MYOB Demo Exercise-April-2019 PDF

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Lecture Demonstration Exercise 1.

Company Set Set-Up -Up Procedures Detailed proced procedures ures and options are described iin n Section 3.

The following data is required to set up a NEW COMPANY using MYOB.

Exerci Exercise se Details

Company Da Data ta ta:: The business is a wine retailer, supplying restaurants and commercial customers. Details of the business are as follows:

ABN Number:

ABC Wine Shop 670 New South Head R Road oad Vaucluse NSW 2 2030 030 123 456 789 01 (ABN = Australian Business Number)

Financial Year:

2019

Company Name: Address:

Conversions Month:

2.

(1st Juy 2018 to 30th June 2019)

July

Entry of Opening Balances in the G GENE ENE ENERAL RAL LEDGER Detailed instructions are co covered vered in Section 4 4..

The following trial balance details the Opening General Ledger balances when the user converts to MYOB. These balances are best entered using THE EASY SETUP AS ASSIST SIST SISTANT ANT which may be accessed from the SETUP command in MYOB.

Exercise Details

Trial Balance as at 1st July 2018 Cash at Bank

15,000

Accounts Receivable Control

23,000

Inventory Control

48,600

Prepaid Insurance

8,000

Plant and Equipment

152,000

Accumulated Depreciation - Plant & Equipment

52,000

Accounts Payable Control

42,500

Accrued Expenses

4,000

GST Collected

5,000

GST Paid

3,500

PAYG Withholdings Payable

5,500

Long Term Loans

80,000

Paid Up Capital

50,000

Retained earnings

11,100 250,100

250,100

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3.

Entry of Opening Subsidiar Subsidiary y Ledger Balances for Customers and Suppliers Detailed instructions are co covered vered in Section 5.

Exercise Details

Subsidiary Ledger Detai Details ls as at 1st July 2018 Customers - Accounts R Receiva eceiva eceivable ble Balance as at 1st July July,, 2018

Days Outstanding – Date of T Trransaction $10,000 30 days Historical Sale made on 1st June, 2018 13,000 60 days Historical Sale made on 2nd May, 2018 $23,000

CU1 – Abbey Co CU2 – Zeffron Co

Suppliers – Accounts P Pay ay ayable able Balance as at 1st July July,, 2018 SU1 – Hunter Vineyards SU2 – SA Vineyards SU3 – Telstra

Date of T Transaction ransaction $17,500 $20,500 4,500

15th June, 2018 2nd June, 2018 20th June, 2018

$42,500

4.

Entry of Opening Subsidiar Subsidiary y Ledger Balances for Inv Inventory entory Detailed instructions are co covered vered in Section 6.

The following information details the Opening SUBSIDIARY Ledger balance for INVENTORY. Each inventory item or product will need to be entered separately and details of selling price, GST considerations and general ledger accounts affected by inventory movements will need to be detailed separately.

Exercise Details INVENT INVENTORY ORY Balance as at 1st July 2018

RW1 - Red Wine WW1 - White Wine

Quantity

Unit Cost (ex GST)

Total Value $

Sell Price (ex GST)

Sell Price (GST inc)

1,200 1,600

$16.50 $18.00

$19,800 $28,800 $48,600

$30.00 $34.00

$33.00 $37.40

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5.

Entry of PURCHASE T Trransactions Detailed instructions ffor or PURCHASES are cov covered ered in Section 7 7..

The entry of July 2018 transactions for the PURCHASE of GOODS and SERVICES will be accomplished using the PURCHASES module of MYOB.

Exercise Details SUPPLIER TRANSACTIONS Data source: suppliers’ in invoices. voices. Dates shown are invo invoice ice dates. Amounts include GST GST,, except for iinvoices nvoices received from overseas suppliers 6 Jul

Received invoice from SU1, for 500 bottles of WW1, received into warehouse at a total cost of $9,900

14 Jul Received invoice from SU2 for 600 bottles of RW1, $11,220. 16 Jul The warehouse manager reported that only 580 bottles of RW1 had been received from SU2 on the 14 July. The Accounts department entered a credit note from SU2 for the difference. (that is 20 bottles at $11,220 / 600 = $18.70 * 20 = $374.00). 21 Jul Received invoice from SU3 - Telstra Corp for telephone usage for the month $870. 24 Jul Purchased stationery on account from SU4, Penfold Stationers for $250.00. Stationery is expensed when purchased.

