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1
ACCOUNTING INFORMATION SYSTEMS
ASSESSMENT 2
PART A
You are required to create an MYOB company file, make changes as necessary to the chart of
accounts, enter opening balances, record transactions over a one-month period and generate
reports.
PART A.1 – Creating the business
Your business is a toy wholesaler, located in Australia. You buy toys from manufacturers and
importers and sell them to toyshops, gift shops and department stores throughout the country.
Most sales are made on credit but occasionally a new customer will buy goods for cash. The
business does not sell direct to the public.
When creating your business, use the following information:
Company name:
ABN:
Address:
Your name Toys
Your student number + 0’s (11 digits in all)
Line 1 Your full enrolled name
Line 2 Your Student number
e.g.
Company name
Louise Toys
ABN
32658220000
Address
Louise Reeves
3265822
Current financial year: 2020
Last month of financial year: June
Conversion month: May (This is the month in which the business converts to MYOB)
Number of accounting periods: 12
Start with one of the lists provided by MYOB from the Retail list.
Assessment 2
2
PART A.2 – Making changes to the chart of accounts and entering opening balances
Go to the Command Centre and in Accounts module, make changes as required to the chart
of accounts.
Some points to note:
• You need only 1 Sales Revenue account.
• The business uses a perpetual inventory system.
• GST is collected on all sales and paid when inventory and other assets are purchased
and also on most expenses. GST is not paid on wages, depreciation, bank fees or
interest. The tax code when buying fixed assets is CAP.
• GST payable is calculated by MYOB as GST Collected less GST Paid. (Liability and
contra liability).
-closing trial balance on Apr 30 is below. These amounts are the opening balances in
the accounts on May 1.
Ensure you have all these accounts in your chart of accounts. You might find it easier to change
the names of existing accounts.
It is very important that you do not replace the linked accounts with new accounts so just change
the names. For the Bank account, use the first bank account listed and change its name to
Bank. This will be the account all receipts and payments are linked to. For Accounts Receivable
Control and Accounts Payable Control, do not create new accounts. Just change the names of
the existing LINKED accounts (Debtors and Creditors).
3
Trial balance as at April 30
Account name
Debit
Credit
Bank
62,775
Petty Cash
500
Accounts Receivable Control
16,445
Inventory
22,805
Prepaid Insurance
5,200
Furniture and Fittings
21,680
Accum depn – Furn & fittings
6,500
Delivery Vehicles
102,000
Accum Depn – Delivery Vehicles
47,000
Equipment
31,000
Accum Depn – Equipment
11,200
Accounts Payable Control
16,115
GST Collected
3,250
GST Paid
2,400
PAYG Payable
6,140
Contributed Capital
140,000
Retained Earnings
34,600
TOTAL
264,805
264,805
Go to Setup (top menu)/Balances/Account opening
balances. The out of balance amount should be $0
when you have entered them all.
Assessment 2
4
PART A.3 – Setting up suppliers, customers and inventory items
Setting up your Suppliers
Set up purchase defaults as follows:
Setup/ Easy Setup Assistant/Purchases
Invoice type: Item (But remember, it is only the suppliers of inventory who will use this
type of invoice. For others, use Miscellaneous.)
Expense account: Inventory (This is an asset account . Again, remember not all
suppliers supply inventory. The expense accounts will relate to what is supplied).
You are to set up your suppliers with realistic names that reflect the type of business they are
engaged in. These names must be unique to your business. Addresses are not necessary but
each is to have an 11 digit ABN.
The business has 7 suppliers of goods and services on credit.
Suppliers 1 to 4 are vendors of inventory items (toys, sports equipment and games).
Supplier 5 provides telephone and internet service.
Supplier 6 is an electricity supplier.
Supplier 7 provides cleaning and maintenance services.
Note: Not all suppliers are owed money at May 1, but all 7 suppliers must be set up.
The Accounts Payable balance as at May 1 comprises the following historical purchases.
Suppliers – Historical purchases
Code Date AmountS01 Apr 14 2,519S02 Mar 28 4,070S02 Apr 10 4,620S03 Apr 25 2,596S05 Apr 10 242S06 Apr 29 748S07 Apr 26 1,320TOTAL 16,115
Use Setup assistant. Enter name and I.D. Click Buying details, add ABN.
