22207 - Spr21 - MYOB Case Study PDF

Preview

Summary

Case Study helps you to practice it...

Description

MYOB CASE STUDY

Introduction In this assignment students are required to use the following modules of the MYOB computer accounting program to process transactions and to produce a set of accounting reports relating to business operations: • • • • •

General Ledger Banking Sales - Accounts Receivable Purchases - Accounts Payable Inventory

Company Data The business operates as a florist named, “Student Name Flowers Pty Ltd” (students are to insert their own name) and the ABN number (and Address) must include your “Student Number as a unique identifier” with zeros making up the required numbers. The business sells flowers as both over-the-counter cash sales and credit sales on account to retail and wholesale customers. It will be necessary to create a new company, details are as follows: Company Name

Your Name Flowers Pty Ltd

Address

Your Student Number

Conversion month:

ABN

?? ??? ??? ??? 11 digits 000 Student Number

Current Financial Year

Last Month of Financial Year

Industry

2021

June

Retail

June 2021

Chart of Accounts You are to select 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.

MYOB Case Study

Transaction Sources 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 Working papers – for adjusting and miscellaneous entries

GST GST free items include bank fees, salaries and wages, interest expense, superannuation, sales commission, investments in shares and fines – Check with your lecturer for others.

Transaction Period The 2021 financial year is from 1st July 2020 to 30 June 2021. The last month of the financial year is June 2021. The conversion month for this case study is June 2021.

Opening Balances as at 1 June 2021 General Ledger Account Balances Cash at Bank Petty Cash

Debit $95,000 $1,500

Accounts Receivable

$69,000

Inventory

$71,690

Prepaid Insurance

$10,000

Prepaid Rent Shop Fixtures and Fittings

$6,000 $150,000

Accum. Depn – Shop Fixtures and Fittings Delivery Trucks

$48,000 $84,000

Accum. Depn – Delivery Trucks Investments (Shares in Telstra)

Credit

$20,000 $5,000

Accounts Payable

$49,000

Loan – Current

$30,000

GST Collected (payable)

$10,000

GST Paid (receivable)

$6,000

Sales Commission Payable

$4,500

PAYG Withholding Payable

$12,000

Bank Loan – Non-current

$160,000

Share Capital

$126,500

Retained Earnings

$38,190 $498,190

$498,190

MYOB Case Study

Customers 1. 2. 3.

Students are required to devise their own unique customer names and addresses. Both cash and credit sales are recorded via the sales modules. Information provided for customers and their balance as at 1st June are as follows: Accounts Receivable Control Balance Days Customer Code Outstanding $ Outstanding CUS01 $6,000 30 CUS02 $8,000 30 CUS03 $7,000 90 CUS04 $9,000 60 CUS05 $5,500 30 CUS06 $7,300 60 CUS07 $8,200 60 CUS08 $4,400 30 CUS09 $7,600 90 CUS10 $6,000 30 Total $69,000

Suppliers 1. 2. 3. 4.

Students are required to devise their own unique supplier names, addresses, ABNs. The Accounts Payable ledger has suppliers entered for trading inventory as well as other goods and services acquired on credit. All suppliers extend the normal 30-day terms, with no discount for prompt payment. Information provided for suppliers and their balance as at 1st June are as follows: Accounts Payable Control Supplier Code SUP01 SUP02 SUP03 SUP04 SUP05 – Telephone SUP06 – Stationery SUP07 – Service Station (Petrol) SUP08 – Lawyer SUP09 – Advertising SUP10 – Accountant Total

Balance Outstanding $ $15,000 $8,800 $6,200 $5,800 $800 $950 $750 $6,800 $2,600 $1,300 $49,000

Invoice Date 15-May-21 1-May-21 4-May-21 13-May-21 8-May-21 12-May-21 22-May-21 14-May-21 6-May-21 9-May-21

N o t e: SUP05 - SUP10 are all suppliers of services (use Service for the invoice layout).

MYOB Case Study

Inventory 1. 3.

Students are required to devise their own unique product names. The firm uses the perpetual inventory method of accounting for inventory, (that is when inventory is purchased it is added to “Inventory” and when it is sold, the cost is debited against ‘Cost of Sales’ and credited against “Inventory”). Information provided for the inventory opening balance as at 1st June is as follows:

4.

Product Code PR01 PR02 PR03 PR04 PR05 PR06 PR07 PR08 PR09 PR10

Inventory Control Quantity Unit cost Value of on Hand ($) Inventory 600 $15.00 $9,000 400 $18.00 $7,200 300 $12.00 $3,600 500 $20.00 $10,000 280 $25.00 $7,000 420 $16.00 $6,720 300 $14.00 $4,200 550 $17.00 $9,350 250 $22.00 $5,500 480 $19.00 $9,120 Total

Unit Sell Price Excluding GST $37.50 $45.00 $30.00 $50.00 $62.50 $40.00 $35.00 $42.50 $50.00 $47.50

$71,690

Transactions for June 2021 Date source: Supplier Invoice dates and amounts include GST. Date 5th June 6th June 8th June 10th June

Transaction Details Received invoice from SUP01 for 400 units of PR01 for an invoice total of $7,920. Received invoice from SUP03 for 200 units of PR03 amounting to $2,640.

14th June

Invoice from SUP07 received for petrol and maintenance of delivery trucks $880.

th

Received invoice from SUP09 for June’s advertising, amounting to $3,850. Received invoice from SUP02 for 250 units of PR05 amounting to $6,875.

16 June 17th June

Invoice from SUP10 for accounting fees was received, amounting to $770.

19th June

Purchased office stationery on account from SUP06 for $484 (office stationary is expensed at the time of purchase).

20th June

Received invoice from SUP04 amounting to $3,080 for 200 units of PR07.

st

Received invoice from SUP04 for 280 units of PR06 amounting to $4,928.

21 June

Received invoice from SUP08 for the preparation of a new contract for $3,520.

22nd June

Received invoice from SUP01 amounting to $4,675 for 250 units of PR08. Received invoice from SUP11 for next month’s rent of business premises $6,600.

th

24 June 25th June 28th June

Received invoice from SUP03 for 300 units of PR09 for an invoice total of $7,260. Received invoice from SUP05 for June’s telephone bill amounting to $990.

MYOB Case Study

Date source: Sales Invoices and Cash register. All sales include GST. (Note: Cash sales are banked the day after the sale is made)

Date June rd 3 June

Transaction Details Sold 100 units of PR01 on account to CUS03.

4th

June

Sold 100 units of PR04, 80 units of PR06, and 90 units of PR09 for cash.

6th

June

8th

June

Invoice to CUS07 for 120 units of PR02 and 70 units of PR05. Invoice to CUS08 for 130 units of PR07 and 120 units of PR10.

10th

June

Sold 110 units of PR01 and 120 units of PR04 for cash.

14th

June

Invoice to CUS09 for 80 units of PR06, 90 units of PR08, 70 units of PR10.

16th

June

18th

June

Sold 50 units of PR01 and 110 units of PR08 for cash. Invoice to CUS05 for 100 units of PR10.

19th

June

20th

June

25th

June June

Cash sale of 120 units of PR01, 80 units of PR05

28th 30th

June

Cash sale of 90 units of PR03 and 90 units of PR07

2nd

Cash sale of 60 units of PR03 and 80 units of PR08.

Cash sale of 140 units of PR06. Invoice to CUS06 for 120 units of PR02 and 130 units of PR04. Invoice to CUS03 for 100 units of PR04 and 200 units of PR08.

Data source – Deposit book (Cash Receipts) Date

Transaction Details

2nd June

Received a cheque from Customer CUS03 for $7,000.

6th

June

Received payment from customer CUS02 for $8,000.

19th

June

Customer CUS07 paid $18,952.50 for their account.

22nd

June

Customer CUS01 paid $6,000 being the balance owing as at 1st June.

23rd June

Customer CUS06 paid $15,000 of the amount owing on their account.

