Osborne BooksUpdate

Bookkeeping Controls Workbook

Amended practiceassessments – task 7

November 2018

a m e n d e d p r a c t i c e a s s e s s m e n t s – ta s k 7

The following pages provide the amended task 7 for each of the three Practice Assessments. This brings them into line with changes introduced by AAT in November 2018.

c o n t e n t s

P r a c t i c e a s s e s s m e n t s – t a s k s

Practice assessment 1 3

Practice assessment 2 7

Practice assessment 3 11

A n s w e r s t o p r a c t i c e a s s e s s m e n t s

Practice assessment 1 15

Practice assessment 2 17

Practice assessment 3 19

2 b o o k k e e p i n g c o n t r o l s w o r k b o o k

Practiceassessment 1

task 7

Elmhurst Ltd’s bank statement for September showed an opening balance of £1,235 and a closing balanceof £1,542. The cash book below has been checked against the bank statement and the two highlighted items havebeen identified as unmatched. A bank reconciliation statement has been partially completed.

cash book

date details Bank date cheque details Bank 20-4 £ 20-4 number £ 1 Sep Balance b/f 1,572 2 Sep 024383 Cooke Ltd 796

5 Sep Mead & Co 854 6 Sep 024384 Johnson Brothers 268

13 Sep Hills Trading 2,355 12 Sep Western Electric 594

20 Sep Menel Ltd 692 18 Sep 024385 Bojanic & Partners 2,051

22 Sep V Ramos 1,028 26 Sep 024386 TKT Ltd 798

27 Sep Law Equipment 295 28 Sep Akbar Lettings 1,250

(a) Complete the bank reconciliation statement as at 30 September.

Bank reconciliation statement £

Balance as per bank statement

outstanding lodgements

Law equipment

Unpresented cheques

tkt Ltd

Balance as per cash book

(b) Check that the bank statement in (a) has been correctly reconciled by calculating: • the balance carried down in the cash book • the total of each of the bank columns in the cash book after the balance carried down has been

recorded Balance carried down Bank column totals

£ £

4 b o o k k e e p i n g c o n t r o l s w o r k b o o k

Below are the bank statement and cash book for September for a different organisation.

Bank statementdate details paid out paid in Balance20-4 £ £ £

1 Sep Balance b/f 94 D2 Sep Kingsford Ltd 2,863 2,769 C7 Sep Cheque 145003 780 1,989 C11 Sep Cheque 145002 168 1,821 C12 Sep Counter credit 563 2,384 C17 Sep Cheque 145004 129 2,255 C19 Sep J Jones Ltd 472 2,727 C22 Sep Wyvern Council 609 2,118 C24 Sep Counter credit 439 2,557 C25 Sep Bank charges 66 2,491 C27 Sep Filiaps plc 1,055 1,436 C30 Sep W Waugh 946 2,382 C

D = Debit C = Credit

casH Bookdate details Bank date cheque details Bank20-4 £ 20-4 number £

1 Sep Balance b/f 2,601 8 Sep 145003 Paxtons 78012 Sep Torre & Co 563 12 Sep 145004 Donfar & Co 129

19 Sep J Jones Ltd 472 16 Sep 145005 O Borne 760

24 Sep LLR Ltd 439 22 Sep Wyvern Council 609

25 Sep W Waugh 946 23 Sep Filiaps plc 1,055

30 Sep Preston Ltd 247 25 Sep Bank charges 66

You are preparing to produce a bank reconciliation statement at 30 September, starting with the balancetaken from the bank statement.

p r a c t i c e a s s e s s m e n t 1 5

(c) Identify which two transactions have caused the difference in the opening balances.

transaction transaction transaction

Bank charges Donfar & Co Paxtons

O Borne Filiaps plc Preston Ltd

Cheque 145002 J Jones Ltd Torre & Co

Cheque 145003 Kingsford Ltd W Waugh

Cheque 145004 LLR Ltd Wyvern Council

(d) Identify the details and amount of one outstanding lodgement that should be entered into the bankreconciliation statement and show whether the amount should be added or subtracted.

Select your entry from the following list: Bank charges, O Borne, Cheque 145002, Counter credit,Donfar & Co, Filiaps plc, J Jones Ltd, Kingsford Ltd, LLR Ltd, Paxtons, Preston Ltd, Torre & Co,W Waugh, Wyvern Council.

details amount £ add subtract

(e) Identify the details and amount of one unpresented cheque that should be entered into the bankreconciliation statement and show whether the amount should be added or subtracted.