For suppliers 5, 6 and 7, change default layout and account number
5
Setting up your Customers
There are 7 credit customers. You are to set up your customers with realistic names that reflect
the type of business they are engaged in. These names are to be unique to your business.
Addresses are not necessary but each is to have an 11 digit ABN.
Set up sales defaults as follows:
Invoice type: Item
Income account: Sales.
There are 7 credit customers at the beginning of May. Balances owed are in the list of historical
sales below.
Note: Not all customers have unpaid accounts but all 7 customers must be set up. Some
customers have more than one invoice outstanding.
Customers – Historical sales
Code
Date
Amount
C01
Mar 18
1,595
C02
Apr 2
2,310
C03
Mar 28
1,606
C03
Apr 15
2,002
C05
Feb 26
825
C06
Mar 26
3,630
C06
Apr 15
4,477
TOTAL
16,445
Important: Also set up Cash Sales as a customer. The code is Cash.
Setup/ Easy Setup Assistant/Sales
Assessment 2
6
Setting up your Inventory items
There are 7 inventory items. Each inventory item has a code (see the table below). You are to
make up names for your inventory items and enter them onto the Name form. These names
are then to be copied to the Items List in MYOB.
The inventory items can varied or of a single type. E.g. you may supply baby goods or sporting
goods. They may be single items or cartons of a small item. E.g. 20 assorted small cars or 10
jigsaw puzzles or 10 board games. Do not use names of well-known brands. Make them up.
Be imaginative. The names you create are to be your own individual and unique names.
Important: Enter the selling prices when you set up the inventory items in MYOB.
Information relating to the inventory items and their opening balances at May 1 are in the table
following. (To enter opening balances of inventory items, use Inventory, Adjust inventory).
NOTE: Cost and selling prices in this table do not include GST.
Details of inventory on hand as at May 1
Item
In stock
Unit
Selling
Code
at 1/5
cost
price
P01
220
$27.25
$48.00
P02
440
$9.00
$20.00
P03
204
$25.00
$42.00
P04
50
$35.00
$65.00
P05
120
$11.50
$20.00
P06
60
$45.00
$80.00
P07
60
$32.00
$58.00
The total balance of inventory on May 1 is $22,805.
In Command Centre, select Inventory, Items List.
Click New
7
PART A.4 – Entering transactions for the month
This case study covers a one month period from May 1 to May 31.
Interim financial reports and a bank reconciliation are prepared at the end of every month.
The transactions for May are below. Amounts stated include GST where applicable.
All purchases include GST.
Record the transactions using the appropriate MYOB modules.
All payments are made by cheque unless they are paid directly by the bank. The next cheque
number is 2043. The bank allows the business an overdraft up to $10,000.
Purchases (All amounts include GST)
May 4
Purchase from S02: 120 x P04 for $4,620
5
Purchase from S01: 200 x P01 for 5,995 and 400 x P02 for $3,960.
6
Purchase from S04: 200 x P06 for $9,900 and 200 x P07 for $7,040
13
Purchase from S03: 150 x P03 for 4,125 and 200 x P05 for $2,530
28
Received the May account from S07 in the amount of $1,419
31
Received account from S05 in the amount of $253.
Sales
May 3
Sale to C04: 50 x P01 and 100 x P02.
4
Sale to C06: 60 x P03, 60 x P06 and 60 x P07.
5
Cash sale: 40 x P02 and 10 x P06.
6
Sale to C05: 100 x P02, 50 x P04, 50 x P05 and 50 x P07.
6
Sale to C01: 50 x P01,100 x P02 and 50 x P06
10
Cash sale: 10 x P06 and 10 x P07.
11
Sale to C02: 50 x P01, 100 x P02 and 50 x P06.
12
Sale to C04: 40 x P03, 40 x P04 and 50 x P07.
12
Sale to C03: 100 x P02, 30 x P03 and 20 P05
12
Sale to C07: 20 x P03, 100 x P05 and 60 x P07.
16
Cash sale: 40 x P02 and 5 x P06.
