AIN2601 EXAM PACK

AIN2601 EXAM PACK . Practical Accounting Data Processing. Maria is the owner of All fresh bakery (Pty) Ltd. The bakery commenced two years ago, just after she resigned from her job and used the money to start the business. Maria has a small team of employees in the bakery who are involved in the operations of the bakery. All fresh bakery (Pty) Ltd produces different kinds of products, such as loaves of bread (white and brown separately), biscuits and cakes. All fresh bakery (Pty) Ltd has managed to secure several customers, such as supermarkets and individual customers with the aid of media advertisements. Orders are placed a day before by customers who will contact the bakery either telephonically or by coming to the bakery. Daily orders are grouped together and then recorded on the computer at the same time (usually just before close of business), using a simple spreadsheet. The baking-machine can only produce a limited number of products per day. On a daily basis, All fresh bakery (Pty) Ltd will produce batches of similar products, one after another. Each morning All fresh bakery (Pty) Ltd produces different kinds of products to meet the specific demand, according to the previous day’s orders. The bakery has one computer. Maria uses an Accounting Information System (AIS) and updates sales orders on a weekly basis. The sales orders reports are extracted periodically from the Computerised Information System (CIS). Maria is currently the only person who is managing the AIS, however she would like to add additional users to system to assist her with some of the administrative tasks. Maria’s desire is to train her employees so that they are multiskilled and can operate at different levels within the organization. In doing this, she will not need to employee too many additional people to perform a variety of functions within the organisation. Required: Refer to the case study above and answer the following questions. 3.1 Which type of processing method will you recommend to All fresh bakery to arrange their daily orders into different categories? (2) 3.2 Briefly explain to Maria how segregation of duties will be transferred to the AIS, if Maria were to move away from keeping accounting records in the manual paper environment. (2) Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 7 of 18 [TURN OVER] 3.3 According to the above scenario, which processing output method will you recommend for All fresh bakery (Pty) Ltd and why? (3) 3. 4 Explain to Maria in four (4) points, why it would be to her benefit to implement a database environment. (4) 3.5 Please advise Maria, how can All fresh bakery (Pty) Ltd use data mining to support their business operations? (1) 3.6 Name and explain, which functional Management Information System (MIS) subsystem, Maria can use to support her future company objectives. (2) 3.7 Advise Maria of the potential consequences that most relevant to the bakery because of a security breach or unauthorized modifications to her spreadsheets. (4) [18] Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 8 of 18 [TURN OVER] QUESTION 4 (33 Marks) Regals Nails is a popular nail shop which sells nail care products like nail polish, nail clippers and nail polish remover to the public. Jerry, the owner of Regals Nails is also an accountant, and he uses Pastel Partner to record the business transactions. Regals Nails’ 2021 financial year ends on the last day of July 2021, and the business is a registered VAT vendor. The current VAT rate is 15%. Regals Nails has only one customer (Tom) that is allowed to buy on credit. Tom qualifies for 5% early payment discount (also called settlement discount) if full payment is received within 10 days from period end. Tom always: • makes only one payment per period • fully pay his outstanding amount within 10 days from period end • deduct the early payment discount from his payment. The following is a screen print from Regal Nails Pastel Partner accounting software: Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 9 of 18 [TURN OVER] QUESTION 4 (continued) Required: 4.1. Refer to the Pastel Partner screen print on the previous page to answer the following questions: 4.1.1 Which Pastel Partner Main menu will you use to renumber inventory items (1) 4.1.2 Which Pastel Partner Main menu will you use to create passwords for users? (1) 4.1.3 Which Pastel Partner Main menu will you use to restore a backup file? (1) 4.1.4 Which Pastel Partner Main menu will you use to create inventory categories? (1) 4.1.5 Which Pastel Partner Main menu will you use to change user processing options? (1) 4.2. Refer to the Pastel Partner