1. Set up the business using MYOB.

2. Create / Modify the chart of accounts.

3. Enter opening general ledger balances.

4. Set up Accounts Receivable (debtor) accounts, assign your chosen name and address for each debtor.

5. Enter opening balances of Accounts Receivable (debtors), with correct aging. Check to see that it equals the control account in the general ledger

6. Set up Accounts Payable (creditor) accounts, assign your chosen name and address for each creditor.

7. Enter opening balances of creditors, with correct aging. Check to see that it equals the control account in the general ledger

8. Set up inventory items and assign your chosen product names.

9. Enter opening balances of inventory. Check to see that the total of all inventory values equals the control account in the general ledger

10. Process transactions as given for the exercise using the appropriate module.

Using the following information: Transaction Sources

Cash registers for cash sales, Invoices for credit sales

Cheque book for cash payments,

Deposit books for cash receipts Bank statements for direct charges and direct deposits

Supplier invoices for goods and services purchased Working papers for adjusting and miscellaneous entries

Please note that GST free items are bank fees, salaries and wages, interest expense, superannuation and fines.

Transaction Period New financial year starting 1st July 2022, and the processing period is July 2022, the current financial year is 2023, conversion month being July and there are 12 periods.

Opening General Ledger Balances as at 1 July 2022

Cash at Bank $85,600

Petty Cash $1,000

Accounts Receivable $56,000

Merchandise Inventory $69,180

Prepaid Insurance $7,470

Computer Equipment $90,000

Accum Depn - Computer Equipment $25,000

Shop Fixtures and Fittings $120,000

Accum Depn - Shop Fixtures & Fittings $38,000

Investments (Shares in Telstra) - Long Term $25,000

Accounts Payable $36,000

PAYG Withholdings Payable $12,000

Accrued Expenses - Sales Commissions $4,000

Interest Bearing Loan (Due 31-Mar-2023) $30,000

GST Collected $12,000

GST Paid $7,000

Bank Loan (Due 30-Dec-2026) $180,000

Paid Up Capital $110,000

Retained Earnings $14,250

Total $461,250 $461,250

Customers (AR Accounts Receivable)

1. Only credit sales are recorded, cash sales are recorded via the Sales module using a Cash Sales account.

2. Information provided for customers and their balance as at 1 July is as follows:

Accounts Receivable Subsidiary Ledger

Customer Code	Balance as at 1st July	Outstanding Days
AR1	$6,500
AR2	$8,400	31
AR3	$6,300	92
AR4	$9,000	61
AR5	$5,500	31
AR6	$7,300	61
AR7	$8,200	61
AR8	$4,800	31
	$56,000

Suppliers (AP Accounts Payable)

1. Accounts Payable ledger has suppliers entered for trading stock as well as other goods and services acquired on credit.

2. Cash purchases, are processed directly through the cash book.

3. All suppliers extend the normal 30 day terms, with no discount for prompt payment.

4. Information provided for suppliers and their balance as at 1 July is as follows:

Accounts Payable Subsidiary Ledger

	Supplier Code	Balance	Transaction Date
	SUP1	$12,600	15/5/22
	SUP2	$7,400	2/6/22
	SUP3	$5,900	10/6/22
Stationery supplier	SUP4	$4,800	20/5/22
Accountant	SUP5	$1,000	8/6/22
Telephone	SUP6	$1,100	20/6/22
Computer Maintenance	SUP7	$800	16/6/22
Advertising Agency	SUP8	$2,400	28/5/22
		$36,000

Inventory (PR)

1. Inventory unit measure is per item

2. Selling prices are listed in the table below.

3. The firm uses the perpetual inventory method of accounting for inventory, (that is when inventory is purchased it is added to Inventory account and when goods are sold, the inventory account is reduced with the debited being to Cost of Sales).

4. Information provided for inventory and their balances as at 1st July is as follows:

Inventory code	Quantity	Unit cost	Balance	Unit sell Price
PR1	610	$26	$15,860	$45.50
PR2	420	$18	$7,560	$31.50
PR3	380	$12	$4,560	$21
PR4	535	$20	$10,700	$35
PR5	280	$24	$6,720	$42
PR6	450	$16	$7,200	$28
PR7	320	$14	$4,480	$24.50
PR8	550	$22	$12,100	$38.50

$69,180

Transactions for July 2022

Data source: Suppliers Invoices. Dates shown are invoice dates, amounts include GST where applicable.

