Clever Computer Solutions Ltd

Kelly Industrial Estate

Edinburgh
Scotland
WW5 9FG

Scenario

You work as a bookkeeper for Clever Computer Solutions Ltd, a supplier of computer equipment and stationery for
various companies within the Edinburgh areas. The business is registered for value added tax and up to the close of
business at the end of this year did all of its accounting using hand written ledgers.

Business is expanding and it is felt that the present system will not cope with the extra paperwork that will be produced.
The closing balances have been transferred into a computerised accounts package. The directors are Charlene Rogers
and Malcolm Brown. The Accountant is Ms Newton.

This assignment contains a number of tasks which take the form of a set of exercises which require you to either input
data to the accounting system or extract information from the accounting system as reports.

Note the VAT registration number is GB123456789. VAT is at 20%. They use a cash accounting scheme.

The day we begin using the new computerised accounts package is 1st June 2017.

Instructions to candidates

You are required to complete the tasks as listed below.

Task Activity Marks

1 Opening Balance 12
2 Amend the Nominal Ledger 2
3 Add new customer and supplier details to the sales lodger 16
4 Input sales invoices and credit notes to the ledger 15
5 Input purchase invoices and credit notes to the ledger 10
6 Input cheques received and paid to the appropriate ledgers 7
7 Post Sundry Payments 2
8 Input petty cash paid and monies received 3
9 Deal with writing off of a bad debt in the appropriate ledgers 4
10 Produce a bank reconciliation statement 8
11 Produce a journal for wages and salaries and post to the ledgers 8
12 Produce a journal for depreciation and post to the ledger 6
13 VAT Return 4
14 Produce a trial balance, trading profit and loss account and a balance 3
sheet
Task 1 – Enter the opening balances

1. Enter the opening balances as shown below; you may need to set up or amend some nominal accounts
depending on your accounting software:

DR CR

Plant and Machinery 8,000.00

Plant and Machinery – Depreciation 2,500.00

Office Equipment 1,000.00

Office Equipment - Depreciation 200.00

Motor Vehicles 12,000.00

Motor Vehicles – Depreciation 8,000.00

Furniture & Fixtures 2,000.00

Furniture & Fixtures – Depreciation 700.00

Bank Account 4,000.00

Petty Cash 50.00

Capital Account 15,650.00

2. Provide an opening trial balance at 31 May 2017.

Task 2 – Amend the nominal ledger

Required:

1. Set up the following nominal accounts to customise the system for Clever Computer Solutions Ltd.

Nominal Name Nominal Type

Computers, Printers, Cable - equipment Sales

Ink, Paper, Stationery Sales

Software Sales

Miscellaneous Sales

PCs, Printers for resale Purchases (Cost of Sales)

Goods – ink, paper etc., Purchases (Cost of sales)

Software purchases Purchases (Cost of sales)

2. Provide a report listing the nominal ledger accounts and their location within the chart of accounts.
Task 3 – New customer and supplier names and addresses

Required:

i. Enter the following information for new customers into your accounts package.

Company Account Number

Glenda Steels Ltd GL001
Boyston Way
Hardwick
Scotland
SC3 9TL

Company Account Number

Hart Instrumentals HI001
Iona Place
Livingstone
Scotland
SC4 8MC

The following customers need

entering – to save time, we’ve
not put in an address, but you
can make an address up if you
wish.
Company Account Number
Ledra Steels LS001

Company Account Number

Vector Int Ltd VI001

Company Account Number

James Stuart Ltd JS001

Company Account Number

Barry Blair & Co BB001

Company Account Number

Fastmet Plc F001

Company Account Number

Franklin Steels PLC FS001

Company Account Number

Forthbridge Metals FM001
 ii. Enter the following information for new suppliers into your account package.

Company Account Number

Computers Direct CD001
Carrick Drive
Irvine
Scotland
SC4 5ER
Company Account Number
Tinie Computers TC001
Crosshouse Road
Kilmarnock
Scotland
SC5 9DF
Company Account Number
Tyme Computers TC002
Fenwick Road
Kilmarnock
Scotland
SC12 4RT

The following suppliers need entering – to

save time, we’ve not put in an address, but
you can make an address up if you wish.

