1. Introduction to the manual bookkeeping course and your tutor
Level II Certificate in Manual Bookkeeping Suggested Answers
Question 1
Task 1
Sales Ledger Control Account
1 March
Balance b/d
5750.00
31 March
SRDB
172.50
31 March
SDB
7005.00
31 March
Bank
5100.00
31 March
Balance c/d
7482.50
£12,775.00
£12,775.00
1 April
Balance b/d
7482.50
Purchase Ledger Control Account
31 March
PRDB
132.00
1 March
Balance b/d
1380.00
31 March
Bank
1250.00
31 March
PDB
1725.00
31 March
Balance c/d
1723.00
£3105.00
1 April
Balance b/d
1723.00
Task 2
Journal Entry
Dates
Details
DR
CR
31 March
Bad Debts Account
360.00
Sales Ledger Control
360.00
Being a write of, bad debt Raw Engineering in liquidation
Question 2
Task 1
Cash Book Extract
31 March
Balance b/d
679.00
31 March
DD XPhone
95.00
31 March
DD Norwich Union
150.00
31 March
Charges
45.00
31 March
Golf Club fees
125.00
31 March
Balance c/d
264.00
£679.00
£679.00
1 April
Balance b/d
264.00
Task 2
Bank Reconciliation Statement
Balance per Bank Statement
1399.00
Add Lodgements:
1840.00
Redcar Estates
3239.00
Less unpresented cheques:
Electrical DIY (105)
1150.00
Electrical Engineers (107)
575.00
HMRC (VAT) (109)
1250.00
2975.00
Balance per Cash Book
£264.00
Question 3
Task 1
David Smith TV Engineer
Trial Balance as at 15 March 2015
DR
CR
Capital
45900
Bank Loan
10500
Motor Vehicles
32100
Tools and Equipment
27500
Computer and Office Equipment
4500
Stocks of Materials
3100
Bank
1750
Cash
130
Debtors
6550
Creditors
2750
VAT
1650
Sales (work done)
115100
Purchases of Materials
44100
Motor Vehicle Running Costs
4350
Repairs and Maintenance
3100
Insurances
1520
Wages
15100
Drawings
32100
£175900
£175900
Task 2
General Ledger
Capital Account
31 March
Balance c/d
45900.00
15 March
Balance b/d
45900.00
£45900.00
£45900.00
1 April
Balance b/d
45900.00
Bank Loan
31 March
Balance c/d
10500.00
15 March
Balance b/d
10500.00
£10500.00
£10500.00
1 April
10500.00
Motor Vehicles
15 March
Balance b/d
32100.00
31 March
Balance c/d
32100.00
£32100.00
£32100.00
1 April
Balance b/d
Tools & Equipment
15 March
Balance b/d
27500.00
31 March
Balance c/d
27500.00
£27500.00
£27500.00
1 April
Balance b/d
27500.00
Computer & Office Equipment
15 March
Balance b/d
4500.00
31 March
Balance c/d
4500.00
£4500.00
£4500.00
1 April
Balance b/d
4500.00
Stocks of Materials
15 March
Balance b/d
3100.00
31 March
Balance b/d
3100.00
£3100.00
£3100.00
1 April
Balance b/d
3100.00
VAT Account
30 March
SRDB
45.00
15 March
Balance b/d
1650.00
31 March
PDB
644.00
31 March
SDB
1125.00
31 March
Bank
2265.00
31 March
PRDB
24.00
31 March
Balance c/d
155.00
£2793.00
£2793.00
1 Apr
Bal b/d
155.00
Sales Account (work done)
31 March
Balance b/d
120,725.00
15 March
Balance b/d
115,100.00
31 March
SBD
5,625.00
£120,725.00
£120,725.00
1 April
Balance b/d
120,725.00
Sales Returns
30 March
SRDB
225.00
31 March
Balance b/d
225.00
£225.00
£225.00
1 April
Balance b/d
225.00
Purchases of Materials
15 March
Balance b/d
44100.00
31 March
Balance b/d
47320.00
31 March
PDB
3220.00
£47320.00
£47320.00
1 April
Balance b/d
47320.00
Purchase Returns
31 March
Balance b/d
120.00
30 March
PRDB
120.00
£120.00
£120.00
1 April
Balance b/d
120.00
Repairs and Maintenance
15 March
Balance b/d
3100.00
31 March
Balance b/d
3100.00
£3100.00
£3100.00
1 April
Balance b/d
3100.00
Motor Vehicle Running Costs
15 March
Balance b/d
4350.00
31 March
Balance c/d
4442.50
25 March
Bank
92.50
£4442.50
£4442.50
1 April