Select your entry from the following list: Bank charges, O Borne, Cheque 145002, Counter credit,Donfar & Co, Filiaps plc, J Jones Ltd, Kingsford Ltd, LLR Ltd, Paxtons, Preston Ltd, Torre & Co,W Waugh, Wyvern Council.

details amount £ add subtract

4 4 4

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Practiceassessment 2

task 7

Onslow plc’s bank statement for September showed an opening balance of £4,107 and a closing balanceof £3,509. This is the partially completed bank reconciliation statement for September.

(a) Complete the bank reconciliation statement as at 30 September.

Bank reconciliation statement £

Balance as per bank statement

outstanding lodgements

Goodwin Ltd 1,406

pezzini & co 729

t ahmed 1,084

total outstanding lodgements

Unpresented cheques

L Beckett 2,257

m Gylby 649

total unpresented cheques

Balance as per cash book

8 b o o k k e e p i n g c o n t r o l s w o r k b o o k

Below and on the next page are the bank statement and cash book for September for a differentorganisation.

BANK STATEMENTDate Paid out Paid in Balance20-4 £ £ £ 1 Sep Balance b/f 252 C2 Sep Cheque 112001 1,628 1,376 D4 Sep Counter credit 2,307 931 C8 Sep Cheque 112003 186 745 C12 Sep Cheque 112002 870 125 D13 Sep Counter credit 653 528 C18 Sep Cheque 112004 219 309 C20 Sep Cabot & Co 742 1,051 C23 Sep Commercial Prop 600 451 C25 Sep Counter credit 349 800 C26 Sep Bank charges 48 752 C

D = Debit C = Credit

(b) Check that the bank reconciliation statement in (a) has been completed correctly by calculating: • the amount of the bank balance carried down • the total of each of the bank columns after the balance carried down has been recorded

Balance carried down Bank column totals £ £

This is a summary of the debit and credit entries in the bank columns of the cash book for September.

Debit Credit £ £ 3,905 547 676 2,257 1,406 85 1,072 842 729 649 1,084 491 179

p r a c t i c e a s s e s s m e n t 2 9

casH Bookdate details Bank date cheque details Bank20-4 £ 20-4 number £

4 Sep Brownlow 2,307 1 Sep Balance b/f 1,376

13 Sep Peer Prints 653 6 Sep 112003 Ace Timber 186

20 Sep Cabot & Co 742 9 Sep 112002 Fairfield Ltd 870

25 Sep GTK Ltd 349 13 Sep 112004 BLH Ltd 219

29 Sep Barber Bates Ltd 469 17 Sep 112005 Bridge Tools 607

30 Sep Jackson & Co 245 23 Sep Commercial Prop 600

24 Sep 112006 Tenon Ltd 1,505

26 Sep Bank charges 48

You are preparing to produce a bank reconciliation statement at 30 September, starting with the balancetaken from the bank statement.

(c) Identify two transactions that should be entered into the bank reconciliation statement as amountsto be added.

Select your entries from the following list: Ace Timber, Bank charges, Barber Bates Ltd, BLH Ltd,Bridge Tools, Brownlaw, Cabot & Co, Cheque 112001, Commercial Prop, Counter credit,Fairfield Ltd, GTK Ltd, Jackson & Co, Peer Prints, Tenon Ltd.

details amount £

(d) Identify two transactions that should be entered into the bank reconciliation statement as amountsto be subtracted.

Select your entries from the following list: Ace Timber, Bank charges, Barber Bates Ltd, BLH Ltd,Bridge Tools, Brownlaw, Cabot & Co, Cheque 112001, Commercial Prop, Counter credit,Fairfield Ltd, GTK Ltd, Jackson & Co, Peer Prints, Tenon Ltd.

details amount £

1 0 b o o k k e e p i n g c o n t r o l s w o r k b o o k

Practiceassessment 3

task 7

Clandon plc’s bank statement for September showed an opening balance of £3,407 and a closing balanceof £4,211. This is the partially completed bank reconciliation statement for September.

(a) Complete the bank reconciliation statement as at 30 September.

Bank reconciliation statement £

Balance as per bank statement

outstanding lodgements

mullen & co 1,805

pyatt Ltd 947

m sarkar 1,362

total outstanding lodgements

Unpresented cheques

p sedlak 1,409

J ricardo 868

total unpresented cheques

Balance as per cash book

1 2 b o o k k e e p i n g c o n t r o l s w o r k b o o k

Below and on the next page are the bank statement and cash book for September for a differentorganisation.

