October/November 2014

3.1. Disadvantages

Start-up and operating costs. (Hardware, software and personnel)

Database systems are complex to design and use.
Because databases are complex, it is very time-consuming to design a proper
database.
Database or database management software failure will affect all application
software linked to that specific database.

3.2

Type of MIS output report

Financial MIS
Manufacturing MIS
Marketing MIS
HR MIS

Example of report
payment summaries
inventory information
sales information
payroll administration

3.3 XBRL stands for Extensible Business Reporting Language and is used when

financial information is exchanged in XML format. XBRL can broadly be defined as

the electronic communication of financial and business information to all
stakeholders.
3.4
3.4.1 Data mining: Data mining software is used to analyse data sets in order to

uncover previously unknown trends, patterns and relationships between data.

Online analytical processing (OLAP): Online analytical processing (OLAP)
software enables users to interactively and rapidly analyse large data sets from
various viewpoints.
OLAP is mainly used to summarise data, say, per month and per region, the number
of smart phones sold to persons aged 20 to 30 years. Data mining is used to break
down data in order to uncover trends, patterns and relationships.

3.4.2 Multidimensional model

Page 1 of 18

3.5 DBMS enables users to

design, create and maintain the database structure and the database
control the organisation, storage and retrieval of data in the database
capture, maintain (delete, insert and amend) and manipulate the data in the
database
share data between multiple users simultaneously
execute queries and generate outputs
control the movement of the data between authorised users and the database
control and monitor access to the database
analyse and monitor database performance

Question Four
4.1 The customer account for Lilies and Lace is setup incorrectly on the early terms.
The early terms should be 10% within 10 days from period end but in the screenshot
it shows as setup for 10% within 10 days from invoice date which is incorrect.
4.2 .
General ledger account
description
Bank
Trade receivables (Lilies
and Lace)
VAT
Settlement discount
granted

Debit/Credit

Amount

Debit
Credit

R5130 (R5700*0.9)
R5700

Debit
Debit

R70
R500

4.3 Foreign key: When a primary data field of a database file is entered into

another database file to create a relation between the two database files, the primary
data field in the other database file is known as a foreign key.
A foreign key does not uniquely identify a record and may have duplicates in a
database file. The use of foreign keys prevents the duplication of data.
4.4 Account
4.5 The customer is not required to be a registered VAT vendor to purchase from
Polka Mazurka. Polka is a registered VAT vendor all customers will be required
to pay VAT on purchases and all payments will be captured in the Bank inclusive
column and this raise output on VAT on all sales.
4.6
4.6.1 Setup
4.6.2 Edit
Page 2 of 18

4.6.3 Process
4.6.4 View
4.6.5 File

4.7
4.7.1 Balance forward processing
4.7.2 They pay regularly and on time.
They only buy once a month (low number of transactions).
4.8
4.8.1 Quotation
4.8.2 Sales order
4.8.3 Delivery note
4.8.4 Sales invoice
4.9
4.9.1 outstanding quotation report
4.9.2 outstanding/open sales order report
4.9.3 credit note analysis reports
4.10
4.10.1 Decrease
4.10.2 Increase
4.10.3 Increase
4.10.4 Decrease
Question 5
5.1 =PMT((B$4/12),(B$5*12),$B16,$C16,0)*-1
5.2 =$D16*(1/1.14)
5.3 =MID($A16,7,3)
5.4 =RIGHT($A16,1)
5.5 =VLOOKUP(F16,A$9:C$13,3,TRUE)

Page 3 of 18

5.6 =IF($G16="B",2,1)
6
6.1 =ROUND(B$12-(B$12*B$9),0)
6.2 =($B$3*B$13)*$B$4*B$14
6.3 =IF(B$11>5000000,B$19*0.115,B$19*0.09)
6.4 =($B$5*B$12*B$14)*-1
6.5 a password required for opening or reading workbooks
a password required to make changes to the workbook structure
a password required for changing the content in a sheet or cell
MJ 2014

Question 3
3.1

The quality of information is directly linked to the quality of raw data entered in
other words, inaccurate data will lead to inaccurate information and incomplete data
will lead to incomplete information, which in turn will result in ineffective decisions.
3.2
A database can be defined as an organised collection of related data that is managed and
stored electronically and can provide data to different application software in the
organisation.