Balance b/d
4442.50
Insurances
15 March
Balance b/d
1520.00
31 March
Balance c/d
1520.00
£1520.00
£1520.00
1 April
Balance b/d
1520.00
Wages Account
15 March
Balance b/d
15,100.00
31 March
Balance c/d
16,150.00
16 March
Bank
1050.00
£16,150.00
£16,150.00
1 April
Balance b/d
16,150.00
Drawings Account
15 March
Balance b/d
32,100.00
31 March
Balance c/d
33,450.00
18 March
Bank
1350.00
£33,450.00
£33,450.00
1 April
Balance b/d
33,450.00
Office Expenses
31 March
Cash
15.00
31 March
Balance c/d
15.00
£15.00
£15.00
1 April
Balance b/d
15.00
Sales Ledger
Electrical Stores
15 March
Balance b/d
3150.00
16 March
Bank
3150.00
19 March
SDB
1620.00
31 March
Balance c/d
1620.00
£5220.00
£5220.00
1 April
Balance b/d
1620.00
WH Stores
15 March
Balance b/d
2100.00
25 March
Bank
1100.00
31 March
Balance c/d
1000.00
£2100.00
£2100.00
1 April
Balance b/d
1000.00
Fowler Domestic Engineers
15 March
Balance b/d
1300.00
30 March
SRDB
270.00
26 March
SDB
1080.00
31 March
Balance c/d
2110.00
£2380.00
£2380.00
1 April
Balance b/d
2110.00
Washer Supplies Ltd
22 March
SDB
1890.00
31 March
Balance c/d
1890.00
£1890.00
£1890.00
1 April
Balance b/d
1890.00
Redcar Electrical Supplies
27 March
SDB
2160.00
31 March
Balance c/d
2160.00
£2160.00
£2160.00
1 April
Balance b/d
2160.00
Purchase Ledger
Domestic Electrical Supplies
30 March
PRDB
144.00
15 March
Balance b/d
1250.00
23 March
Bank
1250.00
18 March
PDB
1200.00
31 March
Balance c/d
1056.00
£2450.00
£2450.00
1 April
Balance b/d
1056.00
Microwave Supplies Ltd
31 March
Balance c/d
2280.00
15 March
Balance b/d
1500.00
31 March
PDB
780.00
£2280.00
£2280.00
1 April
Balance b/d
2280.00
Scarborough Cleaner Centre
31 March
Balance c/d
900.00
23 March
PDB
900.00
£900.00
£900.00
1 April
Balance b/d
900.00
Blyth Electrical
31 March
Balance c/d
984.00
28 March
PDB
984.00
£984.00
£984.00
1 April
Balance b/d
984.00
Task 3
David Smith TV Engineer
Trial Balance as at 31 March 2015
Capital
45900.00
Bank Loan
10500.00
Motor Vehicles
32100.00
Tools and Equipment
27500.00
Computer and Office Equipment
4500.00
Stocks of materials
3100.00
Wages
-
Bank
7.50
Cash
115.00
VAT
155.00
-
Sales
120,725.00
Sales Returns
225.00
Purchases
47320.00
Purchase Returns
120.00
Repairs and Maintenance
3100.00
Motor Vehicle Running Costs
4442.50
Insurances
1520.00
Wages
16150.00
Drawings
33450.00
Office Expenses
15.00
Debtors
8,780.00
Creditors
5,220.00
£182,472.50
£182,472.50
Debtors:
Creditors:
Electrical Stores
1,620.00
Domestic Electrical Supplies
1,056.00
W H Stores
1,000.00
Microwave Supplies Ltd
2,280.00
Fowler Domestic
2,110.00
Scarborough Cleaner Centre
900.00
Washer Supp Ltd
1,890.00
Blyth Electrical
984.00
Redcar Electrical
2,160.00
5,220.00
8,780.00
Question 4
Task 1
Balance Sheet of Keith Richard as at 31 March 2015
Fixed Assets
Cost
Accumulated Depreciation
NBV
Motor Vehicles
36500
14600
21900
Tools and Equipment
25200
10080
15120
Computer and Office Equipment
4500
1800
2700
66200
26480
39720
Current Assets
Stocks of materials
2250
Debtors
7500
Prepayments
800
Bank
1750
12300
Less Current Liabilities
Creditors
3100
Accruals
250
VAT Due
1400
4750
Net Current Assets
7550
Total Assets Less Current Liabilities
47270
Long Term Liabilities
Bank Loan
10200
£37070
Financed By:
Capital
42100
Add Profit for Year
21070
63170
Less Drawings
26100
£37070
Task 2
Fixed Assets
An item owned by the business that has a long-term useful economic life from which economic benefit will flow.
