Exam ID 208 MODEL ANSWERS Level 2 Award in Manual ...€¦ · Balance on Customer Account (Kent Cars) written off as a bad debt as the customer has gone bankrupt. VAT Bad debt relief

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Exam ID 208

MODEL ANSWERS

Qualifications: Level 2 Award in Manual Bookkeeping (QCF) (Accreditation number: 500/9259/5) – IAB ID 210

Level 2 Certificate in Bookkeeping (QCF) (Accreditation number: 500/9053/7) – IAB ID 200

Level 2 Certificate in Applied Bookkeeping (QCF) (Accreditation number: 500/9262/5) – IAB ID 230

January 2012

International Association of Book-keepers Suite 30, 40 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU

Tel: 0844 330 3527 Fax: 0844 330 3514 Email: [email protected]

IAB I/D Units covered 206 Maintaining the Journal – T/600/8772

205 Maintaining Control Accounts – K/600/8770 207 Processing Ledger Transactions and Extracting a Trial Balance –

F/600/8760

208 Exam L2 Bookkeeping QCF Jan 2012 MA.doc Page 1

Maintaining the Journal

Answers to Question One (Part A): Task A

Mechanical Motors - Journal

Date 201Y

Details DR £

CR £

31 Jan Bad Debt ¼ ½ 11,050

VAT Control ¼ ½ 2,210

Sales Ledger Control ¼ ½ 13,260

Balance on Customer Account (Kent Cars) written off as a bad debt as the customer has gone bankrupt.

VAT Bad debt relief claimed ½

Answers to Question One (Part A): Task B

Mechanical Motors – General Ledger (Extract)

DR Sales Ledger Control CR

201Y Details £ 201Y Details £ 31 Jan Balance b/f 58,695 31 Jan Bad Debt ½ 13,260

DR Bad Debts CR

201Y Details £ 201Y Details £ 31 Jan 31 Jan

Balance b/f

Kent Car Parts ½

1,850 11,050

Please note marks are only awarded for the amounts posted into the accounts regardless of whether the date and details are correct

3.75 Marks This Page


Answers to Question One (Part A): Task B Continued

Mechanical Motors – General Ledger (Extract)

DR Value Added Tax (VAT) Control

CR

201Y 31 Jan

Details

Bad Debt – Kent Car Parts ½

£ 2,210

201Y 31 Jan

Details Balance b/f

£ 6,750

Mechanical Motors – Sales Ledger (Extract)

DR Kent Car Parts CR

201Y Details £ 201Y Details £ 31 Jan Balance b/f 13,260 31 Jan Bad Debt ½ 13,260


1 Mark This Page


Answers to Question One (Part B): Task A

Castle Confectionery - Journal

201Y Details DR £

CR £

27 Jan

Wages and Salaries Control

½ 964.54

Bank ½ 964.54

Net pay on 27 January 201Y

27 Jan Wages and Salaries Control ½ 208.80

PAYE / NIC Creditor ½ 208.80

Employee PAYE deductions on 27 January 201Y



Employee NIC deductions on 27 January 201Y



Employer NIC contributions on 27 January 201Y

27 Jan Wages, Salaries and Contributions (Expense) ½ 1,461.60

Wages and Salaries Control ½ 1,461.60

Transfer of costs of employment on 27 January

201Y from Wages and Salaries Control Account to Staff Wages and Contributions Account

5 Marks This Page


Answers to Question One (Part C): Task A

Brookfield Bikes - Journal

201Y Details DR

£

CR

£

1 Jan Bank Overdraft

½ 1,850

Bank Loan

½ 10,580

Fixtures and Fittings

½ 6,253

Vehicles

½ 2,590

Sales Ledger Control (total trade debtors)

½ 5,845

Purchase Ledger Control (total trade creditors)

½ 2,475

Cash

½ 150

Stock

½ 6,780

Capital

½ 6,713

Assets, capital and liabilities of Brookfield Bikes as at 31 Jan 201Y

1 21,618 1 21,618

6.5 Marks This Page


Answers to Question One (Part D): Task A

Calverton Ceramics – The Journal

Ref Date 201Y

Details DR £

CR £

1 31 Jan Fixtures and Fittings ¼

Purchases ¼

Correction of error of principle. A table purchased for business use posted

incorrectly to Purchases Account ½

½ 495

½ 495

2 31 Jan Suspense ¼

Purchase Returns ½

Correction of arithmetic error in balancing off Purchase Returns Account.

