[All Rights Reserved]

SLIATE
SRI LANKA INSTITUTE OF ADVANCED TECHNOLOGICAL EDUCATION
(Established in the Ministry of Higher Education, vide in Act No. 29 of 1995)

Higher National Diploma in Accountancy

Fourth Year – 1st Semester Examination- 2016
DA 4104 - Computer Based Accounting

No of pages : 10

Time : Three (03) hours

Group – C
Instructions for the candidates.

Examination No Marks %

Instructions to be followed,
 Mention the date of the question paper in the DD/MM/YYYY format.
 Do not create a folder to save your file.
 Backup file of your company should be saved on your computer desktop. Backup file
should be named by using your examination index number.
 Return the question paper to the examiner before leaving the examination hall.
The accountant who is working in Mineral Water Bottle Distributing Company is going to
introduce accounting software called “Peachtree Accounting- 2010” on 1st March 2016 to record
all the accounting transactions.

1. Create a company using by the following information.

Name of the Company :……………………….( write your examination number)
Business Type : Limited Liability Company
Address : No 111, New Puthlam Road, Anuradhapura.
Country : Sri Lanka
T: P : 0253233414
Fax : 0253233412
Web Site : www.miniwater.com
Email : mw_wa45@gmail.com
Company Creation : Build your own chart of accounts
Account Masking : No
Accounting Method : Accrual Basis
Posting Method : Real Time
Financial Period : 1st April to 31st March on next year
Peachtree Introduced : 01/03/2016
Currency : Rs.

2. Set the following General Ledger default setting:

Rounding Account – Retained Earnings

3. Set the following customer default settings

Net due in days : 30
Discount in days : 18
Discount Percent : 2%
Credit Limit : 1100000
Custom Fields : North West/North East
Pay methods : Cash /Cheque

4. Set the following Sales Tax default settings

Tax Rate : 11%
Agency ID : A001
Agency Name : CGIR
Sales Tax ID : T001
Tax Name : VAT Standard

5. Set the following Vendor default settings

Net due in days : 35
Discount in days : 25
Discount Percent : 3%
Credit Limit : 1300000
Custom Fields : Regional/Account Rep.

DA 4104– Computer Based Accounting-1st Semester- 2016 2

 6. Set the following Inventory default setting
Item Class : Stock item
Costing Method : FIFO
Tax Type : Regular
Custom Field : Order List/Name List
Price Level : 3 Levels

7. Balances as at 29th February 2016.

Trial Balance as at 29th February 2016

Dr. Cr.
Account Description Rs.’000 Rs.’000
ID
1000 Stated Capital 5,250
1100 General Reserve 1,000
1120 Retained Earnings 1,300
1200 Land 9,000
1210 Building 2,500
1220 Motor Vehicle 7,200
1240 Office Equipment 750
1260 Furniture & Fittings 680
1400 Accumulated Depreciation –Building 750
1410 Accumulated Depreciation – Motor Vehicle 1,300
1420 Accumulated Depreciation – Office Equipment 265
1430 Accumulated Depreciation - Furniture & Fittings 240
1500 Long-term Loans 3,500
1600 Accounts Payable ?
1610 Vat Payable 230
1630 Other Current Liabilities 280
1640 Accrued Expense 125
1700 Inventory ?
1710 Account Receivable ?
1720 Prepaid Expenses 42
1800 Sales 27,376
1820 Sales Target Incentives 103
1840 Discount Received 135
1880 Rent Income 63
1900 Cost of Sales 15,920
2050 Depreciation –Building 250
2100 Depreciation – Motor Vehicle 433
2150 Depreciation – Office Equipment 88
2200 Depreciation - Furniture & Fittings 80
2250 Electricity Expenses 64
2300 Income Tax Paid (Year of Assessment 2015/2016) 347
2350 Rent Expenses 75
2400 Insurance Expenses 150
2450 Stationery Expenses 7
2500 Advertising Expenses 23
2550 Bad Debts Expenses 125
2600 Provision for Doubtful debts 110
2650 Discount Allowed 5
2700 Finance Charges 6
DA 4104– Computer Based Accounting-1st Semester- 2016 3
 2800 Interest Expenses 45
3000 Petty Cash 25
3050 Cash In hand 225
3100 Bank – HNB 4,950
3150 Bank – People’s 15,245
3200 Bank - BOC 5,966

8. Details of company budget are as follows

Budget Name : Expenses Budget

Description : Forecasting Expenses Budget
Type : All Accounts
View Fiscal Year : 01/04/2016 -31/03/2017

Account ID Information

MW 1800 April month Rs.2000, 000 sales will be increased by 1% in each month over the
value of April month.