Current Assets
Cash or other asset e.g. stock debtors and short-term investments that will convert to cash in the normal course of trading.
Current Liabilities
Liabilities that falls due for payment within one year.
Net Current Assets
The excess of current assets over current liabilities.
Long Term Liability
Liabilities or obligations that fall due for payment after one year.
Question 5
Task 1
VAT Account
31 March
SRDB
40.00
31 March
SDB
10,900.00
31 March
PDB
6,300.00
31 March
PRDB
150.00
31 March
Bad Debt Relief
235.00
31 March
Balance c/d
4,475.00
£11,050.00
£11,050.00
1 April
Balance b/d
4,4475.00
Task 2
VAT Return
1
VAT due in this period on sales
10,625.00
2
VAT due in this period on EC acquisitions
-
3
Total VAT due ( sum of boxes 1 and 2)
10,625.00
4
VAT reclaimed in this period on purchases
6,150.00
5
Net VAT to be paid to Customs or reclaimed by you
4,475.00
6
Total Value of sales, excluding VAT
54,300.00
7
Total Value of purchases, excluding VAT
30,750.00
8
Total Value of EC sales, excluding VAT
-
9
Total Value of EC Purchases, excluding VAT
-
Level II Certificate in Manual Bookkeeping
You are a self employed bookkeeper and all the tasks in this examination are based on a series of your clients. The date is March 2015. The VAT Rate is 20%.
Question 1
You are working on the month end accounts for Adam Walker a self employed mobile motor engineer.
Sales Day Book
Gross
£7005.00
Net
£5837.50
VAT
£1167.50
Sales Return Day Book
Gross
£172.50
Net
£143.75
VAT
£28.75
Purchase Day Book
Gross
£1725.00
Net
£1437.50
VAT
£287.5
Purchase Returns Day Book
Gross
£132.00
Net
£110.00
VAT
£22.00
The following is an extract of his Sales Day Book, Sales Returns Day Book, Purchase Day Book and Purchase Returns Day Book together with an extract from his Cash Book for the month of March 2015.
Cash Book Extract
Receipts from Debtors/Customers
£5100.00
Payments to Creditors/Suppliers
£1250.00
Opening Balances 1 March
Sales Ledger Control
£5750
DR
Purchase Ledger Control
£1380
CR
Task 1
Prepare the Sales Ledger and Purchase Ledger Control Accounts for the month of March.
(15 Marks)
Task 2
Adam informs you that one of his customers Raw Engineering with an outstanding balance of £360.00 invoiced in December 2014, (£300+VAT) has gone into liquidation.
Prepare a journal entry to write off this bad debt.
(NB: VAT Bad Debt Relief is not yet claimable)
(5 Marks)
(Total 20 Marks)
Question 2
You are working on the month end accounts for Brian Smith, a self employed electrical engineer, and are reconciling the bank statement to the cash book.