Company Account
Number

Jedo Estates JE001

Icon Advertising IA001

Silverdale Computers SC001

Computer Stationery CS001

Level 9 Computer Stationery L9001

Saturn Garage SG001

Johnston & Partners Chartered JP001

Accountants

iii. Print out the complete customers’ name and address list.
iv. Print out the complete suppliers’ name and address list.
Task 4 – Customers’ invoices and credit notes for the month of June

Required:

i. You are required to post the following invoices to the customers’ ledger (instruction manuals and consumables
such as cartridges are to be coded to computer stationery, whilst cables are to be posted to computer
hardware).

Company Description Nominal Invoice Date Goods

Code Number Inc Vat
Glenda Steels Desktop PC 6576 03/06/17 450.00
Printer 90.00

Hart Computer Ink Cartridge 6574 01/06/17 35.00

Instrumentals Copier/ laser paper A4 125.30

Ledra Steels Invoice sets A4 6575 02/06/17 450.00

Statement 6578 05/06/17 282.30
Remittance slips 6580 07/06/17 192.70
Vector Int Ltd Desktop printer 6585 09/06/17 90.00
Printer cables 25.00

James Stuart Desktop laser printer 6590 15/06/17 500.00

Ltd Printer cables 50.00

Barry Blair & Ink cartridges 6595 19/06/17 38.00

Co Screen wipes 12.70

Fastmet Plc Word 2017 software 6600 24/06/17 450.00

Instruction manual 6602 29/06/17 35.60

Franklin Microsoft Pro Office Suite 6605 29/06/17 1,250.00

Steels Plc

Forthbridge Computer stationery 6609 30/06/17 325.75

Metals Printer cables 6610 30/06/17 60.00

ii. You are required to post the following credit notes to the customer ledger.

Company Description Nominal Cr Note Date Goods

code Number Inc Vat
Franklin Steels Microsoft Pro Office Cr6606 29/06/17 1,250.00
Suite
Forthbridge Metals Computer stationery Cr6611 30/06/17 325.75

iii. Print out a detailed customer activity report.

iv. Print out an aged debtor’s analysis (summary).
Task 5 – Suppliers’ invoices for the month of June

Required:

i. Post the following invoices to the supplier’s ledger.

Company Description Invoice number Date Goods Vat 20% Total

Tyme Desktop computers 2853 01/06/17 350.00 70.00 420.00
Computers Stationery to order 2846 03/06/17 112.00 22.40 134.40
Tinie Ink cartridges 6028 06/06/17 135.80 27.16 162.96
Computers Stationery 6029 09/06/17 91.35 18.27 109.62
Computers Computers to order 8972 09/06/17 225.00 45.00 270.00
Direct Invo desktop 8992 15/06/17 180.00 36.00 216.00
printers
Computer cables 9123 29/06/17 75.00 15.00 90.00
Jedo Estates Rent of unit for June R6712 30/06/17 346.20 69.24 415.44
Icon Advert in Computers 2296 12/06/17 75.00 15.00 90.00
Advertising Weekly
Silverdale Microsoft Pro 3297 19/06/17 450.00 90.00 540.00
Computers Software
Copier/Laser paper 4621 25/06/17 149.30 29.86 179.16
A4
Computer Digicards A4 4308 10/06/17 290.00 58.00 348.00
Stationery
Level 9 Invoice Sets 8829 21/06/17 136.91 27.39 164.30
Computer
Statements 9136 29/06/17 140.38 28.12 168.50
Stationery
Saturn Petrol and oil for 9385 29/06/17 295.60 59.12 354.72
Garage June
Johnston & Audit fees for 3136 27/06/17 500.00 100.00 600.00
Partners 2016/2017
Chartered
Accountants

ii. Post the following credit notes to the supplier’s ledger.

Company Description Credit Date Goods Vat 20% Total

Not No
Silverdale Microsoftware Cr78 29/06/17 100.00 20.00 120.00
Computers
Level 9 Stationery Cr75 21/06/17 35.00 7.00 42.00
Computer
Stationery

iii. Print out detailed supplier activity report.

iv. Print out an aged creditor’s analysis (summary).

Task 6 – Cheques received and paid out by Clever Computers

Required:

i. Post the following cheques to the customer’s ledger.

Customer Account number Inv No Value PAYING IN BOOK NO.