screen print and the case study information on the previous page and answer the following questions: 4.2.1. What is the maximum number of different cash books (bank accounts) that can be created in Pastel Partner? (1) 4.2.2. When performing the bank reconciliation Pastel allows three methods as “search sequence”. List two (2) of these methods. (2) 4.2.3. What does each of the letters ‘G’, ‘C’ and ‘S’ represent in the “GCS” column of the receipt cash book journal? Your answer should indicate the letter as well as what it represents. (3) 4.2.4. Assuming there are no payment transactions, what would the bank balance be in the general ledger if the current receipt journal batch were to be updated as it currently is? Your answer should indicate whether the balance is a debit or a credit balance. (3) Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 10 of 18 [TURN OVER] QUESTION 4 (continued) 4.2.5. Which ‘button’ will be used to move money from the ‘ABSA Bank’ cash book to the ‘petty cash’ cash book? (1) 4.2.6. What does the letter ‘N’ in the “R” column of the receipt cash book journal indicates? (1) 4.3. Refer to the Pastel Partner screen print, especially the transaction for TOM001 (line 4) and the case study information. 4.3.1. Jerry always reviews the transactions before updating the batch and according to him the transaction for TOM001 (line 4) is not correctly recorded. The amount received in the bank account from customer TOM001 was R8740. Refer to the case study information. Draw the table below in your answer book. Now use this table to write the correct data entries with regards to TOM001 (line 4) only for the data fields indicated in the table below. Show the detail of any calculations as part of your answer. (4) Bank inclusive Discount 4.3.2. The trial balance of Regal Nails gave you the following additional general ledger account numbers and account descriptions. Account number Account description 8000/000 Customer Control Account 9000/000 Supplier Control Account 9500/000 Vat / Tax Control Account 1000/000 Sales 3400/000 Early payment discount received 5800/000 Early payment discount granted Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 11 of 18 [TURN OVER] QUESTION 4 (continued) Draw the table below in your answer book. Use this table to record the accounting entries into the general ledger master file for the correct TOM001 (line 4) transaction, as reflected on the Pastel Partner screen on the previous page and taking your answer in question 4.3.1 into account. Note: You should show all the applicable accounting entries. General ledger account number Debit / Credit Amount Tip: draw the T-accounts for yourself as rough work in your answer book to help ensure your debits and credits are correct. (12) 4.4 What is the maximum number of customer categories you can create in Pastel Partner? (1) [33] Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 12 of 18 [TURN OVER] QUESTION 5 (27 Marks) Hot Drink Haven (Pty) Ltd (HDH) is a retail company that is located in Bethlehem (Free State) and specialises in hot drink sales to various clients. They sell several products, however they wanted to analyse the products that yield the most income for the company. HDH have identified five (5) main product combos namely, Hot Chocolate, Chai Latte, Hazelnut Latte, Cappuccino and Café Mocha. Every product combo has a unique code (Combo code) to assist in identifying each combo. HDH is a registered VAT vendor and charges VAT on goods and services at 15%. Each Product combo is quite popular in a specific region and as a result, HDH delivers these hot drink Product combos to their clients in these regions. Due to the rising fuel prices in the country, HDH has included additional costs for each Product combo to make up a Package combo. These costs include the Combo price, Delivery fee which is dependent on the distance travelled as well as Travelling insurance when travelling to these specific regions. A “DL” rate is used in the determination of the Delivery fee and is based on the distance in km from Bethlehem. In the hope of further analysis, HDH would has decided to develop a New combo code to isolate these high selling Product combos. HDH’s management team has learnt of your MS Excel skills and needs your assistance in understanding the data provided in the spreadsheet for the month of September 2021. You were issued with the following spreadsheet below. THE FOLLOWING IS APPLICABLE TO QUESTION 5 & 6 ~Please leave a line open after each individual question. ~You used the Excel Help function to obtain the following formula structures which might come in handy when answering