MW 1880 April month Rs.6300 rent income will be increased by 1% quarterly.

MW 2350 April month Rs.6500 rent expenses will be the same for the remaining months.

MW 2400 April month Rs.13650 insurance expenses will remain the same for the entire year.

MW 2500 April month Rs.2000 advertising expenses will be increased by 10% in every
two months.
9. Balances of Account Receivables as at 29th February 2016 are as follows.

Customer CUS 001 CUS 002 CUS 003 CUS 004 CUS 005
ID
Name A & D Groceries Well care More & Barakath Cilantro Restaurant
Pharmacy & More Super Minimart
Grocery Market
Address Main Street, 561/B 23 New No. 51, Co- 84C, No. 117, Kekirawa
Kinniya, Town, operative Anuradhapura Road,
Anuradhapura. Anuradhapura Road, Road,Galgamuwa Galenbidunuwewa.
Bakamuna.
.
Country Sri Lanka Sri Lanka Sri Lanka Sri Lanka Sri Lanka
Sales Tax T001 T001 T001 T001 T001
Telephone 0252563563 0254756514 0255612314 0374723425 0255766329
Contact Mr.Indika Mr.Saman Mr.Sampath Mrs.Deepa Mr.Pradeep
Contact T.P 0714521528 0773701828 0724265734 0711726358 0777789321
Terms Net 30,15 ,3% Default terms Net 30,18 Default terms Default terms
,3%
Credit Limit Default terms Default terms Default Default terms Default terms
terms

DA 4104– Computer Based Accounting-1st Semester- 2016 4

Beginning Rs.250,000 Rs.355,000 Rs.135,000 Rs.200,000 Rs.476,000
Balances INS 084 INS 074 INS 099 INS 061 INS 083
PO 084 PO 074 PO 099 PO 061 PO 083
Date 20/12/2015 12/10/2015 3/2/2016 24/8/2015 13/11/2015
Rs.125,000
INS 087
PO 087
Date 25/08/2015

10. Balances of Account Payables as at 29th February 2016

Vender ID VEN001 VEN002 VEN003 VEN004

Name American Water Cristal Water Spring Water Amazon Water
(Pvt)Ltd (Pvt)Ltd (Pvt)Ltd (Pvt)Ltd
Address No 73/15,Main Dahaiyagama No 15,Main No 14,wilgoda
Street, Junction, Street, Kandy road,Yanthampalawa
Kurunegala. Anuradhapura Kurunegala

Contact Mr. Santhush Mr. Layanal Mr. Fernando Mr. Jagath

Country Sri Lanka Sri Lanka Sri Lanka Sri Lanka
Telephone 037 2222466 025 2102225 081 5612846 037 4685327
Terms Net 30,20 ,3% Default terms Net 35,22 ,2.5% Default terms

Credit Limit 700000 Default terms 650000 Default terms

Beginning Rs.460,000 Rs.345,000 Rs.230,000 Rs.128,000
Balances
INP 072 INP 087 INP 093 INP 094
PO 072 PO 087 PO 093 PO 094
Date:18/10/2015 Date:06/11/2015 Date:20/01/2016 Date:12/02/2015

11. Inventory details and Balances as at 29th February 2016 are as follows.

Item ID MW 100 MW 200 MW 300 MW 400 MW 500 MW 600

Item Description 1 Liter 1.5 Liter 5 Liter 7 Liter 10 Liter 15 Liter
Item Class Stock Stock Stock Stock Stock Stock
Item Type Supply Supply Supply Supply Supply Supply
Cost Method FIFO FIFO FIFO FIFO FIFO FIFO
Unit/Measure Bottle Bottle Bottle Bottle Bottle Bottle
Tax Type Regular Regular Regular Regular Regular Regular

