Administer subsidiary accounts and ledgers
Requirements:
- Access to a computer with:
- MYOB AccountRight Plus V19.8 Student Edition
- Microsoft Excel 2010
- access to a printer
- access to the internet
- Backup disk/USB flash drive
- Calculator
- Debt Collection Guideline for Collectors and Creditors already printed in the workbook
- TPB Code of Professional Conduct already printed in the workbook
- e-Payments Code downloaded from the ASIC website
- Folder in which to present reports
- Company file provided by your trainer/assessor
Assessment Conditions:
(i) There are two parts to this Assessment:
- Part A This section requires you to use MYOB AccountRight v19.8 to enter the transactions into the company file provided (see page 2). You must complete all tasks and present all printouts required.
- Part B This section requires you to use the ruled section provided to manually post to the General Ledger (control accounts) and Subsidiary Ledgers and prepare Schedules of Accounts Receivable and Accounts Payable.
After all tasks have been completed, Parts A and B will be compared for verification of accuracy.
(ii) Access to the workbook Administer subsidiary accounts and ledgers using MYOB AccountRight Plus V19.8 or another appropriate text, MYOB help and participant's notes is allowed.
(iii) Errors will be indicated on printouts. Candidates will be permitted to correct errors in remaining allocated time.
(iv) All printouts must be accurate. It is recommended that on completion of this module, participants should be able to produce work with not more than two resubmissions.
(v) Remember DATES are important in MYOB AccountRight.
(vi) Remember to back up your file as regular intervals.
In this assessment, you will prepare and process the financial and business documents of Sparky's Electrical, a business owned by a sole trader - Brian Sparks, Electrician.
Brian performs the following services and follows these procedures:
Real Estate maintenance, ie electrical installations, repairs and maintains rental houses and units managed by Jim White Real Estate. A Job Card is kept by Brian and an invoice sent to Jim White Real Estate on completion of the job.
Domestic maintenance, ie electrical installations, repairs and maintenance to houses, units etc. A handwritten invoice is always handed to the owner on completion of the job and payment is required on the completion of the job. Some domestic work is done for regular clients who are given a 30-day account.
Brian is a sole trader using subcontractors whenever needed. He has an ABN and is registered for GST reporting on a Cash Basis.
Brian employs a bookkeeper [You] to monitor the phone and look after the accounts of the business. The bookkeeper has permission to sign cheques and pay accounts on the internet.
Brian purchases electrical materials from AB Electrical on credit.
Extract -Sparky's Electrical Procedures Manual - 1
REAL ESTATE MAINTENANCE BILLING PROCEDURES
1. A Job Card is completed with the necessary details when the job is received over the phone.
2. The Job Card is completed and signed by the customer before leaving the job.
3. An Invoice is sent to the Real Estate as soon as possible.
4. Materials are charged at cost inc GST plus 25%. All Material Costs include GST.
5. Labour is charged at $66 inc GST per hour. [charged in 30 minute units]
6. Travel may be charged at 66c per kilometre inc GST.
DOMESTIC ELECTRICAL BILLING PROCEDURES
1. A handwritten invoice [GST exclusive] is given to the customer on completion of the job. Labour and Materials are not listed separately - just the total amount owing for the job.
2. Payment by cash or cheque is required immediately and payment information is written on the Tax Invoice in the invoice book before handing the original to the customer. [Customers are informed when job is booked.]. Credit terms of 30 days may be given to long-term customers.
3. Invoice details are entered in MYOB AccountRight.
4. Travel may be charged at 66c per kilometre.
PAYMENT OF CUSTOMER ACCOUNTS PROCEDURES
1. Under the Privacy Act 1988, details kept must be accurate and not given to any person without the consent of the customer.
2. Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day and allocated to "undeposited funds" in MYOB AccountRight. A Receipt is written out for accounts paid in cash over the counter.
3. Any payment resulting in an overpayment is recorded as a credit and applied to a future invoice.
4. Bank Deposit Slips are printed and submitted to the bank with a credit summary slip when cash and cheques are banked.
5. Cheques are only accepted from long-term customers. On receipt of the cheque, the date, payee, amounts and signature must be checked.