question 5 & 6: • =VLOOKUP(lookup_value,table_array,col_index_num,range_lookup) • =PMT(rate,nper,pv,fv,type) • =FV(rate,nper,pmt,pv,type) • =PV(rate,nper,pmt,fv,type) Downloaded by: | Distribution of this document is illegal lOMoARcPSD| CONFIDENTIAL Page 13 of 18 QUESTION 5 (Continued) Downloaded by: | Distribution of this document is illegal lOMoARcPSD| CONFIDENTIAL Page 14 of 18 [TURN OVER] QUESTION 5 (Continued) HDH’s management team also provided you with the following additional information: a) The company makes use of 15% VAT (refer to cell B5). b) There are five (5) Product combos, each with a unique combo code. c) The structure for the Combo code consists of sixteen (16) characters. The Combo code is a combination of the Delivery code, Location code, Manufacturing year, and Active ingredient code. The Combo code structure is as follow: 1 2 3 4 5 6 7 8 9 10 16 X X X X X X X X X X X X X X X X Characters 1 to 3 : The Delivery code Character 4 : Hyphen / Dash ( - ) Characters 5 to 7 : The Location code Character 8 : Hyphen / Dash ( - ) Characters 9 to 12 : The Manufacturing year Character 13 : Hyphen / Dash ( - ) Characters 14 to 16 : The Active ingredient code d) The Location code for each Product combo, helps to identify the Province code. The Location code is found in the Province location table and matches to the Province code (refer to cells D3:F9). e) The Province code assists in confirming the province name as well as the distance (km) from the headquarters in Bethlehem to the various regions as shown in the Province and distance table (refer to cells E11:G17). f) The Distance in km (refer to row 24), depicts the distance from the main store in Bethlehem, to each specific region. g) The structure of the New combo code (refer to row 26) consist of ten (10) characters. It is made up of the Active ingredient code, the Province code, and the Location code as well as special characters in between. Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 15 of 18 [TURN OVER] QUESTION 5 (Continued) The New combo code structure is as follow: 1 2 3 4 5 6 7 8 9 10 X X X X X X X X X X Characters 1 to 3 : The Active ingredient code Character 4 : Hyphen / Dash ( - ) Characters 5 to 6 : The Province code Character 7 : Hashtag ( # ) Characters 8 to 10 : The Location code h) The Combo price incl VAT (refer to row 29), is the base price to the client, before any other fees and costs are applied. i) The Delivery fee (refer to row 30) for each Product combo is calculated by applying a “DL rate” to the Combo price excl VAT (refer to row 28). The “DL rate” is dependent on the Distance in km and is located in the Deliver rate table (refer to cells A7:B10). j) The DL rate of 25% (refer to cell B9) will be applied for distances of 650km or less that are travelled for any trip. Any distances travelled beyond 650km will attract a DL rate of 36% (refer to cell B10). k) The Travelling insurance (refer to row 31) is a flat rate for travel to and from all regions. l) The Package combo (refer to row 32), is made up made up of the Combo price incl VAT, Delivery fee (refer to row 30) and the Travelling insurance (refer to row 31). Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 16 of 18 [TURN OVER] QUESTION 5 (continued) Required: Use the information provided to answer the following questions based on the spreadsheet and additional information provided to you: Note: Where it is indicated that your formula will be copied to other cells, your formula must take absolute and relative references into account, but only where necessary! 5.1 Which spreadsheet formula was entered into cell C21 to extract the Location code from the Combo code for the Hot Chocolate Product combo? Note: Your formula will be copied to cells D21:G21. (2.5) 5.2 Which spreadsheet formula was entered into cell C22 to obtain the Province code from the Province location table (refer to D3:F9) for the Hot Chocolate Product combo? Note: Your formula will be copied to cells D22:G22. (3.5) 5.3 Which spreadsheet formula was entered into cell C24 to determine the Distance in km from the Province and distance table (refer to E11:G17) for the Hot Chocolate product combo? Note: Your formula will be copied to cells D24:G24. (3.5) 5.4 Which spreadsheet formula was entered into cell C26 to create the New combo code for the Hot Chocolate product combo? Note: Your formula will be copied to cells D26:G26. (6) 5.5 Which spreadsheet formula was entered into cell C29 to calculate the Combo price incl VAT for the Hot Chocolate product combo? Note: Your formula will be copied to cells D29:G29. (1.5) 5.6 Which spreadsheet formula was entered into