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

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Question :

Case Study 1


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.

Company NameAddressABNCurrent
Financial Year
Last Month
of Financial Year
Starter Chart
“Your name”
Books Pty Ltd
Your AddressYour student Number2020JuneRetail Book store

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


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

General Ledger Account Balances
Cash at Bank48,000
Accounts Receivable52,000
Inventory control130,000
Shop Fixtures and Equipment350,000
Accum Depn - Shop Fixt & Equip
Accounts Payable
GST payable (collected)
GST receivable (paid)15,000
Accrued expenses
PAYG Withholding
Provision for dividend
Loan – noncurrent
Issued and Paid up capital
Retained Earnings



  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:

Accounts Receivable Control

Customer Code
Balance Outstanding $Days Outstanding


  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:

Accounts Payable Control

Supplier Code
Balance Outstanding $

Invoice Date

Be sure to enter an ABN numbers for each supplier when creating the Supplier’s account otherwise there are taxation implications.

All suppliers must have an ABN Number.
S01 – Trading Goods6,0001st June
S02 – Trading Goods2,0005th June
S03 – Trading Goods12,0007th June
S04 - Trading Goods8,0008th June
S05 – Telephone Co1,00012th June
S06 – Stationery1,50015th June
S07 – Car Garage Co1,5006th June
S08 – Trading Goods3,00013th June
S09 – Advertising Co4,00016th June
S10 – Courier Co1,00014th June


  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:
Inventory Control

Product Code
Quantity on HandUnit cost ($)Value of InventoryUnit Sell Price Excluding GST


Transactions for July 2019

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

DateTransaction Details
1st JulReceived invoice from S01 for 100 books - stock item P01, for $1,320.00.
2nd JulReceived invoice from S04 for 100 books - stock item P02, $1900.00
3rd JulReceived invoice from S03 for 150 books, stock item P09 for $2,145.00 The Warehouse manager reported that only 140 books of product P09, had beenreceived.AccountsdepartmentadjustedS03’saccountfortheshort delivery.
4th JulPurchased stationery on account from S06 for $550.00 (Charged to Expense account)
6th JulReceived invoice from S08, $300 for 20 books - stock item P06.
7th JulReceived invoice from S03, for 200 books – stock item P04 $2,800
14th JulReceived invoice from S11 (new) $250.00 for July’s cleaning.
18th JulReceived invoice from S12 (new) $3000.00 for legal fees in relation to lease.
21st JulInvoice from S10 for July’s courier service, $620.00.
24th JulReceived invoice from S05 for telephone for the month $835.00.
26th JulReceived invoice from S09 for advertising undertaken in July $4,500.00.
31st JulReceived invoice from S07 for petrol and repairs for company vehicle

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

Cash sales

DateTransaction Details
1st JulSold 140 units P01
8th JulSold 50 units of P02 and 50 units of P03
12th JulSold 30 units of P03, 25 units of P06, 30 units of P07 and 15 units of P08,
15th JulSold 20 units of P04, 15 units of P06 and 55 units of P08,
18th JulSold 35 units of P02, 10 units of P03, 35 units of P05, and 50 units of P10.
22nd JulSold 8 units of P03, 75 units of P04, 35 units of P06 and 15 units of P09.
31st JulSold 15 units of P06, 75 units P07 and 45 units P08.

Credit sales:

DateTransaction Details
5th JulInvoice to C01 for 100 units of P08
8th JulInvoice to C10 for 50 units of P10
12th JulInvoice to C02 for 250 units of P01
14th JulInvoice to C09 for 30 units of P02, 35 units of P03
15th JulInvoice to C03 for 65 units of P02 and 200 units of P04
16th JulInvoice to C07 for 80 units of P05
17th JulInvoice to C08 for 90 units of P04
20th JulInvoice to C04 for 50 units of P05 and 40 units of P08
22nd JulInvoice to C06 for 200 units of P06 and 50 units of P07
22nd JulInvoice to C05 for 100 units of P05 and 30 units of P07
23rd JulInvoice to C05 for 255 units of P08

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Answer :

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