6.

Entry of CREDIT and CASH SALES T Transactions ransactions

Detailed instructions ffor or SALES are cov covered ered in Section 8. The entry of July 2018 transactions for the SALE of goods on CASH or CREDIT uses the SALES program module in MYOB.

Exercise Details CUST CUSTOMER OMER TRANSACTIONS and CASH SA SALES LES All invoiced am amounts ounts include GST GST.. The firm’ firm’ss sales are both ove over-the-counter r-the-counter cash and credit to restauran restaurants, ts, and to well-known customers who may be other wine retailers 5 Jul Sold 300 bottles of WW1 for cash. 10 Jul Sold 220 bottles of RW1 on account to CU1. 11 Jul CU1 returned 20 bottles of RW1 purchased on 10 Jul and a credit note was issued. 12 Jul Sold 100 bottles of WW1 and 300 bottles of RW1 for cash. 15 Jul Issued invoice to CU3 – Cable Corp (a new customer) for rent of glasses for a party, $550, GST inclusive. 18 Jul Sold 350 bottles of WW1 and 250 bottles of RW1 to CU2. 24 Jul Invoice to CU4 – Harley Partners (a new customer) for 100 bottles of WW1 and 100 bottles of RW1. 30 Jul Invoice to CU2 for 100 bottles of WW1. The entry of CASH SALES uses the SA SALES LES MODULE. A NEW CUSTOMER needs to be created to be called CASH SALES. In the sales inv invoice, oice, data entry screen, it will be necessary to enter the ffu u ll amount of the inv invoice oice in the P PAID AID TODA TODAY Y input field to recor record d the receipt of the cash ffor or this sale. This procedure will be explained in detail in Section 8.

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7.

Entry of CASH RECEIPT RECEIPTS S from Customers

Detailed instructions ffor or customer payments will be cov covered ered in Section 9. The entry of July 2018 cash receipt transactions from customers is accomplished using the RECEIVE P PAYMENTS AYMENTS option within the SALES module of MYOB. Open item accounting for customers means that payments and sale returns are matched against the relevant invoice. The bank loan, a receipt of money from the bank, will be processed using the RECEIVE MONEY option in the BANKING program module.

Exercise Details CASH RECEIPTS – Deposit Book Cash Receipts of the business are as follows: 5 Jul Customer CU1 paid $10,000, the balance of the account as at 30 June. 11 Jul Customer CU2 paid $13,000, the balance of the account as at 30 June. 18 Jul Customer CU1 paid $5,000 of the outstanding balance of the account. 21 Jul Arranged a bank loan for $50,000 from the ANAZ bank. This amount was deposited into the Business bank account. 25 Jul Cash received amounting to $8,800 for the sale of an item of Plant & Equipment that originally cost $22,000, and the accumulated depreciation up to the date of sale was $17,000. 31 Jul Received cheque from CU3 for $550 in full settlement of the account, leaving a nil balance.

8.

Entry of CASH P PA AYMENTS tto o Suppliers

Detailed instructions ffor or supplier payments will be cov covered ered in Section 10. The entry of cash payments to suppliers is made through the PURCHASES module using the PA PAY Y BILLS screen. Payments are matched to invoices – hence the use of open item accounting is also applicable to suppliers.

Exercise Details Supplier Pa Payments yments 11 Jul Paid SU1, $17,500, being previous month balance. 18 Jul Paid SU2, $20,500 being amount owing as at 1st July. 31 Jul Paid balance owing to SU3 as at 31st July.

[chq. no. #10347] [chq. no. #10349] [chq. no. #10354]

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9.