3.3

Advantages:
Data can be accessed, inserted and/or deleted without changing the database
structure.
The database structure can be easily customised for most types of data storage.
Data does not need to be duplicated.
Most users easily understand the structure.
It is easy to search for and extract data from the database
3.4

Logical. The CoA must have a logical flow in the major categories, subcategories
and the related account number blocks and individual account numbers. For
example, the balance sheet accounts will be first, followed by the income statement
accounts. The categories, subcategories and the related GL accounts will not be
mixed, but follow each other logically.
Consistent. The account number structure and format must be consistent between
the accounts used.
Account description. The account description should clearly but briefly explain the
nature of the GL account.
Page 4 of 18

 Draft. Create a draft structure on paper first before implementing it in the AIS. It is
easier to change the draft than the implemented CoA.
Feedback. Obtain feedback from the different role players on the draft CoA. They
may have insights you have not yet considered and which could influence the CoA
materially.
Sign-off. Obtain sign-off from applicable management on the final CoA before
implementing it.
3.5
3.5.1

Primary data field: Each file has a unique data field (known as the primary data
field) that can be used to uniquely identify each data record in a database file. A
primary data field is also known as a primary key
3.5.2 A
3.5.3

Foreign key: When a primary data field of a database file is entered into another
database file to create a relation between the two database files, the primary data
field in the other database file is known as a foreign key.
A foreign key does not uniquely identify a record and may have duplicates in a
database file. The use of foreign keys prevents the duplication of data.
3.5.4 G

Question 4
4.1 The menu bar
The toolbar
The system navigator
The explorer
4.2 False
4.3 remark

Page 5 of 18

4.4
General Account Number
8000/000 Customer
Control Account (trades
receivable)
9500/000 VAT
1000/001 Sales (Sales
revenue)
7700/001 Inventory
2000/001 Cost of Sales

Debit/Credit
Credit

Amount
604200

Debit
Debit

74200
530000

Debit
Credit

541500
541500

4.5
4.5.1. Process
4.5.2 View
4.5.3 Setup
4.5.4 Process
4.5.5 Change

Question 5
5.1 Supplier Age analysis
5.2 By setting up normal payment terms Phil could establish which accounts are
due or overdue.
5.3 The remittance shows balances as per balance forward processing and
should be a remittance for open item processing. The open item processing
contains more detail than balance forward processing.
5.4 Remittances are useful to help settle account disputes between customers
and suppliers.
5.5 Eight
5.6 If a transaction is processed in the wrong accounting period, the financial and
business information will be incorrect and this can lead to incorrect decisions
being made. It will give rise to incorrect monthly financial information.
5.7 supplier master file, inventory master file, purchase transaction file, VAT
reference file, VAT transaction file, general ledger master files.
5.8
5.8.1 490
Page 6 of 18

5.8.2 530

Question 6
6.1 =LEFT(B$11,2)
6.2 =B11&-&B13
6.3 =PV(B17,B18,B16,0,1)
6.4 =VLOOKUP(B$19,$D$3:$F$9,3,TRUE)
6.5 =IF((B$12/12)<3,$B$4*B$21, $B$5*B$21)
6.6 =SUM(B$21:B$22)
6.7 =B$23+($B$6*B$23)
6.8 =B$24/(1+$B$3)
6.9 =MAX(B$25:F$25)
6.10 Complexity.
Frequency of use and updating.
Number of users using a spreadsheet.
Time in use.

OCT/NOV 2013
3.1

Requirement analysis: future growth of the organisation, all role players input,
prioritisation of requirements, the number of users; the number of suppliers and
customers; input, processing and output methods (real-time, batch, etc.);
processing speed; features; standard and customisable reports; and security.

Budget: budget for initial investment, training and implementation, customisation,

the succeeding years maintenance, support and licence fee costs.

Implementation period: budget and plan for the time to implement the AIS.

3.2
Enterprise level software
3.3
SAP ERP
3.4

Ease of use. Because this software is used daily, it should be easy to understand
and use.
Integration.
Page 7 of 18

Flexibility. Scalability. Can this product grow with the organisation?

Costs.
Implementation.
Upgrades.

3.5
Audit trail
3.6

The database model type used should support the requirements of the
organisation.
The acquired DBMS and database should closely match the requirements of the
organisation.
The DBMS and database should be able to evolve to meet future organisational
needs.
The performance of the DBMS and database.
The cost of the DBMS and database
Different DBMS and databases will require different levels of specialised staff skills.
The hardware needed to run the DBMS and database should be considered.
Can the DBMS and database be integrated with the rest of the organisations
information systems?
The database size must be adequate for the organisations future data
requirements and the database should easily be expandable.
The number of concurrent users the DBMS and database can handle
The DBMS and database vendor should be a reputable organisation and financially
stable
3.7
Conceptual level
3.8
DML

Question four
4.1
General Ledger account
number
Trade Payables

Debit/Credit

Amount

credit

R7740.60
(7000*0.97*1.14)
(Supplier invoice amount
Page 8 of 18

VAT

debit

GRN Accrual

Debit

Inventory

Credit

including VAT (net of

trade discount and price
differences)
R950.60 (R7000*0.97*0.14)
(Supplier invoice VAT
amount)
R7000.00 (Original GRN
accrual amount excluding
VAT)
R239.40 (7000*1.14*0.03)
(Trade discount)

4.2
Supplier master file
Vat transaction file
Purchase transaction file
Inventory master file

Question Five
5.1 .1 Use the Setup Assistant
5.1.2 the setup assistant guides you through a series of screens and creates a
working company and sets up all the required parameters. Once the setup
assistant creates a company you can work in it immediately. It is the most
efficient and effective way to start a new company in Pastel.
5.2 The inventory item was set up incorrectly as a physical item and not as a
service item.
5.3
5.3.1 01
5.3.2 Tax reference
5.3.3 Only capturing the VAT number after the verification of the VAT number is a
way to ensure that all VAT numbers are verified. Passwords can be used to
restrict edit access to the system, thereby ensuring that only verified supplier
VAT numbers are recorded.
5.3.4 If organisations know the credit limit they have at each supplier, it will
enable them to plan and spread their inventory purchases to optimise their cash
flow.
Page 9 of 18

5.4.1 A preferred supplier is one from whom we will always first try to buy before
we contact any other supplier for the same inventory item.
5.4.2 This supplier may have the lowest prices, the best quality, on-time delivery
and preferential payment terms.
5.4.3 Warn if Preferred Supplier Not Used control on the Setup Inventory
screen.
5.5
5.5.1 File
5.5.2. Process
5.5.3 Change
5.5.4 View
5.5.5 Setup
Question 6
May June 2013
Question 3
3.1
Do not share the password with anyone.
Do not write the password down and place it where people can find it.
Do not use an obvious password (eg birthdays or names) that someone could
easily guess.
Use a combination of letters and numbers.
Include uppercase and lowercase letters, numbers and symbols in the password.
Use numbers to represent letters, for instance, 3 for your E and 1 for i.
Passwords should be eight or more characters in length.
Change passwords regularly if needed.

3.2
Type
3.2.1. Input: Batch
3.2.2 Processing: Batch
3.2.3 Output: Interactive

Processing
Data is collected and entered into the DB
at the end of the week
Master file is updated at the end of the
month
Users able to request information
themselves

Page 10 of 18

Primary data field: Each file has a unique data field (known as the primary data
field) that can be used to uniquely identify each data record in a database file. A
primary data field is also known as a primary key.
3.2

3.4 Student ID number

The database administrators role includes functions such as the following:

Implement and maintain database management standards and conventions.
Ensure applications software complies to database management standards and
conventions by establishing programming standards.
Define the database structures.
Design and create databases in line with database management standards and
conventions
Implement, maintain and evaluate database access policies and security controls.
Monitor data and database security and access.
Monitor and maintain database performance.
3.5

3.6
3.6.1. Object-oriented model: In an object-oriented model, the data and the operations to
be performed on the data are both stored in the database. Can store and process a wider
range of data types than only text and numerical data it also stores and processes
images, audio and video data.

3.6.2. Multidimensional model: A multidimensional model is similar to a relational

model, but whereas a relational model stores data in a two-dimensional table, a
multidimensional model stores data in a three- or more dimensional table, creating a
cube-like data structure. Data can be viewed in a spreadsheet-like format, which make it
easier to understand where data with many interrelationships are stored and processed.
Owing to the spreadsheet-like format, this data structure is easy to maintain. This model
type is mainly used for data warehouses and makes online analytical processing (OLAP)
and business intelligence software (BIS) possible.

3.6.3 Relational model: In a relational model, data is stored in two-dimensional rows and
columns (ie tables). A table is also known as a relation, and each database has several
tables. Every table has its own primary key and the database uses this primary key to
link (relate) the table to the other tables in the database. MySQL,
Microsoft SQL Server and Oracle are examples of relational model databases.
Question Four
4.1
4.1.1 Process
4.1.2 Setup

Page 11 of 18

4.1.3 Edit
4.1.4 Change
4.1.5 File
4.2 Ten price lists
4.3 Ninety nine (99)

4.4
4.4.1 M (add a new customer account)
4.4.2
4.4.3
4.4.4
4.4.5

E (Menu bar)
D (Close the edit customer function)
I (go to the last record)
C (search according to the customer account Code)