Date Transaction Details

5 Jul Received invoice from SUP03 for 100 units PR04 for $2,200, and 120 units PR08 $2,904

6 Jul Received invoice from SUP06 for telephone and communications systems installation $1,870. Installation costs are expensed when incurred.

7 Jul Purchased stationery on account from SUP04 amounting to $528. Stationery is expensed when purchased.

9 Jul Received invoice from SUP02 for 160 units of PR07 $2,464 and 120 units of PR02 $2,376.

12 Jul Received invoice from SUP01 for 190 units of PR01 $5,434.

14 Jul Received invoice from SUP05 for July accounting fees amounting to $1,540.

15 Jul Purchased 200 units PR03 for $2,640, 250 units PR05 for $6,600, and 200 units of PR06 for $4,400 from SUP03. Invoice was included with goods supplied.

16 Jul Requested a credit note from SUP03 for short supply of goods delivered on 15 Jul. Only 240 units of PR05 and 185 units of PR06 were delivered. As such a credit note for 10 units PR05 and 15 units of PR06 was requested.

17 Jul Invoice from SUP07 for computer maintenance and repairs $792.

20 Jul Received invoice from SUP02 for 80 units of PR03 $1,056 and 100 units PR05 $2,640.

22 Jul Received invoice from SUP09 (new supplier) for legal expenses in relation to leasing of premises, $924.

24 Jul Received invoice from SUP08 for advertising undertaken in July $1,650. 25 Jul Received invoice from SUP02 for 200 units of PR02 for $3,960, 180 units of PR03 $2,376, 160 units PR05 $4,224 and 300 units of PR07 for $4,620.

27 Jul Purchased stationery on account from SUP04 amounting to $814. Stationery is expensed when purchased.

29 Jul Received invoice from SUP06 for telephone expenses incurred during the month amounting to $858.

31 Jul Received invoice from SUP07 for repairs of computer equipment and software updates amounting to $616.

Data source sales invoices and cash register tapes - amounts to include GST

Date Transaction Details

2 Jul Cash sales 80 units PR01 and 100 Units PR08.

4 Jul Sales invoice to AR03 for 60 units PR02 and 90 units PR05.

5 Jul Sold 70 units PR03 and 110 units of PR07 to AR01.

8 Jul Sold for cash, 85 units of PR04 and 95 units of PR06.

12 Jul Sales invoice to AR08 for 105 units PR02 and 70 units PR05. 14 Jul From the sales to AR08 on 12th July, the customer returned 15 units PR02 and 10 units PR05 due to faulty packaging. The goods were returned to stock.

17 Jul Sold 100 units PR01 and 105 units of PR04 to AR02.

21 Jul Cash sales 120 units PR03 and 115 Units PR06.

22 Jul Sold 90 units PR07 and 80 units of PR08 for cash.

24 Jul Sales invoice to AR05 for 130 units PR01 and 110 units PR03.

25 Jul Sales invoice to AR07 for 70 units PR07 and 90 units PR08. Cash sales 115 units PR04 and 100 units PR06.

27 Jul Of the sales to AR07 on the 25 July, the customer returned 12 units of PR07 and 8 units PR08.

28 Jul Sold 110 units PR02 and 80 units of PR05 to AR06.

30 Jul Sales invoice to AR04 for 100 units PR05 and 120 units PR07.

31 Jul Cash sales 105 units PR01, 110 units PR04 and 130 units PR08.

Data source deposit book (cash receipts)

All receipts for cash sales and monies received are banked on the same day.

Date Transaction Details

2 Jul Customer AR03 paid his account as at 1st July amounting to $6,300.

5 Jul Cheque received from AR06 for balance owing as at 1st July.

10 Jul Cheque received from AR07 for balance owing as at 1st July.

15 Jul Customer AR01 paid his account as at 1st July amounting to $6,500.

20 Jul Received Dividend form Telstra amounting to $1,200.

23 Jul Cheque received from AR02 for $8,400.

25 Jul Cheque received from AR08 for total amount owing as at todays date leaving a nil balance on this account.

30 Jul Cheque received from AR05 for total amount owing as at todays date leaving a nil balance on this account. Thank you