general, candidates scored highly in the Payroll section. Common areas where marks were lost
included:
•
Taxing receipted expenses;
•
Applying the pension to backdated payments;
•
Not accounting for the Employers pension contribution;
•
Not accounting for the Mileage Allowance Payment;
•
Completing the P32 for the wrong period.
Accounts:
The basic foundations of Double Entry bookkeeping are crucial to the effective operation of a
computerised accounting package and, when preparing for the IAS examination, students are strongly
encouraged to ensure that they are comfortable with these principles particularly with regard to period
end adjustments.
For the second year in a row the Salary Journal was very well addressed by candidates and most
students attained high marks in this task. A number of students failed to address the Pension liability
correctly.
The requirement to account for payment to a creditor by directors’ personal funds seemed to cause
confusion for students and a high number of students did not post any entry. Other candidates
entered, but did not allocate, the supplier payment.
The foreign currency transaction usually presented few problems for candidates, however it was
noted that students were not as comfortable dealing with a foreign currency gain, rather than a loss.
There was a significant improvement in accounting for a Lease this year and candidates had
obviously prepared well for this requirement. Mistakes that arose, specific to the treatment of Lease
transactions, included:
•
Setting up the Lease Obligation and Lease Interest Suspense Accounts in the P&L, or setting
up the nominal accounts as current asset or fixed asset accounts;
•
Reversing the Lease journal;
•
Posting the charge for lease interest as a bank payment.
The basic journal for depreciation should be familiar to all students from first year Financial
Accounting and there seemed to be improvement in this area also. Close attention should continue to
be paid in this area as common mistakes, specific to the treatment of Depreciation, include:
•
Crediting the ‘Asset at Cost’ account when recording Accumulated Depreciation;
•
Not calculating the correct value for Depreciation, particularly for the leased asset;
•
Posting ‘year to date’ depreciation for the leased asset;
•
Accounting for a year’s depreciation, rather than for one month, as requested;
•
Reversing the depreciation journal.
Students should remember, with regard to depreciation, that the detail of each nominal account
balance for each class of fixed asset should be closely analysed as the summary balance may be
misleading when calculating depreciation values i.e. asset at cost accounts may include leased
assets which are subject to a different depreciation policy.
While the main areas (e.g. Accounting for Leases, Depreciation, Salary Journals) showed marked
improvement it was noted that a number of marks were sacrificed in other areas. For example, marks
were frequently forfeited for the following reasons:
•
Posting the Accountancy invoice to Cost of Sales, Purchases, etc (Item 8);
•
Posting Petty Cash payments as bank receipts (Item 12);
•
Debiting the petty cash with a directors loan (Item 13(i));
•
Posting supplier payments to expense accounts i.e. the BT DD in the bank statement;
•
Including VAT when reversing the accountancy accrual (Item 11).
Excel:
Candidates should note that the syllabus for IAS clearly defines Excel as a required competency that
constitutes 20% of the overall grade. There was a significant increase in the number of students who
only made a cursory attempt at this section and this had a noticeable effect on the pass rate. Where a
reasonable attempt was made candidates tended to receive a majority of the available marks so
students are strongly encouraged to prepare adequately for this section of the syllabus. It was noted
that a significant number of students did not select the correct range for the column chart and that the
requirement to indicate a major unit of £200 was often overlooked.
Reporting:
A small number of candidates printed the requested reports before all activity was completed, again
this means that marks may be sacrificed as the reports will not be complete; all requested reports and
printouts should be produced after all intended work has been carried out. Hard copy printouts should
not be obscured with any ‘workings’ as marks may be lost if printouts are not legible. Particular
attention should also be paid to the specific parameters indicated in the reporting requirement.
Conclusion:
Attention to detail and a high level of ‘first-time’ accuracy, with regard to dates, calculations, and
journal entries is critical when using computerised software; such an approach is also essential for
securing high marks in the IAS Examination. Sufficient preparation and practice with the available
material is therefore strongly recommended. Candidates are urged to pay close attention to the
specific requirements of the paper and are also reminded to ‘update/process’ the work that they have
carried out e.g. quotations, recurring journals to ensure they gain the maximum marks for their
activities.