SAGE 50 Accounting Exam: Setting up Accounting system, Processing business transactions, and creatin

Exam Instructions and Requirements

Complete all the tasks. This is an open-book individual test to do at home. Collaboration with others is not allowed and will be treated as an academic offence.  Use the Sage 50 Accounting software available on-campus or via the remote desktop see details on Moodle for access instructions.  We recommend saving backups and the required reports listed on the final page of this test into a specially created folder on your University OneDrive.  At the end of the test, individually upload the nine reports and your final backup test to the test submission box on Moodle.

• No extensions to the deadline available under Extenuating Circumstances (EC). Contact your programme leader if you have EC.  Scenario Deptford Digital is a business which has recently been set up by Aisha Patel. The business sells computers, printers, IT manuals and a repair service from a shop/office in Greenwich. Aisha operates on a sole trader basis and has registered the business for VAT using the standard scheme to account for VAT. All goods sold by Deptford Digital are subject to VAT at the standard rate of 20%. All goods purchased for resale by the business are purchased on credit. Aisha has arranged credit accounts on behalf of the business with several suppliers. The business supplies goods to several trade customers on a credit basis and credit terms have been agreed with these customers. The business also trades with the general public for which sales are made by card. A computerised accounting package is to be used for the purpose of keeping the accounting records of Deptford Digital.

 1. Setting up the accounting system You are to assume the role of Accounts Clerk and setup the business and carry out the instructions in the order that they are given using SAGE 50 Accounts software package. You are also required to print to PDF file the reports requested at the end of the exam.

2. Process business transactions using the computerised accounting system Accurately process all the transactions and reconcile them against the Bank Statement on the final page. The business was started on 1st September 2020. Set this as your Financial Year Start Date. The name and address of Deptford Digital is as follows: Deptford Digital 321 Greenwich South Street Greenwich London  Setting up the accounting system Task 1 Set up the following Nominal Accounts with the correct names: Nominal Code Nominal Code Name 1200 HSBC Business Account 2230 Workplace Pension 4000 Sales - Desktops 4001 Sales - Laptops 4002 Sales - Printers 4003 Sales - IT manuals 4004 Sales - Repairs 5000 Purchases - Desktops 5001 Purchases - Laptops 5002 Purchases - Printers 5003 Purchases - IT manuals Task 2 Set up the following Customer Accounts, using an appropriate account reference including a number, for example EXPRES01: Express Phone Centre Beckenham Office Centre London BR3 2HG Credit limit: £16,000 Payment terms: 30 days North Greenwich School North Greenwich Road London SE7 8HX 6844 Credit limit: £12,000 Payment terms: 30 days Quality Training Centre 27 Southview Road Greenwich London SE10 8TT Credit limit: £8,000 Payment terms: 14 days Task 3 Set up the following Supplier.

Scenarios of Deptford Digital and Opening Financial Positions

3. Accounts, using an appropriate account reference including a number: Digicom Ltd Dartford Trade Park Powder Mill Lane Dartford Kent DA1 1HL 01440 784570 Credit Limit £12,000 Payment terms: 30 days PrinterWorld 11 Warburton Drive, Hale Barns, Altrincham, Cheshire, WA15 0SL 0800 879675 Credit Limit £8,000 Payment terms: 14 days Mobile Tech Supplies 85 Tilton Rd, Birmingham B9 4PP 0345 321789 Credit Limit £13,000 Payment terms: 30 days which is the first day of the business’s financial year. You have discussed the opening financial position of the business with Aisha and with her help you have drawn up the following list of opening account balances financed by Capital as at 1 September 2020. Process this using a Journal. Reference JL1. Account name Amount £ Office equipment 22,000 Furniture and fixtures 10,000 Stock 12,000 Money into HSBC Business Account 6,000 Petty cash 200 Task 5 Ms Patel put in place additional finance for a new IT hardware testing bench. Post this receipt with the reference Loan 1: Date Details 4 Sep Received bank loan from HSBC Greenwich of £10,200 paid into the HSBC Business account. Process business transactions using the computerised accounting system Process supplier invoices

4 .During the month, the following invoices were received from Suppliers. Enter these transactions with simple details, for example Desktops or Laptops, and the invoice numbers as the references: invoice digicom Invoice To: Invoice No. DC5033 Deptford Digital 321 Greenwich South Street Greenwich London, SE10 1GE Invoice Date 1.09.2020 VAT Rate Net Laptops XW101 20% 2825.00 2825.00 VAT @ 20% 565.00 Invoice Total £ 3390.00 Payment terms: Net 30 days VAT Reg. No. 371 5165 02 invoice mobile supplier Invoice To: Invoice No. M08907 Deptford Digital 321 Greenwich South Street London, SE10 1GE Invoice Date 8.09.2020 VAT rate Net Laptops - various Manuals 20% Zero 4832.00 100.00 4932.00 VAT @ 20% 966.40 Invoice Total £ 5898.40 Terms: 30 days net VAT Reg. No. 516 5557 51 ,2021 Page 5 INVOICE PrinterWorld 0800879675 Invoice No. PW61000 Invoice To: 11 Warburton Drive, Hale Barns, Altrincham, Cheshire, WA15 0SL Deptford Digital 321 Greenwich South Street London, SE10 1GE Invoice Date 15.09.2020 Net Printers VAT 20% 1832.00 1832.00 VAT @ 20% 366.40 Invoice Total £ 2198.40 Carriage paid Terms: 14 days. 5% discount if paid within 5 days. VAT Reg. No. 826 5631 59 Invoice To: Invoice No. DC5109 Deptford Digital 321 Greenwich South Street Greenwich London, SE10 1GE Invoice Date 22.09.2020 VAT Rate Net Desktops PRE3200 20% 3000.00 3000.00 VAT @ 20% 600.00 Invoice Total £ 3600.00 Payment terms: Net 30 days VAT  Page 6 Process customer invoices

5. During the month, the following Invoices were sent out to customers. Enter these transactions with simple details, for example Desktops or Repair, and the invoice numbers as the references: Deptford Digital 321 Greenwich South Street London, SE10 1GE Telephone: 0208 3671234 To: North Greenwich School North Greenwich Road London SE7 8HX Invoice No. Invoice Date DD0101 04.09.2020 VAT Rate Net Laptops Printers 20% 20% 897.00 438.00 1335.00 VAT @ 20% 267.00 Invoice Total £ 1602.00 Terms: 30 days net VAT Reg. No. 123 4567 89 Deptford Digital 321 Greenwich South Street London.