25th

June

Cheque received from customer CUS05 for $8,800 being for the balance owing at the start of the month plus part payment for June purchases.

25th June

Received $7,600 from customer CUS09 for the balance of their account.

27th

Customer CUS08 paid $15,675 for the balance owing as at 1st June and for purchases made during the month.

June

28th June

Dividend cheque received from Telstra for $140.00.

30th

Customer CUS04 paid $9,000 being the balance owing as at 1st June.

June

30th June

On 30th June, after depreciation was recorded, the business sold an old delivery truck that had a written down value of $8,500.00 at the end of the month, for $8,800.00 cash (the $8,800 is inclusive of GST). The delivery truck originally cost $25,000.00. This amount was not banked as at 30th June, however, it was entered into the Cash records and is to be treated as an Outstanding Deposit on the Bank Reconciliation Statement.

MYOB Case Study

Data source – Cheque book (Cash Payments) Date

Transaction Details

4th June

Paid supplier SUP05 by cheque the amount of $800. (cheque # 3009)

4th June

Paid supplier SUP07 by cheque the amount of $750. (cheque # 3010)

5th June

Paid May’s sales commission to retail assistants of $4,500.00. This amount was previously accrued. (Cheque No: 3011) Drew a petty cash reimbursement cheque (Cheque No: 3012) for $780.00 to reimburse the following miscellaneous cash expenses incurred during the month: (all amounts are GST inclusive) Freight $350.00 Printing $180.00 Postage $200.00

8th June

Minor repairs and maintenance 10th 11th 12th 16th

June June June June

$50.00.

29th June

Paid SUP01 $15,000, the balance owing as at 1 st June (cheque # 3013) Paid net GST obligation for May, as per the trial balance (cheque # 3014) Paid SUP08 $6,800, the balance owing as at 1st June. (cheque # 3015) Paid PAYG Withholding payable owing to the taxation department as at 1st June amounting to $12,000 (cheque # 3016) Paid Supplier SUP06 the outstanding balance as at the start of the month $950. (cheque # 3017) Paid SUP09 $2,600, the balance owing as at 1st June. (cheque # 3018) Paid $275 to a handyman for general repairs and maintenance within the florist. (cheque # 3019) Net wages paid to employees for the month amounted to $24,000 (cheque # 3020). PAYG Withholding tax amounted to $8,000.00 and this amount will be remitted to the Australian Taxation Office on the 24 July, 2021. Paid $2,880 (cheque # 3021) for employee superannuation on wages earned during June. Paid Supplier SUP11 $6,600 (Cheque # 3022)

30th June

Paid supplier SUP10 balance owing at the start of the month - $1,300.

17th June 24th June 26th June 28th June

28th June

(cheque # 3023)

MYOB Case Study

Data source - Bank Statement (see next page) Date

Transaction Details

15th June

Periodic payment for the lease of Point of Sale (POS) equipment amounting to $750.00 for the month of June was debited to the bank account (amount includes GST).

30th June

Bank fees of $90.00 were charged to the account.

Data source – Notes and Working papers (Month-end Adjustments) Date

Transaction Details

30th June

Shop Fixtures and Fittings are depreciated at 15% per annum, prime cost method (this asset has a zero-residual value). Depreciation is calculated and recorded using the number of days in the month. The prepaid rent at the start of the month was charged to Rent expense during the month. Delivery Truck Vehicles are depreciated at the rate of 20% of carrying amount per annum (using the Reducing Balance method of depreciation). Depreciation is calculated using the number of days in the month.