Glenda Steels GL001 6576 540.00 10001
17 June 2017
Ledra Steels LS001 6578 338.76 10002
19 June 2017
James Stuart JS001 6590 550.00 10003
24 June 2017
Barry Blair BB001 6595 50.70 10004
25 June 2017
Forthbridge Metals FM001 6610 60.00 10005
29 June 2017

ii. Post the following cheques paid to the supplier’s ledger.

iii. Apply the credit note for Forthbridge Metals and Franklin Steels

Suppliers Account Number Cheque No Value

Tyme Computers 32153 554.40
5 June 2017
Icon Advertising Agency 32155 90.00
11 June 2017
Computer stationery 32158 348.00
22 June 2017
Saturn Garage 32159 154.72
27 June 2017
Johnstone & Partners 32160 600.00
30 June 2017

i. Apply the credit note for Silverdale Computers & Level 9 Computer Stationery.

ii. Print out a list of bank receipts and payments.

Task 7 – Post Sundry Payments

Required:

i. Post the following payments:

Date Payment Method Who Description Amount VAT rate

28 June Direct Debit Edinburgh Water Co Water Rates 86.00 Zero
29 June Standing Order Edinburgh Council Council Tax 120.00 Exempt
Task 8 – Make a payment by Credit Card – on 8th June 2017

Ms Rogers tells you that the supplier: Level 9 Stationery rang and she made a payment of £122.29 for invoice 8829 by credit card.
And SilverDale Computers was also paid £420.00 for a deposit towards invoice 3297 by credit card.

Required:
i. Add Scottish Bank Plc credit card (ends 1234) to the system. Make the payments to the two suppliers above.
ii. The credit card company takes a Full Balance Direct Debit on the 30th of each month. On the 30th June the credit card takes
£542.29 from the bank to clear the card to NIL.

Task 9 – Petty Cash Summary for the Month of June

Required:

i. Post the following pretty cash payments and receipts to the ledger. The company uses the imprest system for
petty cash and starts each week with £150.00. (At the end of each week (on a Friday), the balance on the
petty cash account is made up by transferring funds from the bank account using a cashed cheque).

Date Description Voucher No Nominal £

code
3 June Postage stamps (Post office) 5421 4.65
4 June Bought petrol 5422 25.00 Inc VAT*
5 June Bought tea, coffee (supermarket) 5423 3.50
8 June Paid window cleaner 5424 35.00
Weekly total (ch no 32154) – Friday 9th June
Date Description Voucher No Nominal £
code
10 June Bought postage stamps 5425 5.52
11 June Bought rail ticket for Sales 5426 17.56
Director
12 June Bought envelopes 5427 14.95 *Inc VAT
13 June Paid office cleaner 5428 45.00
14 June Bought A4 writing pads 5429 11.65 Inc VAT*
Weekly total (ch no 32156)
Date Description Voucher No Nominal £
code
16 June Paid window cleaner 5430 35.00
17 June Bought postage stamps 5431 5.25
18 June Paid office cleaner 5432 45.00
19 June Bought Petrol 5433 25.01 Inc VAT*
20 June Flowers for reception area 5434 9.45 Inc VAT*
Weekly total (ch no 32157)
Date Description Voucher No Nominal £
code
24 June Paid care hire charge 5435 38.52 *Inc VAT
25 June Purchased A4 writing pad 5436 3.06 *Inc Vat
26 June Bought tea, coffee, milk, sugar 5437 5.63
26 June Bought 12 HB pencils 5438 4.99 *Inc VAT
27 June Paid office cleaner 5439 45.00
27 June Paid parcel post “Red Star” 5440 12.36 Inc VAT
Weekly total (ch no 32161)
*VAT at the rate of 20% … stationery is purchased from ‘Poundland’

ii. Print out a copy of the petty cash account receipts and payments.
Task 10 – Producing a statement and writing off a bad debt

You have received the following letter, which requires your attention.

Wallace White Chartered Accountants

Vincent Street
Edinburgh
Scotland

Clever Computer Solutions Ltd

Kelly Industrial Estate
Edinburgh
WW5 9FG

Date 30 June 2017

Dear Sir

Re: Hart Instrumentals Ltd in Receivership

We would be most grateful if you would kindly forward to us at the above

address an up to date statement of account.

Yours sincerely,

George Wallace FCA, Partner

Required:

i. Print out a statement of account for Hart Instrumentals Ltd, showing the outstanding balance on 30 June.

ii. Make the appropriate journal entries to write off the outstanding balance and print out the appropriate entries
in the audit trail.

iii. Print out a copy of the detailed customer activity for Hart Instrumentals Ltd to show zero balance.
Task 11 Reconcile the credit card statement
The following credit card statement has been received.

