SAGE EVOLUTION DRAFT EXAM PAPER NOV 2022

SECTION A

1. Define the term ERP and kinds of businesses can benefit most from adopting
an ERP solution?
2. Briefly explain what is On-Premise ERP, Hybrid ERP and Cloud ERP?
3. State the advantages of deploying an ERP for a business?
4. Which database does Sage Evolution and Palladium operate on?
5. What are the disadvantages of deploying and ERP?
6. Give 5 examples of ERPs?
7. State 5 distinct business functions that can be operated by an ERP software?
8. How does an ERP system differ from other business management
applications?
9. What kinds of businesses can benefit most from adopting an ERP solution?
10. What do you understand about SAP, PeopleSoft, Palladium, Sage Evolution
and Palladium?

SECTION B

1. COMPANY DATABASE CREATION

Creative Computers is a company that is into computer and mobile phones retail.
Creative Computers have been in business for the past year and have decided to
convert to Sage Pastel Evolution for their transaction processing.

Required: Create the Company Database for Creative Computers using the
following information;

 Physical Address: 167 King George Road, Harare.

 Telephone number: (0242) 432789
 Email: admin@creativecomputers.co.zw
 The company database is a Head office database.
 Start date of financial year: 01/01/2022 and the company database must
allow processing of back dated transactions up to 3 years.
 The business uses numeric chart of accounts
 General Ledger Account Structure is Standard and Tax Processing Method is
Normal Tax.
 Use the General Chart of Accounts as the standard chart of accounts

2. CREATE OF AGENTS

Creative Computers has got the following people working in the accounts
department.

Required: Create the following agents;

Designation Creditors clerk Cashbook clerk

User Name Tatenda Suzzy Mutemeri
Shangwa
Password @tatenda @suzzy

3. Value Added Tax Setup

Creative Computers is VAT registered with the Zimbabwe revenue authority, hence it
charges VAT on sales and is also charged vat on purchases

Required: edit the following tax types and set the percentage at 14.5%

 Output tax
 Input tax

4. Edit the Chart of Accounts; View the Trial Balance to familiarize yourself with the
various general ledger accounts available in the Generic Chart of Accounts you
have selected during setup. Required: Add the following general ledger
accounts:
Main Account Number Sub-Account Number Description

1000 100 Sales – Smart Phones

1000 200 Sales – Tablets
5450 CBZ Bank Mortgage loan
8450 NMB Bank

5. Edit Supplier accounts; Required: Create Supplier accounts from the following
information;
Description: Lenox Electronics
Account code: LE41E
Address: 11 Harare Street
City Centre
Harare
Contact name: Jonathan
Telephone: (0242) 775963
E-mail: jonathan@lelectronics.co.zw
Credit limit: 10 000 000.00

6. Edit Customer accounts; Create Customer accounts for the customers listed
below and allocate each customer to the correct customer category:
 Description: City of Harare
Account code: COH290
Address: 57 Rotten Row Road
Harare
Customer
Tablets
Category
Contact name: Mariana
Telephone: (024) 2742563
E-mail: mirrian@coh.co.zw
Tax code: VAT standard Rated
Credit limit: 3,200,000.00

7. Edit Inventory items; create the following inventory items

Inventory Inventory Inventory Corporate Individual
Code Description Category Cost Price Price-list Price-list
Samsung Galaxy Samsung Smart
SAM001 55,404.00 80,138.57 84,145.50
A2 Core Phones
Itel P37 Smart
ITELP37 Itel Smart Phones 41,040.00 93,805.71 98,496.00
Phones

8. Process take-on balances: Create the sub-accounts required for the take-on of
the opening balances and Process and update the General Journals to take-on
the trial balance.

Creative Computers

Statement of Financial Position

1-November-22

Dr Cr

Retained Income 7,039,504.66

Share Capital 2,141,180.64

Share Premium 8,104,565.00

Motor Vehicles @ Cost 5,678,900.00

Motor Vehicles - Accumulated Depreciation 2,354,000.00

Computer Equipment @ Cost 4,250,000.00

Computer Equipment - Accumulated Depreciation 1,115,500.00

Office Equipment @ Cost 3,126,000.00

Office Equipment - Accumulated Depreciation 710,400.00

NBS Current Account

Eco-cash Merchant 985612.00

Petty Cash (float) 155,300.00

NBS Bank Mortgage Loan

Inventory Control 13,182,000.00

Customer Control 6,514,120.11

Supplier Control 6,030,632.12

VAT Control 1,521,149.69

Shareholder Loans 4,887,360.00

33,904,292.11 33,904,292.11

8.1 Process and update the Customer Journals to take-on the customer invoice details
in the correct periods for age analysis purposes.

