Aged receivables summary report myob

Online Test Using MYOB Software

ACCT 102: Principles of Accounting

MYOB Tutorial: Instruction Manual

Semester Two

2019

By Min Hu

minjie.hu@otago.ac.nz

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Contents

Overview of the Tutorial .............................................................................................................. 2

Section 1: Creating the company file ............................................................................................. 5

Section 2: MYOB Setup............................................................................................................... 11

Section 3: Practice transaction.................................................................................................... 40

Section 4: First trial balance ....................................................................................................... 41

Section 5: Transactions - Early January........................................................................................ 42

Section 6: Trial Balance .............................................................................................................. 49

Section 7: Find & Fix Errors ......................................................................................................... 53

Section 8: Transactions: Mid-January .......................................................................................... 59

Section 9: Transactions: Late January.......................................................................................... 68

Section 10: Bank Reconciliation .................................................................................................. 82

Section 11: Financial Statements ................................................................................................ 88

Section 12: Print Outs................................................................................................................. 93

Section 13: Finish ....................................................................................................................... 96

Section 14: Printouts and back up your work .............................................................................. 99

Acknowledgement

Thanks to Dr Rakesh Pandey and Dr Dinithi Ranasinghe for revising and testing this manual.

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Overview of the Tutorial 1. Introduction to the Practice Lab

In this Accounting Cycle practice lab, you will learn bookkeeping for a small business by using a

computerised accounting software, MYOB. You start by creating a set of chart of accounts for relevant

business and enter the opening balance for each account. You will then enter within the given business

transactions. Finally, you will generate accounting reports as required.

In this practice lab, you will use MYOB software (MYOB AccountRight v 19) to complete both practice

sets and assessment sets available on the Perdisco website (please refer to the instruction given to

you along with access codes distributed to you in your tutorials). You will then upload in your results

on the Perdisco Virtual Tutor available on the Perdisco website. The Perdisco Virtual Tutor will grade

your answers and provide an immediate feedback immediately. This feedback is an opportunity for

you to correct your mistakes at MYOB. According to the feedback from Perdisco website, you must

instantly correct mistakes in the MYOB if there is any. Otherwise, the error will carry on to affect your

overall monthly accounting reports. Now, please watch the welcome video from Perdisco

(http://www.perdisco.com/au/myob/default.aspx).

http://www.perdisco.com/au/myob/default.aspx
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2. The Structure of Practice Sets

There are two sets available on the Perdisco website, Trial or practice version and Assessment version.

Both sets are similar, but with different business scenarios and different business transactions. Each

set has 14 sections and requires up to 19 hours to complete each (see details in the following table).

Please note that the practice version or trial version is for practice only, not for your assessment. So,

the grades you will be receiving during your trial version will not be recorded. . This version provides

you enough practice for the final assessment version. Remember your final result for this course is

based only on the grades you receive from the Assessment practice set.

The Structure of Practice Sets

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3. Instructions to the Trial Practice Set

This document provides a detailed discussion on the above mentioned 14 Sections. This document is

a step by step approach, specially designed to support you to complete the Trial practice set. In order

to provide you a better conceptual understanding, we have also included few ‘test yourself’ questions

at the end of each section. Answering these questions will help you in summarising the steps you

followed in each section. You are required to summarise what you have done for each section.

Although this tutorial is focused only on the Trial practice set, but the main aim of this tutorial is to

help you in applying your understanding and learning from the practice version to the Assessment

practice set.

4. Be Ready to Start the Trial Practice Set

The Perdisco practice and assessment versions require the MYOB AccountRight Plus v19. The MYOB

AccountRight Plus v 19 is available in your student desktop in all computer labs in the campus.

Alternatively, you can download the trial version on your home computer/laptop (at your own risk,

please don’t forget to save your work). Before starting the practice version on Perdisco website, make

sure to check the following;

The practice will be done by using MYOB on the PC. All the tasks for the Trial practice set is on the

Perdisco website. Ensure you have done the following two steps before you start the tutorial for the

Trial.

1) Check MYOB (check the version if doing in your laptop) has been installed on the PC in the lab

or on your own PC.

2) Login into the Perdisco website (by using the access codes given to you during your tutorial)

Once again, the Trial practice set is optional. You may pause or stop the Trial practice set and start the

Assessment practice set at any time when you are confident to complete it by yourself.

In practice set, you cannot go back to the sections that you have already submitted. In order to

correct previous errors in MYOB, print every section and related information or save them to your

USB.

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Section 1: Creating the company file 1. Start MYOB and click Crate to create a new file for the company. Click Next button.

2. Fill in company details as given in the Perdisco online practice set. Click Next button.

Company Name: Hi-Fi Way (Dinithi Ranasinghe)*

A.B.N.: 44 596 545 628

Address: 85 Tyler-Sharman Street Adelaide, SA, 5000 Australia

Phone Number: 1800-954-8873

Fax Number and E-mail Address (leave those fields blank)

*Remember, if your full name was Chris Smith, your company name would be “Hi-Fi Way (Chris Smith)”.

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3. Currently, it is 1 January 2019. Therefore, the current financial year for The Hi-Fi Way is

2019 which starts in July 2018 and ends in June 2019, (i.e. a new file in MYOB for Current

Finical Year: July 1, 2018 –June 30, 2019). Choose Last Month of Financial Year as June and

Conversion Month as January.

4. Click “Next” for selecting a list of provided accounts.

5. Select the “Industry Classification” and “Types of Business”.

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6. Now go to Perdisco and answer the Perdisco online multiple choice “Questions on entering

basic company information” before you click button “Next”.

7. After completion of three online multiple choice questions, click “Next” button to create

and save the company file. Click “Change” button to relocate to new folder, e.g.

Accounting 102, in your USB drive or H: drive. (Your data may be deleted when you login

next time. So, the best choice is to save it on your USB drive or your own computer.

8. Click “Command Centre” button to continue.

9. Click on button “Account” and item “Accounts List” in the chart.

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10. Now go to Perdisco, answer the online “Questions on the default accounts list” carefully

and submit. You will see the answers and your points immediately.

Congratulations! You have successfully completed the first section of Conversion to MYOB.

Fill in the following blanks. (You may refer to these notes for your Assessment practice set that is

similar to this Trial.)

a) Use minimum words to summarise what you have done from Step 1 to 4.

________________________________________________________________.

b) Use minimum words to summarise what you have done from Step 5 to 7.

________________________________________________________________.

c) Use minimum words to summarise what you have done from Step 8 to 9.

________________________________________________________________.

d) Use minimum words to summarise what you have done in general in this section.

________________________________________________________________.

e) Your score out of 24 is _____ _.

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Remember:

1. After finishing each Section, please do not forget to back up your MYOB file to your

computer or USB drive. You also have to bookmark Perdisco website after finishing any

tasks that you choose as a starting point to further practice.

2. To back the file, click File menu, select Back Up item. Remember the path of backup file,

MYOB[MMDD].ZIP (e.g. MYOB0324.ZIP).

3. If you find your data from MYOB is different to the results from the Perdisco website, you

may need to restart from a task when it was correct.

4. Subsequently, you need to restore a backup file on a latest date when it was the same as

that on the Perdisco website.

5. To restore the backup file, click File menu, select Restore item, and then find a latest file

and click OK.

6. Check details of the restore file (e.g. trial balance, etc.) to find out the task to restart. Be

careful, don’t redo the tasks that have already been done.

7. After repeating the tasks, check your new results to match the answers from Perdisco

website.

8. Otherwise, restore a backup file and repeat the tasks until you get the same data from

MYOB to those from Perdisco website.

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Section 2: MYOB Setup

1. Set up preference so that you are able to modify transactions in MYOB if you made errors in the practice.

1) In MYOB, from Setup menu, select item Preference. 2) Click on tab Security and ensure there is no tick in the box for Transactions CAN’T be

Changed.

2. Go to Lists, in the menu bar, Tax code list for Hi-Fi Way (by adding and deleting tax codes)

so that it exactly matches the tax code list report that is provided below (as given in the

Perdisco website).

Code Description Tax Type Rate Tax Collected Tax Paid

CAP Capital Acquisitions Goods & Services Tax 10% 2-1310 (GST Collected)

2-1330 (GST Paid)

FRE GST Free Goods & Services Tax 0% 2-1310 (GST Collected)

2-1330 (GST Paid)

GST Goods & Services Tax Goods & Services Tax 10% 2-1310 (GST Collected)

2-1330 (GST Paid)

ITS Input Taxed Sales Goods & Services Tax 0% 2-1310 (GST Collected)

2-1330 (GST Paid)

N-T Not Reportable Goods & Services Tax 0% 2-1310 (GST Collected)

2-1330 (GST Paid)

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*Note that you are required to modify some existing tax code and delete all other tax codes

that are not in the list below so that you can follow the next instructions. Your final Tax Code

List should be as follows.

1) From Lists menu, select item Tax Codes.

2) For example, to modify tax code by click Edit button or double clicking the tax code item.

And then enter details in terms of Tax Code, Description, Tax Type, and Rate. Click on

combo box for Linked Account for Tax Collected and select accounts of GST Collected

from Lists. Click Use Account button. Similarly, click on combo box for Linked Account

for Tax Paid and select accounts of GST Paid from Lists. Click Use Account button. (if you

don’t see the empty boxes press TAB)

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3) In order to delete items that are not in the following Tax Code List, select item Delete

Tax Code after clicking on the right mouse button.

3. Set up Chart of Accounts. Referring to the accounts list that you are asked to set up for The

Hi-Fi Way presented on the Perdisco website, you will identify and complete the tasks for

the accounts that need to be modified, deleted and created in the Accounts list in your

MYOB.

1) From Setup menu, select item Easy Setup Assistant. Then click button Accounts.

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You can click one of three buttons (New, Edit, and Delete) to add, modify, or delete an account from

the Accounts list according to both Account# and Account name listing on the Perdisco website.

2) Select 1-1120 Payroll Cheques Account. Click Edit button to inactivate this linked

account because you can’t delete it. Tick the box Inactive Account and then click

button OK.

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3) Select 1-1200 Trade Debtors. Click Edit button to rename it to Accounts Receivable

and click OK.

4) Select 1-2100 Deposits Paid. Click Edit button to change Account Number to 1-1400

and Account Name to Office Supplies. Then click tab Details to set up Tax Code to

GST for this account.

5) Click on the combo box for Tax Code. Select GST Good & Services Tax 10% and click

Use Tax Code button. Click OK.

6) Select 1-2200 Prepayments. Click Edit button to change Account Number to 1-1500

and Account Name to Prepaid Rent. Then click tab Details to set up Tax Code to GST

for this account.

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7) Select 1-3000 Fixed Assets. Click Edit button to change Account Name to Non-

current Assets. Then click OK.

8) Select 1-3100 Furniture & Fixtures. Click Edit button to change Account Name to

Property & Equipment. Then click OK.

9) Select 1-3110 Furniture & Fixtures at Cost. Click Edit button to change Account Name

to Property & Equipment at Cost. Then click tab Details to set up Tax Code to CAP

for this account.

10) Select 1-3120 Furniture & Fixtures Accum Dep. Click Edit button to change Account

Name to Property & Equipment Accum Dep.

Now, you may need to tidy up the Chart of Accounts for all the Assets with Account# starts

by 1-. According to the Asset accounts starts with 1- on the Perdisco website, be careful to

delete the unwanted ASSET accounts from the Asset accounts (see the result as follows).

11) Under the Liabilities, double click 2-1200 Trade Creditors and change Account Name

to Accounts Payable. Then click OK.

12) Double click 2-1410 Payroll Accruals Payable and change Account Name to Salaries

Payable. Then click OK.

13) Double click 2-1700 Other Current Liabilities and change Account Name to Interest

Payable. Then click OK.

14) You need to add a new Account 2-1800 Short Term Loans. Click New button and fill

in account number 2-1800 first and then click OK.

15) To enter the name for the new account, select 2-1800 New Account and click Edit

button to change it to Short Term Loans and click OK.

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According to the Liability accounts starts with 2- on the Perdisco website, be careful to

delete the unwanted accounts from the Liability accounts only.

16) Double click 3-1100 Owner’s Capital and change Account Name to Share Capital.

Then click OK.

17) Double click 4-1100 Sales Type A and change Account Name to Sales Rvenue. Then

click tab Details to set up Tax Code to GST for this account.

18) Set 4-2000 and 4-3000 to Inactive Accounts as they are linked and can’t be deleted.

19) Double click 5-1100 Purchase Type A and change Account Name to Cost of Sales.

Then click OK.

20) Set 5-2000, 6-1210, 6-1220, and 6-1500 to Inactive Accounts as they are linked and

can’t be deleted.

21) Double click 6-1800 Store Supplies and change Account Name to Office Supplies

Expense. Then click OK.

22) Double click 6-1930 Wages & Salaries and change Account Name to Salaries

Expense. Then click OK.

23) Set 6-1950 to Inactive Accounts as it is linked and can’t be deleted.

24) Double click 6-2100 Rent and change Account Name to Rent Expense. Then click OK.

25) Double click 6-2200 Telephone. Click Edit button to change Account Name to

Telephone Expense. Then click tab Details to set up Tax Code to GST for this

account.

26) Double click 6-2420 Electricity and change Account Name to Electricity Expense.

Then click tab Details to set up Tax Code to GST for this account.

27) Click New button to add a new Expensive account for 6-2500 Bank Charges. Enter

the details and then click tab Details to set up Tax Code to FRE for this account.

28) Click New button to add a new Expensive account for 6-2600 Bad Debts Expense.

Enter the details and then click OK.

29) Double click 8-1000 Interest Income and then click tab Details to set up Tax Code to

ITS for this account.

30) Double click 9-1000 Interest Expense and then click tab Details to set up Tax Code to

FRE for this account.

According to the Equity, Income, Expenses, Other Income, and Other Expenses on the

Perdisco website, be careful to delete the unwanted accounts from the rest of the Account

Lists (see the results of from Equity accounts as follows). You now have set up an entire

Account List from 1-0000 to 9-0000.

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4. Set up opening balances. You will use Easy Setup Assistant from previous practice or restart

it from Setup menu to complete the following tasks.

1) Under Accounts List, click button Next to start Opening Balances. Remember you only

need to enter numbers (e.g. 1234), no format is required (e.g. do not enter as

$1,234.00).

2) Be careful to enter the negative numbers in contra Asset and Liability accounts (such as

1-1210, 1-3120, and 2-1330) and ensure after you finish all the opening balances, the

“Amount left to be allocated:” is $0.00 at the end of balance list.

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5. Display Trial Balance December 2019. You will see your first trial balance for the opening

balance in December, 2019 in the financial year 2019.

1) Select Index to Reports item from Reports menu.

2) Double click on Trial Balance under Accounts. Double click Trial Balance.

3) Under Advanced Filters tab, select December for the Selected Period: box and make

sure This Year (FY 2019) for Financial Year: box. And then click button Display to see

your first trial balance report.

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Now, answer the Perdisco online questions, comprising: 1) Questions on modifying the default

accounts list (refereeing to tasks); 2) Question on setting up the account list (referring to Accounts

Easy Setup Assistant); and 3) Question on entering account opening balances (checking individual

account and being careful to negative numbers). You will see the answer and marking result

immediately. Remember if your answer is different to the feedback, restore your save correct

copy and restart from there.

6. List the major sub-tasks you have done to a company setup.

__________________________________________________________________________________

__________________________________________________________________________________

GOLDEN RULE:

I strongly advice that you keep a separate back-up at this point. At least save the file in a different

name. From my previous experience, students get some issues when they do the transactions later

on. Sometimes they find it hard to fix the problems. In a situation like that, if you want to go back

and re-do the transactions, you can use your back-up after the set-up because set-up takes a lot of

time.

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Setting up customers, suppliers and inventory

1. Customers and sales details:

Window or Field Details

Layout - Choose sale layout

Choose Your Default Sales Layout: Item

Selling Details - Decide on selling details

Income Account: 4-1100 (Sales Revenue)

Credit limit: $90,000

Tax Codes - Assign tax codes to your customers

Tax Code: GST (Goods & Services Tax)

Payment Information - Set up payment information

Payment Method: Cheque

Payment is Due: In a Given # of Days

Discount Days: 0

Balance Due Days: 0

% Discount for Early Payment: 0%

% Monthly Charge for Late Payment: 0%

Linked Accounts - Select the accounts to track customer receipts

Account for Customer Receipts: 1-1110 (Cheque Account)

Account for Undeposited Funds: 1-1180 (Undeposited Funds)

To complete the following tasks, go to Setup in the menu bar, Easy Setup Assistant then Sales.

1) Select Easy Setup Assistant item from Setup menu.

2) Click Sales button.

3) Under the Sales Easy Setup Assistant, click Next button and move to Layout setting.

4) Select Item option under Choose Your Default Sales Layout. And then click Next button.

5) Under Selling Details, click the Income Account combo box and select 4-1100 Sales Rvenue.

Click Use Account button.

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6) Enter 90000 in the box Credit Limit and click button Next.

7) Make sure Tax Code box has set up GST and click button Next.

8) Under Payment Information, click Payment Methods combo box and select Cheque item.

Click Use Method button.

9) In the Payment is Due box, select In a Given # of Days from a list and click button Next.

10) Ensure the information under Linked Accounts is similar as follows and click button Next.

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11) Under Customer Cards, you will need to enter details for three companies. Click New button. The Card Information window appears. use that window to set up the customers of The Digital Village as listed below:

Tab or Field Details

Profile tab

Card Type Customer Customer Customer

Designation Company Company Company

Name: Hypertronics Pikea Turbo Tech

Card ID: HYPE PIKE TURB

Address: 484 Riley Lane 484 Hayes Drive 461 Lamy Boulevard

City, State, Postcode:

Adelaide, SA, 5016

Adelaide SA, 5045

Adelaide, SA, 5074

Country: Australia Australia Australia

Phone#1: 3285 5452 4953 1056 516503515

Contact: Jessica Appleton Edmund Cooper Phebe Lederman

Selling Details Tab

A.B.N.: 62 855 408 281 96 262 792 446 21 441 306 871

12) For the first customer, enter Name as Hypertronics and click OK button. The box will be

closed.

13) Double click Hypertronics from Customer List to open the form for entering its details.

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14) Click tab Selling Details and enter A.B.N. bank account number 58 218 549 993. Click OK

button.

15) Similarly, repeat Task 11 to 14 for entering the second and third customers’ details under

the Name by Jerry Technology and Pikea.

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16) Click Next button for Historical Sales.

Customer Name Invoice # Date Total Including Tax

Hypertronics 3369 14 December 2019 $11,000

Pikea 3370 19 December 2019 $8,184

Turbo Tech 3371 23 December 2019 $11,440

17) In order to enter historical sales details, click Add Sale button.

18) Click the combo box for Customer Name. Select Hypertronics from customer list and click

User Customer button

19) Enter historical sale to Hypertronics.

20) Click Record button. You will see an updating message box. Click OK.

21) Similarly, repeat Task 17 to 20 to enter the other two historical sales details. After you have

enter the last sale, you will see a confirmation message to show the balance of these

particular parts of Sales Revenue to Accounts Receivable. Alternatively, you need to ensure

the Out Balance Amount under the historical sales is zero ($0.00).

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2. Setup suppliers and purchases details:

To complete the following tasks, you will move from previous Sales to use Purchases under Easy

Setup Assistant.

Use the appropriate windows in the Purchases Easy Setup Assistant to set up the following default information for suppliers.

Window or Field Details

Layout - Choose purchase layout

Choose Your Default Purchase Layout: Item

Buying Details- Decide on buying details

Expense account: Leave this blank

Credit Limit: $90,000

Tax Codes - Assign tax codes to your suppliers

Tax Code: GST (Goods & Services Tax)

Payment Information - Set up payment information

Payment Method: Cheque

Payment is Due: In a Given # of Days

Discount Days: 0

Balance Due Days: 0

Discount for Early Payment: 0%

Linked Accounts - Select the account to pay your supplier bills

Account for Paying Bills: 1-1110 (Cheque Account)

The three inventory suppliers to Hi-Fi Way shown below:

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Tab or Field Details

Profile Tab

Card Type: Supplier Supplier Supplier

Designation: Company Company Company

Name: Big Telco Moon Megasystems Pony

Card ID: BIG MOON PONY

Address: 82 Welsh Boulevard 318 Costian Drive 614 Hogarth Boulevard

City, State, Postcode:

Adelaide SA, 5023

Adelaide SA, 5041

Adelaide SA, 5065

Country: Australia Australia Australia

Phone#1: 2945 6403 8241 6013 3839 4228

Contact: Mark Bartos Barnardo Bragg Beatrice Davis

Buying Details Tab

A.B.N: 42 140 103 630 74 472 101 446 94 752 202 597

1) Select Easy Setup Assistant item from Setup menu.

2) Click Purchases button and click Next.

3) Click option Item under Choose Your Default Purchase Layout. Click Next.

4) Fill 90000 in the Credit Limit. Click Next.

5) Check and ensure Tax Code has been set as GST. Click Next.

6) Click combo box for Payment Method and select Cheque from a list. Click Use Method

button for your selection.

7) In the list box for Payment is Due:, select item In a Given # of Days. Click Next.

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8) Check and ensure the Account for Paying Bills is 1-1110 Cheque Account. Click Next.

9) Similar to previous setting of customer cards and historical sales, you will firstly create three

supplier cards and then enter historical purchase from them. Now, click New button under

Supplier Cards.

10) Enter Name Big Telco and click OK.

11) Double click Big Telco from Supplier List and enter the details. Click tab Buying Details to

enter A. B. N. bank number OK.

12) Similarly, repeat Task 9 to 11 to enter another two suppliers’ details. Click Next.

13) Now, you will enter historical purchase from these suppliers and ensure the total purchase is

balance to the Accounts Payable. Click Add Purchase button under Historical Purchases.

14) Click combo box for Supplier Name and select Big Telco from a list. Click Use Supplier

button.

15) Enter details and then click Record button. Click OK on a message box.

16) Similarly, repeat Task 13 to 15 to enter more historical purchases from another two

suppliers. Once again, after you have enter the last purchase, you will see a confirmation

message to show the balance of these particular parts of historical purchases to Accounts

Payable. Alternatively, you need to ensure the Out of Balance Amount under the historical

purchases is zero ($0.00).

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3. Setup Payroll details: The table below shows the information that you must enter into various windows in the Payroll Easy Setup Assistant. Do not change other information in that setup assistant.

Window or Field Details

Tax Tables: Load payroll tax tables into your company file

Load Tax Tables: Click the Load Tax Tables button

Payroll Year: Enter your payroll year

Current Payroll Year: 2019

Payroll Information - Set up your general payroll information

Full Work Week Hours: 40

Linked Accounts - Assign linked accounts for your payroll transactions

Account for Cash Payments:

1-1180 (Undeposited Funds)

Account for Cheque Payments:

1-1110 (Cheque Account)

Account for Electronic Payments:

1-1190 (Electronic Clearing Account)

Account for Employer Expenses:

6-1930 (Salaries Expense)

Account for Wages Paid: 6-1930 (Salaries Expense)

Account for Deductions & Expenses:

2-1420 (PAYG Withholding Payable)

Payroll Categories - Review your payroll categories

Select Category Type: Taxes

PAYG Withholding: Click the zoom arrow icon next to PAYG Withholding to display the Tax Table Information window where you can enter the following information.

Tax Table Information

Linked Payables Account: 2-1420 (PAYG Withholding Payable)

To complete the following tasks, you will move from previous Purchases to use Payroll under Easy

Setup Assistant.

1) Select Easy Setup Assistant item from Setup menu.

2) Click Payroll button and click Next.

3) Click Load Tax Tables button. After running, click Next button.

4) Check and ensure Current Payroll Year: is 2019 and click Next.

5) After confirming it is 2019, click Next.

6) Check and ensure Full Work Week Hours: is 40 and click Next.

7) Click relevant combo boxes to change the linked accounts to be the same as follows.

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8) Click Next to work under Payroll Categories. Click list box for Select Category Type: and

choose Taxes. Double click on PAYG Withholding to check and ensure the Linked Payable

Account is 2-1420 PAYG Withholding Payable.

9) Click Next. Now, you are going to set up employee cards for two staff member.

Tab or Field Details

Profile Tab

Card Type: Employee Employee

Designation: Individual Individual

Last Name: Lee Insert your last name

First Name: Lorenzo Insert your first name

Card ID: LEE Enter the first four digits of your surname in uppercase

Address: 404 Jones Boulevard 690 Vinnicombe Lane

City, State, Postcode: Adelaide, SA, 5088

Adelaide, SA, 5047

Country: Australia Australia

Phone#1: 9885 4315 9348 1912

Payroll Details Tab

Personal Details

Start Date: 4 April 2018 2 January 2019

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Employment Basis: Individual Individual

Employment Category: Permanent Permanent

Employment Status: Full Time Full Time

Wages

Pay Basis Salary Salary

Annual Salary: $37,200 $40,800

Pay Frequency: Monthly Monthly

Wages Expense Account: 6-1930 (Salaries Expense) 6-1930 (Salaries Expense)

Taxes

Tax File Number 728 640 943 361 624 406

Payment Details Tab

Payment Method: Cheque Cheque

10) Click New button. Enter the required details.

11) Double click Bertram from Employee List to enter details under Profile.

12) Click tab Payroll Details and enter the Start Date under Personal Details.

13) Click on item Wages  from the list on the left. In the Annual Salary: box, enter 37200. Select

Pay Frequency to Monthly. Check and ensure Wages Expense Account: is as 6-1930 Salaries

Expense.

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14) Click on item Tax . In the Tax File Number: box, enter 728 640 943.

15) Click tab Payment Details. Check and ensure that the Payment Method: is set up as Cheque.

Click OK to complete the Employee card for Frank.

16) Similarly, repeat Task 9 to 14 to set up another Employee card under your name, who

started on 2/01/2019 with Annual Salary 40800, paid Monthly, under Tax File Number.

Clock OK, Next, Next, and Close the Easy Setup Assistant.

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4. Set up Inventory details: to complete the following tasks, you will use Inventory under Command

Centre. You will set up inventory for four items or products.

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1) Select Items List from the diagram under button Inventory or select from menu Command

Centres, then item Inventory then item Items List.

2) Click New button and enter Item Number: BLUEB. Click OK to close it.

3) Double click on BLUEB from the list under All Items and make details under tab Profile as

follows by ticking relevant boxes and selecting from combo boxes.

4) Click tab Buying Details and set details as follows.

5) Click tab Selling Details and set details as follows.

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6) Similarly, repeat Task 2 to 5 to set details for another three items or products.

7) Click Count Inventory in the diagram under button Inventory and enter number for each item. Click Adjust Inventory button, click Continue button, and click Opening Balances button.

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8) Go to Adjust Inventory, leave Default Adjustment Account blank, click continue

9) Then click Opening Balances button to open the Adjust Inventory window

10) Enter adjustment details: Inventory Journal Number; Date; and Unit Costs as follows.

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11) Click Record button to save and close it.

5. Now, answer the Perdisco online questions, comprising: 1) setting up customer records; 2) setting up supplier records; 3) setting up employee records; and 4) setting up item records. You will see the answer and marking result immediately. Remember if your answer is different to the feedback, restore your save correct copy and restart

from there.

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Section 3: Practice transaction

1. Cash payment transaction: After setting up the opening balances for the company, you are going

to start entering transactions for the business in January, 2019. You will learn how to enter the

following transaction into MYOB.

On 2 January 2019, Cheque No. 4006 was issued to 'Office Supplies Warehouse' for the cash purchase

of $4,400 worth of equipment. The GST tax code for this transaction is CAP (Capital Acquisitions).

1) In order to warm up for starting transactions, on the Perdisco website (NOT on the

MYOB software), enter details in the cheque as follows and click Submit.

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Section 4: First trial balance Display and print the trial balance report in January. Fill in the blanks on the Perdisco website.

Now, answer the Perdisco online questions about current account balances according to the

report. You will see the answer and marking result immediately. Remember if your answer is

different to the feedback, restore your save correct copy and restart from there.

42

Section 5: Transactions - Early January

First Transaction

On 2 January 2019, Hermione issued Cheque no. 4006 to Office Supplies Warehouse for the

purchase of $4,400 (includes 10% GST) worth of equipment. The GST tax code for this transaction is

CAP.

To record the above transaction in MYOB, Click Banking button under Command Centre and click

item Spend Money in the diagram.

2) Enter details of the cheque as follows. Click combo box for Acct # and select 1-3110

Property & Equipment at Cost from an account list. Click button Use Account.

3) Check and ensure the cheque payment is balanced (i.e. Out of Balance: $0.00). Then

click Record button.

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1) Issued Cheque No. 4007 for $1,210 (includes 10% GST) to Discount Office Supplies for the

cash purchase of office supplies.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Office Supplies $1,100

GST Paid $110

Cheque Account $1,210

cheque payment for office supplies

In MYOB, click Spend Money under Banking button in the Command Centre and enter details as

follows (cf. Section 4). Select Acct # 1-1400 Office Supplies and enter amount 1210. Check and

ensure Out of Balance: $0.00. Click Record button.

Obtained a loan of $13,000 from

Uncle Horatio (a family relative of Hermione Reed) at a simple interest rate of 10% per year, Cheque

No. 139, ID #CR000001. The principal and interest on the loan are payable in six months time.

In MYOB, Click Receive Money item in the diagram under Banking button. Click Group with

Undeposited Funds; click Details button for Payment Method (Cheque); and enter Cheque No. 139.

Enter more details as follows and click Record button.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Undeposited Funds $13,000

Short Term Loans $13,000

To record loan received

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2) Issued Cheque No. 4008 for $10,340 to Big Telco in payment of Purchase #300 (Supplier

Inv#273).

In MYOB, click Pay Bill item under Purchase button.

Select Big Telco for Supplier. Enter Cheque No, Date, and Amount as follows. Click Pay All button or

click in the cell under Amount Applied to fill in the amount. Ensure Out of Balance is $0.00. Click

Record button.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Accounts Payable $10,340

Cheque Account $10,340

To record cheque payment for supplier

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3) Received Cheque No. 245 from Pikea for the full amount outstanding on their account, ID

#CR000002.

In MYOB, click Sales button and click item Receive Payments in the diagram. Fill in details as

follows: click Group with Undeposited Funds; select Pikea from a list in the combo box for

Customer; enter Amount Received: click on Details button for Payment Method: and enter Cheque

No. 245; and enter Date: 3/01/2019; and click Receive All button to fill in the amount

automatically. Ensure Out of Balance: is $0.00 and then click Record button.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Undeposited Funds $8,184

Accounts Payable $8,184

To record cheque received from customers

46

*If you made mistake by still using Receive Money under Banking button, MYOB will remind you to

detour to Receive Payments after you elected a Payer from your customer list. Click Open Receive

Payment button to complete the above task if needed.

4) Purchased 6 units NR759 video recorders from Pony at $1,694 each (includes 10% GST),

Purchase #303, Supplier Inv#462. Issued Cheque No. 4009 for $5,200 to this supplier for this

particular invoice at the time of the purchase.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Inventory $9,240

GST Paid $924

Accounts Payable $10,164

To record credit purchases ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Accounts Payable $5,200

Cheque Account $5,200

To record part payment for credit purchases In MYOB, Click item Enter Purchases under button Purchases.

Select Pony from combo box for Supplier. Enter Date: 3/01/2019, Supplier Inv# 303, amounts

6,6,6 Item Number NR759, Price 1694, and Paid Today 5200. Click Record button. Read a new

message box and click OK. MYOB will automatically record a related cheque.

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5) Sold the following items on credit to Hypertronics, Invoice #3372:

3 units BlueBerry phones for $1,210 each (includes 10% GST)

4 units ZII game consoles for $1,320 each (includes 10% GST)

$1,900 was received immediately, Cheque No. 632, with the rest due to be received during

the last week of the month. Note that MYOB automatically assigns ID #CR000003 to this

cash receipt.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Accounts Receivable $8,910

Sales Revenue $8,100

GST Collected $810

To record credit sales ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Cost of Sales $5,210

Inventory $2,130

Inventory $3,080

To record cost of sales

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Undeposited Funds $1,900

Accounts Payable $1,900

To record payment received from customers

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In MYOB, click Enter Sales item in the diagram under Sales button.

For transaction of receiving payment:

Click Group with Undeposited Funds. Select Customer: Hypertronics; enter Amount Received

1900; click Details button for Payment Method and enter Cheque No. 632; enter Date:

6/01/2019; click cell at the intersection between Order and Amount Applied to fill in 1900.

Ensure Out of Balance is $0.00. Click Record button.

Now, answer the Perdisco online questions on MYOB. You will see the answer and marking result immediately.

Remember if your answer is different to the feedback, restore your saved correct copy and restart

from there.

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Section 6: Trial Balance 1. Creating a bank deposit slip for all of the cheques received. Create a bank deposit slip as of 7 January 2019 (ID #CR000004) in MYOB and include all of the cheques received during the first week of January into that deposit slip. Click Prepare Bank Deposit in the chart of Banking. Change the Date to 7/01/2019 (ID #CR000004). Tick all two received cheques under  Deposit. Click Record button to save the new bank deposit cheque.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT Cheque Account $23,084

Undeposited Funds $8,184

Undeposited Funds $1,900

To record bank deposits

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2. Display Trial Balance

Print the latest trial balance for Hi-Fi Way that does not include accounts with zero balances in

MYOB. Transcribe your answers into the trial balance provided below.

In MYOB, Select Index to Reports from Reports menu. Select Trial Balance under Accounts. Click

Display button and change the date to January 2019. Print and/or save a copy of your trial balance

for the online answers.

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3. Display current Aged Receivables [Summary] report

Print the current Aged Receivables [Summary] report for Hi-Fi Way as of 7/01/2019 in MYOB.

Transcribe your answers into the Aged Receivables [Summary] report below.

Note:

You must customise this report so that it includes line items with zero balances.

If a customer account has a debit balance, enter the amount as a positive number.

If the balance in the customer account is a credit, enter the balance as a negative number.

In MYOB, Select Index to Reports from Reports menu. Click tab Sales. Select Ageing Summary

under Receivables. Click Customize and change the date to 7/01/2019. Click Finishing tab and

tick the box Include $0.00 Balances. Click Display button and Print and/or save a copy of your

trial balance for the online answers.

4. Display the current Aged Payables [Summary] report:

Print the current Aged Payables [Summary] report for Hi-Fi Way as of 7/01/2019 in MYOB.

Transcribe your answers into the Aged Payables [Summary] report below.

Note:

You must customise this report so that it includes line items with zero balances.

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If a supplier account has a credit balance, enter the balance as a positive number.

If the balance of the supplier account is a debit, enter the amount as a negative number.

In MYOB, Select Index to Reports from Reports menu. Click tab Purchase. Select Ageing

Summary under Payables. Click Display button and change the date to 7/01/2019. Print and/or

save a copy of your trial balance for the online answers.

Now, answer the Perdisco online questions on MYOB. You will see the answer and marking result immediately.

Remember if your answer is different to the feedback, restore your save correct copy and restart

from there.

List the major tasks you have done to display reports in early January. __________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

53

Section 7: Find & Fix Errors 1. Have you made errors in your MYOB company file?

If you have not obtained the full points from the previous tasks, this suggests that you have made one

or more mistakes. If you do not correct your errors, they will continue to impact future practice

resulting in you continuing to lose additional points.

2. How to find an error?

Using Find Transactions and your accounting knowledge: From Accounts, select Find Transactions

under the bottom of chart. Choose an account for checking details by clicking the empty combo box

next to Search by: Account list box. Select an account and click button Use Account. Then double

click a record of details from a list to open its original data entry for modifying.

3. How correct errors?

You may find it useful to review our MYOB Learning Centre, in particular the troubleshooting

techniques tutorial, to help you identify and correct those errors. There are two ways to directly

correct errors:

1) Reversing a transaction (using Accounting principles): a) entering a reversed transaction

opposite to the errors, (e.g. -$100 vs. $100, or -5 units vs 5 units); b) enter the correct

transaction; or

2) Modifying a transaction (directly correcting the errors): for some transactions (e.g.

payment), you need to delete (choosing Delete Payment item from Edit menu) the error

first and then enter the correct transaction.

If you have issues to either find or correct errors, restore the correct version from backup to re-start

part of the tasks.

