Effective Bookkeeping Controls Training with Mark Hempinstall

Training Link, a specialist in accounting, bookkeeping, and payroll with 26 years of experience in distance learning, offers a focused course on Level 2 Bookkeeping Controls presented by Mark Hempinstall. Their niche approach ensures high-quality materials tailored to enhance bookkeeping skills.

• Bookkeeping
• Accounting
• Payroll
• Training
• Distance Learning

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1. Level 2 Bookkeeping Controls Presented by Mark Hempinstall

2. Who are Training Link? 26 Years of Distance Learning Subject area specialists Accounting Bookkeeping Payroll This is all we do. And this niche approach keeps us focused on creating materials and delivering support of the very highest quality.

3. What is a control account used for? A Control Account is used to bring information into one place from a number of other accounts. Examples include Receivables Control Account (SLCA/Debtors Control Account) Payables Control Account (PLCA/Creditors Control Account) Wages Control Account VAT Control Account

4. What is a control account used for? Control Accounts are used to bring information into one place from a number of other accounts. Examples include Receivables Control Account (SLCA/Debtors Control Account) Payables Control Account (PLCA/Creditors Control Account) Wages Control Account VAT Control Account

5. Recording Payroll Transactions Using a Wages Control Account Two main components of payroll costs to an employer Gross Wages The amount earned by the employee Employer Contributions Additional costs to the employer over and above Gross Wages

6. Gross Wages Gross Wages - 30,000 Deductions Employees NI PAYE (Income Tax) Membership fees Employees Pension Total Deductions Net Pay Total Gross Wages Total Deductions = Net Pay 3,000 3,500 200 2,200 8,900 21,100 30,000 30,000 - 8,900 = 21,100

7. Employers Contributions Employers NI Employers Pension Total 3,300 3,750 7,050

8. Accounts used to record these transactions Wages Expense Account Wages Control Account Pension (Liability) Account HMRC Account Membership Fees (Liability) Account Bank Account The Journal

9. Dr Gross Wages Employers NI Employers Pension Wages Expense Account 30,000 3,300 3,750 Cr

10. Dr Gross Wages Employers NI Employers Pension Wages Expense Account 30,000 3,300 3,750 Cr Dr Wages Control Account Gross Wages Employers NI Employers Pension Cr 30,000 3,300 3,750

11. Dr Gross Wages Employers NI Employers Pension Wages Expense Account 30,000 3,300 3,750 Cr Journal Account Name Wages Expense A/c Wages Control A/c Dr CR 37,050 Dr Wages Control Account Gross Wages Employers NI Employers Pension Cr 37,050 30,000 3,300 3,750 Journal to record the wages expense

12. Dr Wages Control Account Gross Wages Employers NI Employers Pension Cr 30,000 3,300 3,750

13. Dr Net Pay (Bank A/c) Wages Control Account 21,100 Gross Wages Employers NI Employers Pension Cr 30,000 3,300 3,750

14. Dr Net Pay (Bank A/c) Wages Control Account 21,100 Gross Wages Employers NI Employers Pension Cr 30,000 3,300 3,750 1. Journal Account Name Wages Control A/c Bank Dr Cr 21,100 21,100 Entries to record payment of net wages

15. Dr Net Pay (Bank A/c) Wages Control Account 21,100 Gross Wages Employers NI Employers Pension Cr 30,000 3,300 3,750 1. Journal Account Name Wages Control A/c Bank Dr Cr 21,100 21,100 Entries to record payment of net wages Dr Bank Account Cr Wages Control A/c 21,100

16. Dr Net Pay (Bank A/c) Membership Fees Wages Control Account 21,100 Gross Wages 200 Employers NI Employers Pension Cr 30,000 3,300 3,750

17. Dr Net Pay (Bank A/c) Membership Fees Wages Control Account 21,100 Gross Wages 200 Employers NI Employers Pension Cr 30,000 3,300 3,750 2. Journal Account Name Wages Control A/c Membership fees A/c Dr 200 Cr 200 Entries to record staff membership fee liability

18. Dr Net Pay (Bank A/c) Membership Fees Wages Control Account 21,100 Gross Wages 200 Employers NI Employers Pension Cr 30,000 3,300 3,750 2. Journal Account Name Wages Control A/c Membership fees A/c Dr 200 Cr 200 Dr Membership Fees A/c Wages Control A/c Cr Entries to record staff membership fee liability 200

19. Dr Net Pay (Bank A/c) Membership Fees Wages Control Account 21,100 Gross Wages 200 Employers NI Employers Pension Cr 30,000 3,300 3,750

20. Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 Cr 30,000 3,300 3,750

21. Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750

22. Dr Net Pay (Bank A/c) Membership Fees Employees NI Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750 3. Journal Account Name Wages Control A/c HMRC Dr Cr Entries to record Total HMRC Liability Workings Employees NI + Employers NI +PAYE 3,000 + 3,300 + 3,500 = 9,800

23. Dr Net Pay (Bank A/c) Membership Fees Employees NI Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750 3. Journal Account Name Wages Control A/c HMRC Dr Cr 9,800 9,800 Entries to record Total HMRC Liability Workings Employees NI + Employers NI +PAYE 3,000 + 3,300 + 3,500 = 9,800

24. Dr Net Pay (Bank A/c) Membership Fees Employees NI Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750 3. Journal Account Name Wages Control A/c HMRC Dr Cr 9,800 9,800 Entries to record Total HMRC Liability Dr HMRC Account Cr Wages Control A/c 9,800

25. Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750

26. Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750 4. Journal Account Name Dr Cr Wages Control A/c Pension Liability A/c 5,950 5,950 Entries to record the pensions liability

27. Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750 4. Journal Account Name Dr Cr Wages Control A/c Pension Liability A/c 5,950 5,950 Dr Pensions Liability A/c Cr Wages Control A/c 5,950 Entries to record the pensions liability

28. Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 Cr 30,000 3,300 3,750

29. Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 37,050 Cr 30,000 3,300 3,750 37,050

30. Dr Gross Wages Employers NI Employers Pension Wages Expense Account 30,000 3,300 3,750 Cr Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 37,050 Cr Dr Bank Account Cr Wages Control A/c 21,100 30,000 3,300 3,750 Dr Membership Fees A/c Wages Control A/c Cr 200 37,050 Dr HMRC Account Cr Wages Control A/c 9,800 Dr Pensions Liability A/c Cr Wages Control A/c 5,950

31. 1. Journal Account Name Wages Control A/c Bank Entries to record payment of net wages Dr Cr 21,100 21,100 2. Journal Account Name Wages Control A/c Membership fees A/c Entries to record staff membership fee liability Dr Net Pay (Bank A/c) Membership Fees Employees NI PAYE (Income Tax) Employees Pension Employers NI Employers Pension Wages Control Account 21,100 Gross Wages 200 Employers NI 3,000 Employers Pension 3,500 2,200 3,300 3,750 37,050 Cr Dr 200 Cr 30,000 3,300 3,750 200 3. Journal Account Name Wages Control A/c HMRC Entries to record total HMRC liability Dr Cr 9,800 37,050 9,800 4. Journal Account Name Dr Cr Wages Control A/c Pension Liability A/c Entries to record the pensions liability 5,950 5,950

32. Any questions ?

33. Recording VAT Entries Using a VAT Control Account Dr VAT Control A/c Cr Records a decrease in the liability Records an increase in the liability

34. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

35. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

36. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

37. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

38. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

39. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

40. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

41. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

42. Recording VAT Entries Using a VAT Control Account Amount Transaction Dr Cr Balance owing to HMRC at start of period 2,000 VAT from Purchases Daybook 2,900 VAT from Sales Daybook 3,700 VAT from Sales Returns Daybook 600 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

43. Recording VAT Entries Using a VAT Control Account Amount Dr VAT Control A/c Cr Transaction Dr Cr Balance owing to HMRC at start of period 2,000 PDB 2,900 Bal B/d 2,000 VAT from Purchases Daybook 2,900 Sales Returns 600 SDB 3,700 VAT from Sales Daybook 3,700 Disc Allowed Daybook 750 PRDB 800 VAT from Sales Returns Daybook 600 Disc Rec'd Daybook 500 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 Refund Received 6,400 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

44. Recording VAT Entries Using a VAT Control Account Amount Dr VAT Control A/c Cr Transaction Dr Cr Balance owing to HMRC at start of period 2,000 PDB 2,900 Bal B/d 2,000 VAT from Purchases Daybook 2,900 Sales Returns 600 SDB 3,700 VAT from Sales Daybook 3,700 Disc Allowed Daybook 750 PRDB 800 VAT from Sales Returns Daybook 600 Disc Rec'd Daybook 500 VAT from Purchases Retuns Daybook 800 VAT Total Discount Allowed Daybook 750 Bal C/d 9,150 Refund Received 13,400 6,400 13,400 VAT Total Discount Received Daybook 500 VAT refund received from HMRC 6,400

45. Any questions ?

46. Thank you for joining us. For further details visit www.training-link.co.uk Or call 0800 594 2822 Special offer - Save an extra 50 on one of our AAT courses. Just visit our website and use the checkout code: AAT50 Offer ends on Friday 6th May.