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Let It Snow: A Combined Manual and Computerised Accounting Practice Set (Using MYOB AccountRIGHT PLUS Version 19)

Let It Snow: A Combined Manual and Computerised Accounting Practice Set (Using MYOB AccountRIGHT PLUS Version 19)

Wendy Pabst, Brian Perrin

ISBN: 978-0-730-30568-2

Sep 2013

112 pages

Select type: Paperback

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Let It Snow is a combined manual and computerised practice set for a wholesale company that buys from major pharmaceutical enterprises and sells mainly to chemists. Although it involves a private company and the application of international accounting standards, there are not complicated corporate type transactions included within.

Part A of this practice set provides experience in manually recording and posting a variety of business transactions from information provided in source documents. This will assist students in gaining an understanding of the flow of data in an accounting system, as many of these processes are out of sight in a computerised accounting system. Completion of the practice set for a one-month period should ensure a greater appreciation of:

  • The steps in the accounting cycle for a business
  • The use of special journals for processing data more efficiently
  • The use of subsidiary ledgers to remove detail from the general ledger
  • The perpetual inventory system
  • The bank account reconciliation
  • Balance-day adjustments and the general ledger closing process
  • How the accounting cycle culminates in the preparation of financial statements
  • How the goods and services tax (GST) impacts on accounting
  • The variety of source documents, and
  • How to extract information from source documents to record transactions

Part B of this practice uses a list of transactions instead of a source document. It is designed to provide students with an understanding of a computerised accounting system, how it operates, how to set up a data file and enter opening balances, how to record transactions, and how to produce useful reports using MYOB AccountRight Plus. It will assist students to appreciate how the same processes as those listed operate in a computerised environment.

Systems Requirements
For Windows 7: Windows Vista (service Pack 2) or Windows XP (Service Pack 3)
For Mac: Mac OS X 10.4 or later

CHAPTER 1 Introduction  1

Business background: Let it Snow  1

Part A: Manual accounting system  2

Part B: Computerised accounting system  2

Conclusion  2


CHAPTER 2 Manual accounts  6

Account balances  7

Requirements for Part A  8


CHAPTER 3 Computerised accounts  12

MYOB software  12

Completing Part B  13

Installing MYOB AccountRight Plus  13

Running MYOB AccountRight Plus and opening a company file  14

MYOB AccountRight Plus graphical interface  15

CHAPTER 4 Setting up the data file  17

Set up the business details using the New Company File Assistant  17

Set up the accounts list  21

Double-entry accounting and linked accounts  25

Entering general ledger opening balances  26

Check the Accounts List  28

Set up customer cards and enter opening balances  29

Set up supplier cards and enter opening balances  35

Set up inventory items  40

Record inventory opening balances  44

Initial bank reconciliation  46

CHAPTER 5 Entering transactions for period 1  49

Reversing journal entries  49

Purchase order  50

Credit sales (new customer)  51

Pay a supplier  53

Receipt from a customer (with prompt payment discount)  54

Petty cash  55

Cash sales (undeposited funds)  56

Convert a purchase order into a bill  58

Service bill  59

Receipt from a customer (undeposited part payment)  60

Bank undeposited funds  61

Pay wages  62

Purchase return  63

CHAPTER 6 Reports  66

Using the command centre to produce reports  66

Using the main menu bar to produce reports  68

Profit and loss  69

Balance sheet  70

Trial balance  71

CHAPTER 7 Completing the practice set  72

Period 2 transactions (11 August to 17 August)  72

Period 3 transactions (18 August to 24 August)  72

Period 4 transactions (25 August to 31 August)  73


APPENDIX 1 Source documents — July 2013  76

APPENDIX 2 Glossary of source documents  90

APPENDIX 3 Transactions — August 2013  93

APPENDIX 4 An introduction to the GST and PAYG  98

APPENDIX 5 Chart of accounts  100