The following is an extract from his Cash Book for March 2015 and his most recent bank statement:
Cash Book
4 Mar
Crescent Farms
2300.00
1 Mar
Balance B/D
550.00
10 Mar
Ravenscar Engineering
1610.00
4 Mar
Wages (101)
510.00
15 Mar
Hawsker Farms
1736.50
5 Mar
Drawings (102)
1200.00
23 Mar
Westcliffe School
345.00
7 Mar
Diesel (103)
57.50
31 Mar
Redcar Estates
1840.00
12 Mar
Wages (104)
490.00
14 Mar
Electrical DIY (105)
1150.00
18 Mar
Drawings (106)
850.00
22 Mar
Electrical Engineers (107)
575.00
25 Mar
Wages (108)
520.00
31 Mar
HMRC (VAT) (109)
1250.00
31 Mar
Balance C/D
679.00
£7831.50
£7831.50
1 Apr
Balance B/D
679.00
Bank Statement
Brian Smith
Ravenscar House
7 Crescent Road
Whitby
Y021 4SN
Account No: 572365612
Date
Details
Receipts
Payments
Balance
C/OD
1 Mar
Balance
329.50
O/D
1 Mar
CH99
75.50
405.00
O/D
2 Mar
CH100
145.00
550.00
O/D
4 Mar
CH101
510.00
1060.00
O/D
5 Mar
R400
2300.00
1240.00
C
6 Mar
CH102
1200.00
40.00
C
8 Mar
CH103
57.50
17.50
O/D
11 Mar
R401
1610.00
1592.50
C
12 Mar
CH104
490.00
1102.50
C
16 Mar
R402
1736.50
2839.00
C
18 Mar
CH106
850.00
1989.00
C
25 Mar
R403
345.00
2334.00
C
25 Mar
CH108
520.00
1814.00
C
31 Mar
DD XPhone
95.00
1719.00
C
31 Mar
DD Norwich Union
150.00
1569.00
C
31 Mar
Charges
45.00
1524.00
C
31 Mar
Golf Club Fees
125.00
1399.00
C
Task 1
Examine the Cash Book and Bank Statement and update the Cash Book.
(5 Marks)
Task 2
Prepare the Bank Reconciliation Statement at 31 March 2015
(5 Marks)
(Total 10 Marks)
Question 3
Data
David Smith is one of your clients and he trades as a TV and Domestic Appliance Engineer. His year end is 31 March 2015.
The following is a list of balances in his books at 15 March 2015:
Capital
£45,900
Bank Loan
£10,500
Motor Vehicles
£32,100
Tools and Equipment
£27,500
Computer and Office Equipment
£4,500
Stocks of Materials
£3,100
Bank
£1,750
Cash
£130
Debtors
£6,550
Creditors
£2,750
VAT (Due to HMRC)
£1,650
Sales (work done)
£115,100
Purchases of Materials
£44,100
Repairs and Maintenance
£3,100
Motor Vehicle Running Costs
£4,350
Insurances
£1,520
Wages
£15,100
Drawings
£32,100
The Debtors and Creditors at 15 March 2015 were:
Debtors
£
Creditors
£
Electrical Stores
3,150
Domestic Electrical Supplies
1,250
WH Stores
2,100
Microwave Supplies Ltd
1,500
Fowler Domestic Engineers
1,300
£6,550
£2,750
The following relates to David’s business for period 15-31 March 2015:
Sales Day Book
Date
Details
Net
VAT
Gross
19 Mar
Electrical Stores
1,350.00
270.00
1,620.00
22 Mar
Washer Supplies Ltd
1,575.00
315.00
1,890.00
26 Mar
Fowler Domestic Engineers
900.00
180.00
1,080.00
27 Mar
Redcar Electrical Supplies
1,800.00
360.00
2,160.00
£5,625.00
£1,125.00
£6,750.00
Sales Returns Day Book
Date
Details
Net
VAT
Gross
30 Mar
Fowler Domestic Engineers
£225.00
£45.00
£270.00
Purchase Day Book
Date
Details
Net
VAT
Gross
18 Mar
Domestic Electrical Supplies
1,000.00
£200.00
1,200.00
23 Mar
Scarborough Cleaner Centre
750.00
150.00
900.00
28 Mar
Blyth Electrical
820.00
164.00
984.00
31 Mar
Microwave Supplies Ltd
650.00
130.00
780.00
£3,220.00
£644.00
£3,864.00
Purchase Returns Day Book
Date
Details
Net
VAT
Gross
30 Mar
Domestic Electrical Supplies
£120.00
£24.00
£144.00
Extract from the Cash Book
Cash
Bank
Cash
Bank
15 Mar
Balance B/D
130.00
1,750.00
16 Mar
Wages
1,050.00
16 Mar
Electrical Stores
3,150.00
18 Mar
Drawings
1,350.00
25 Mar
WH Stores
1,100.00
23 Mar
Domestic Electrical Supplies
1,250.00
31 Mar
Balance C/D
7.50
25 Mar
Motor Vehicle Running Supplies
92.50
31 Mar
HMRC (VAT)
2,265.00
31 Mar
Parcel Post
15.00
31 Mar
Balance C/D
115.00
£130.00
£6,007.50
£130.00
£6,007.50
1 Apr
Balance B/D
115.00
1 Apr
Balance B/D
7.50
Task 1
From the list of balances given at 15 March, prepare a trial balance.