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4. Model solutions can be found on your Perdisco page:

You receive an email from Hermione that explains she accidentally gave you an old version of the

transactions list that had an error in it. The old list provides the following description of the purchase

transaction that occurred on 3 January:

Old description: Purchased 6 units NR759 video recorders from Pony at $1,694 each (includes 10%

GST), Purchase #303, Supplier Inv#462. Issued Cheque No. 4009 for $5,200 to this supplier at the time

of the purchase

The above transaction description is incorrect and should be replaced with the description below:

Correct description: Purchased the following items from Moon Megasystems, Purchase #303, Supplier

Inv#462:

6 units NR759 video recorders at $1,694 each (includes 10% GST)

6 units DK800 desktop computers at $1,551 each (includes 10% GST)

Issued Cheque No. 4009 for $5,200 to this supplier

Deleting the incorrect transaction

In MYOB, there are two steps that you have to follow to find and delete the incorrect transaction.

Step 1: Find the error

Click Find Transactions then click Bill. In the Search By combo box select PO#, then, click the drop

down arrow in the alongside empty combo box to find Purchase # 303 and click Use Purchase

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Step 2: Delete the incorrect transaction

In order to delete the incorrect transaction, first you have to delete the cash payment. To do that,

click Pony $5,200 transaction. Then you get the Pay Bills window.

Then go to Edit in the main menu and click Delete Payment

**Please note that you can’t delete the Purchases before deleting the cash payment related to that

purchase transaction. If you tried, you would get the following message box.

After deleting the cash payment, now you can delete the purchase. Click the row of 00000303 …

$9,240.00.

Then go Edit in the main menu and click Delete Purchase. You will see a message of deleting. Click

OK.

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Entering the correct transaction

In MYOB, in the Command Centre, click Enter Purchases you will need to enter the new purchase

and change the cheque number back to 4038 (you may use the new cheque number in real

practice).

Read the message carefully to find a new cheque number and click OK.

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In order to change the new cheque number to 4009, Click Bank Register under Banking, check the

date. Double click the row with cheque ID# 4010.

Then you get the Pay Bills window, in that change the Cheque No: to 4009. Click Record button to save

your changes under Pay Bills. Check the changed cheque number under Bank Register and then click

Cancel button to close the Bank Register.

Once you have finished making those changes, print the Aged Payables [Summary] report as of 8

January 2019 and enter the correct balances of Moon Megasystems and Pony accounts in the email

below.

In order to display the updated ageing report, from Reports menu, select Index to Reports. Click

Purchase tab and click Ageing Summary under Payables. Click Display button.

58

Now, answer the Perdisco online questions on MYOB. You will see the answer and marking result immediately. Remember if your answer is different to the feedback, now try to find and fix errors first.

Otherwise, restore your save correct copy and restart from there.

List the major tasks you have done to find and fix errors. __________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

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Section 8: Transactions: Mid-January Similar to Section 5, you will complete more tasks of transaction in mid-January. Refer to your

summaries and previous details to complete to following tasks.

1. Purchased 10 units Blueberry phones from Big Telco at $781 each (includes 10% GST), Purchase

#304, Supplier Inv#198.

In MYOB, double click Enter Purchases in the chart under Purchases button. Enter the following

details and click Record button to save the purchase.

2. Made a cash sale to Hypertronics, Invoice #3373 for the following items: 2 units BlueBerry

phones for $1,210 each (includes 10% GST) 6 units DK800 desktop computers for $2,420 each

(includes 10% GST) Received Cheque No. 637 for $16,940 from this customer Note that MYOB

automatically assigns ID #CR000005 to this cash receipt.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT Inventory $7,100

GST paid $710

Accounts Payable $7,810

To record the credit purchase

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3. Received a purchase order from Turbo Tech, Customer PO#2007, Invoice #3374. The

following items are required to be shipped by 24 January 2019: 7 units BlueBerry phones at $1,210

each (includes 10% GST) 3 units NR759 video recorders at $2,640 each, (includes 10% GST).

In MYOB, Similar to the above sales but for account receivable, but there is no transaction for ORDER. Click Enter Sales in the chart under button Sales. Change INVOICE to ORDER from the drop-down list in the top left corner. Enter the following details for the current order and click Record. Click Yes button to ignore the warning of exceeding its credit limit.

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4. Issued Cheque No. 4010 for $5,500 (includes 10% GST) to pay ZNG Property Group for three

month's worth of rent in advance.

In MYOB, Click Spend Money in the chart under Banking button. Fill in the following details and

select Acct# 1-1500 Prepaid Rent. Click Record button to save it.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT Pre-paid rent $5,000

GST paid $500

Cheque $5,500

To record the pre-paid rent

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5. Purchased 8 units ZII game consoles from Big Telco for a list price of $847 each (includes 10%

GST), Purchase #305, Supplier Inv#839. Issued Cheque No. 4011 for the full payment of this

purchase.

KNOW YOUR THEORY?

ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Inventory $6160

GST Paid $616

Accounts Payable $6776

To record credit purchases ACCOUNTS AND EXPLANATIONS DEBIT CREDIT

Accounts Payable $6776

Cheque Account $6776

To record part payment for credit purchases

In MYOB, Double click Enter Purchases in the chart under Purchases button. Enter the details and

click Record button to save the purchase.

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6. Ordered 9 units NR759 video recorders for $1,694 each (includes 10% GST), from Pony, Purchase

#306, Supplier Inv#SO940.

In MYOB, Double click Enter Purchases in the chart under Purchases button. Change the left top

tab from BILL to ORDER so that you only enter the Order

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7. Received 9 units NR759 video recorders, Purchase #306. These items were ordered from Pony