MYOB CASE STUDY
In this assignment students are required to use the following modules of the MYOB computer accounting program to process transactions and to produce a set of accounting reports relating to business operations:
- General Ledger
- Sales – Accounts Receivable
- Purchases – Accounts Payable
The business is a Gift Shop named, “Student Name Gifts Pty Ltd” (students are to insert their own name) and the ABN number must include your “Student Number as a unique identifier” with zeros making up the required numbers. The firm’s sales are both over-the-counter cash sales and credit sales on account.
It will be necessary to create a new company, details are as follows:
|Last Month of Financial
Gifts Pty Ltd
|Your Student Number||?? ??? ??? ???
000 Student Number
Conversion month: July 2020
Chart of Accounts
You are to select one of the default charts provided by MYOB which most closely resembles the business or you can choose the ‘Build your own’ option. If you are using one of the default charts, you may be required to modify/delete accounts to suit the nature of the transactions as given in the question.
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
Working papers – for adjusting and miscellaneous entries
Please note that GST free items are bank fees, salaries and wages, interest expense, superannuation and fines – you can check with your lecturer for others.
New financial year starting 1st July 2020, and the processing period is July 2020, the current financial year is 2021, conversion month being July and there are 12 periods.
Opening Balances as at 1 July 2020
|General Ledger Account Balances||Debit $||Credit $|
|Cash at Bank||$45,000|
|Accumulated Depreciation – Store Fittings||$45,000|
|Accumulated Depreciation – Motor Vehicles||$30,000|
|GST Collected (payable)||$16,000|
|GST Paid (receivable)||$7,200|
|Sales Commission Payable||$6,500|
|Loans – Current||$20,000|
|PAYG Withholding Payable||$8,500|
|Loan – Non-current||$80,000|
- Students are required to devise their own unique customer names and addresses.
- Both cash and credit sales are recorded via the sales modules.
- Information provided for customers and their balance as at 1st July are as follows:
|Accounts Receivable Control|
|Customer Code||Balance Outstanding $||Days Outstanding|
- Students are required to devise their own unique supplier names and addresses.
- Accounts Payable ledger has suppliers entered for trading stock as well as other goods and services acquired on credit.
- All suppliers extend the normal 30-day terms, with no discount for prompt payment.
- Information provided for suppliers and their balance as at 1st July are as follows:
|Accounts Payable Control|
|Supplier Code||Balance Outstanding $||Invoice Date|
|SUP05 – Telephone||$770||4-Jun-20|
|SUP06 – Stationery||$660||9-Jun-20|
|SUP07 – MV Maintenance||$440||24-Jun-20|
|SUP08 – Real Estate (rent)||$0||18-Jun-20|
|SUP09 – Advertising||$5,300||3-Jun-20|
|SUP10 – Postage||$1,100||20-Jun-20|
Note: SUP05 – SUP10 are all suppliers of services (use Service for the invoice layout).
- Students are required to devise their own unique product names.
- Inventory unit measure is per gift item (unit). There are 10 different products.
- The firm uses the perpetual inventory method of accounting for inventory, (that is when inventory is purchased it is added to “Inventory” and when it is sold, the cost is debited against ‘Cost of sales’ and credited against “Inventory”).
- Information provided for the inventory opening balance as at 1 July is as follows:
|Product Code||Quantity on Hand||Unit cost ($)||Value of Inventory||Unit Sell Price Excluding GST|
Transactions for July 2020
Date source: Supplier Invoice dates and amounts include GST.
|5th July||Received invoice from SUP01, for 800 units of P001, received into the warehouse. The invoice was for $14,080.|
|8th July||Received invoice from SUP04 for 250 units of P002, $3,850.|
|9th July||Received invoice from SUP03 for 300 units of P009, $4,620 and 200 units of P010, $2,420.|
|10th July||Received invoice from SUP05 for telephone for the month, $880.|
|11th July||Purchased stationery on account from SUP06, for $330 (stationery is expensed at the time it is purchased).|
|12th July||Received advertising invoice from SUP09 for $5,500.|
|14th July||Received invoice for $7,480 with shipment from SUP02 of 400 units of P008.|
|19th July||Received invoice from SUP07 for maintenance of company vehicles $770.00.|
|23rd July||Invoice from SUP06 for more office stationery purchased $264.00|
|24th July||Received invoice from SUP03, for 360 units of P004 $7,128 and 440 units of P003 $5,808.|
|24th July||Received invoice from SUP04, $14,025 for 850 units of P005.|
|28th July||Received invoice from SUP11 (new) $330.00 for cleaning for the month.|
|29th July||Received Invoice from SUP10 for postage services $440.00.|
|30th July||Received invoice from SUP12 (new) $2,310.00 for legal fees.|
|16th July||There was a short delivery of 20 units of P008 from the order received from SUP02 on 14th July. The original order was for 400 units of P008 but only 380 units were received by the Warehouse. The Accounts department informed the supplier and a credit note was received from SUP02 for the difference.|
Date source: Sales Invoices and Cash register. All sales include GST.
