MP111 Creating Chart Of Accounts Using MYOB Computer Accounting Program Case Study 1 Assessment Answer

Case Study 1

Introduction

In this assignment students are required to use the:

• General Ledger
• Banking
• Sales - Accounts Receivable
• Purchases - Accounts payable
• Inventory

modules of the MYOB computer accounting program to process transactions and to produce a set of accounting reports relating to business operations.

Input Business data

The business is a book retailer named, “Student Name Pty Ltd” (students are to insert their own name) and is located at Your Address - Sydney NSW 2000. The firm’s sales are both over-the-counter cash and credit to well known customers.

New Financial Year starting July, 2019

Conversion month:July 2019

Chart of Accounts

You are to create your own chart of accounts by using one of the default charts provided by MYOB which most closely resembles the business or you can choose the ‘Build your own’ option. If you are using one of the default charts, you may be required to modify/delete accounts to suit the nature of the transactions as given in the question.

Transaction Source

Cash registers – for cash sales Invoices – for credit sales

Cheque book – for cash payments Deposit books – for cash receipts

Bank statements – for direct charges and direct deposits Supplier invoices – for goods and services

Working papers – for adjusting and miscellaneous entries

GST

Please note that GST free items are bank fees, salaries and wages, interest expense, superannuation and fines – you can check with your lecturer for others.

Transaction Period

New financial year starting 1st July 2019, and the processing period is July 2019, the current financial year is 2020, conversion month being July and there are 12 periods.

Opening Balances as at 1 July 2019

Customers

1. Students are required to make up their own unique customer names and addresses.
2. Only credit sales are recorded, cash sales are put through the cash book.
3. The firm’ credit policy is 30 days.
4. Information provided for customers and their balance as at 1 July is as follows:

Suppliers

1. Students are required to make up their own unique supplier names and address.
2. Accounts Payable ledger has suppliers entered for trading stock as well as other goods and services acquired on credit.
3. Cash purchases, are processed directly through the cash book.
4. All suppliers extend the normal 30 day terms, with no discount for promptpayment.
5. Information provided for suppliers and their balance as at 1 July is as follows:

Inventory

1. Students are required to make up their own unique product names.
2. Inventory unit measure is per book item
3. The firm uses the perpetual inventory method of accounting for inventory, (that is when inventory is purchased it is added (debited) to ‘Inventory ‘account and when it is sold, the cost is debited against ‘Cost of sales’ and credited against Inventory).
4. Information provided for inventory and their balance as at 1 July is as follows:

Transactions for July 2019

Data source: Suppliers’ Invoices. Dates shown are invoice dates, amounts include GST.

Data source – sales invoices and cash register tapes – sales include GST.

Cash sales

Credit sales: