(FNSACCT407A) Set up and operate a computerised accounting ...



Set up and operate a computerised accounting system (FNSACCT407B)

In this unit you are required to establish and operate under supervision, a computerised accounting system.

Implement an integrated accounting system – Implement the general ledger and chart of accounts, set up customers, suppliers and inventory items, and meet the reporting requirements of Goods and Services Tax (GST), seeking appropriate technical help when needed.

Process transactions within the system - Collate, code and classify input data, process a wide range of cash and credit transactions in both a service and trading environment, make any balance day adjustments, in the general journal, for prepayments and accruals. After verifying the accuracy of the inputted data, any processing errors are rectified, and an end of financial year rollover is performed.

Maintain the system - Any new general ledger accounts, customer, supplier, inventory and fixed asset records are added as required, any existing chart of accounts, customer, supplier, inventory and fixed asset records are maintained and updated, and the chart of accounts is customised to meet the reporting requirements of the organization

Produce reports – Generate reports to indicate the financial performance and financial position of the organization, generate reports to meet the GST reporting requirements of the organization, generate reports to ensure that subsidiary ledgers/accounts reconcile with the general ledger and generate reports, which ensure that the bank account reconciles with the bank statement, over at least two reporting periods.

Ensure system integrity – Make regular back-ups of the system to ensure against loss or corruption of data, and a secure record of all processed transactions is maintained for audit purposes.

Exercise 1:

“Establish a database for an existing business”

Complete each of the steps involved in this tutorial

Exercise 2:

“Establish the database for new businesses”

Complete each of the steps involved in this tutorial

Exercise 3: Bendigo Bikes

Create a new QuickBooks database for Bendigo Bikes to enable you to undertake the following financial activities.

BACKGROUND INFORMATION:

Bill is the proprietor of a bike shop called “Bendigo Bikes” which is located in rented premises at 15 Church Street, Bendigo, 3550.

Bill conducts a retail business that sells various types of bikes and accessories.

SECTION ONE:

ESTABLISH YOUR COMPUTERISED ACCOUNTING SYSTEM

Bill uses the small business accounting package QuickBooks 2008/9 to process all of his business accounting functions.

The company information:

|Field |Enter |

|Bendigo Bikes, | |

|15 Church Street, Bendigo, 3550. | |

|First month of fiscal year: |July |

|Tax form |Individual |

|The type of business |Product sales/retail, |

|Do you want to use these accounts? |Yes |

|Assessing your company |Accept 0 |

|Users & Passwords |Accept Admin |

|Does your company maintain stock? |Yes |

|Do you want to use the QuickBooks stock feature? |Yes |

|Do you want to enable the units of measure? |Yes |

|Enabling multicurrency |No |

|Invoice format |Product |

|How many employees does your business have | 0 |

|Do you prepare estimates? |No |

|Time Tracking |No |

|Classifying transactions |No |

|Two ways to handle bills |Enter bills first and enter payments later |

|Reminders |At start up |

|Goods and Services Tax – Does your company track tax? |Yes |

|Tax Identification number |92555666777 |

|GST reporting basis |Accrual basis |

|Entering your sales figures |Gross |

|QuickBooks start date |01/05/09 |

|Do you want to add another income account now? |Yes |

| |Accessories |

| |Shoes |

| |Helmets |

| |Gloves |

| |Bike path books |

| |Road bikes |

| |Mountain bikes |

| |Children’s Trikes |

| |BMX bikes |

|Expense accounts |No |

|Receipt of payment |Sometimes |

|Service items |no |

|Non stock parts |no |

|Other charges |no |

|Stock items |yes |

|Item name |Helmets |

|Purchase description |Bike Helmets |

|Units of Measure |1 |

|Sales Description |Bike Helmets |

|Cost |22.00 |

|Cost of Goods Sold account |Accessories Purchases, sub account – Helmet purchases |

|Sales Price |44.00 |

|Income account |Accessory Sales, sub account - Helmets |

|Reorder point |2 |

|Quality on hand |10 |

|Item name |Gloves |

|Units of Measure |1 |

|Purchase description |Bike gloves |

|Sales Description |Bike gloves |

|Cost |6.00 |

|Cost of Goods Sold account |Accessories Purchases, sub account – Glove purchases |

|Sales Price |18.00 |

|Income account |Accessory Sales, sub account - Gloves |

|Reorder point |2 |

|Quality on hand |10 |

|Item name |Shoes |

|Purchase description |Bike shoes |

|Units of Measure |1 |

|Sales Description |Bike shoes |

|Cost |52.00 |

|Cost of Goods Sold account |Accessories Purchases, sub account – shoe purchases |

|Sales Price |122.00 |

|Income account |Accessory Sales, sub account - shoes |

|Reorder point |2 |

|Quality on hand |10 |

|Set up another stock item |Yes |

|Item name |Bike Path Books |

|Purchase description |Bike path books |

|Units of Measure |1 |

|Sales Description |Bike path books |

|Cost |11.00 |

|Cost of Goods Sold account |Accessories Purchases, sub account – bike book purchases |

|Sales Price |33.00 |

|Income account |Accessory Sales, sub account – bike path books |

|Reorder point |1 |

|Quality on hand |6 |

|Item name |Road bikes |

|Purchase description |Road Bikes |

|Units of Measure |1 |

|Sales Description |Road Bikes |

|Cost |550.00 |

|Cost of Goods Sold account |Accessories Purchases, sub account – road bike purchases |

|Sales Price |1650.00 |

|Income account |Accessory Sales, sub account – Road bikes |

|Reorder point |4 |

|Quality on hand |10 |

|Item name |Mountain bikes |

|Purchase description |Mountain bikes |

|Units of Measure |1 |

|Sales Description |Mountain bikes |

|Cost |110.00 |

|Cost of Goods Sold account |Accessories Purchases, sub account – Mountain bikes |

|Sales Price |385.00 |

|Income account |Accessory Sales, sub account - Mountain bikes |

|Reorder point |2 |

|Quality on hand |10 |

|Set up another stock item |Yes |

|Item name |Children’s Trikes |

|Purchase description |Children’s Trikes |

|Units of Measure |1 |

|Sales Description |Children’s Trikes |

|Cost |60.00 |

|Cost of Goods Sold account |Accessories Purchases, sub account – Children’s Trikes |

| |Purchases |

|Sales Price |120.00 |

|Income account |Accessory Sales, sub account - Children’s Trikes Sales |

|Reorder point |2 |

|Quality on hand |10 |

|Set up another stock item |Yes |

|Item name |BMX Bikes |

|Purchase description |BMX Bike |

|Units of Measure |1 |

|Sales Description |BMX Bike |

|Cost |82.50 |

|Cost of Goods Sold account |Accessories Purchases, sub account – BMX purchases |

|Sales Price |165.00 |

|Income account |Accessory Sales, sub account – BMX Sales |

|Reorder point |2 |

|Quality on hand |20 |

|Item name |Bike Servicing |

|Sales Description |Bike Servicing |

|Sales Price |50.00 per hour |

|Income account |Bike Servicing |

|Set up another stock item |No |

|Enter Customers |Yes |

|Customer job tracking |No |

|Tracey’s Playthings Pty Ltd |3500 |

|195 Broadgully Rd, Bendigo 3550 |ABN 39010267441 |

|Daves Toyland |1500 |

|3 Smith St Bendigo 3550 |ABN 54889556443 |

|Eaglehawk Cycles |2300 |

|23 Main Rd Eaglehawk 3556 |ABN 65006744344 |

|Howards Bikes |800 |

|678 Goldfields Rd, Bendigo 3550 |ABN 84667556443 |

|Robs Adventures Ltd |880 |

|90 Bourke St, Bendigo 3550 |ABN 92555666777 |

|Betty’s Cycles |1620 |

|1 Melbourne Rd, Eaglehawk 3556 |ABN 84889444553 |

|Do you have any suppliers whom you owed money to at start date? |Yes |

|Dikies Bikes |4500 |

|45 Portsea Rd Aspendale 3195 |ABN 95117891426 |

|Cathy’s Kid Stuff |1000 |

|94 City Rd Sydney 2000 |ABN 10947355679 |

|Australian Cycle Manufacturers |4400 |

|11 Johnson St Collingwood 3066 |ABN 51195266144 |

|Credit card Accounts |No |

|Loans |Yes |

|Goldfields Credit union |4000 |

|Bank Accounts |Yes |

|Bendigo Credit Union |2500 |

|Petty Cash |250 |

|Asset Accounts |Yes |

|Motor Vehicle – |Fixed Asset |

|Track depreciation |Yes |

|Original cost |20500 |

|Depreciation |1500 |

|Shelving |Fixed Asset |

|Track depreciation |Yes |

|Original cost |4000 |

|Depreciation |250 |

|Leave | |

SECTION TWO:

From the Report Centre display the Balance Sheet as at May 1.

You will need to rearrange the order of the accounts.

SECTION THREE:

Key in the May budget figures.