|1st July||Sold 300 units of P001 for cash|
|2nd July||Sold 160 units P002, 180 units P004, and 80 units P009 for cash|
|3rd July||Sold 70 units P007 on account to CUS06|
|3rd July||Sold 120 units P006 on account to CUS05|
|3rd July||Invoice to CUS01 for 130 units of P007|
|4th July||Invoice to CUS08 for 90 units of P002|
|4th July||Sold 70 units P006, 80 units P009 and 30 units P010 for cash|
|4th July||Invoice to CUS09 for 140 units P006 and 80 units of P008|
|5th July||Sold 30 units P005, 40 units P008 and 50 units P003 for cash|
|5th July||Invoice to CUS10 for 100 units P005 and 70 units of P009|
|5th July||Invoice to CUS05 for 110 units of P006 and 160 units of P010|
|5th July||Sold 80 units of P005 and 40 units P009 to CUS08 on account|
|6th July||Sold 30 units P002, 20 units P003, 25 units P008 and 30 units P009 for cash|
|6th July||Invoice to CUS06 for 120 units of P005|
|6th July||Invoice to CUS05 for 80 units of P006|
|6th July||Sold 40 units P010 to CUS01 on account|
|7th July||Sold 30 units P004 for cash|
|8th July||Sold 30 units P003, 25 units P004, 40 units P006 and 20 units P010 for cash|
|8th July||Invoice to CUS09 for 180 units of P005 and 250 units of P006|
|8th July||Invoice to CUS10 for 220 units of P004, 300 units of P008 and 80 units P009|
|14th July||Invoice to CUS01 for 90 units of P009|
|15th July||Invoice to CUS02 for 100 units of P002 and 120 units of P007|
|16th July||Invoice to CUS06 for 130 units of P003|
|20th July||Invoice to CUS07 for 230 units of P008 and 400 units of P005|
|20th July||Invoice to CUS08 for 160 units of P008 and 280 units of P009|
|22nd July||Sold 80 units P010 for cash|
|30th July||Invoice to CUS01 for 100 units of P003 and 150 units of P005|
|30th July||Sold 70 units of P004 and 150 units of P007 for cash|
Sales Returns – Credit Notes Issued
|8th July||CUS05 has returned 20 units of P006, as damaged and requested a credit note for the amount – (REFER to the sale on 6th July listed above).|
Data source – Deposit book (Cash Receipts)
|5th July||Customer CUS01 paid $9,000, the balance of their account as at 1st July.|
|6th July||Customer CUS03 paid $6,800, the balance of their account as at 1st July.|
|7th July||Customer CUS04, paid $8,700 the balance of their account as at 1st July.|
|8th July||Customer CUS10 paid $3,200, the balance of their account as at 1st July.|
|10th July||Customer CUS06 paid $8,600 the balance of their account as at 1st July.|
|15th July||CUS05, paid the balance of their account as at 1st July, plus all the purchases of goods made up to and including the 6th July.|
|25th July||CUS08 paid $18,000 of the outstanding balance of their account.|
|27th July||Received $15,000 from CUS09.|
|30th July||Received a cheque from CUS02 for full settlement of their account, leaving a nil balance.|
|31st July||On 31st July, after depreciation was recorded, the business sold an old motor vehicle that had a written down value of $6,500.00 at the end of the month, for $7,700.00 cash (the $7,700 is inclusive of GST). The motor vehicle originally cost $20,000.00. This amount was not banked as at 31st July.|
Data source – Cheque book (Cash Payments)
|1st July||Drew a cheque for $1,500.00 to start a Petty Cash float. (Cheque No: 1001)|
|3rd July||Reimbursed $132.00 to an employee for travel expenses incurred. (Cheque No: 1002)|
|6th July||Paid June’s sales commission to retail assistants of $6,500.00 previously accrued. (Cheque No: 1003)|
|14th July||Paid June’s PAYG withholding tax of $8,500.00 (Cheque No: 1004)|
|16th July||Paid net GST obligation for June, as per the trial balance. (Cheque No: 1005)|
|20th July||Paid SUP01 $23,000, the balance owing as at 1st July. (Cheque No: 1006)|
|21st July||Paid SUP02 $16,500, the balance owing as at 1st July. (Cheque No: 1007)|
|23rd July||Paid SUP04, $9,800.00 being the previous month’s balance, plus $3,850.00 toward current month purchases. (Cheque No: 1008)
|Paid balances as at 1st July owing to
SUP03 (Cheque No: 1009),
SUP05 (Cheque No: 1010),
SUP06 (Cheque No: 1011),
SUP07 (Cheque No: 1012),
SUP09 (Cheque No: 1013),
SUP10 (Cheque No: 1014),
|30th July||Net wages paid to employees for the month amounted to $38,000 (Cheque No: 1015). The PAYG withholding tax amounted to $12,000.00 and this amount will be remitted to the Australian Taxation Office on the 23 August.|
|31st July||Paid $4,500.00 (Cheque No: 1016) for employee superannuation on wages earned during July.|
|31st July||Drew a cheque (Cheque No: 1017) for $810.00 to reimburse petty cash fund
for the following cash expenses: (all amounts are GST Inclusive)
Travelling Expenses $180.00
Sundry Office Expense $100.00.
