(FNSICACC307A) Reconcile and monitor accounts receivable



Reconcile and monitor accounts receivable - (FNSICACC308A)

In this unit you are required to develop skills to enable you to reconcile and monitor a financial accounts receivable system.

Review accounts receivable process – The r

eceipts entered into accounts receivable system are checked for accuracy, consistency and thoroughness, where incorrect entries are identified and accurately recorded according to type and source of receipt , where discrepancies between monies owed and monies paid are identified, and receipts entered into accounts receivable system are amended.

Identify bad and doubtful debts – The

Debtor’s ledger is regularly reviewed, any further information required is sought from relevant sources, any bad or doubtful debt status is verified through liaison with debtors, and any reporting procedures and appropriate documentation for bad and doubtful debts is completed.

Review compliance with terms and conditions – Any clients in default of trading terms are correctly identified, any clients in default are contacted promptly and courteously to make satisfactory arrangements to pay monies outstanding, and any monies owing that constitute breaches of company credit policy are actioned.

Plan recovery action – Any previous activities and communication with clients are thoroughly reviewed to establish adequacy of follow-up procedures, and whether all usual company recovery avenues have been exhausted, all plans to pursue debt recovery or to initiate legal action are developed in accordance with company policy and guidelines, and any measures to collect monies are completed within company guidelines and timelines

Prepare reports and file documentation – All appropriate reports are prepared which document accounts receivable debt recovery type, cause and recovery plan, all reports are distributed to supervisors, managers and other relevant parties, and all documentation is filed promptly.

Exercise 1: Alexandra’s Time

Open the word files titled “Alexandra’s Time” and then open the QuickBooks data file and complete the exercise.

Exercise 2: Pattie’s Paints

This exercise involves the setting up of a computerised accounting system, inserting opening balances, adding inventory items, bank reconciliations, petty cash, stock losses, GST, and alternatives in reporting.

THE SETTING:

Patti is the proprietor of the trading business called “Patti’s Paints” which is located, at 35 Church Street, Bellerive, 7018

Patti purchases the Paint’s in bulk, amongst other pieces of sporting equipment, and resells to the public. Patti has developed this profitable business over a number of years. She has found that maintaining an accrual double-entry accounting system using “QuickBooks” is the easiest and most effective method of obtaining relevant financial information.

SECTION ONE:

SETTING UP YOUR COMPUTERISED ACCOUNTING SYSTEM

You have decided to use the small business accounting package QUICKBOOKS to process all your business accounting functions.

Open the QuickBooks 2008/9 software use the INTERVIEW to establish the format and details of the company and to enter the opening balances.

A new database can be established by pulling down FILE and selecting NEW COMPANY.

At the Easy Step Interview screen, click on the Start Interview tab.

[pic]

Then click on the NEXT button

Key in ................... (insert your name) PAINT’S Tab

The legal name will be the same.

You are now asked to include an ABN. For this exercise the ABN section key in 92555666777.

The address is 35 Church Street, Bellerive, Tas, 7018

[pic]

Select the type of business - scroll down and select -Wholesale/Distribution

[pic]

Select Individual Tax Return as your income tax form

[pic]

First month of fiscal year JULY

[pic] three times

Save as - Select “E or F drive” from the pull down list at the bottom of the box, click on OK. (The computer will then establish the database for your company and the name will appear at the top of the screen).

After reading about customising your Quickbooks, click on

[pic]once more.

Select Products only. Then click on [pic]

Select Yes in the Do you track tax screen. [pic]

Answer No to estimates. [pic].

The next two screens answer No.

Yes to billing statements and No to Progress Invoicing

It would be good practice to manage your amounts that you owe, so answer Yes before selecting [pic]

You will be printing cheques. [pic]

You will be tracking inventory. [pic]four times.

Yes to time tracking and No to Employees

The starting date will be 1/10/2010

[pic]

[pic]

The bank account is the Bellerive Credit Union

The account number is 55566689, and you started it before 1/10/2010

[pic]

[pic]

[pic]

You will now add an additional bank account, namely Petty Cash. The balance as of 30/9/2010 was 200.