Account balance understated. ½

½ 104

½ 104

3 31 Jan Suspense ¼

Sales ¼

Correction of posting error. Cash sales

debuted to Sales Account in error. ½

½ 2,640

½ 2,640

4 31 Jan Drawings ¼

Suspense ¼

Correction of transposition error. Drawings posted as £569 instead of

£596 ½

½ 27

½ 27



Answers to Question One (Part C): Task B, C and D

Calverton Ceramics – General Ledger DR Suspense Account CR

201Y Details £ 201Y Details £ 31 Jan Journal 2 ¼ 104 31 Jan Difference in books ¼ 2,717

31 Jan Journal 3 ¼ 2,640 31 Jan Journal 4 ¼ 27

½ 2,744 ½ 2,744

DR Drawings Account CR

201Y Details £ 201Y Details £ 31 Jan Balance b/f 1,000 31 Jan Balance c/d ¼ 1,027

31 Jan Journal 4 ¼ 27

¼ 1,027 ¼ 1,027

31 Jan Balance b/d ½ 1,027

DR Fixtures and Fittings Account CR

201Y Details £ 201Y Details £ 31 Jan Balance b/f 2,500 31 Jan Balance c/d ¼ 2,995


¼ 2,995 ¼ 2,995


DR Purchases CR

201Y Details £ 201Y Details £ 31 Jan Balance b/f 6,107 31 Jan

31 Jan Journal 1 ¼

Balance c/d ¼

495 5,612

¼ 6,107 ¼ 6,107



6.5 Marks This Page


Answers to Question One (Part C): Task B, C and D (Continued)

DR Purchase Returns Account CR

201Y Details £ 201Y Details £ 31 Jan Balance c/d ¼ 1,004 31 Jan Balance b/f 900


¼ 1,004 ¼ 1,004


DR Sales Account CR

201Y Details £ 201Y Details £ 31 Jan Balance c/d ¼ 12,534 31 Jan Balance b/f 9,894

31 Jan Journal 3 ¼ 2,640

¼ 12,534 ¼ 12,534



3 Marks This Page


Answers to Question One (Part C): Task E

Calverton Ceramics - (Redrafted) Trial Balance as at 31 Jan 201Y

Ledger Account

DR (£) CR (£)

Bank Charges

50

Bank Overdraft 2,500

Bank Loan 5,000

Capital 10,000

Cash

200

Drawings 1,000 DR + 27 DR

1 1,027

Fixtures & Fittings 2,500DR + 495 DR

1 2,995

Heat & Light

328

Motor Vehicles

8,000

Purchases 6,107DR – 495 CR

1 5,612

Purchase Ledger Control

3,330

Purchase Returns 900 CR + 104 CR

½ 1,004

Rent 1,201

Sales 9,894 + 2,640 CR ½ 12,534

Sales Ledger Control 12,680

Sales Returns 1,810

Telephone 850

VAT 1,701

Vehicle Expenses 1,316

Total

1 36,069

1 36,069

6 Marks This Page

Total Marks this Question = Marks 40


Answers to Question Two: Tasks A and B Walton Wood Suppliers – General Ledger (extract)


201Y Details £ 201Y Details £ 1 Jan Balance b/d 4,741 31 Jan Cash book - receipts 6,540 31 Jan Sales Day Book ½ 8,460 31 Jan Cash book - discounts 102

31 Jan Sales Returns Day Book ½ 960

31 Jan Balance c/d ½ 5,599

½ 13,201 ½ 13,201


DR Purchase Ledger Control CR

201Y Details £ 201Y Details £ 31 Jan Cash book - payments 3,053 1 Jan Balance b/d 1,987 31 Jan Cash book – discounts 150 31 Jan Purchases Day Book ½ 3,390

31 Jan Purchase Returns Day Book

½ 840

31 Jan Balance c/d ½ 1,334

½ 5,377 ½ 5,377


DR Value Added Tax (VAT) Control CR

201Y Details £ 201Y Details £ 31 Jan Cash book – input tax 304 1 Jan Balance b/d 750 31 Jan Purchases Day Book ½ 565 31 Jan Cash book – output tax 596

31 Jan Sales Returns Day Book

½

160 31 Jan Sales Day Book ½ 1,410

31 Jan Balance c/d ½ 1,867 31 Jan Purchase Returns Day Book

½

140

½ 2,896 ½ 2,896



10 Marks This Page


Answers to Question Two: Task C Walton Wood Suppliers – Reconciliation of Personal Account Balances to Control Account Balances as at 31 January 201Y Reconciliation of Personal Account Balances per Sales Ledger as at 31 January 201Y to Sales Ledger Control Account Balance as at that Date

£ DR/CR

Total debtors per Sales Ledger – 31 January 201Y 5,599 1 DR 1

Balance per Sales Ledger Control Account – 31 January 201Y 5,599 1 DR 1

Difference NIL 1

Reconciliation of Personal Account Balances per Purchase Ledger as at 31 January 201Y to Purchase Ledger Control Account Balance as at that Date

£ DR/CR

Total creditors per Purchase Ledger – 31 January 201Y 1,334 1 CR 1

Balance per Purchase Ledger Control Account – 31 January 201Y 1,3341 CR 1

Difference NIL 1

10 Marks This Page



Processing Ledger Transactions and Extracting a Trial Balance

Answers to Question 3 – Tasks A to F

Johnson Aquatics - General Ledger DR Bank Deposit CR

201Y Details £ 201Y Details £ 24 Jan Balance b/f ¼ 15,000 31 Jan Balance c/d ¼ 15,000