6. Dishonoured cheques are reversed, not deleted.
7. Monthly statements are printed by the 5th of the following month.
8. Full payment [Real Estate customers] is required within 30 days of the date of the invoice. A 5% cash discount may be allowed to high volume customers for payment within 14 days.
9. At the end of each month a "Receivables Reconciliation" report is printed to identify overdue accounts and the accuracy of the ledgers.
CUSTOMER CREDIT POLICY
1. A Credit Application is completed when an account is set up. A phone call is made to a referee checking on payment of account.
2. Account overdue up to 30 days: An overdue reminder sticker will be attached to the next statement.
3. Account overdue more than 30 days: A telephone call made to assess the reason for non- payment and perhaps negotiate a payment plan. A note is made in the Contact Log.
4. Account overdue 60 days:
Send first collection letter notifying intention to take action and review credit terms and place credit on hold [entered in MYOB]. A note should be made in the MYOB Contact Log.
5. Account overdue 90 or more days:
A report is prepared documenting the accounts receivable debt, recovery type, cause and recovery plan and ratified by the business owner.
A letter of demand will be sent to the customer asking for payment within 14 days.
If this fails, a Debt Recovery service will be used to collect the debt if more than $200. Small debts < $200 will be written off as a bad debt. The Debt Collection Guideline for Collectors and Creditors must be adhered to at all time.
6. Legal Action will only be used as a last resort.
7. All Bad Debt recovery reports are filed in the special file for "Bad Debt Recoveries".
PURCHASING PROCEDURES
1. Brian personally purchases all electrical materials required by his business. A Purchase Order is rarely used, because the materials are usually bought over the counter by Brian.
2. Most materials are purchased from AB Electrical.
3. Business needs other than materials are usually purchased by the bookkeeper.
4. At the time of purchase, a printed invoice is received listing all items and total cost of materials and supplies. All details are checked for accuracy. All purchases are entered using a service invoice - items are not inventoried.
Should there be a discrepancy, a telephone call is made to the supplier and a new Tax Invoice is requested. "ENTERED", date and initials must be recorded on the Tax Invoice when entered into the MYOB AccountRight company file.
5. Suppliers usually send a statement at the end of the month, however some invoices are payable on invoice, not statement.
6. On receipt of the statement, the bookkeeper checks this statement with the invoices received at the time of the purchase.
7. Credit terms vary from supplier to supplier. No discounts are allowed by any suppliers. Brian is given a Trade Price at the time of purchase.
Task 1: Open the company file "Sparkys Electrical v198 302A.myo"
(i) Sign on as "Administrator" with no password and view the following to familiarise yourself with the business accounts and details
- Accounts List
- Card File
- Unpaid Tax Invoices issued to customers
- View the invoices to access the manner in which the invoices are entered, so that you can follow the same procedures
- Note settlement discount terms for Jim White Real Estate
- Read the policies and procedures on the following page
(ii) Include your name in the business name for printout identification purposes.
Task 2: Enter the following Job details as a sale in your MYOB company file.
The following Jim White Real Estate Job has been completed.
Enter the above job details as per policies and procedures. Use Tax Invoice Number 608.
Refer to policies and procedures for billing details - materials, labour and travel.
Task 3: Enter an Adjustment Note on 7 July to send to Jim White Real Estate.
Brian has realised the mileage charged on Job 56 should have been 20 km not 50 km. Enter an Adjustment Note to record the overcharge.
Remember to settle against the original invoice.
You are not required to print a copy of the Adjustment Note.
Task 4: Enter the following duplicate handwritten invoice and cheque as a sale in your MYOB data file.
You will have to create a new card for R Carson. Remember the credit terms are COD. Refer to policies and procedures.
Before accepting the cheque, check the cheque details for accuracy?
Is there a problem with the above cheque?
What are you going to do about it?
Enter the above sale, assuming the problem has been rectified.
Task 5: Enter the following payment in cash for an invoice already entered in your MYOB AccountRight file
Janet Collins is a regular customer and is paying her account. Follow the appropriate policies and procedures.