30th June 30th June

30th June 30th June

30th June 30th June

Sales commission earned by retail assistants, but not paid as at the end of June amounted to $2,800. Prepaid insurance as at 1st June ($10,000.00) represented the balance of the premium paid on the annual policy, which started on 1 April 2021 (with 2 months insurance expired as at 31st May). This prepaid insurance is expensed monthly (irrespective of the number of days in the month). The company’s short term and long-term loans are charged interest at the rate of 7.5% per annum and interest needs to be accrued for June (30 days). Estimated electricity cost for June amounted is $1,700 which must be accrued as at 30th June. (Accruals do not include GST – hence the above amount is net of GST)

MYOB Case Study

The Bank Statement received from the bank at the end of June is as follows:

NABBY Bank Australia

Business Trading Account Account Name: Case Study The Manager, Your Name Flowers Pty Ltd Address (Student ID) Date 01-Jun-21 03-Jun-21 04-Jun-21 05-Jun-21 05-Jun-21 06-Jun-21 07-Jun-21 08-Jun-21 11-Jun-21 12-Jun-21 15-Jun-21 16-Jun-21 16-Jun-21 17-Jun-21 18-Jun-21 20-Jun-21 20-Jun-21 21-Jun-21 23-Jun-21 24-Jun-21 25-Jun-21 26-Jun-21 23-Jun-21 25-Jun-21 26-Jun-21 28-Jun-21 29-Jun-21 29-Jun-21 29-Jun-21 30-Jun-21 30-Jun-21

Particulars Opening Balance Deposit - Cash & Cheques Deposit - Cash & Cheques Chq.# 3009 Deposit - Cash & Cheques Chq.# 3010 Deposit - Cash & Cheques Chq.# 3011 Deposit - Cash & Cheques Chq.# 3012 Periodic Payment POS Equip Lease Chq.# 3013 Chq.# 3014 Deposit - Cash & Cheques Chq.# 3015 Deposit - Cash & Cheques Chq.# 3016 Deposit - Cash & Cheques Chq.# 3017 Deposit - Cash & Cheques Chq.# 3018 Deposit - Cash & Cheques Deposit - Cash & Cheques Deposit - Cash & Cheques Deposit - Cash & Cheques Chq.# 3019 Deposit - Cash & Cheques Chq.# 3020 Chq.# 3021 Deposit - Cash & Cheques Bank Fees

From: To: Debit

1-June-2021 30-June-2021 Credit $7,000.00 $5,720.00

$800 $13,970.00 $750 $8,000.00 $4,500.00 $11,137.50 $780 $750 $15,000.00 $4,000.00 $7,205.00 $6,800.00 $6,160.00 $12,000.00 $18,952.50 $950 $15,000.00 $2,600.00 $10,450.00 $6,000.00 $7,600.00 $8,800.00 $275 $15,675.00 $24,000.00 $2,880.00 $140 $90

Balance $95,000.00 $102,000.00 $107,720.00 $106,920.00 $120,890.00 $120,140.00 $128,140.00 $123,640.00 $134,777.50 $133,997.50 $133,247.50 $118,247.50 $114,247.50 $121,452.50 $114,652.50 $120,812.50 $108,812.50 $127,765.00 $126,815.00 $141,815.00 $139,215.00 $149,665.00 $155,665.00 $163,265.00 $172,065.00 $171,790.00 $187,465.00 $163,465.00 $160,585.00 $160,725.00 $160,635.00

Transactions not shown on the Bank Statement are either UNPRESENTED CHEQUES or OUTSTANDING DEPOSITS.

MYOB Case Study

Required: 1.

Set up the business in MYOB – Remember to incorporate YOUR NAME as part of the company name.

2.

Modify the chart of accounts as required to ensure that the transactions affecting the company are recorded and classified correctly. Note: You must be specific in the naming of accounts (i.e. do not use a generic “accruals” account – be specific).

3.

Enter the Opening Balances to the General Ledger and set up the subsidiary ledger for Customers, Suppliers and Inventory.

4.

Process transactions for June, including the completion of the Bank Reconciliation.

5.

Export (in PDF form) and submit the following reports (along with the Assignment Cover Sheet). Note: Make sure that the Company name (which includes your full name) and ABN/Address (which includes your Student ID) is present on each report: •

General Ledger (Accounts) o Balance Sheet o Profit & Loss Statement

•

Sales (Accounts Receivable) Receivables Reconciliation (Summary)

•

Purchases (Accounts Payable) o Payables Reconciliation (Summary)

•

Banking o Cash Disbursements Journals o Cash Receipts Journals...