Minimum Stock 5000 4500 4000 2750 2500 1800

Reorder Quantity 4500 4000 3500 2500 2000 1500
Qty on Hand 14500 18050 13550 14800 14000 9900
DA 4104– Computer Based Accounting-1st Semester- 2016 5
Unit Cost (Rs.) 27 35 75 90 160 235
Price Level
# 1 (Rs.) Cost* 18% Cost* 15% Cost* Cost* Cost* Cost* 16%
15% 18% 15%
# 2 (Rs.) Cost* 24% Cost* 22% Cost* Cost* Cost* Cost* 20%
25% 20% 22%
# 3 (Rs.) Cost* 32% Cost* 30% Cost* Cost* Cost* Cost* 25%
28% 22% 26%

12. The following transaction took place after introducing Peachtree software on 1st march
2016.
a) The following purchase orders were made.
Date Vender ID PO No. Item Quantity it price

01/03/16 VEN 001 PO 101 MW 200 12000 35

04/03/16 VEN 004 PO 102 MW 400 7500 88

16/03/16 VEN 002 PO 103 MW 100 13000 27

MW 500 5200 162

b) The following credit purchases were received.

Date Vender PO No. Invoice No. Item Quantity

ID

02/03/16 VEN 001 PO 101 INP 101 MW 200 11400

10/03/16 VEN 004 PO 102 INP 102 MW 400 7450

20/03/16 VEN 002 PO 103 INP 104 MW 100 13000

MW 500 5100

c) The following credit purchase items were returned due to the less quality.
Date Vender ID Credit No. Invoice No. Item Quantity

12/03/16 VEN 004 CN 101 INP 102 MW 400 1500

25/03/16 VEN 002 CN 102 INP 104 MW 500 800

DA 4104– Computer Based Accounting-1st Semester- 2016 6

 d) The following quotations were made.

Date Quotation Customer Item Quantity Unit price

No.
ID

05/03/16 QU 001 CUS 003 MW 300 3500 Price level 2

18/03/16 QU 002 CUS 005 MW 600 1750 Price level 3

27/03/16 QU 003 CUS 001 MW 400 2000 Price level 1

29/03/16 QU 004 CUS 004 MW 100 9500 Price level 2

e) The following quotations were converted to sales orders.

Date Quotation No. Order No.

10/03/16 QU 001 SO 003

28/03/16 QU 003 SO 006

f) Following quotations were converted to sales invoices.

Date Quotation No. Invoice No.

19/03/16 QU 002 INS 103

30/03/16 QU 004 INS 107

g) The following sales orders were made.

Date Customer ID So No. Item Quantity Price
04/03/16 CUS 002 SO 001 MW 200 5000 Price level 1
MW 300 2300 Price level 2
08/03/16 CUS 003 SO 002 MW 100 15000 Price level 1
16/03/16 CUS 005 SO 004 MW 400 500 Price level 2
24/03/16 CUS 004 SO 005 MW 400 6300 Price level 3

h) The following sales orders were dispatched.

Date Customer ID So No. Invoice No. Item Quantity
05/03/16 CUS 002 SO 001 INS 101 MW 200 4890
MW 300 2100
11/03/16 CUS 003 SO 002 INS 102 MW 100 15000
19/03/16 CUS 005 SO 004 INS 104 MW 400 400
26/03/16 CUS 004 SO 005 INS 106 MW 400 6300

DA 4104– Computer Based Accounting-1st Semester- 2016 7

 i) The following cash sales were made.

Date Customer ID Invoice No. Item Quantity Sale price Ref.No Method
20/03/16 CUS 001 INS 105 MW 300 2750 level 2 RS 003 Bank-
HNB
31/03/16 CUS 005 INS 108 MW 100 1000 level 3 RS 006 Bank-
BOC

j) The following cash purchases were made.

Date Vender ID Invoice Item Quantity Unit Ref.No Cash

No. price Account
12/03/16 VEN 003 INP 103 MW 4500 75 RP Bank-
300 001 HNB
27/03/16 VEN 001 INP 105 MW 8200 27 RP Cash in
100 002 hand

k) The following Cheques were written to settle the accounts payable.