Income Accessories

Shoes 1000

Helmets 500

Gloves 150

Bike path books 45

Sales bikes

Road bikes 4000

Mountain bikes 4500

Children’s trikes 500

BMX bikes 1500

Bikes purchases

Road bikes purchases 3000

Mountain bikes purchases 1500

Children’s trikes purchases 300

BMX bikes purchases 2000

Accessory purchase

Glove purchases 150

Helmets purchases 400

Shoe purchases 500

Bike path book purchases 30

Expense

Bank service charges 35

Company secretarial 100

Sickness & accident insurance 25

Loan interest 100

Motor expenses 300

Postage & delivery 20

Rent 400

Equipment repairs 100

Telephone 250

Gas & electricity 150

SECTION FOUR:

Process the following transactions that took place during May:

May 1 Credit sale to Eaglehawk Cycles 5 BMX Bikes, $907.50 inc GST, Invoice #309.

May 2 Paid balance of account to Australian Cycle Manufacturer’s and took a $200 discount. Chq 10.

May 2 Purchased display stands for $15,000 plus GST, from Narvey Hormoan’s on account.

May 3 Received full payment of account from Tracey’s Playthings Pty Ltd. Receipt #3.

May 3 Paid Wages and Salaries $300. Payee-Cash. Chq 11.

May 4 Paid Telephone Expense $100 plus GST. Payee –Telstra. Chq 12.

May 5 Paid yearly insurance expense, $600 plus GST, chq 13, payee AGC.

May 6 Credit sales (Rob’s Adventures Pty Ltd) – 10 BMX Bikes, $1815, Invoice #310.

May 7 Sales of 3 Mountain Bikes $1270.50 on account to Dave’s Toyland. Invoice 311.

May 7 Purchased 5 Road Bikes $2750 on account from Dikies Bikes. Invoice 445

May 7 Sales of 5 BMX Bikes $907.50 on account to Howard’s Bikes. Invoice#312

May 7 Purchased 15 BMX bikes from Australian Cycle Manufacturer’s Inv 5566

May 7 Owner withdrew a BMX bike for own use.

May 8 Paid Wages and Salaries, $300, chq 14, payee cash.

May 8 Purchase Return a Road Bike $550. On account from Dikies bought on May 7. Credit Note #1.

May 8 Received full payment of account from Robs Adventures Pty Ltd. Receipt #4.

May 13 Received balance of account to Eaglehawk Cycles. Receipt 5.

May 13 Petty Cash used for: Store Supplies $22

Postage and Shipping $44

Travel and Entertainment $55 (amounts include GST).

May 14 Reimbursed Petty Cash for $132 – Chq 15.

May 14 Used Petty Cash for: Store supplies $22,

Postage and shipping $110,

Travel and Entertainment $55, all include GST.

May 15 Paid Wages and Salaries, $300, chq 16, payee cash.

May 15 Cash sales of 5 Mountain Bikes, $2177.50, receipt #1.

May 15 Paid advertising expense, $440 inc GST, chq 17, payee MoJo.

May 20 Paid Narvey Hormoan’s on account $100, chq 18.

May 20 Paid Telephone expense $110 inc GST, chq 19, payee Telstra.

May 21 Bill’s Drawings $100, chq 20, payee Cash

May 21 Sales Return of 1 BMX Bike $181.50 on account from Howard’s Bikes sold on May 7. Credit Note #2.

May 22 Sales of 2 Mountain Bikes $847. On account to Rob’s Adventures. Invoice #3.

May 24 Sales Return of 1 Mountain Bikes $423.50. Rob’s Adventures – disputed amount from Invoice #3. Refund to debtor. Chq 21

May 24 Owner withdrew $200. For personal use by cheque. Payee Cash. Chq 22.

May 27 Owner contributed workbench to the business valued at $1,000.

Record 1 month Depreciation of Motor Vehicles ($205), Depreciation of Shelving ($20).

(As this is the straight line method you may wish to memorise the journal entry.)

The following adjustments must be made, in the general journal, to the accounts for month end:

Wages and salaries owing $600

Insurance of $550 paid in advance

Sales commissions owing $150

Print the May Trial Balance.

SECTION FIVE: Bank Reconciliation

Reconcile the Bendigo Credit Union Bank Account.

Print the Reconciliation Report.