[pic]

You will accept the recommended accounts.

Click on Finish.

This brings you to the Home screen. This is the main screen to be used when processing financial transactions using QuickBooks.

[pic]

SECTION TWO: INSERTING OPENING BALANCES:

With the Home screen open click on the Chart of Accounts icon.

It will be best to maximise this dialogue box.

At the bottom of the screen, select Account, followed by New.

Select Fixed Asset. Click on [pic]

Key in Delivery Van. The opening balance is 15000, as of 1/10/2010. OK

Click on Save & New.

Now repeat the same steps to enter the amounts for the other fixed assets:

Office Equipment 5000

Shelving 5000

Select Other Current Liability from the pull down list. Key in Battery Point Finance Co – Loan. The balance is 8000 The date will be October 1.

Click on Save & New.

Select Long Term Liability from the pull down list. Key in Loan- Bellerive Credit Union. The balance is 10,000. The date will be October 1.

When finished click on OK. Then Save & Close that screen. Close the chart of the accounts to return to the home screen.

ENTERING CUSTOMERS DETAILS

From the Home Screen select Customers.

[pic]

Now select New Customer & Job – New Customer

Add the customer’s details Moonah Home Hardware, Main Road, Moonah, Tas, 7009. The contact is Max Houghton.

The opening balance of $1250.00. Date 01/10/10

Click on [pic]

Repeat these steps for the other three debtors:

Sandy Bay Hardware, 621 Sandy Bay Road, Sandy Bay, Tas, 7005

Contact is: Fred Bear. The opening balance is $1500.00. Date 01/10/10

Risdon Cove Super Mart, 344 East Derwent Hwy, Risdon Cove, Tas, 7016

Contact is: Mary Smith. The opening balance is $750.00. Date 01/10/10

Rose Bay Mitre 10, 5566 Kaoota Road, Rose Bay, Tas, 7015

Contact is Joe Brown. The opening balance is $1500.00. Date 01/10/10

Click on OK. Now close that screen.

ENTERING SUPPLIERS – CREDITORS DETAILS

From the Home screen select Suppliers and then click on New Supplier.

[pic]

Key in the information into the relevant areas. New Town Paint Manufacturer’s, 321 Park Street, New Town, Tas, 7008. The opening balance is $1250.00.

Click on [pic]

Repeat these steps for:

Tasmanian Delux Paint’s, 30 Cambridge Road, Mornington, Tas, 7018, whose opening balance is $1500.00, and

Howrah Paint Accessories, Shoreline Drive, Howrah, Tas, 7018 – whose opening balance is $2000.00

Then click on OK and then close that screen

SECTION THREE: Adding inventory items -

Click on the Items & Services icon

[pic]

Then select Item from the bottom of this screen, and then select New.

Select Inventory Part.

In the Item name section key in Metallic Paint

[pic]

Purchase description – Metallic Paint

Cost - 15.00

Cost of Goods Sold will be the Cost of Goods sold account.

The purchase tax code is NCG

Sales description – Metallic Paint

Retail Price 30.00 [takes time to load]

Income account – key in and set up as an income account Paint Sales

The sales tax code is GST

Reorder point (leave)

Quantity on hand - 50

(The total value of this stock item should appear - $750)

Click on Next.

Repeat those steps (as well as tax codes) to include the following inventory items:

Buy Sell Qty on Hand Income Account

Rust proof external paint $20 $40 120 litres Paint Sales

Rust proof undercoat $5 $10 75 litres Paint Sales

Sub-Item

Accessories – Brush 5 cm $4 $12 30 Accessory Sales

[pic]

[pic]

[pic]

Accessories – Brush 10 cm $6 $20 40 Accessory Sales

Accessories – Roller $5 $10 50 Accessory Sales

Accessories – Drop sheet $5 $15 50 Accessory Sales

When finished click on OK.

[pic]

Close that screen.

From the Home Screen, through the Reports Centre, Accountant & Taxes, Trial Balance (From 1/10/2010 to 1/10/2010), Refresh check that the balances you have entered are showing.

