Computerised accounting

Sue Pope

• Unit within Level 2 Certificate in Accounting

• Locally assessed– AAT computer based project (CBP)– Work place evidence, or– Recognition of prior learning (RPL)

• Study and assessment guides (SAG) provides full details of unit content and guidance on delivery

• The CBP can be done using any accountingpackage that performs the procedures outlined inthe guidance

Overview

• Enter accounting data at the beginning of an accounting period

• Record customer transactions• Record supplier transactions• Record and reconcile bank and cash transactions• Be able to use journals to enter accounting

transactions• Produce reports• Maintain the safety and security of data held in the

computerised accounting system

Standards – Learning outcomes

• Assessment criteria are more specific and are all skills based

• No requirement to:– describe risks to data and procedures used for data

protection– describe sources and characteristics of data etc.– use IT tools to process period end routines and check data

records– import and export data

Standards – significant changes

New requirements: • process recurring receipts and payments• produce specific reports for customers and

suppliers, including remittance advice notes• produce specific reports from the nominal ledger,

including audit trail• use a software password to protect accounting

information

Standards – significant changes

• Single section

• 2 hour time allowance to complete, additional 1 hour permitted for administration

• Requirement to print, alternatives acceptable

• Screen shots required to evidence certain assessment criteria

• Reduction in amount of printing – checklist for candidates

The assessment – overview

• At the start of the assessment:– Set up details to be entered – training providers may assist – Give candidates copy of pre-determined nominal ledger

codes– Ensure candidates know which back up medium

to use– Ensure candidates know whether to print or use an

alternative to print

• Instructions in assessment book for submission of assessment

The assessment – overview

• All assessment criteria will be tested

• 14 tasks, based on a business situation, which include: – Set up of customer/supplier records– Set up of nominal ledger accounts– Processing transactions– Bank reconciliation– Password protection– Back up– Production of reports

The assessment – content

Refer to the customer listing below and set up customer records to open sales ledger accounts for each customer, entering opening balances at 1 May 20XX.

Example assessment task – set up customer/supplier records

Customer name and address

Customer account code

Customer account details at 1 May 20XX

Fraser Designs291 Tower WayStottonST7 4PQ

FRA001Opening balance: £2,017.60Payment terms: 30 days

Customer listing

Example – Refer to the list of nominal ledger accounts below:

• Set up nominal ledger records for each account, entering opening balances at 1 May 20XX and making sure you select, amend or create appropriate nominal ledger account codes.

• Generate a trial balance, check the accuracy of the trial balance and, if necessary, correct any errors. You do not need to print the trial balance.

Example assessment task – set up nominal ledger accounts

Example assessment task – set up nominal ledger accounts, continued

Account names Debit balance

£

CreditBalance

£Motor vehiclesBank current accountPetty cashVAT on salesVAT on purchasesCapitalDrawingsSales – kitchen furnitureSales – kitchen equipmentGoods for re-saleSales ledger control* see note belowPurchases ledger control* see note below 

 20,067.104,916.26

68.24 

909.23 

350.00  

224.005,521.70

 

   

 1,497.68 

26,416.85

456.20119.30

  

3,566.50 

Nominal ledger accounts

• Refer to the following purchases invoices and credit notes and enter these transactions into the computer.

Example assessment task – process invoices/credit notes for customers/suppliers

Jackson Builders75 Steven Street, Brigtown, BG5 3PE

VAT Registration No 321 3726 89I N V O I C E N O 5/219 Date: 12 May 20XX Campbell Kitchens47 Landsway RoadStotton, ST4 9TX

£   

Repairs to building 909.25  

VAT @ 20%

181.85  

Total for payment

1091.10  

 Terms: 30 days

(a) Refer to the following summary of payments made to suppliers and enter these transactions into the computer, making sure you print a remittance advice as shown in (b) and allocate all amounts correctly as shown in the details column.

(b) Print a remittance advice to accompany the payment made to Hart Ltd.

Example assessment task – allocate monies received from customers/paid to suppliers

Cheques paid listing

Receipts and payments may also include credit notes

Example assessment task – allocate monies received from customers/paid to suppliers, continued.

Date20XX

Cheque number

Supplier £ Details

12 May24 May

006723006724

Vanstone plcHart Ltd

1,200.001,012.75

Payment on accountPayment of opening balance

• Refer to the following cash sales listing and enter this transaction into the computer.

Cash sales listing

• Various transactions and source documents

Example assessment task – process receipts/payments for non-credit transactions

Date20XX

Payment method

Details Amount

24 May ChequeJL Green – kitchen equipment

£474.00 including VAT

Refer to the following standing order schedule:• set up a recurring entry as shown in the standing

order schedule below• print a screen shot of the screen setting up the

recurring entry• process the first payment.