The Scottish Bank Credit Card PLC

Birkenhall House
Stuart Street
Edinburgh

Account of: Clever Computer Solutions Ltd Mastercard Number: 5186-7834-1384-1234

Cardholder MS CHARLENE ROGERS
9 May – 10 June 2017
Trans Date Post Date Description Amount
2017 BALANCE FROM PREVIOUS STATEMENT £0.00
8 June 9 June 00214119 Level 9 Stationery £122.29
8 June 9 June 01893215 SilverDale Computers £420.00
NEW BALANCE £542.29

Note, the full statement balance will be taken by Direct Debit on 30th June from a/c ending 3244.

Task 12 – Bank Reconciliation Statement

The following bank statement has been received.

The Scottish Bank PLC

Birkenhall House
Stuart Street
Edinburgh

Account of: Clever Computer Solutions Ltd Statement Date: 30 June 2017
Account Number: 90563244 Sort Code: 22-33-44 Statement No: 105

Date Details Debits Credits Balance

2017
1 June Brought forward 4000.00
1 June CASH WITHDRAWN 100.00 3900.00
9 June Cheque 32153 554.40 3345.60
11 June Cheque 32154 68.15 3277.45
Cheque 32156 94.68 3182.77
14 June Cheque 32155 90.00 3092.77
18 June Sundry receipt 10001 540.00 3632.77
19 June Sundry receipt 10002 338.76 3971.53
20 June Cheque 32157 119.71 3851.82
26 June Sundry receipt 10004 50.70 3902.52
27 June Sundry receipt 10003 550.00 4104.52
Cheque 32158 348.00
28 June DD Edinburgh Water 86.00 4018.52
29 June SO Edinburgh Council 120.00 3898.52
29 June Vector International BACS 115.00 4013.52
30 June DD – Bank Charges 30 Jun 5.50 4008.02
30 June DD – Scottish Bank Credit Card 542.29 3465.73
Required:
i. Complete a bank reconciliation procedure as at 30 June 2017.
ii. Print out a list of unreconciled payments and receipts as at 30 June 2017.

Task 13 Reconcile the petty cash a/c

Required:
Reconcile the petty cash each week. The imprest system should always come back to £150.00.

Task 14 Wages and Salaries

Required:
i. Set up the following accounts into the appropriate areas in your nominal ledger for voluntary donations that are
deducted from wages / salaries and are due to be sent to the organisations: 1. MS Society 2. NSPCC
ii. Enter the following wages and salaries for the Month of June using the journal.
iii. Print out a journal copy of the entries for the above transactions.

Dr Entry Cr Entry
Staff salaries 3580.00
Tax deductions 1759.00
Employee NICs owed to National Insurance 456.00
MS Society 75.00 Voluntary deduction
NSPCC 85.00 Voluntary deduction
Pension deductions 259.00
Net pay 1205.00
Pension 259.00
Employer NICs 198.00
Employer NICs owed to National Insurance 198.00

Pay everyone!
iv. Pay HMRC, NEST Pension provider and the 2 charities what they’re due on 19 July by BACS.
v. Pay staff salaries (Charlene Rogers £605.00 and Malcolm Brown £600) on 3rd July.

Task 15 – Depreciation

Ms Newton, the Chief Accountant has prepared the following information for inclusion into the accounts for the Month
of June.

Plant and machinery 50.00 Office equipment 150.00

Furniture and fixtures 20.00 Motor vehicles 600.00

Required:

i. Enter the relevant figures for the depreciation of fixed assets.

Task 16 – Prepare a VAT Return.

Required:

i. Prepare a VAT return for the period 1 June 17 – 30 June 2017.

ii. Provide a report showing the VAT Return
 iii. Provide a report showing summary VAT information
iv. Provide a report showing detailed VAT information

Task 17 – Month end reports.

Required:

 Trial Balance report at the 30 June 2017

 Trading Profit and Loss Account for the month ending 30 June 2017
 Balance Sheet as at the close of business on 30 June 2017

Task 18 – Use Payroll Function for the July Salaries.

Required:
 Set up Malcolm Brown date of birth 1 Feb 1970 on a salary of £600 and Charlene Rogers dob 1 Jan
1970 on a salary of £605 to be paid on 31st July 2017
 Just use the company address as their home address

This is the end of this final assignment