17
Sale to C05: 50 x P01, 80 x P05 and 20 P07
19
Sale to C06: 50 x P01, 100 x P02, 50 x P03 and 20 P06
22
Cash sale: 10 x P01, 4 x P04 and 4 x P06
24
Sale to C02: 60 x P02, 50 x P03, 20 x P04, 20 x P05 and 40 P06
Assessment 2
8
Payments to suppliers
May 6
Paid S01 and S02 the amount owing at May 1 Chqs 2048 and 2049
10
Paid S03, S05, S06 and S07 the amount owing at May 1. Chqs 2052, 2053, 2054
and 2055
Miscellaneous Payments (Including GST where applicable)
May 1
Paid rent for May $6,380 Chq 2043
2
Bought a new delivery vehicle for $40,250. Chq 2044
3
Paid a year’s insurance and registration for the delivery vehicles. $3,432.
Hint: Record 1 month of the insurance and registration as an expense (Motor
Vehicle Expenses) and the other 11 months as prepaid). Chq 2045
3
Paid $363 for 3 month’s advertising in a trade newsletter for June to August. Chq
2046
4
Paid $680 for new office furniture. Chq 2047
9
Paid $65 for petrol (Motor vehicle expenses) Chq 2050
9
Paid $264 for stationery (Record as expense) Chq 2051
10
Paid the PAYG tax payable as at May 1. Chq 2056
12
Wages expense was $5,990. Paid $4,320 and recorded PAYG Payable of $1,670
Chq 2057
16
Paid the GST liability owing at May 1 Chq 2058
18
Paid $80 for petrol (Motor vehicle expenses) Chq 2059
18
Paid $462 for legal fees. Chq 2060
20
Paid $2,079 to have new shelving installed. (Fittings) Chq 2061
26
Wages expense was $5,720. Paid $4,060 and recorded PAYG Payable of $1,660.
Chq 2062
31
Reimbursed petty cash for the following:
Stationery (including GST) $85
Taxi fares (including GST) $108 (Local Travel Costs)
Milk, tea coffee etc (No GST) $104.20 (Record as Staff Amenities). Chq 2063
Receipts from customers
May 5
Received from C06 the amount owing as at May 1.
16
Received payment from C02 for the amount owing at May 1.
16
Received from C01 and C03 the amount owing at May 1.
30
Received payment from C04 for the full amount owing at this date.
9
On May 31, record the following adjustments
1. Provide for 1 month depreciation on equipment. The equipment is being depreciated in a
straight line over 5 years to a residual value of $3,000. (Round to nearest whole dollar).
2. The prepaid insurance at May 1 was for 4 months. Adjust for insurance expired in May.
3. Wages expense incurred but unpaid at May 31 amounted to $1,080.
PART A.5 – Generate Reports
Export PDFs of the following reports from MYOB. These reports must be included in your
assignment submission, as an Appendix to your report.
1. Trial balance as at May 31.
2. Profit and Loss statement (Accrual) for the month ended May 31.
3. Balance Sheet as at May 31.
4. Sales Register Detail [All Sales] Report for the month of May.
5. Purchases [Item Detail] Report for the month of May.
Assessment 2
10
PART B
While processing the transactions for the business for May, you identified a number of outdated
practices, and manual processes which could be automated by adopting new work processes,
and by implementing a cloud accounting package with suitable integrations or apps.
You have been asked to compile a report (not exceeding 1,000 words) for the business owner,
detailing:
• At least five work process improvements which should be implemented.
• An alternative cloud-based accounting software system to replace the dated MYOB
AccountRight 2018.3.
You will need to analyse and critically evaluate the effectiveness of the MYOB AccountRight
desktop software application from a business perspective; and then make a recommendation
for an alternative, cloud Accounting system based on your evaluation (explain the reasons for
your choice and provide justification for your decision).
Your report should contrast the effectiveness of the MYOB desktop software and manual
processes adopted in Part A against alternative, more automated procedures, and an available
alternative cloud accounting solution in the marketplace. Your report could detail potential
improvements in efficiency in the following areas:
• Sale and purchase processing
• Payment and receipt processing
• Reconciliation and internal control functions
• Inventory management
• Fixed asset management
• Human resource management
• Customer relationship management
• Management reporting
• BAS reporting
This assessment should be in the format of a report 1,000 words in length, professionally
presented, and must comply with the requirements listed in the Student Handbook for this
course. Font should be 12pt times roman, 1.5 x line spacing, at least 2.5cm left margin and all
work appropriately referenced using Harvard AGPS Referencing system. See the TAFE
Harvard AGPS Library Guide for assistance.
The required statements and reports from MYOB must be attached as an appendix to
your report.

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