Bank Statement for May:

|[pic] |

|Bendigo Credit Union |

BANK STATEMENT

BENDIGO BIKES

Branch Account

Number Number

6666 1000-0000

DATE TRANSACTION DETAIL DEBIT CREDIT BALANCE

|1 MAY |BALANCE FORWARD | | |2500.00 |CR |

|3 MAY |10 |4200.00 | |1700.00 |DR |

|3 MAY |DEPOSIT | |3500.00 |1800.00 |CR |

|8 MAY |14 |300.00 | |1500.00 |CR |

|8MAY |12 |110.00 | |1390.00 |CR |

|9 MAY |11 |300.00 | |1090.00 |CR |

|11 MAY |DEPOSIT | |2695.00 |3785.00 |CR |

|11 MAY |DEPOSIT | |3207.50 |6992.50 |CR |

|13 MAY |13 |660.00 | |6332.50 |CR |

|15 MAY |15 |132.00 | |6200.50 |CR |

|16 MAY |16 |300.00 | |5900.50 |CR |

|17 MAY |17 |440.00 | |5460.50 |CR |

|17 MAY |DEPOSIT | |2117.50 |7578.00 |CR |

|18 MAY |18 |100.00 | |7478.00 |CR |

|23 MAY |19 |110.00 | |7368.00 |CR |

|21 MAY |20 |100.00 | |7268.00 |CR |

|25 MAY |21 |423.50 | |6844.50 |CR |

|26 MAY |22 |200.00 | |6644.50 |CR |

|29 MAY |BANK FEES |5.25 | |6639.25 |CR |

31 MAY BALANCE 6639.25 CR

SECTION SIX:

• Print the Statement of Performance (the Profit and Loss Report) for the month of May.

• Print the Income & Expense Graph.

• Print the Profit & Loss Actual vs Budget Report for May.

• View the budget graph.

• Print the Statement of Position (Balance Sheet) as at May 31, 2009

Prepare a monthly BAS

Claiming the BAS refund

SECTION SEVEN:

PART A: Completing the June budget:

Key in the June budget figures.

Income Accessories

Shoes 1000

Helmets 500

Gloves 150

Bike path books 90

Sales bikes

Road bikes 5000

Mountain bikes 5500

Children’s trikes 500

BMX bikes 2500

Bikes purchases

Road bikes purchases 5000

Mountain bikes purchases 1500

Children’s trikes purchases 300

BMX bikes purchases 3000

Bike path book purchases 45

Accessory purchase

Helmets purchases 600

Shoe purchases 500

Expense

Bank service charges 35

Company secretarial 100

Sickness & accident insurance 25

Loan interest 100

Motor expenses 300

Postage & delivery 20

Rent 400

Equipment repairs 100

Telephone 300

Gas & electricity 150

Bill has found that he has missed keying in four items into his June budget.

Glove purchases 150

MV Depreciation 150

Advertising 100

SECTION EIGHT:

Complete the June transactions.

June 1 Paid rent to LM Flocker $385 Chq 23

June 1 Purchased from Australian Cycle Mfr’s 50 helmets, 20 Mountain Bikes

June 2 Paid Advertising $300 plus GST. Payee-Mojo Advertising, chq 24.

June 2 Paid Telephone Expense $100 plus GST. Payee -Telstra, chq 25.

June 3 Sales 7 Mountain Bikes on account to Dave’s Toyland. Inv. 5

June 3 Purchases 40 Trikes @ $20 each, on account, from Cathy’s Kid Stuff Pty Ltd.

June 3 Sales10 BMX Bikes at a special price of $162.50 each, on account to Howard’s Bikes. Charged freight $50 plus NCG. Inv 6 – apply any credits

June 4 Paid wages $850 Chq 26

June 5 Purchases 10 BMX Bikes @ $50 each from Dickies Bikes

June 5 Received full payment of account from Robs Adventures Pty Ltd. Receipt # 2

June 7 Paid balance of account to Cathy’s Kid Stuff Pty Ltd. Chq 27.

June 17 Petty Cash payments for: Store Supplies $20 plus GST,

Postage and Shipping $40 plus GST and

Travel and Entertainment $50 plus GST.

June 17 Cash Sales- 5 Trikes each at list price. Sale 2

June 18 Paid wages $450 Chq 28

June 20 Sales 14 Road Bikes, 12 BMX Bikes, 10 pairs of shoes, and 26 helmets, on account to Judy’s Cycles Pty Ltd. Inv 8.

June 25 Owner withdrew $200 for personal use. Chq 29

The following transactions also need to be keyed into the accounts:

|Cheque No: 30 |DATE: June 28, 2009 |

|Balance b/d |To: Ampol Centre |

|Amount: $165.00 | |

|plus gst $16.50 |For: fuel for motor vehicle 65 |

|Balance c/f |oil/grease for services 100 |

|Cheque No: 31 |DATE: June 28, 2009 |

|Balance b/d |To: Bendigo Newsagency |

|Amount: $49.50 | |

|plus gst $4.95 |For: stationery |

|Balance c/f | |

Cash sales of 10 Mountain Bikes, 25 Children’s Trikes, 25 Helmets, 1 Bike Path Book and 5 sets of gloves.