4.5 Net value of the sales invoice: (R800*2*0.95)*1.14 = R1732.8 (5% invoice discount)
Amount to pay = 1732.8*0.9 = R1559.52 (10% EPT 10 within 5 days of invoice)
4.6.1 The bank opening balance must be captured in the cashbook against the

suspense account 9990/001 to ensure the opening balance reflects on the bank
reconciliation and clear the take-on suspense ^
Pastel only allows us to see transactions entered via the cash book on the
bank reconciliation. If we were to use the bank account 8400/000 the trial
balance would balance, but we will not be able to do a bank reconciliation for
the cash book.
4.6.2 The reconciling items were already processed in the previous financial

year and are therefore already included in the take-on opening balance.
These cheques and receipts (outstanding items) must be visible when doing
the bank reconciliation but without affecting the opening bank/cash book
balance . We need to debit everything that we credit, so that there is no
impact on the balance(or We therefore use the 8400/000 account for both
the debit and credit entry so that there is no impact on the take-on opening
balance). We will have to do this debit and credit through the cash book so
that it is visible on the bank reconciliation ^.
4.6.3 The VAT implications have already been taken into account when the

transaction occurred or VAT implications have already been taken into in

the take on opening balance.
Question Five
5.1
General Ledger account description
Trade receivables

Debit/Credit
Debit

Amount
R2280 (5*R400*1.14)
Sales amount including VAT

Page 12 of 18

VAT

Credit

Sales revenue

Credit

Inventory

Credit

Cost of Sales

Debit

(net of any trade discount

granted)
R280 (2280 2280/1.14)
VAT amount (based on the
sale amount net of
any trade discount granted)
R2000
Sale amount excluding VAT
(net of any trade
discount granted)
R1500 (R350 * 5)
Amount based on inventory
valuation method
excluding VAT
R1500
Amount based on inventory
valuation method
excluding VAT

Question 6
6.1 =$B$3&123&B$11
6.2 =MID(B$11,3,1)
6.3 =($B$4*B$13)
6.4 =Vlookup(B$11,$D$4:$E$7,2,False)
6.5 =(B$14-B$13)*B$15
6.6 =ROUND(B$16/1.14,2) =B$16/(1+$B$5)
6.7 =ROUND(SUM(B17:E17),2)
6.8 =IF($B$19<=$B$6,$B$19*$B$8,$B$19*$B$7)
6.9 =PMT($B$23/12,$B$24*12,$B$21,10000,0)*-1
6.10 #DIV/0!: This error occurs when the formula calls for division by a cell that either
contains the value 0 or, as is more often the case, is empty. Division by zero is not
possible according to mathematical principles.
#NAME?: This error occurs when Microsoft Offi ce Excel does not recognise text in a
formula.

Page 13 of 18

#NULL!: This error occurs most often when you insert a space where you should have
used a comma
to separate cell references used as arguments for functions.
#NUM!: This error occurs when Microsoft Offi ce Excel encounters a problem with a
number in the formula, such as the wrong type of argument in a Microsoft Offi ce Excel
function or a calculation that produces a number too large or too small to be represented
in the worksheet.
#REF!: This error occurs when Microsoft Offi ce Excel encounters an invalid cell
reference, such
as when you delete a cell referred to in a formula or paste cells over cells referred to in a
formula.
#VALUE!: This appears when you use the wrong type of argument in a function, the
wrong type of
operator or when you try to do a mathematical operation that refers to cells containing
text entries.
#N/A!: This error occurs when a value is not available to a function or formula.

Question Paper One

Question Four
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5

Setup
File
View
Edit
Process

4.2 Terms are not set to 60 days for the customer on the invoice
There is an invoice discount of 5% which is not in the customer information
There is no 5% discount added for the two chocolate line items
The invoice is of a value above the credit limit
Payment due date is not 60 days from date of the invoice.
4.3
GL account
Trade Receivables

Debit/Credi
t
Credit

VAT

Debit

Sales Revenue

Debit

Amount
R5415 (5700*0.95)
Sale return amount including VAT
(net of any trade discount
granted on the inventory
returned)
R665
(R5415- (5415/1.14))
VAT amount (based on the sale
amount net of any trade discount
granted on the inventory)
R4750
Sale return amount excluding