Bank statementdate paid out paid in Balance20-4 £ £ £ 01 Sep Balance b/f 7,635 C04 Sep Cheque 100185 1,655 5,980 C07 Sep Counter credit 1,992 7,972 C09 Sep Cheque 100186 159 7,813 C10 Sep NTL 110 7,703 C19 Sep Cheque 100187 1,029 6,674 C24 Sep Transenergy 520 6,154 C24 Sep Cheque 100189 1,510 4,644 C26 Sep Counter credit 2,464 7,108 C30 Sep Wages 6,143 965 C

D = Debit C = Credit

This is a summary of the debit and credit entries in the bank columns of the cash book for September.

debit credit £ £ 4,076 763 891 1,409 1,805 122 2,264 454 947 868 1,362 1,122 559

(b) Check that the bank reconciliation statement in (a) has been completed correctly by calculating: • the amount of the bank balance carried down • the total of each of the bank columns after the balance carried down has been recorded

Balance carried down Bank column totals £ £

p r a c t i c e a s s e s s m e n t 3 1 3

casH Bookdate details Bank date cheque details Bank20-4 £ 20-4 number £

1 Sep Balance b/f 7,635 1 Sep 100185 Tunstall plc 1,655

7 Sep J Stone 1,992 6 Sep 100186 K Bush 159

26 Sep Murray Ltd 2,464 10 Sep NTL 110

30 Sep Davies Ltd 411 13 Sep 100187 Lennox 1,029

30 Sep Twain Trading 676 20 Sep 100188 Harris Ltd 600

24 Sep Transenergy 520

24 Sep 100189 MacColl Ltd 1,510

28 Sep 100190 Simone & Co 342

30 Sep Wages 6,143

You are preparing to produce a bank reconciliation statement at 30 September, starting with the balancetaken from the bank statement.

(c) Identify two transactions that should be entered into the bank reconciliation statement as amountsto be added.

Select your entries from the following list: K Bush, Counter credit, Davies Ltd, Harris Ltd, Lennox,MacColl Ltd, Murray Ltd, Simone & Co, NTL, J Stone, Transenergy, Tunstall plc, Twain Trading,Wages.

details amount £

(d) Identify two transactions that should be entered into the bank reconciliation statement as amountsto be subtracted.

Select your entries from the following list: K Bush, Counter credit, Davies Ltd, Harris Ltd, Lennox,MacColl Ltd, Murray Ltd, Simone & Co, NTL, J Stone, Transenergy, Tunstall plc, Twain Trading,Wages.

details amount £

1 4 b o o k k e e p i n g c o n t r o l s w o r k b o o k

Answers topracticeassessment 1

task 7(a)

Bank reconciliation statement £

Balance as per bank statement 1,542

outstanding lodgements

Law equipment 295

Unpresented cheques

tkt Ltd 798

Balance as per cash book 1,039

(b)

Balance carried down Bank column totals £ £

1,039 6,796

(c) transaction transaction transaction

Bank charges Donfar & Co Paxtons

O Borne Filiaps plc Preston Ltd

Cheque 145002 J Jones Ltd Torre & Co

Cheque 145003 Kingsford Ltd W Waugh

Cheque 145004 LLR Ltd Wyvern Council

(d) details amount £ add subtract Preston Ltd 247

(e) details amount £ add subtract

O Borne 760

4 4 4

4

4

4

4

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Answers topracticeassessment 2

task 7(a) Bank reconciliation statement £

Balance as per bank statement 3,509

outstanding lodgements

Goodwin Ltd 1,406

pezzini & co 729

t ahmed 1,084

total outstanding lodgements 3,219

Unpresented cheques

L Beckett 2,257

m Gylby 649

total unpresented cheques 2,906

Balance as per cash book 3,822

(b) Balance carried down Bank column totals

£ £

3,822 8,872

(c)details amount £

Barber Bates Ltd 469 Jackson & Co 245

(d) details amount £

Bridge Tools 607 Tenon Ltd 1,505

1 8 b o o k k e e p i n g c o n t r o l s w o r k b o o k

Answers topracticeassessment 3

task 7(a)

Bank reconciliation statement £

Balance as per bank statement 4,211

outstanding lodgements

mullen & co 1,805

pyatt Ltd 947

m sarkar 1,362

total outstanding lodgements 4,114

Unpresented cheques

p sedlak 1,409

J ricardo 868

total unpresented cheques 2,277

Balance as per cash book 6,048

(b) Balance carried down Bank column totals

£ £

6,048 11,345

(c) details amount £

Davies Ltd 411 Twain Trading 676

(d) details amount £ Harris Ltd 600 Simone & Co 342

2 0 b o o k k e e p i n g c o n t r o l s w o r k b o o k