...’s PAINTS

[pic]

Close those screens

SECTION FOUR:

USING SOURCE DOCUMEMENTS IN PRESENTING ACCOUNTING TRANSACTIONS FOR OCTOBER

A: CREDIT PURCHASES:

To process this transaction you need to establish a list of suppliers. These can be added at any time.

|New Town Paint Manufacturer’s |

| |

|321 Park Street NEW TOWN 7008 |

| |

|DATE: OCTOBER 1 TAX INVOICE NUMBER: 3454 |

| |

|SUPPLIED TO: PATTI’S PAINT’S |

|35 Church Street |

|Bellerive 7018 |

|ITEM NO |DETAILS |ITEM COST |COST |

|Metallic paint | 150 units Metallic Paint |$15.00 |$2250 |00 |

| | | | | |

| |Satisfaction Guaranteed |GST |225 |00 |

| |Total | |2465 |00 |

From the Home screen click on Receive Inventory and Receive Inventory With Bill.

[pic]

Use the scroll arrow to select New Town Paint Manufacturer’s. Key in 2475 in the Amount due section.

Click in the Item section and use the black arrow to select Metallic Paint.

TAB across and key in 150 in Qty.

TAB across and the NCG should appear and 2250 should appear in Net Amt.

The tax amount should be 225 and the amount due 2475.

[pic]

Click on Save and Close.

B: DRAWINGS OF STOCK

*On October 1 Patti withdrew one litre of rust proof external paint for her own use.

To adjust the stock numbers click on Adjust Qty on Hand.

[pic]

Key in the quantity on hand. 119.

Press the tab key and -1 should appear. The adjustment account is ……’s Drawings (An equity account)

[pic]

Then click on Save and Close.

C: RECEIPTS FROM CUSTOMERS:

A RECEIPT provides proof that payment was received.

|Mr/Mrs/Ms: |

|Company: Moonah Home Hardware DATE: October 3 |

|Address: Main Rd |

|City & State: Moonah Post Code: 7009 |

|Phone: (Res) | |Phone (Bus) |

| | |

|INVOICED AMOUNT: $ 1250.00 |PATTI’S |

| |PAINT’S |

|LESS DISCOUNT: $ 0.00 | |

| |THANKYOU |

| |$1250.00 |Receipt NO: 1 |

|RECEIVED FROM CUSTOMER | | |

|CASH |( | |

|CHEQUE |( |Deposited By: |

|VISA/MC/AM EX |( | |

This source document is processed by clicking on Home Screen - Customers and then selecting Receive Payments.

[pic]

In the customer field use the pull down list and select Moonah Home Hardware.

Tab to the amount field and key in 1250.

[pic]

You will notice that a tick is placed next to date in the Outstanding Invoices section

This amount will be placed into the Undeposited Funds section, at the bottom of that screen. If this does not appear on the screen, you will need to go to Edit, Preferences, Customers & Sales, Company Preferences and remove the tick from ‘Use Undeposited Funds as a default’.

Click on Save & Close.

If you now click on Customers, you will notice that the balance owing is zero.

[pic]

Close that screen.

D: DEPOSITING MONEY INTO THE BANK ACCOUNT

From the Home Screen, you are able to click on Record Deposits.

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[pic]

Click on OK.

Ensure that the Bellerive Credit Union is showing

[pic]

This money will go into your bank account. Click on Save & Close.

Now process this additional receipt from a customer to be deposited straight into the credit union:

|Mr/Mrs/Ms: |

|Company: Rose Bay Mitre 10 DATE: October 4 |

|Address: 5566 Kaoota Road |

|City & State: Rose Bay Post Code: 7015 |

|Phone: (Res) | |Phone (Bus) |

| | |

| |PATTI’S |

|INVOICED AMOUNT: $ 1500.00 |PAINT’S |

| | |

|LESS DISCOUNT: $ 00.00 |THANKYOU |

| | |

| |$1500.00 |Receipt NO: 2 |

|RECEIVED FROM CUSTOMER | | |

|CASH |( | |

|CHEQUE |( |Deposited By: |

|VISA/MC/AM EX |( | |

**** Ensure that the monies go into the credit union.

E: CASH SALES: 50 litres of Rust proof external paint

|Mr/Mrs/Ms: Cash customers |

|Company: DATE: October 5 |

|Address: |

|City & State: Post Code: 7000 |

|Phone: (Res) | |Phone (Bus) |

|Metallic Car Paint | |

|Rustproof External Paint 2000.00 |PATTI’S |

|Rustproof Undercoat Paint |PAINT’S |

|Paint Accessories |THANKYOU |

|GST 200.00 | |

|TOTAL | |

| |$2200.00 |Cash Fees Receipt |

|RECEIVED FROM CLIENT | |NO: 1 |

|CASH |( | |

|CHEQUE |( |Deposited By: |

|VISA/MC/AM EX |( | |

Select Create Sales Receipts from the Home Screen. If this icon does not appear in the Customers section, then go to Edit, Preferences,, Desktop View, Company Preferences and place a tick in ‘Sales Receipts’ box.

[pic]

Create a new customer called Cash Sales.

In the Customer Job section select Cash Sales. The payment method is cash.

The Item is Rustproof External Paint with $2000 only. Then add GST of $200.

[pic]

Click on Save & Close.

This amount is now to be deposited into the credit union.

F: PAYMENTS TO SUPPLIERS:

|Cheque No: 12000 |DATE: October 6 |

|Balance b/d |To: New Town Paint |

| |Manufacturer’s |

|Amount: $1250.00 |For: previous deliveries |

| | |

|Balance c/f | |

From the Home Screen select Pay Bills.

[pic]

Place a tick next to the New Town Paint Manufacturer’s.

Ensure that the payment account in Bellerive Credit Union.

In the payment method section select Assign a cheque no.

The payment date should be October 6.

Key in 1200 as the cheque number. Then select OK

Then click on Pay Selected Bills.

[pic]

Key in 1200 and then click on OK. Then click on Done.

G: WRITING CHEQUES:

|Cheque No: 1201 |DATE: October 7 |

|Balance b/d |To: Hobart City Advertising |

|Amount: $50.00 |For: October promotions |

|+NCG %5.00 | |

|Balance c/f | |

To process the following cheque click on Write Cheques located on the Home Screen.

Key in Hobart City Advertising and press TAB to Quick Add, Other for the details of the payee. Then click on OK

In the Account section, at the bottom, key in Advertising, press the TAB key and set-up advertising as an expense. The usual tax code is NCG.

Key in 50.00 in the Net amt area. ($5.00 will appear as the tax amount and $55 will appear in the amount section of the cheque.

[pic]

Then click on Save and Close.

CASH SALES: 60 litres of Rust Proof Undercoat Paint

|Mr/Mrs/Ms: Cash customers |

|Company: DATE: October 8 |

|Address: |

|City & State: Post Code: 3095 |

|Phone: (Res) | |Phone (Bus) |

|Metallic Car Paint | |

|Rustproof External Paint |PATTI’S |

|Rustproof Undercoat Paint 600.00 |PAINT’S |

|Paint Accessories |THANKYOU |

|GST 60.00 | |

|TOTAL | |

| |$660.00 |Cash Fees Receipt |

|RECEIVED FROM CLIENT | |NO: 2 |

|CASH |( | |

|CHEQUE |( |Deposited By: |

|VISA/MC/AM EX |( | |

This amount is to be deposited into the credit union.

H: CREDIT SALES:

|PATTI’S PAINT’S |

| |

|Paints & Accessories to suit all purposes |

| |

|35 CHURCH STREET, BELLERIVE 7018 TELEPHONE 943867676 |

|SUPPLIED TO: Sandy Bay Hardware |

|621 Sandy Bay Road |

|Sandy Bay 7005 |

| | |TAX INVOICE NO: |

|DATE: October 9 | |PP 1 |

|ITEM |DETAILS |UNITS |TOTAL |

|Rust Proof Ext |Rust Proof External Paint |35 |$1400.00 |

|Rollers |Paint Rollers |3 |30.00 |

| | | | |

| |TERMS: 10/7 NET 30 |GST |$143.00 |

| | | | |

| |Total | |1573.00 |

From the Home Screen select Invoices.