$220 Cash was received from Janet Collins on 7 July being payment of handwritten Invoice 605 dated 30 June 2013 already entered, for repairs to washing machine.
Write out the receipt below.
You can sign the receipt on behalf of the business.
Task 6: The following Jim White Real Estate Job has been completed.
Task 7: Enter the following cheque received in payment of Tax Invoice 608
Enter the following cheque received in payment of Tax Invoice 608. Check for discrepancies between monies owed and monies paid.
Follow the policies and procedures of the business to deal with any discrepancies.
What discrepancy did you find?
What procedure will you follow?
Task 8: Bank the cheques and cash received to date
Deposit all cash and cheques received to date on 20 July.
Task 9: The following fax was received from Jim White Real Estate.
Enter the payment details in your MYOB AccountRight file accounting for the cash discount. DO NOT APPLY CREDIT TO THIS PAYMENT.
Task 10: Print an Activity Statement to send to Jim White Real Estate.
Print an Activity Statement for 1 July to 31 July to send to Jim White Real Estate.
Task 11: The business has been notified that the cheque received from R Carson has been dishonoured.
The business has been notified that the cheque received from R Carson was dishonoured on 21 July.
Enter the above transaction in your data file, making sure that the amount of the cheque is also deducted from your Cheque Account.
Refer to the policies and procedures before recording the dishonour.
Task 12: Reconcile the Undeposited Funds
Task 13: Print the following reports:
Task 14: Refer to Printout 5 to answer the following questions:
(i) What is the amount owing by customers on 31 July?.........................................................
(ii) Display the Balance Sheet at the end of the month.
What is the amount owing in the Trade Debtors A/c in the Balance Sheet? ..................... (iii) Does the answer in (i) reconcile with the answer in (ii)? ..................................................
Task 15: Display Contact Logs
Display the Contact Logs report for customers found in Card reports - dated 1/1/13 to 31/7/13. Look for any notes on contacts with customers with overdue accounts.
Write here any notes with reference to contact to customers with overdue accounts.
Task 16:
Following contact instructions provided by the trainer at the commencement of this assessment, use the telephone and ring Bellick Constructions to determine the reason for non-payment and negotiate a payment plan. [Use your trainer's contact details as Bellick Constructions.]
Make a note in the Contact Log for Bellick Constructions.
Write here the response given by Bellick Constructions [your trainer]
Task 17: Receivables Report
(i) In Reports, select "Sales" reports.
(ii) Under the "To Do List" heading, select "Receivables" on "31/7/13".
(iii) Send this report to Excel and prepare the following report for the owner of the business.
Print a copy of the above Excel report.
(i) Following policies and procedures what would you do about each of the overdue account/s? Note that Bellick Constructions did not make a payment at the end of the month.
(ii) Assume Bellick Construction's account is now more than 90 days overdue:
(a) Prepare the following Recovery Report for the owner.
(b) Where will copies of the above documents be filed according to business procedures?
(c) Write [type] a letter requesting payment and notifying intention of placing the debt in the hands of a Debt Collection Agency as per procedures. In this exercise, date letter 31 July.
Remember to make a note in the Contact Log.
Task 18: ASIC and ACCC have released their "Debt collection guideline for collectors and creditors".
At what times can the collector contact the debtor in their workplace?
Task 19: Explain the following:
How does the "Honesty & Integrity" core principle of the TPB Code of Professional Conduct affect you as a bookkeeper when dealing with customers with overdue accounts?
Task 20: Bad Debt
The business has been notified that Bellick Construction has gone into liquidation and there is little chance of recovering the amount owing.
(i) Write off the amount owing as a bad debt on 28 August 2013.
(ii) Settle this adjustment against the original invoice.
Task 21: Entering purchases form AB Electrical
What is the consequence if this error is not corrected?
Task 22: Invoices received
Enter the invoices received checking for validity and accuracy.
Task 23 On 4 July, 1 of the Circuit Breakers purchased from AB Electrical on Invoice 3208 was returned - faulty.