SECTION NINE: Stock Count

On June 30 Bill noticed that there seemed to be some Bike Path books missing. On conducting an extensive stock count he found that he had the following stock:

Bike Path books 3

Bike Shoes 0

BMX Bikes 23

Children’s Trikes 20

Gloves 9

Helmets 1

Mountain Bikes 4

Road Bikes 0

The adjustment account is Stock Loss (a cost of goods sold account).

SECTION TEN: Balance Day adjustments

Prepare the following adjusting entries at June 30, 2009. You will need to open new accounts as required.

Create a General Journal entry for the following balance day adjustments.

• Wages and salaries owing $100.

• Insurance monthly allocation $45

• The monthly depreciation for Motor Vehicle & Shelving (use the memorised transaction facility).

SECTION ELEVEN: A June Bank Reconciliation Statement

|[pic] |

|Bendigo Credit Union |

BANK STATEMENT

Bendigo Bikes

Branch Account

Number Number

6666 1000-0000

DATE TRANSACTION DETAIL DEBIT CREDIT BALANCE

|1 JUNE |BALANCE FORWARD | | |6639.25 |CR |

|3 JUNE |23 |385.00 | |6254.25 |CR |

|4 JUNE |25 |110.00 | |6144.25 |CR |

|6 JUNE |DEPOSIT | |847.00 |6991.25 |CR |

|8 JUNE |26 |850.00 | |6141.25 |CR |

|9 JUNE |24 |330.00 | |5811.25 |CR |

|11 JUNE |27 |1880.00 | |3931.25 |CR |

|18 JUNE |28 |450.00 | |3481.25 |CR |

|18 JUNE |BANK FEES |6.73 | |3474.52 |CR |

|18 JUNE |DEPOSIT | |660.00 |4134.52 |CR |

|30 JUNE |29 |200.00 | |3934.52 |CR |

|30 JUNE |30 |181.50 | |3753.02 |CR |

|30 JUNE |31 |54.45 | |3698.57 |CR |

|30 JUNE |DEPOSIT | |8880.30 |12578.87 |CR |

30 JUNE BALANCE 12578.87 CR

Print a full report.

SECTION TWELVE:

Print the following reports for the months of May and June

From the Reports Centre:

Select a type of report: Select a Report

Company & Financial Profit & Loss – Standard - May - June

Customers & Receivables A/R Ageing - Summary

Customer Balance - Summary

Suppliers & Payables A/P Ageing - Summary

Sales Sales by Item - Summary

Sales Graph

Budgets & Forecasts Budget v/s Actual

Budget v/s Actual - Graph

SECTION THIRTEEN:

• Complete the BAS for the month of June

• Paying the bas liability

SECTION FOURTEEN:

From the Reports Centre, select Company & Financial, Balance Sheet. Change the date to June 30, 2009.

Click on the Export button.

[pic]

Send the report to a new Excel spreadsheet. Click on OK.

1: Calculate the Working Capital ratio.

2: Graph the Working Capital

3: Calculate the Quick Asset ratio

4: Calculate the Equity ratio

5: Copy, into Excel, the profit & loss statement for May and June and calculate the gross profit ratio & the net profit ratio.

SECTION FIFTEEN:

* Make a backup copy of your data file.

* Roll over in to new financial year

SECTION SIXTEEN: “What if’s in excel

One of the benefits of computer-generated budgets is that you can manipulate the figures with “what if” scenarios with the minimum of effort.

From the Reports Navigator, select Budgets, Budget Profit & Loss Overview, change the dates to May 1 – July 31, Display, Excel, send to an excel worksheet.

“What if” Scenario 1:

You have been given the option of buying or renting new sales premises.

A suitable building is available in the neighbourhood for $200,000. A mortgage will be required for $195,000; interest rate is 6.5% per annum, payable monthly.

Rates on this building would be $2000 per annum, and repairs are estimated to cost $1500 per year. Depreciation on this type of building is at 5% per annum and the insurance is likely to be $2500.

Alternatively, the same building could be rented for $50000 per year.

Complete the rest of the budget by keying in appropriate figures for July.

Do you rent or buy?

“What if” Scenario 2:

You believe that your business could expand if you undertook an advertising campaign incurring a cost of $5000. The marketing company estimates that their campaign will increase sales by 5% each month, following the campaign.

There would need to be a follow-up set of advertisements in May and June, costing $1500 in each month.

The average mark-up could be raised to 100% on cost of each item.

What impact does this advertising program have on your business?

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