Example assessment task – process recurring receipts/payments

Standing order schedule

Bank receipts and payments only

Example assessment task – process recurring receipts/payments, continued.

Details AmountFrequency of

paymentTotal number of payments

Payment start date20XX

Payment finishDate20XX

Rent - VAT not applicable

£750One payment

every 2 months3 2 May 2 September

Refer to the following petty cash vouchers and enter these transactions into the computer.

Example assessment task – process petty cash receipts/payments

Petty cash voucher Date 18 May 20XX No PC213  Rail fare VAT not applicable Receipt attached

£37.90

   

Refer to the following journal entries and enter them into the computer.

Example assessment task – process journal entries

Journal entries - 24 May 20XX £ £ Premises insuranceBank Being an error in the amount shown on Kitty Campbell’s e mail of 10 May for premises insurance.  

 10.00

 

  

10.00    

Refer to the following bank statement:

• Enter the bank interest received (no VAT) which has not yet been accounted for.

• Reconcile the bank statement. If the bank statement does not reconcile check your work and make the necessary corrections. You do not need to print a bank reconciliation statement.

Example assessment task – perform a periodic bank reconciliation

Example assessment task – perform a periodic bank reconciliation, continued

Rowley Bank plc

To: Campbell Kitchens

Account number 62082176 31 May 20XX

STATEMENT OF ACCOUNT 

Date 20XX

Details Paid out£

Paid in£

Balance£

01 May Opening balance     4,916.26C01 May Cash 81.76   4,834.50C02 May James Holdings Ltd - Rent 750.00   4,084.50C10 May FH Insurance plc 829.40   3,255.10C12 May Cheque 006723 1,200.00   2,055.10C15 May BACS - SCL Interiors   1,906.50 3,961.60C24 May Cash withdrawn 600.00   3,361.60C25 May BACS - Fry and Partners   1,097.44 4,459.04C28 May Bank interest received   24.20 4,483.24C  

 D = Debit C = Credit

     

(a) Use the password CPAGp1 to protect your accounting data and print a screen shot of the screen showing the entry of the password into the computer.

(b) Use a file name made up of your name followed by CKbackup and back up your work to a suitable storage medium. Print a screen shot of the back up screen showing the file name and location of back up data.

Example assessment task – use a password and back up data

Print the following reports.

• The purchases day book (supplier invoices)

• An aged trade payables analysis

• All sales ledger accounts (customer accounts), showing all transactions within each account

Example assessment task – produce reports

• A trial balance at 31 May 20XX

• The sales ledger control account in the nominal ledger, showing all transactions within the account

• An audit trail, showing full details of all transactions, including details of receipts/payments allocated to items in customer/supplier accounts and details of items in the bank account that have been reconciled

Example assessment task – produce reports, continued

• Assessment is competency based. Candidates are required to enter given data accurately and in accordance with best practice

• The required standard for each task. For example, the number and type of errors allowed, is detailed in the assessor notes

• The number and type of errors allowed, if any, varies according to the task

• Candidates must meet the required standard in 10 of the 14 tasks to be successful

Assessing the candidate’s work

• Most of the evidence required for assessment purposes will be found on the audit trail printed in the final task

• Answers indicative of relevant content within the audit trail will be provided to assist

• Remainder of the evidence required for assessment purposes will be found on other reports printed in the final task and on the screen shots printed during the assessment

• Checklist for candidates at end of assessment

Assessing the candidate’s work

Checklist – example

Documents and reports Task when printed

Remittance advice 7    Screen shot of the recurring entry set up screen 9    Screen shot showing the entry of the password 13    Screen shot showing the file name and location of back up data 13    Purchases day book (supplier invoices) 14    Aged trade payables analysis 14    Sales ledger accounts (customer accounts), showing all transactions within each account

14   

Trial balance at 31 May 20XX 14    Sales ledger control account in the nominal ledger, showing all transactions within the account

14   

Audit trail, showing full details of all transactions, including details of receipts/payments allocated to items in customer/supplier accounts and details of items in the bank account that have been reconciled

14

   

• For competency in the final task, a specified number of reports must be printed

• The content of some of these reports is also required for assessment of other tasks

• If such reports are not printed, assessors can print the relevant reports from the candidate’s back-up copy of the assessment and use them to assess the content of the reports but not to provide evidence of the actual printing of the reports

What if the candidate does not print the reports required for assessment?

• If screen shots are not printed assessors can print them from the candidate’s back-up copy of the assessment and thus assess the content of the screen shots

• In both instances, reports and screen shots, the assessor must make a note on the print out of the action taken and include a note to the Internal Verifier

• Print outs must be available for inspection

What if the candidate has not printed the screen shots required for assessment?

Any questions?

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