Entry of miscellaneous CASH P PA AYMENTS

Detailed instructions ffor or miscellaneous cash payments ar are e covered in Section 10. All cash payments other than payments to suppliers will need to be entered via the BANKING module using the Spend Money screen.

Exercise Details CASH P PA AYMENTS – BANKING Miscellaneous payments 1 Jul Drew a cheque for $1,000 to start a Petty Cash float. [chq. no. #10345] 3 Jul Reimbursed $75 to an employee for travel expenses incurred. [chq. no. #10346] 15 Jul Paid June’s sales commission to retail assistants of $4,000.00 previously accrued (see Trial Balance – Accrued Expenses). [chq. no. #10348] 21 Jul Paid June’s PAYG withholding tax of $5,500 [chq. no. #10350] 21 Jul Paid GST obligation for June, as per trial balance. (net amount of GST Collected and GST paid). [chq. no. #10351] 29 Jul Paid wages to employees for the month, $9,800 net of withholding tax of $4,200. The withholding tax is to be paid on 21st August. (Hence total wages are $14,000 with a liability of $4,200 to appear in the balance sheet for PAYG Withholdings). [chq. no. #10352] 30 Jul Drew a cheque to reimburse Petty Cash for the following cash expenses incurred: Postage $198 Stationery $242 Cleaning $220 Travel Expense $253 Total $913 [chq no #10353]

CASH P PA AYMENTS Source = Bank Statement 15 Jul Periodic payment for lease of Point of Sale (POS) equipment $770 for July (inclusive of GST) [Reference – Bank Statement] 31 Jul Bank charges of $110 were charged to the business. Note bank charges are GST [Reference – Bank Statement] free.

10. Bank Recon Reconciliation ciliation Bank reconciliation procedur procedures es are cover covered ed in Section 10. Upon the completion of the entry of all bank transactions for the period (receipts and payments), it is possible to use MYOB to prepare a BANK RECONCILIA RECONCILIATION TION ST STA ATEMENT which enables the reconciliation of the Bank Statement received from the bank with the Company’s cashbook records.

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11. Entry of End of P Period eriod Adjustments via the Gen Gene era rall Journal Detailed instructions ffor or the processing of end-of end-of--period adjustments using the Gener General al Journal will be cov covered ered in Section 11. All end of period adjustments are entered via the GENERAL JOURNAL, which is accessed via the General Ledger module. There are no GST implications associated with prepayments and accruals. Hence the full amount of the adjustment transaction is posted to the relevant accounts exclusive of GST.

Exercise Details DA DAT TA SOURCE – NO NOTES TES AND WORKING PAPER PAPERS S Month-end adjustments as at 31st July 2018 1. Plant and equipment are depreciated at 10% per annum calculated monthly. 2. Sales commission earned by retail assistants during July, but not paid, $5,500.00. 3. Prepaid insurance as at 30 June ($8,000) represented the premium paid on an annual policy starting on 1 May 2018. (The prepaid Insurance expense is $8,000 for 10 months, hence 1 month’s insurance is $8,000 ÷ 10 = $800 per month). 4. The company’s long-term loan is at 5% pa. Interest is accrued monthly, and the next interest payment is not due until 30th September. 5. Accrued electricity for July is estimated at $1,200.00.

12. Accounting R Reports eports & Business Inform Information ation Having processed all the transactions, it is possible to generate a number of reports that will provide either a detailed or summarised account of the transactions entered into by the business during the period and the impact of these transactions on the Income Statement and the Balance Sheet Sheet. Each program module has a variety of reports to cater for the information requirements of management. For example, the various program modules and some of the reports available therein are as follows:     

General Le Ledger dger for trial balance, income statement and balance sheet. Sales for outstanding balances of accounts receivable, as well as various forms of transaction analysis. Purchases for outstanding balances of accounts payable as well as various forms of transaction analysis. Inven Inventory tory detailing, sales, purchases and closing balances by quantity and value. Banking for all cash receipt and payment reports.

Reporting will be covered in each section and selected accounting reports covering the above business activities will be detailed in Section 12....