Exam ID 208
QUESTION PAPER
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
Examination:
Units:
Maintaining the Journal – T/600/8772
Maintaining Control Accounts – K/600/8770
Processing Ledger Transactions and Extracting a Trial Balance – F/600/8760
January 2012
Time Allowed: 2 hours and 30 minutes
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]
INTERNATIONAL ASSOCIATION OF BOOKKEEPERS
LEVEL 2 BOOKKEEPING (QCF)
General Information and Instructions
This question paper contains three questions. You must answer all three questions
You must enter your Unique Learner Number, Candidate Number and Name
of Examination Centre in the boxes provided on the front cover of your Answer
Booklet.
Time allowed: 2 hours and 30 minutes
All answers are to be written in ink.
Cross out errors neatly, or use correcting fluid in moderation.
The use of silent non-programmable calculators is permitted.
Blank pages are provided in your Answer Booklet for notes/workings (see pages 17
and 18)
NOTE – this Question Paper and the Answer Booklet have information and data
printed on both sides of the pages contained within the booklets.
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 1
Maintaining the Journal
Question One – Question One is in four parts (Parts A, B, C and D)
Question One (Part A)
Use the Journal to Write Off a Bad Debt
You are presented on page 1 and 2 of the Answer Booklet with the Sales Ledger Control
Account, Bad Debts Account and VAT Control Account in the General Ledger of Mechanical
Motors, a small family run garage. The bookkeeper of the business maintains double entry
records for the business which is registered for VAT.
On 31 January 201Y, the Sales Ledger Control Account had a closing balance of £58,695.
This balance includes an invoice for £13,260 which was sent to Kent Car Parts several
months ago. The owner of Mechanical Motors has just found out that Kent Car Parts has just
gone into liquidation. The goods sold to Kent Car Parts were inclusive of VAT at the standard
rate of 20%.
VAT bad debt relief is to be claimed when writing off the balance.
REQUIRED:
You are required to complete the following tasks:
Task A – Prepare a Journal entry to write off the bad debt and claim the VAT bad debt
relief. Provide a suitable narrative.
(2.5 marks)
Task B – Post the entry from the Journal prepared in Task A above to the Sales Ledger
Control Account, Bad Debts Account and VAT Control Account in the General Ledger of
Mechanical Motors. You should also make a posting to Kent Car Parts in the Sales Ledger.
You are not required to balance off the ledger accounts having made the postings from the
Journal.
(2 marks)
Note: The following proformas are provided for your use in completing the above tasks:

Journal (see page 1 of your Answer Booklet)

General Ledger (extract) – Sales Ledger Control Account , Bad Debts Account and
VAT Control Account (see pages 1 and 2 of your Answer Booklet)

Sales Ledger (extract) – Kent Car Parts (See page 2 of your Answer Booklet)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 2
Question One (Part B)
Use the Journal to Account for Wages and Salaries
All employees of Castle Confectionery are paid weekly. They are paid on the last Friday of
each week via the BACS direct credit system.
The following accounts are kept in the ledger of Castle Confectionery for the purpose of
accounting for wages and salaries
 Wages and Salaries Control Account
 PAYE / NIC Creditor Account
 Wages, Salaries and Contributions (Expense) Account
REQUIRED:
You are required to complete the following task:
Task A – Complete the following Journal entries provided on page 3 of the Answer Booklet
and account for wages salaries and employment costs on 27 January (week 43) of the
current tax year (201Y/201Z). You will need to use the payroll analysis sheet provided on
page 4 of this question paper:

Payment of net pay from the business Bank Account

Employee PAYE income tax deductions

Employee NIC deductions

Employer NIC deductions

Transfer of total employment costs for 27 January 201Y (week 43) from the Wages
and Salaries Control Account to the Wages, Salaries and Contributions (Expense)
Account.
(5 marks)
Note: The following proforma is provided for your use in completing the above tasks:

Journal (see page 3 of your Answer Booklet)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 3
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 4
1,305.00
1,250
20.00
180.00
180.00
T Comer
5
35.00
320.00
320.00
K Hardy
4
340.00
320.00
180.00
285.00
Total
Gross Pay
£
A Booth
20.00
£
Bonus
3
180.00
35.00
£
£
250.00
Overtime
Basic Pay
S Cotterill
C Derby
Employee
Name
2
1
Works
No.
Earnings
Month Ending: 31 January 201Y (week 43)
208.80
28.80
51.20
54.40
28.80
45.60
PAYE
(Income
tax)
£
131.66
18.25
32.01
34.23
18.25
28.92
£
National
Insurance
340.46
47.05
83.21
88.63
47.05
74.52
£
Total
Deductions
Employee Deductions
Castle Confectionery – Payroll Analysis Sheet
964.54
132.95
236.79
251.37
132.95
210.48
£
Net Pay
156.60
21.60
38.40
40.80
21.60
34.20
Employer’s
National
Insurance
£
Castle Confectionery – Payroll Analysis Sheet
Question One (Part C)
Use the Journal to Open Double Entry Books of Account
To date the bookkeeper of Brookfield Bikes has kept their books on a single entry basis.
However, the owner Bryan Brookfield has decided to start using a double entry system from
1st January 201Y which coincides with the start of the new financial year of the business.
The following information is available as at 1 January 201Y:
Bank Overdraft
Bank Loan
Fixtures and Fittings
Vehicles
Sales Ledger Control (total trade debtors)
Purchase Ledger Control (total trade creditors)
Cash
Stock
£
1,850
10,580
6,253
2,590
5,845
2,475
150
6,780
REQUIRED:
You are required to complete the following task:
Task A – Complete the Journal entry provided on page 4 of the Answer Booklet from which
double entry books can be opened. You will need to calculate and insert as a balance the
capital claim of the owner of the business.
(7 marks)
Note: The following proforma is provided for your use in completing the above task:
Journal (see page 4 of your Answer Booklet)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 5
Question One (Part D)
Use the Journal to Correct Errors. Eliminate a Suspense Account Balance and
Redraft a Trial balance
The following Trial Balance was extracted from the double entry books of Calverton Ceramics
as at the month end 31 Jan 201Y. On listing the ledger account balances the bookkeeper of
Calverton Ceramics found that debit balances did not agree with credit balances. The amount
necessary to make the Trial Balance totals agree was added to the Trial Balance as a
Suspense Account balance:
Calverton Ceramics
Trial Balance as at 31 Jan 201Y
Ledger Account
DR
£
50
Bank Charges
Bank Overdraft
Bank Loan
Capital
Cash
Drawings
Fixtures & Fittings
Heat & Light
Motor Vehicles
Purchases
Purchase Ledger Control
Purchase Returns
Rent
Sales
Sales Ledger Control
Sales Returns
Telephone
VAT
Vehicle Expenses
Suspense (difference in books)
200
1,000
2,500
328
8,000
6,107
CR
£
2,500
5,000
10,000
3,330
900
1,201
9,894
12,680
1,810
850
1,316
36,042
Totals
1,701
2,717
36,042
An investigation into the reason for the difference between the debit balances and credit
balances as at 31 January 201Y revealed the following bookkeeping errors:
1. A table (fixtures and fittings) purchased for use in the meeting room at a cost of
£594 (including VAT at 20%) was incorrectly posted in the books as follows:
Debit – Purchases Account £495
Debit – VAT Account £99
Credit – Bank Account £594
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 6
2. In balancing off the Purchase Returns Account the bookkeeper made an
arithmetic error, as a result the balance on the account was understated by
£104.
3.
A cheque received for £1,584 in respect of cash sales (inclusive of VAT at 20%)
was incorrectly posted in the books of account as follows:
Debit – Bank Account £1,584
Debit – Sales Account £1,320
Credit – VAT Account £264
4. Cash drawings of £596 were correctly credited to the Cash Account but debited
to the Drawings Account as £569.
REQUIRED:
You are required to complete the following tasks:
Task A – Prepare the Journal entries required to correct the bookkeeping errors listed
above. Your Journal entries should be dated 31 January 201Y and include a suitable
narrative.
(8.5 marks)
Task B – Enter the difference in books balance as at 31 January 201Y into the Suspense
Account provided in the Answer Booklet.
(1 mark)
Task C – Post the Journal entries prepared to correct errors in Task A above to the
following accounts which are provided in the Answer Booklet. Date your postings
31 January 201Y:






Suspense Account
Drawings Account
Purchases Account
Purchase Returns Account
Sales Account
Fixtures & Fittings Account
Note – The Drawings Account, Purchases Account, Purchase Returns Account, Sales Ledger
Control Account, Sales Account and Fixtures & Fittings Account, show the balances (as listed
on the Trial Balance before the correction of any errors) brought forward (b/f) as at 31 Jan
201Y
(4 marks)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 7
Task D – Show the elimination of the Suspense Account Balance as at 31 Jan 201Y by
closing off the account . Balance off the following accounts as at 31 January 201Y bringing
down the corrected account balances as at that date - Drawings Account, Purchases
Account, Purchase Returns Account, Sales Account and Fixtures & Fittings Account .
(4 marks)
Task E – Redraft the Trial Balance of Calverton Ceramics as at 31 Jan 201Y which is
provided in the Answer Booklet. The redrafted Trial Balance should show the account
balances having corrected the bookkeeping errors as per Task A above. Balances on ledger
accounts, other than those on the Drawings Account, Purchases Account, Purchase Returns
Account, Sales Account and Fixtures & Fittings Account have already been entered on the
Trial Balance for you.
(6 marks)
Note: The following proformas are provided for your use in completing the above tasks:
 General Leger (extract) – Suspense Account, Drawings Account, Purchases
Account, Purchase Returns Account, Sales Account and Fixtures & Fittings
Account (see pages 6 and 7 of your Answer Booklet)
 Journal (see page 5 of your Answer Booklet)
 Trial Balance (see page 8 of your Answer Booklet)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 8
Maintaining Control Accounts
Question Two
Today’s date 31 January 201Y and you work for Walton Wood Suppliers. This business is
registered for VAT.
The business maintains a double entry bookkeeping system. The personal accounts of
customers and suppliers are kept as memorandum accounts in the subsidiary Sales Ledger
and Purchase Ledger respectively. A Sales Ledger Control Account and Purchase Ledger
Control Account are kept in the General Ledger as part of the double entry bookkeeping
system. At the end of each month the balances from the two control accounts are
reconciled with the balances on the personal accounts of customers and suppliers from the
Sales Ledger and Purchase Ledger. A VAT Control Account is also kept in the General
Ledger.
Transactions are posted to the Control Account from totals extracted from the books of
Prime Entry. The books of Prime Entry consist of four Day Books, the Cash Book and the
Journal.
Your colleague at Walton Wood Suppliers says he has already made all postings for the
month of January 201Y to the customer and supplier personal accounts in the subsidiary
Sales ledger and Purchase Ledger. The accounts have been balanced off as at 31 January
201Y. He has provided you with the following list of personal account balances as at 31
January 201Y:
Walton Wood Suppliers – Schedule of Debtors (Complete)
Amderside
Calverton Construction
Darley Dale Timber Yard
Matlock Manufacturing
Tim’s Timber Yard
31 January 201Y
£
958
2,154
1,457
680
350
Walton Wood Suppliers – Schedule of Creditors (Complete)
A J Booth
B Darlington Ltd
Farnborough Firewood
M Evans Ltd
South Firewood Supplies
31 January 201Y
£
560
90
125
354
205
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 9
Provided below are details of the balances on the Sales Ledger Control Account, Purchase
Ledger Control Account and VAT Control Account from the General Ledger of Walton Wood
Suppliers as at 1 January 201Y. These balances appear within the ledger accounts as
balances brought down in the General Ledger provided (see page 11 of the Answer Booklet)
Walton Wood Suppliers – Control Account Balances Brought Down
as at 1 January 201Y
Control Account
Sales Ledger Control Account
Purchase Ledger Control Account
VAT Control Account
£
4,741
1,987
(CR) 750
The following totals are extracted from the Day Books of Walton Wood Suppliers as at the
month end 31 January 201Y:
Walton Wood Suppliers – Totals Extracted from the Day Books
as at 31 January 201Y
£
Sales Day Book - Sales on credit
Purchase Day Book - Purchases on credit
Sales Returns Day Book - Sales returns
Purchase Returns Day Book - Purchase returns
8,460
3,390
960
840
The Cash Book of Walton Wood Suppliers was balanced off as at 31 January 201Y and totals
of amounts received from credit customers and paid to credit suppliers, together with cash
discounts allowed and received in January 201Y, have already been posted into the Sales
Ledger Control Account and Purchase Ledger Control Account in the General Ledger. The
totals of VAT on cash sales and cash purchases in January 201Y have also already been
posted as at 31 January 201Y from the Cash Book to the VAT Control Account in the General
Ledger. You can assume that all goods sold and purchased on credit were inclusive of VAT
as the standard rate.
REQUIRED:
You are required to complete the following tasks:
Task A – Make postings of totals from the Day Books above, as at 31 January 201Y, to the
Sales Ledger Control Account, Purchase Ledger Control Account and VAT Control Account in
the General Ledger provided. Please note that the Sales and Sales Returns Day book and
Purchase and Purchase Returns Day book figures provided above are all inclusive of VAT at
the standard rate of 20% and you are required to calculate the correct amount to enter into
the VAT control account.
(8 marks)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 10
Task B – Balance off each of the three Control Accounts in the General Ledger, as at 31
January 201Y, bringing down the account balances as at that date.
(4 marks)
Task C – Prepare a reconciliation of the balances from the Sales Ledger Control Account
and Purchase Ledger Control Account as at 31 January 201Y, with the balances from the
personal accounts of customers and suppliers from the subsidiary Sales Ledger and
Purchase Ledger as at that date.
(4 marks)
Note: The following proformas are provided for your use in completing the above tasks:

Sales Ledger and Purchase Ledger Control Accounts (see page 9 of your
Answer Booklet)

Value Added Tax (VAT) Control Account (see page 9 of your Answer
Booklet)

Forms for the reconciliation of the personal account balances to the
control account balances (see page 10 of your Answer Booklet)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 11
Processing Ledger Transactions and Extracting a Trial Balance
Question Three
You work for Johnson Aquatics and the business is registered for VAT.
Books of account are kept on a double entry basis. A General Ledger and Cash Book are
maintained as part of the double entry bookkeeping system.
The personal accounts of trade debtors and trade creditors are kept in the subsidiary Sales
Ledger and subsidiary Purchase Ledger respectively. The personal accounts of trade debtors
and trade creditors are kept only as memorandum accounts and are therefore outside the
double entry system. Sales Ledger and Purchase Ledger Control Accounts are kept within
the General ledger.
Invoices and credit notes issued and received are listed in the appropriate Day Books. At the
end of each week of trading the Day Books are totalled and postings are made into the
bookkeeping system. You are provided with an extract of the Day Book totals.
The Cash Book is kept in analysed format and separate pages are kept for the purpose of
recording and analysing receipts and payments. At the end of each week the Cash Account
and Bank Account columns of the Cash Book are balanced off and all other analysis columns
are totalled. Postings of totals from the analysis columns are then made into the books of
account.
The Petty Cash Book is kept in analysed format. At the end of each week the Petty Cash
Book is balanced off and all analysis columns are totalled. Postings of totals from the
analysis columns are then made into the books of account.
You are also presented with the General Ledger accounts on pages 13 to 18 of your answer
booklet.
You are provided below with extracts from the Day Books of Johnson Aquatics for the
week ended 31 January 201Y.
Walton Wood Suppliers – Totals Extracted from the Day Books as at 31 January
201Y
Sales Day Book - Sales on credit
Purchase Day Book - Purchases on credit
Sales Returns Day Book - Sales returns
Purchase Returns Day Book - Purchase returns
Total
£
18,000
6,600
2,220
540
VAT
£
3,000
1,100
370
90
Net
£
15,000
5,500
1,850
450
You are also provided with the receipts and payments pages of the analysed Cash Book of
Johnson Aquatics for the week ended 31 January 201Y (see pages 15 and 16 of this
Question Booklet). The Cash Book has been balanced off.
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 12
You are also provided with the petty cash book (see page 17 of this Question Booklet) which
has also been balanced off.
General Ledger Account balances – as at 24 January 201Y
GENERAL LEDGER
Bank Deposit
Balance b/down
24 Jan 201Y
15,000
Capital
35,150
Carriage Inwards
3,788
Drawings
3,005
Gas & Electricity
562
Miscellaneous Expenses
1,950
Petty Cash
150
Postage & Stationery
401
Purchases
8,029
Purchase Ledger Control
5,699
Purchases Returns
670
Rent
2,000
Sales
27,765
Sales Ledger Control
15,900
Sales Returns
980
Stock
7,580
Telephone
293
VAT (Credit balance)
4,080
Vehicles
7,098
Wages
2,980
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 13
REQUIRED:
You are required to complete the following tasks:
Task A – Post the General Ledger Account balances on page of 13 of this question paper to
the ledger accounts provided in your answer booklet (pages 11 to 15)
Task B – Post the totals extracted from the Day Books provided on page 12 of this question
paper to the following accounts in the General Ledger – Sales Ledger Control Account, Sales
Account, Sales Returns Account, VAT Control Account, Purchase Account, Purchase Returns
Account and Purchase Ledger Control Account.
(3 marks)
Task C - Make postings of totals, as at 31 January 201Y, from the analysed Cash Book
receipts page into the following accounts in the General Ledger – Sales Ledger Control
Account, VAT Control Account, Sales Account and Capital Account.
(4 marks)
Task D – Make postings of totals, as at 31 January 201Y, from the analysed Cash Book
payments page to the following accounts in the General Ledger – Purchase Ledger Control
Account, VAT Control Account, Wages Account, Purchases Account, Miscellaneous Expenses
Account, Rent Account and Telephone Account.
(6 marks)
Task E – Make postings of totals, as at 31 January 201Y, from the Petty Cash Book to the
following accounts in the General Ledger –VAT Control Account, Postage & Stationery
Account and Miscellaneous Expenses Account.
Task F – Balance off all the accounts within the General Ledger as at 31 January 201Y
bringing down the account balances as at that date.
(7 marks)
Task G – Prepare the Trial Balance provided on page 16 of the Answer Booklet thereby
proving the arithmetic accuracy of the double entry records as at 31 January 201Y. To
prepare the Trial Balance you will need to list the closing balances brought down on each of
the accounts in the General Ledger, you will also need to list the closing Cash Account,
Bank Account and Petty Cash Account balances per the analysed Cash Book and the Petty
Cash Book.
(11 marks)
Note: The following proformas are provided for your use in completing the above tasks:

General Ledger Accounts (see pages 11 to 15 of your Answer Booklet)

Trial Balance (see page 16 of your Answer Booklet)
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 14
Walton Wood Suppliers
Cash Book - Receipts
201Y
Details
Page 15
24 Jan
Balance B/f
24 Jan
Capital
25 Jan
Cash Sales
25 Jan
Cash to bank
29 Jan
New Vale Pet Shop
31 Jan
Cash
Bank
£
100
£
3,548
VAT
Sales
Capital
Contra
£
£
£
£
5,000
215
£
3,648
1,075
1,000
1,000
985
985
1,390
10,533
985
42
2,966
Page 15
Balances
5,000
1,290
Balance b/d
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Debtors
SL
Control
£
215
1,075
5,000
1,000
3,648
3,008
Walton Wood Suppliers - Cash Book – Payments
Page 16
201Y
Details
Cash
£
Bank
£
24 Jan
Severn Stock Ltd
24 Jan
Purchases
24 Jan
Wages
25 Jan
Rent
450
26 Jan
Telephone UK
189
26 Jan
Cash to Bank
27 Jan
Vehicle Tax
28 Jan
Wages
29 Jan
Northern
Manufacturers
30 Jan
Purchases
31 Jan
Balance c/d
Creditors
PL
Control
£
698
VAT
£
Purchases Wages
£
£
Misc
Expense
£
Rent
£
Telephone Contra Balances
£
£
£
698
78
13
65
2,750
2,750
450
189
1,000
1,000
90
90
180
180
2,490
2,490
990
42
2,966
1,390
10,533
208 Exam L2 Bookkeeping QCF Jan 2012 QP
165
825
3,008
3,188
Page 16
178
890
2,930
90
450
189
1,000
3,008
Carlton Cotton – Petty Cash Book
Receipts
Date 201Y
Details
Voucher
No
Total
Payment
VAT
£
150
£
£
6
Page 17
24 Jan
Balance b/f
24 Jan
Ornaments for reception
0311
36
25 Jan
Parcel
0312
3
3
27 Jan
Stamps
0313
6
6
29 Jan
Paper
0314
12
2
10
29 Jan
Envelopes
0315
24
4
20
31 Jan
Stamps
0316
7
88
31 Jan
150
62
Expenditure Analysis
Postage &
Misc Expenses
Stationery
£
£
31 Jan
Balance c/d
62
Totals
150
Balance b/d
208 Exam L2 Bookkeeping QCF Jan 2012 QP
Page 17
30
7
12
46
30