[pic]

Use the pull down arrow to select Sandy Bay Hardware in the Customer Job section.

Use the drop-down arrows to select items to complete the relevant sales information.

[pic]

Then click on Save and Close.

I: PROCESSING A PETTY CASH VOUCHERS

|PETTY CASH VOUCHER |

|DEBIT: Office Expenses No: 1 |

|Particulars: light globes |

|includes NCG |

| |

| Amount: $3.30 |

|Date: Oct 10 Signed: |

To process this voucher from select the Write Cheques from the Home Screen.

[pic]

From the Bank Account select the Petty Cash Bank account.

Make the cheque payable to Cash, (TAB - quick add as other).

Create a new expense account Office Expenses. (TAB - set-up as an expense)

Key in 3.00 and add NCG. Your screen should look like:

[pic]

and then select Save and Close.

SECTION FIVE: WRITING MORE CHEQUES:

(You will need to change the bank account back to the Credit Union)

|Cheque No: 1202 |DATE: October 12 |

|Balance b/d |To: Telstra Telephone |

|Amount: $49.50 |For: September’s phone calls |

|Includes NCG | |

|Balance c/f | |

PAYING SUPPLIERS:

|Cheque No: 1203 |DATE: October 13 |

|Balance b/d |To: Tasmanian Delux Paint’s |

|Amount: $1500.00 |For: September’s deliveries |

| | |

|Balance c/f | |

Click on the “Assign Cheque no” button to assign cheque 1203.

FURTHER PETTY CASH ITEMS:

(Change the bank account to petty cash)

|PETTY CASH VOUCHER |

|DEBIT: Office Expenses No: 2 |

|Particulars: tea, sugar, biscuits |

|includes NCG |

| |

| Amount: $11.00 |

|Date: Oct 14 Signed: |

RECEIPTS FROM CUSTOMERS:

|Mr/Mrs/Ms: |

|Company: Sandy Bay Hardware DATE: October 15 |

|Address: 621 Sandy Bay Road |

|City & State: Sandy Bay Post Code: 7005 |

|Phone: (Res) | |Phone (Bus) |

|INVOICED AMOUNT: $ 1500.00 | |

| |PATTI’S |

|LESS DISCOUNT: $ 0.00 |PAINT’S |

| |THANKYOU |

| |$1500.00 |Receipt NO: 3 |

|RECEIVED FROM CUSTOMER | | |

|CASH |( | |

|CHEQUE |( |Deposited By: |

|VISA/MC/AM EX |( | |

|Mr/Mrs/Ms: |

|Company: Risdon Cove Super Mart DATE: October 16 |

|Address: 344 East Derwent Hwy |

|City & State: Risdon Cove Post Code: 7016 |

|Phone: (Res) | |Phone (Bus) |

|INVOICED AMOUNT: $ 750.00 | |

| |PATTI’S |

|LESS DISCOUNT: $ 00.00 |PAINT’S |

| |THANKYOU |

| |$750.00 |Receipt NO: 4 |

|RECEIVED FROM CUSTOMER | | |

|CASH |( | |

|CHEQUE |( |Deposited By: |

|VISA/MC/AM EX |( | |

ADDITIONAL CAPITAL CONTRIBUTIONS:

On October 17, Patti contributed a further $3000 to the business.

From Home Screen select Record Deposit.

Tab to Deposit To and select Bellerive Credit Union. Change the date.

[pic]

Key in Patti (Set-up as Other), select the Opening Bal Equity account, then tab across and key in 3000.

Click on Save and Close.