¼ 15,000 ¼ 15,000

31 Jan Balance b/d ¼ 15,000

DR Capital CR

201Y Details £ 201Y Details £ 31 Jan Balance c/d ¼ 40,150 24 Jan Balance b/f ¼ 35,150

31 Jan Cash Book – Receipts

¼

5,000

¼ 40,150 ¼ 40,150


DR Carriage Inwards CR


¼ 3,788 ¼ 3,788


DR Drawings CR


¼ 3,005 ¼ 3,005


DR Gas & Electricity CR

201Y Details £ 201Y Details £ 24 Jan Balance b/f ¼ 562 31 Jan Balance c/d ¼ 562

¼ 562 ¼ 562

31 Jan Balance b/d ¼ 562


6.5 Marks This Page


Answers to Question 3 – Tasks A to F Continued

DR Miscellaneous Expenses CR


31 Jan Cash Book – Payments ¼ 90

31 Jan Petty Cash Book ¼ 30

2,070 2,070


DR Postage & Stationery CR


31 Jan Petty Cash Book ¼ 46

447 447


DR Purchases CR


31 Jan Purchase Day Book ¼ 5,500

31 Jan Cash Book – Payments

¼

890

14,419 14,419


DR Purchase Ledger Control CR

201Y Details £ 201Y Details £ 31 Jan Purchase Returns Day

Book ¼

540 24 Jan Balance b/f ¼ 5,699

31 Jan Cash Book – Payments ¼ 3,188 31 Jan Purchases Day Book

¼

6,600

31 Jan Balance c/d ¼ 8,571

12,299 12,299


DR Purchase Returns CR

201Y Details £ 201Y Details £ 31 Jan Balance c/d ¼ 1,120 24 Jan Balance b/f ¼ 670

31 Jan Purchase Returns Day

Book ¼

450

1,120 1,120



6 Marks This Page


Answers to Question 3 – Tasks A to F Continued DR Rent CR


31 Jan Cash Book –

Payments ¼

450

2,450 2,450


DR Sales CR

201Y Details £ 201Y Details £ 31 Jan Balance c/d ¼ 43,840 24 Jan Balance b/f ¼ 27,765

31 Jan Sales Day Book ¼ 15,000

31 Jan Cash Book – Receipts ¼ 1,075

¼ 43,840 43,840



201Y Details £ 201Y Details £ 24 Jan Balance b/f

¼

15,900 31 Jan Sales Returns Day Book

¼

2,220

31 Jan Sales Day Book ¼ 18,000 31 Jan Cash Book Receipts ¼ 985


¼ 33,900 ¼ 33,900


DR Sales Returns CR

201Y Details £ 201Y Details £ 24 Jan Balance b/f ¼ 980 31 Jan Balance c/d ¼ 2,830

31 Jan Sales Returns Day Book

¼

1,850

¼ 2,830 ¼ 2,830


DR Stock CR


¼ 7,580 ¼ 7,580





Answers to Question 3 – Tasks A to F Continued DR Telephone CR


31 Jan Cash Book – payments

¼

189

¼ 482 ¼ 482


DR VAT CR

201Y Details £ 201Y Details £ 31 Jan Sales Returns Day Book

¼

370 24 Jan Balance b/f ¼ 4,080

31 Jan Purchases Day Book ¼ 1,100 31 Jan Sales Day Book ¼ 3,000


¼

178 31 Jan Purchase Returns Day Book

¼

90

31 Jan Petty Cash Book ¼ 12 31 Jan Cash Book – Receipts ¼ 215


¼ 7,385 ¼ 7,385


DR Vehicles CR


¼ 7,098 ¼ 7,098


DR Wages CR



¼

2,930

¼ 5,910 ¼ 5,910





Answers to Question Three: Task G Johnson Aquatics

Trial Balance as at 31 January 201Y

Ledger Account

DR £

CR £

Bank (Current Account) ½ 2,966

Bank Deposit ½ 15,000

Capital ½ 40,150

Carriage Inwards ½ 3,788

Cash ½ 42

Drawings ½ 3,005

Gas & Electricity ½ 562

Miscellaneous Expenses ½ 2,070

Petty Cash ½ 62

Postage & Stationery ½ 447

Purchases ½ 14,419

Purchase Ledger Control ½ 8,571

Purchases Returns ½ 1,120

Rent ½ 2,450

Sales ½ 43,840

Sales Ledger Control ½ 30,695

Sales Returns ½ 2,830

Stock ½ 7,580

Telephone ½ 482

VAT ½ 5,725

Vehicles ½ 7,098

Wages ½ 5,910

Totals 1 99,406 1 99,406

13 Marks This Page


Documents

Exam ID 208 MODEL ANSWERS Level 2 Award in Manual ...€¦ · Balance on Customer Account (Kent Cars) written off as a bad debt as the customer has gone bankrupt. VAT Bad debt relief