Page 14 of 18

VAT (net of any trade discount

granted on the inventory)
4.4 Credit Note
4.5 01/11/2009
4.6
4.6.1 Warning! Current balance exceeds credit limit.
4.6.2 By doing a temporary exceeding of a credit limit. This temporary exceeding of a
credit limit must always be authorised by a designated person(s) with the applicable
authority.
4.7
4.7.1 Open Item Processing
4.7.2 She buys frequently and has many queries
4.7.3 All take on balances are shown
List the details of transactions not yet paid together
Most recent payment transactions
4.8
Contra in detail - Each transaction generates its own contra entry. If you view a detailed
ledger of the sales account, for example, you would see the transaction and its balancing
entry. This makes it easier to trace contra account transactions but it uses more disk
space and makes reports longer.
Contra in Summary - The system generates one contra entry for the whole batch of
transactions. This saves space and keeps reports smaller and quicker.
4.9 VAT reference file
VAT transaction file
Customer Masterfile
Credit note transaction file

Question 5
5.1 =LEFT(A10,3)
5.2 =B10&D10
5.3 =IF(D10=COM,$B$3,$B$4)
5.4 =(G10*H10)+G10
5.5 =(G10*H10)/(1+$B$5)
5.6 =Round((J10*F10),2)
5.7 =IF(F10>=AVERAGE($F$10:$F$16),(0.05*(SUM($K$10:$K$16))),0)
5.8 =MIN(F10:F16)
5.9 =AVERAGE(F10:F16)
Question 6

Page 15 of 18

6.1 =VLOOKUP(B16,$A$4:$B$11,2,FALSE)
6.2 =PMT($B$13,$B$14,0,$B18,0)

Question Paper 2
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5

Setup
Setup
Process
View
File

4.2 Good received note

Purchase order
Supplier invoice
Credit to supplier
4.3 PAY supplier
GL account
9000/000
Trade Payables
9500/000
VAT
GRN accrual

Debit/Cre
dit
Credit
Debit
Debit

Amount
R1,140,000
Supplier invoice amount including VAT
R140,000
Supplier invoice VAT amount
R1,000,000
Original GRN accrual amount
excluding VAT

4.4 00
4.5 36
Question 5
5.1
5.1.1 The Farm Factory. The payments are matched to the supplier and the specific
supplier invoices.
5.1.2 Dozing for Africa. The payments are not match to specific supplier invoices.
5.2 It allows a company to optimise their cash flow.
5.3 From end of period.
From date of invoice.
5.4 R1,140,000 * 0.95 = R1,083,000
Question 7
7.1 =(RIGHT(D7,3)&D8)
7.2 =SUM(D12:F12)
7.3 =MID(A22,4,3)

Page 16 of 18

7.4 =IF(B22<500,$B$4,$B$5)
7.5 =ROUND(D22/(1+C22),0)
7.6 =VLOOKUP( A22,$B$12:$G$17,6,FALSE)
Question 8
8.1
8.2
8.3
8.4
8.5

=FV($B$5/4,$B$6,2000,0,1)
=ROUND(B12*0.5,0)
=B19*(1+$B$9)
=MAX(B20:D20)
=IF($B$22<$B$7,Will host the party,Keep saving Money)

Question Paper 3
Question 4
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5

Process
View
Setup
Edit
Utility

4.2
4.2.1 90
4.2.2 By reference
By amount
By date
4.2.3 G - General Ledger,
C - Customer
S Supplier
4.2.4 Suppliers do not normally pay their customers.
4.2.5 Debit R71744.51
4.2.6. The payment would not be reflected in the correct period and the customer could
be reflected as overdue on their account.
4.2.7 The Pastel manual recommends that the cash book transactions should not be
updated until the bank reconciliation has been done. While this may work for a small
organisation with an accountant coming in at the end of every month to quickly capture
the few transactions, this is not recommended for any other organisation for the
following reasons:
Only updated transactions are reflected in the general ledger. We will therefore have to
wait for the bank reconciliation to be completed before drawing information from the
system and making decisions.
We may have received payments from our customers during the month, but their
accounts will not be updated until the cash book has been updated. Their outstanding
balance could thus incorrectly reflect as exceeding their credit limit, and the organisation
could be losing out on some sales (and customer goodwill).
The Remittance Assistant is a wonderful time saver to make payments to suppliers.
However, if we have not updated the cash book payments made to them during the
month, it will not work accurately and we may overpay the suppliers.

Page 17 of 18

 This encourages careless transaction capturing because any mistakes are simply
corrected with the bank reconciliation (then again assuming the bank statement is 100%
correct, which is not always the case).
This encourages the roles of capturer and reconciler to be performed by the same
person. Bank reconciliation is a control procedure and these roles should therefore never
be performed by the same person.
4.2.8 Transfer
4.2.9
4.2.10
N No to multicurrency

Page 18 of 18