Data source – Bank Statement (see next page)
|18th July||Periodic payment for lease of POS equipment $1,100.00 for July (incl. GST).|
|30th July||Bank charges of $80.00 were charged to the account.|
Data source – Notes and Working papers (Month-end Adjustments)
|31st July||Store Fittings are depreciated at 20% per annum, calculated and recorded using the number of days in the month.|
|31st July||Motor Vehicles are depreciated at the rate of 25% of carrying amount per annum (using the reducing balance method of depreciation). Depreciation is calculated as follows – (Carrying Amount * 25% * 31÷365)|
|31st July||Sales commission earned but not paid as at 31 July, amounted to $4,200.|
|31st July||Prepaid insurance as at 1 July ($9,000.00) represented the balance of the premium paid on the annual policy, which started on 1 May (with 2 months insurance expired as at 30 June). This prepaid insurance is expensed monthly (irrespective of the number of days in the month).|
|31st July||The prepaid rent at the start of the month was charged to Rent expense during the month.|
|31st July||The company’s short term and long-term loans are charged interest at the rate of 12% per annum and interest needs to be accrued for July (31 days).|
|31st July||Estimated electricity cost for July is $2,600 which must be accrued.|
The Bank Statement received from the bank at the end of July is as follows:
|NABBY Bank Australia
Business Trading Account
Account Name: Case Study Account No. 012 199 088789
| The Manager,
Your Name Gifts Pty Ltd
|2-Jul-20||Deposit – Cash & Cheques||$13,200.00||$58,200.00|
|3-Jul-20||Deposit – Cash & Cheques||$17,160.00||$75,360.00|
|5-Jul-20||Deposit – Cash & Cheques||$5,912.50||$79,640.50|
|6-Jul-20||Deposit – Cash & Cheques||$9,000.00||$88,640.50|
|6-Jul-20||Deposit – Cash & Cheques||$4,757.50||$93,398.00|
|7-Jul-20||Deposit – Cash & Cheques||$6,800.00||$100,198.00|
|7-Jul-20||Deposit – Cash & Cheques||$4,138.75||$104,336.75|
|8-Jul-20||Deposit – Cash & Cheques||$1,320.00||$99,156.75|
|8-Jul-20||Deposit – Cash & Cheques||$8,700.00||$107,856.75|
|9-Jul-20||Deposit – Cash & Cheques||$3,795.00||$111,651.75|
|9-Jul-20||Deposit – Cash & Cheques||$3,200.00||$114,851.75|
|11-Jul-20||Deposit – Cash & Cheques||$8,600.00||$123,451.75|
|18-Jul-20||Periodic Payment POS Equip Lease||$1,100.00||$113,851.75|
|16-Jul-20||Deposit – Cash & Cheques||$15,215.00||$129,066.75|
|23-Jul-20||Deposit – Cash & Cheques||$2,420.00||$99,686.75|
|26-Jul-20||Deposit – Cash & Cheques||$18,000.00||$87,536.75|
|28-Jul-20||Deposit – Cash & Cheques||$15,000.00||$75,866.75|
|30-Jul-20||Bank Charges July||$80.00||$75,786.75|
|30-Jul-20||Deposit – Cash & Cheques||$15,640.00||$53,426.75|
Transaction not shown on the Bank Statement are either UNPRESENTED CHEQUES or OUTSTANDING DEPOSITS.
- Set up the business in MYOB – Remember to incorporate YOUR NAME as part of the company name.
- Modify the chart of accounts as required to ensure that the transactions affecting the company are recorded and classified correctly.
Note: You must be specific in the naming of accounts.
- Enter the Opening Balances to the General Ledger and set up the subsidiary ledger for Customers, Suppliers and Inventory.
- Process transactions for July, including the completion of the Bank Reconciliation.
- Export (in PDF form) and submit the following reports (along with the Assignment Cover Sheet).
Note: Make sure that the Company name (which includes your full name) and ABN (which includes your Student ID) is present on each report:
- General Ledger (Accounts)
- Balance Sheet
- Profit & Loss Statement
- Sales (Accounts Receivable)
- Receivables Reconciliation (Summary)
- Purchases (Accounts Payable)
- Payables Reconciliation (Summary)
- Cash Disbursements Journals
- Cash Receipts Journals
For solution, please contact at email@example.com or whatsapp/ text at +1 (450) 800 2020.