Creative Computers

The Breakdown of customer balances are made up as follows:

COH290
2-Apr-22 INV013 514,120.11
2-Nov-22 INV034 6,000,000.00

8.2 Process and update the Supplier Journals to take-on the supplier invoice details in
the correct periods for age analysis purposes.

Creative Computers
The supplier balances are made up as follows:

LE41E
28-Sep-22 Invoice INV155 6,030,632.12
8.3 Process and update the Inventory Journals to take-on the inventory valuation
details.

Creative Computers
Inventory valuation
1-Nov-22

Inventory code Description Quantity Unit Cost Total Value

SAM001 Samsung Galaxy A2 Core 170 55,404.00 9,418,680.00
ITELP37 Itel P37 Smart Phones 92 41,040.00 3 775 680.00
TOTAL 13,194,360.00

9. PROCESSING OF DAILY TRANSACTIONS

 Prepare a sales quotation for COH290 dated 5 November 2022 to expire after
10 days for:

QTY ITEM
8 SAM001

10 ITELP37

 Sell the following items to COH290 with a tax invoice dated 12 November 2022.
Give them a 2% discount on NOKC1 bought. Their order number is
NOVEMBER01.
 QTY ITEM
8 SAM001

10 ITELP37

 Nemchem Office Cleaners cleans the offices for the fixed amount of
$16500.00 per week. Pay Nemchem Office Cleaners’ the standard weekly
amount on 18 November 2022 out of Petty Cash (petty cash voucher
PC45).

 On 14 November 2022 COH290 pays Lenox Electronicsfor the full amount

outstanding on this date. Capture receipt RC546 for this payment
received.

 Use the Remittance Assistant on 17 November 2022 to pay all suppliers the full
amount due on or before 2 November 2022.

 On 19 November 2022, pay $122 079.00 with bank transfer ref Q158 to the Garza
Repairs Garage, for the service of delivery vehicles ($79 510.00) and purchase
of Diesel ($42 569.00).

 On 29 November 2022, pay $113 562.50 to Econet Wireless for cell phone
charges with bank transfer ref Q159.

 For the following items prepare a purchase order for Lenox Electronics dated
26 November 2022

 100 x SAM002

 Convert the purchase order of Lenox Electronics to a goods received note

dated 27 November 2022 for all the items ordered.

 You received supplier invoice number INV954 from Lenox Electronics. Convert
the goods received note of Lenox Electronics to a supplier invoice dated 29
November 2022. All the quantities and prices on the supplier invoice agree with
the details on the goods received note. Lenox Electronics has a “slow season”
sale and has therefore given a 5% invoice discount.
 Increase the petty cash float amount to $534 500.00 by transferring the
necessary amount from NBS Bank current account to the Petty Cash account
on 30 November 2022 bank transfer ref number Q160.

 On 26 November 2022 reimburse the office assistant out of Petty Cash (petty
cash voucher PC49). She bought office stationery to the value of $42 410.97
from Paper house.

 On 30 November 2022 Creative Computers returned 5 x SAM002 to Lenox

Electronics. These phones were not switching on. Process a purchase return
document.

 Process the monthly salaries journal received from HR Department on 31

November 2022;

Description Debit Credit

Salaries & Wages 485 000.00
PAYE 71 250.00
NSSA 41 520.00
Zimdef 9 802.50
Maisha Medical Aid 20 100.00
Net Salaries & Wages 342 327.50
TOTAL 485 000.00 485 000.00

 Process the monthly depreciation journal on assets on 30 November 2022. All

assets are depreciated on a straight line basis. The annual depreciation rates
are:

Fixed Asset Depreciation %

Motor Vehicles 20%
Computer Equipment 33%
Computer Equipment 10%

 Make a backup of Lenox Electronics Pastel Company and submit for marking.
 Month end reporting: Print to PDF the following reports and submit for marking

 Print the Customer age analysis as at 30 November 2022.

 Print the Supplier age analysis as at 30 November 2022.
 Print the Inventory valuation report as at 30 November 2022.
 Print the Trial balance as at 30 November 2022.
 Print the Income statement as at 30 November 2022.
 Print the Balance sheet as at 30 30 November 2022