FURTHER TRANSACTIONS USING SOURCE DOCUMENTS

TASMANIAN DELUX PAINTS

30 Cambridge Road, Mornington 7018

TELEPHONE: 94245459

TAX INVOICE NUMBER: 55

| | | |

|DATE: OCT 18 |ORDER NO: |ABN NO: |

|ITEM No: |DESCRIPTION OF GOODS |QTY |RATE |TAXABLE | |

| | | | | | | | |

|27P |Metallic Paint |350 | |$5250 |00 | | |

|3323U |Rust Proof Undercoat |125 | |625 |00 | | |

| | | | | | | | |

| | | |GST 10% |587 |50 | | |

TERMS: NET 30 DAYS

Cash sales - 25 litres of Rust Proof External, 5 rollers & ten 5 cm brushes

|Mr/Mrs/Ms: Cash customers |

|Company: DATE: October 19 |

|Address: |

|City & State: Post Code: 3095 |

|Phone: (Res) | |Phone (Bus) |

|Metallic Car Paint | |

|Rustproof External Paint 1000.00 |PATTI’S |

|Rustproof Undercoat Paint |PAINT’S |

|Paint Accessories(5*5 cm Br, 5*10 cm Br,1roller) 170.00 |THANKYOU |

|GST 117.00 | |

|TOTAL | |

| |$1287.00 |Cash Fees Receipt |

|RECEIVED FROM CLIENT | |NO: 3 |

|CASH |( | |

|CHEQUE |( |Deposited By: |

|VISA/MC/AM EX |( | |

This amount is to be deposited into the credit union.

|Cheque No: 1204 |DATE: October 22 |

|Balance b/d |To: Bellerive Printing |

|Amount: $110.00 |For: office stationery |

|Includes NCG | |

|Balance c/f | |

|Cheque No: 1205 |DATE: October 24 |

|Balance b/d |To: Tasmanian Energy |

|Amount: $60.50 |For: September’s electricity |

|Includes NCG | |

|Balance c/f | |

FURTHER CREDIT SALES

|PATTI’S PAINT’S |

| |

|Paints & Accessories to suit all purposes |

| |

|35 CHURCH STREET, BELLERIVE 7018 TELEPHONE 943867676 |

|SUPPLIED TO: Moonah Home Hardware |

|Main Road |

|Moonah 7009 |

| | |TAX INVOICE NO: |

|DATE: October 25 | |PP2 |

|ITEM |DETAILS |UNITS |TOTAL |

|Rust Proof Ext |Rust Proof External Paint |9 |$360.00 |

|Rust Proof Ud |Rust Proof Undercoat |75 |750.00 |

|Brush 5 cm |Paint Brush 5 cm |3 |36.00 |

|Drop Sheet |Drop Sheet |3 |45.00 |

| | | | |

| |TERMS: 10/7 NET 30 |GST |$119.10 |

| | | | |

| |Total | |1310.10 |

CASH DRAWINGS:

|Cheque No: 1206 |DATE: October 27 |

|Balance b/d |To: Cash |

|Amount: $300.00 |For: Drawings |

|NCG Free | |

|Balance c/f | |

[pic]

