Introduction

Level 3 Diploma in Accounting Skills Check

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This assessment contains 5 Tasks and you should attempt EVERY Task.

Read each task carefully to make sure you understand what is required.

Both minus signs and brackets can be used to indicate negative numbers UNLESS the task states otherwise.

Numerical answers MUST NOT include any blank spaces and you MUST use a full stop to indicate a decimal point. For example, write 999.99 and NOT 999,99 or 999 99.

You may use a comma to indicate thousands, but you don’t have to. For example, 150000 and 150,000 are both acceptable.

Once saved, you will be able to restore or remove your most recent data should you need to reload the assignment at a future point.

Details
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Task 1

Task 1a

Here are the cashbook totals at the end of January 20XX:

DR - Receipts
Payments - CR
Cashbook Totals
Cash Bank VAT Trade Receivables Cash Sales Cash Bank VAT Trade Payables Cash Purchases
£622 £4,230 £80 £26,104 £400 £622 £4,230 £40 £12,325 £200

The cashbook forms part of the double entry system. Show the entries needed for the general ledger:

Account Name Amount Debit / Credit
£
£
£
£
£
£

Task 1b

Transfer each of the balances listed to the correct side of the trial balance and calculate the totals for debits and credits.

Account Name Balance Debit Credit
Admin expenses £37,350
£
£
Bank £6,010
£
£
Capital £26,000
£
£
Motor Vehicle £30,550
£
£
Purchases £183,600
£
£
Payables Ledger control £34,260
£
£
Rent and rates £14,625
£
£
Sales £253,690
£
£
Receivables ledger control £21,480
£
£
Travel Expenses £20,335
£
£
TOTALS
£
£

 

Task 2

Premier Trading pays its employees through the bank every month and maintains a wages control account. A summary of last month’s payroll transactions is shown below.

Item Amount
Gross wages £200,000
Income Tax £27,122
NIC employee £21,789
NIC Employer £16,228
Pension Employee £10,000
Pension Employer £10,000

Record the journal entries needed in the general ledger to:

Task 2a

Record the wages expense.

Account Name Amount Debit / Credit
£
£

Task 2b

Record HMRC liability.

Account Name Amount Debit / Credit
£
£

Task 2c

Record net wages paid to the employees.

Account Name Amount Debit / Credit
£
£

Task 2d

Record the pension fund liability.

Account Name Amount Debit / Credit
£
£

 

Task 3

Task 3a

A payment by cheque for window cleaning for £105.00 has been entered in the relevant accounts as £150.00. The window cleaner is not registered for VAT.

Record the journal entries needed in the general ledger to remove the incorrect entry.

Account Name Amount Debit / Credit
£
£

Record the journal entries needed in the general ledger to record the correct entry.

Account Name Amount Debit / Credit
£
£

Task 3b

Identify the type of cost behaviour (fixed, variable or semi-variable) from the details given below. Indicate which is which by selecting the relevant column of the table below.

Statement Fixed Variable Semi - variable
At 800 units, costs are £32.50 per unit
At 1000 units, costs are £26 per unit
At 800 units, costs are £20,000
At 1000 units, costs are £23,000
At 800 units costs are £19,600
At 1000 units costs are £24,500

 

Task 4

Task 4a

Total factory activity for the period is forecast as follows:

Overheads £117,000
Labour Hours 7,500
Machine Hours 3,000
Units 25,000

Complete the following table showing the possible overhead absorption rates that Aldrin Ltd could use. You should calculate your answers to 2 decimal places.

Unit Labour Hour Machine Hour
Overheads
£
£
£
Activity
Absorption Rate
£
£
£

Task 4b

The following data relates to a single unit of the product:

Direct Materials 2 litres at £15 per litre
Direct Labour 15 Minutes at £15 per hour
Machine Time 10 minutes

Complete the table below to calculate the total unit cost, using the three overhead absorption rates you have calculated in task 3a.Calculate figures to two decimal places.

Cost Unit Labour Hour Machine Hour
Material
£
£
£
Labour
£
£
£
Direct Cost
£
£
£
Overheads
£
£
£
Total Unit Cost
£
£
£

 

Task 5

Task 5a

Select the correct words which are missing in the sentences below.

are two directors who want to discuss

proposals.

coming to see you this afternoon.

Task 5b

Select the correct words which are missing in the sentences below.

Over the past

years,

many transactions have been posted

the Sundry Expenses a/c.

Task 5c

Select the correct word to complete the sentence.

It was not clear

the business would make a profit this year.

Task 5d

Select the correct word to complete the sentence.

The directors wished they could

done better.

 

Submit

Assignment Complete

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