(5 Marks)
Task 2
From the trial balance open the accounts as at 15 March in the main (general ledger), the sales and purchase ledgers.
There is no need to show the cash book (cash book and bank accounts) as this is shown, written up, in the data above.
Post the transactions from the Sales Day Book, the Sales Returns Day Book, the Purchase Day Book, the Purchases Returns Day Book and the Cash Book to the relevant accounts in the main and subsidiary ledgers.
(20 Marks)
Task 3
Balance off the accounts in the main and subsidiary ledgers and prepare a trial balance as at 31 March 2015.
(5 Marks)
(Total 30 Marks)
Question 4
You are now working on the accounts of Keith Richards, a self-employed Plumber and Heating Engineer.
The Trial Balance has been drafted after the trading and profit and loss account for the year has been prepared.
Trial Balance as at 31 March 2015
DR
CR
Capital
42,100
Bank Loan
10,200
Motor Vehicles (at cost)
36,500
Tools Equipment (at cost)
25,200
Computer and Office Equipment (at cost)
4,500
Provision for Depreciation:
Motor Vehicles
14,600
Tools and Equipment
10,080
Computer and Office Equipment
1,800
Stocks of Materials
2,250
Debtors
7,500
Creditors
3,100
VAT
1,400
Drawings
26,100
Accruals
250
Pre-payments
800
Profit for Year
21,070
Bank
1,750
£104,600
£104,600
Task 1
Prepare in vertical form, the Balance Sheet as at 31 March 2015.
(10 Marks)
Task 2
Define the following Balance Sheet terms:
Fixed Asset- Current Asset
- Current Liabilities
- Net Current Assets
- Long Term Liability
(10 Marks)
(Total 20 Marks)
Question 5
You are now working on the completion of a VAT return for Philip Rose, a self-employed publican who also has an outside catering service.
The following information is available:
Sales Day Book
Date
Details
Net
VAT
Gross
Jan-Mar 2015
Sales
£54,500.00
£10,900.00
£65,400.00
Sales Returns Day Book
Date
Details
Net
VAT
Gross
Jan-Mar 2015
Credit Notes
£200.00
£40.00
£240.00
Purchase Day Book
Date
Details
Net
VAT
Gross
Jan-Mar 2015
Purchases on Credit
£31,500.00
£6,300.00
£37,800.00
Purchase Returns Day Book
Date
Details
Net
VAT
Gross
Jan-Mar 2015
Credit Notes
£750.00
£150.00
£900.00
Philip informs you that he has an outstanding amount due from Crescent Gardens Centre to whom he had supplied outside catering in September 2014 for £1,410 (inc VAT £235) and he is to write it off as a bad debt and wishes you to claim the bad debt relief.
Task 1
Write up the VAT account to show clearly the liability due to HMRC at the end of March 2015.
(10 Marks)
Task 2
Prepare the nine boxes of the VAT return for period ended 31 March 2015.
(10 marks)
(Total 20 Marks)