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:        Your name Toys

ABN: 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

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.



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).

The post-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).


                                                                                Go to Setup (top menu)/Balances/Account opening balances. The out of balance amount should be $0

when you have entered them all.

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



PART A.3 – Setting up suppliers, customers and inventory items


Setup/ Easy Setup Assistant/Purchases

Setting up your Suppliers

Set up purchase defaults as follows:

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).


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

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 Amount
S01 Apr 14 2,519
S02 Mar 28 4,070
S02 Apr 10 4,620
S03 Apr 25 2,596
S05 Apr 10 242
S06 Apr 29 748
S07 Apr 26 1,320
TOTAL 16,115




Setup/ Easy Setup Assistant/Sales

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.



In Command Centre, select Inventory, Items List.
Click New  

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.



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.



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


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


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.

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.


  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.


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