|Cheque No: 1207 |DATE: October 28 |

|Balance b/d |To: Bellerive Office Supplies |

|Amount: $110.00 |For: Stationery |

|Includes NCG | |

|Balance c/f | |

|Cheque No: 1208 |DATE: October 28 |

|Balance b/d |To: Hobart Dry Cleaner’s |

|Amount: $77.00 |For: Dry cleaning of uniforms |

|Includes NCG | |

|Balance c/f | |

SECTION SIX: BANK RECONCILIATION

|[pic] |

|Bellerive Credit Union |

BELLERIVE BRANCH

BANK STATEMENT

PATTI’S PAINT’S

Branch Account

Number Number

6666 1000-0000

DATE TRANSACTION DETAIL DEBIT CREDIT BALANCE

|1 OCT |BALANCE FORWARD | | |5000.00 |CR |

|3 OCT |DEPOSIT | |1250.00 |6250.00 |CR |

|4 OCT |DEPOSIT | |1500.00 |7750.00 |CR |

|5 OCT |DEPOSIT | |2200.00 |9950.00 |CR |

|8 OCT |1200 |1250.00 | |8700.00 |CR |

|9 OCT |DEPOSIT | |660.00 |9360.00 |CR |

|9 OCT |1201 |55.00 | |9305.00 |CR |

|15 OCT |1202 |49.50 | |9255.50 |CR |

|16 OCT |1203 |1500.00 | |7755.50 |CR |

|16 OCT |DEPOSIT | |1500.00 |9255.50 |CR |

|17 OCT |DEPOSIT | |750.00 |10005.50 |CR |

|17 OCT |DEPOSIT | |3000.00 |13005.50 |CR |

|19 OCT |DEPOSIT | |1287.00 |14292.50 |CR |

|23 OCT |1204 |110.00 | |14182.50 |CR |

|26 OCT |1205 |60.50 | |14122.00 |CR |

|28 OCT |1207 |110.00 | |14012.00 |CR |

|28 OCT |1206 |300.00 | |13712.00 |CR |

|29 OCT |1208 |77.00 | |13635.00 |CR |

|29 OCT |BANK FEES |7.75 | |13627.25 |CR |

31 OCT BALANCE 13627.25 CR

To enter the Bank Fees into your Bank Account, select Write Cheques.

Change the cheque number to BST. In the Expense section key in Bank Fees 7.75.

[pic]

Click on Save and Close.

From the Home Screen select Reconcile.

In the Account to be Reconciled section, select Bellerive Credit Union.

Key in the date and the Ending Balance of $13627.25

Then click on Continue.

Put ticks against each of the items that are in the Bank Statement and also in your Bank Account.

[pic]

When completed the box at the bottom right hand corner of the screen should show a difference of 0.00. This means that there is no difference between your Bank Account and the Bank’s Statement.

When you have completed the above click Reconcile Now. You could print a summary report.

[pic]

Print a summary reconciliation report. Then click on Display. Then close the screen.

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SECTION SEVEN:

STOCK ADJUSTMENTS OF MERCHANDISE

From a physical stock count you have found that one can of undercoat paint is missing

From the Home Screen select Adjust Qty on Hand

Use Set Up to establish Stock Loss as a Cost of Goods Sold Account.

In the field Adjustment Account, key in Stock Loss. Tab

In the field New Quantity enter the new number for the stock.

The adjusted numbers on hand will appear in the Quantity Difference column and the value of the adjustment will be shown on the right of the box.

The total adjustment is $-5.00

Click on Save & Close.

SECTION EIGHT:

At October 31 the following tasks need to be completed:

A: The end of this week marks the completion of four weeks as the sole proprietor of your very own small business. It is therefore time to undertake the evaluation tasks.

From the Report Centre select Company & Financial, Profit & Loss - Standard.

Ensure that the dates are 1/10/2010 and 31/10/2010. Then click on Refresh.

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ALTERNATIVE PRESENTATION: GRAPHS

From the same Reports Centre, scroll further down the list and select Income and Expense Graph.

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B: The Balance Sheet as at October 31

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Section Nine:

Required:

1. What was the total revenue for the month? $…………….

2. What was the Gross Profit for the month? $…………….

3. What were total operating expenses for the month? $…………….

4. What was the profit/loss for the month? $…………….

5. What were total Current Assets at the end of the month? $…………….

6. What were total Non-current Assets at the end of the month? $…………….

7. What was Capital at the end of the month? $ ……………

8. What were the debtor’s balances at the end of the month? $ ……………

From the Reports Centre select Customers & Receivables – print out the following customer reports for the month of October:

• The A/R Ageing - Summary

• The A/R Ageing - Detail

• The Customer Balance Detail

• Open Invoices

• Accounts Receivable graph

• Transaction List by Customer.

How much GST does Patti owe to the ATO, or is it a refund?

Section Ten:

How would go about identifying

bad or doubtful debts?

How can a credit policy help?

Suggest what steps that you go about to improve your credit management policy?

From the Customers Screen - Word - write letters section – how would you be able to utilise them to assist in the successful running of your business?

What measures to collect monies does the company have in place?

Which personnel within your organisation receive the account receivable reports?

Outline the strengths your report filing system.

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