Date Vender ID Invoice Cheque Amount Cash

No. No Account
08/03/16 VEN 001 INP 101 252031 300000 Bank-
HNB
16/03/16 VEN 004 INP 102 252043 450000 Bank-
BOC
29/03/16 VEN 002 INP 087 253202 Full Bank-
amount HNB
INP 104 - 500000 Bank-
HNB

l) The following cheques were received from the accounts receivable.

Date Customer ID Invoice Ref No Amount Cash

No. Account
10/03/16 CUS 002 INS 074 RFS 001 Full Bank-
amount HNB
15/03/16 CUS 003 INS 102 RFS 002 500000 Bank-
BOC
21/03/16 CUS 005 INS 083 RFS 004 Full Bank-
amount HNB
INS 103 RFS 005 500000 Bank-
HNB

m) The following amount was received.

Date Details Amount Reference Cheque Cash

No Account
12/03/16 Rent income 25000 RFS 003 302065 Bank-
HNB
DA 4104– Computer Based Accounting-1st Semester- 2016 8
 n) The following expenses were made.
Date Details Amount Cash Cheque
Account No
08/03/16 Electricity 5000 Bank- 254100
BOC
17/03/16 Stationary 11000 Bank- 254113
HNB

o) The following recurring expenses should be paid on15th of every month.

Insurance expense Rs.22000 (Ref no –Rec 001) from BOC
Rent expense Rs.8000 (Ref no –Rec 002) from HNB

p) On 31st March 2016 accrued expenses are as follows.

Item Amount GL No
Stationary 16000 GL 001
Rent 21000 GL 002

q) On 31st March 2016 prepaid expenses are as follows.

Item Amount GL no
Electricity 5000 GL 003
Advertising 24000 GL 004

r) A & D Groceries, one of the debtors, became bankrupt. It was learnt on 15th of March
2016, that out of the total debt of Rs. 250,000 only Rs. 100,000, will be recovered from
him.

s) The company bought a Motor Vehicle on January 1st 2016, for 1,600,000 with a 800,000
salvage value and a five-year life. All adjustments have been made except the
depreciation adjustment.

Required:
1) Create the company file in Peachtree Premium Accounting package. (04 Marks)
2) Save as the Sales Tax Report for the given period with the file name of “Sales Tax”
(04 Marks)
3) Save your company’s General ledger Trial Balance as at 29/02/2016 with the file name
of “Trial Balance – 2015/2016” (20 Marks)
4) Save the Expenses Budget for the year 2016/2017 with the file name of “Expenses
Budget -2016/2017”. (10 Marks)
5) Save Customer Master File List with the file name of “Customer Detail” (04 Marks)
6) Save Vendor Master File List with the file name of “Vendor Detail” (04 Marks)
7) Save Inventory Stock States Report with the file name of “Inventory Stock States
(06 Marks)

DA 4104– Computer Based Accounting-1st Semester- 2016 9

 8) Save the Customer Ledgers as at 31st March 2016 with the file name of “Customer
Outstanding Balances”. (04 Marks)
9) Save the Vendor Ledgers as at 31st March 2016 with the file name of “Vendor
Transaction Balances”. (04 Marks)
10) Save the Inventory Valuation Report as at 31st March 2016 with the file name of
“Inventory Valuation Report” (06 Marks)
11) Save the Sales Order Report as at 31st March 2016 with the file name of “Sales Order
Report” (04 Marks)
12) Save the Purchase Order Report as at 31st March 2016 with the file name of “Purchase
Order Report ” (04 Marks)
13) Save the Cash Flow Report as at 31st March 2016 with the file name of “Cash Flow
Report ” (04 Marks)
14) Save Income Statement for the year ended (Stranded Income stmnt) as at 31st March
2016 with the file name of “Income Statement”. (12 Marks)
15) Save Balance Sheet as at 31st March 2016 with the file name of “Statement of
Financial Position”. (10 Marks)

(Total 100 Marks)

DA 4104– Computer Based Accounting-1st Semester- 2016 10