cell C30 to determine the Delivery fee for the Hot Chocolate product combo? Note: Your formula will be copied to cells D30:G30. (4.5) 5.7 Which spreadsheet formula was entered into cell H34 to calculate the Total package combo incl VAT for the month of September 2021? The formula must be rounded to zero decimal digits. (3.5) 5.8 Which spreadsheet formula was entered into cell H35 to determine the Highest selling package combo incl VAT for the month of September 2021? (2) [27] Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 17 of 18 [TURN OVER] QUESTION 6 (6 Marks) The management team of Hot Drink Haven (Pty) Ltd (HDH) is in the market to purchase a new delivery vehicle for the company. The delivery vehicle will be primarily used for transporting the different Product combos to the respective regions. The new delivery vehicle will also assist in increasing the company sales by providing more frequent trips, carrying larger stock quantities. HDH has found the most appropriate vehicle and is willing to make a loan to purchase the new vehicle. They will pay off the loan using monthly instalments. Furthermore, HDH would like to allocate a portion of the income that was gained from each Product combo to be able to cover the monthly instalment. HDH must first determine each Product combo’s Package combo (incl VAT) as a proportion % of the Total package combo (incl VAT). This will assist them in calculating the Allocated monthly instalment proportion for each Product combo. HDH’s management team requires your assistance to determine the allocated monthly payment portion for each Product combo. You were issued with the following analysis spreadsheet report pertaining to the decision: Downloaded by: | Distribution of this document is illegal lOMoARcPSD| AIN2601 SEP/OCT 2021 CONFIDENTIAL Page 18 of 18 [TURN OVER] QUESTION 6 (continued) HDH’s management team also provided you with the following additional information: a) The Term of the loan repayment (refer to cell B5). b) The Interest rate per annum of the loan (refer to cell B6). c) The Purchase price (incl VAT) of the vehicle (refer to cell B7). d) The New combo code found (refer to row 13). Please note, this structure is the same structure as referred to in Question 5. e) The Package combo incl VAT for each Product combo (refer to cell B15:F15). f) The Active ingredient code for each product combo (refer to row 16). g) The Proportion % for each Product combo (refer to cell B17:F17). The Proportion % is derived from the Package combo incl VAT (refer to cell B15:F15) for each Product combo and is expressed as a percentage of the Total package combo incl VAT (refer to cell G15). h) The Allocated monthly instalment portion per Product combo (refer to cells B18:F18). Note. The sum of Allocated monthly instalment portion for each Product combo, makes up the total monthly instalment payable for the loan (refer to cell G18) i) All payments are made at the end of each month and the loan will be paid back in full at the end of the term. Required: Use the information provided to answer the following questions based on the spreadsheet provided to you: Note: Where it is indicated that your formula will be copied to other cells, your formula must take absolute and relative references into account, but only where necessary! 6.1 Which spreadsheet formula was entered into cell B18 to calculate the Allocated monthly instalment proportion for the Hot Chocolate Product combo? Note: Your formula will be copied to cells C18:F18 (6) [6] © UNISA 2021 Total [100] Downloaded by: | Distribution of this document is illegal lOMoARcPSD| QUESTION 1 1. D 2. C 3. D 4. C 5. D 6. B 7. C 8. A QUESTION 2 2.1. TRUE 2.2. FALSE 2.3. TRUE 2.4. FALSE 2.5. TRUE 2.6. FALSE 2.7. FALSE 2.8. FALSE QUESTION 3 3.1. Classifying data. 3.2. Segregation of duties in the accounting department must be transferred to the AIS by setting up appropriate users and passwords. The setting up of a user means the supervisor selects which functions can be performed by each of the individual users and also allocates a specific password to each user. 3.3. Batch processing Transactions stored in the transaction files, for example daily orders, are used to update the fields in the master file daily. Batch processing is the posting of one or a group of similar transactions, for example similar orders, all at one time. 3.4. Reduce data redundancy. The file based data management systems contained multiple files that were stored in many different locations in a system or even across multiple systems. Because of this, there were sometimes multiple copies of the same file which lead to data redundancy.