Task 24: Enter the following Tax Invoice in your MYOB AccountRight file.
Task 25: Write out the cheque to pay the amount owing to the Local Show Society on 15July.
Task 26: Pay the amount owing to Telstra on 15 July.
The Telstra account was paid using BPAY on 15 July. Enter the payment.
Task 27: e-Payments Code
Refer to the e-Payments Code of Practice already downloaded and printed.
List 2 circumstances when you will not get your money back if there is an unauthorised transaction on your account?
Task 28: The following statement has been received.
Check the statement for accuracy against the data in your MYOB AccountRight file.
Task 29: Explain the following:
Why is the adjustment in the credit column of the above statement, whereas, in your file, the amount is entered as a debit.
Task 30: Prepare the required List of Unpaid Supplier Accounts report
Task 31: Approval of unpaid accounts report
Accounts to be paid must be approved by your trainer/assessor on the above report.
Task 32: Payment of accounts at 31 July
You are required to pay these accounts by electronic transfer at 31 July and prepare the ABA file ready to upload to the bank.
Task 32: Reconcile your Cheque Account
Printed below is the Bank Statement received dated 31 July.
Task 33: Reconcile the Electronic Payments Account
Reconcile the Electronic Payments account - balance is "0".
Task 34: Print the following reports:
Task 34: Refer to the printouts above to answer the following questions:
(i) In Printout 13, what is the amount owing to suppliers on 31 July?..................................
(ii) What is the "Trade Creditors" balance in your Balance Sheet? ................................... (iii) Does the answer in (ii) reconcile with the answer in (i)? ................................................
(iv) If the above did not reconcile, what problems could exist in your data file?
(v) In the Profit and Loss report, advertising is $240, which is the actual amount paid, yet the other accounts are displayed ex GST. Can you please explain the reason?
Task 35: Back up your data file
Assemble your printouts and present this assessment, your printouts and a backup of your AccountRight file to your trainer/assessor for correction.Requirements:
- Access to a computer with:
- MYOB AccountRight Plus V19.8 Student Edition
- Microsoft Excel 2010
- access to a printer
- access to the internet
- Backup disk/USB flash drive
- Calculator
- Stationery for preparation of journals, ledgers and schedules
- Debt Collection Guideline for Collectors and Creditors already printed in the workbook
- TPB Code of Professional Conduct already printed in the workbook
- ePayments Code downloaded from the ASIC website
- Access to the internet
- Folder in which to present reports
- Company file provided by you trainer/assessor
Assessment Conditions:
(i) There are two parts to this Assessment:
- Part A This section requires you to use MYOB AccountRight v19.8 to enter the transactions into the data file provided (see page 1). You must complete all tasks and present all printouts required.
- Part B This section requires you to use the ruled section provided to manually prepare all journals, post to the General Ledger (control accounts) and Subsidiary Ledgers and prepare Schedules of Accounts Receivable and Accounts Payable.
After all tasks have been completed, Parts A and B will be compared for verification of accuracy.
(ii) Access to the workbook Administer subsidiary accounts and ledgers using MYOB AccountRight Plus V19.8 or another appropriate text, MYOB help and participant's notes is allowed.
(iii) Errors will be indicated on printouts. Students will be permitted to correct errors in remaining allocated time.
(iv) All printouts must be accurate. It is recommended that on completion of this module, participants should be able to produce work with not more than two re-submissions.
(v) Remember DATES are important in MYOB AccountRight.
(vi) Remember to back up your file as regular intervals.
Task 1: Open the MYOB AccountRight v19.8 file ComputerWorkz v198 302A.myo
(i) Sign on as Administrator with no password and view the following to familiarise yourself with the business accounts and details
- Accounts List
- Read the policies and procedures on the previous page
- View Card files looking for customers and suppliers already entered
(ii) Include your name in the business name for printout identification purposes.
Task 2: Create cards for customers.
Establish cards for the three existing customers, using the following details:
Task 3: Enter opening balances for customers.
The existing customers have the following unpaid invoices at 1/7/2013.
Attachment:- Assignment.rar