Class Exercise 2-Tasks part of the Peachtree

Record the following transactions of April 2014 using appropriate Task Windows Tasks
(Transactions) affecting both Subsidiary Ledgers and General Ledgers
*after recording each transaction, Click Journal button and see accounts debited and credited behind
the screen.
1. Vendors related Tasks – Purchases and Payments of all type
1.1. Issuing Purchase Orders (Use Purchase orders Window)
April 1 Issued PO#095 to Dire Import Export to buy 900 Pkts of Marker. Good Thru April 30,
2014.
April 2 Issued PO#096 to Delta Trading for the following items: 300 pkt of pen at Birr 15 each;
and 500 pcs of writing pad at Birr 5 each. Good Thru June 2, 2014.
April 3 Issued PO#097 to DT Cosmo Trading for the following items: 200 pcs of Perfume at Birr
300 each; and 500 pcs of Hair crame at Birr 50 each. Good Thru June 12, 2014.
1.2. Purchase on Account (Use Purchase/receive inventory Window)
1.2.1. Purchases of inventory items on account with Purchase orders
April r 4. Received items ordered from Dire Import Export per PO#095, and issued PI#401, same
term.
April 5 .Received 180 pkts of Pen; and 300 pcs of writing pad ordered from Delta Trading per
PO#096 and issued PI#402, same term.
April 5. Received 100 pcs of Perfume and 250 pcs of Hair crame ordered from DT Cosmo Trading
as per PO#097 and issued PI#403, same term.
April 6. Received 70 pkts of Pen; and 100 pcs of writing pad ordered from Delta Trading per
PO#096, and issued PI#404, same term.
1.2.2. Purchase of Inventory Items on account with no purchase orders
April 6. Purchased 100 Rolls of Ruled paper on account from Nile Trading at Birr 18.20 per roll. No
purchase order was issued earlier for this purchase. PI#405 (Change the cost price of this
item form Birr 18 to Birr 18.20 per roll)
April 7. Purchased 100 rolls of ruled paper on account, at Birr 19.50 per roll from Delta Trading No
purchase order was issued earlier for this purchase. PI#406
April 7. Purchased 100 pcs of Hair crame on account from DT Cosmo Trading at Birr 60.00 per
pcs., as per PI#407, paying 40% of the cost, Br 2,400, by CK#1750 at the time of
purchase, and recording liability for the remaining. No purchase order was issued earlier
for this purchase.Terms n/30 day. In the box for terms of payment, change terms of

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 payment to n,30 days for this invoice (write net 30 days, enter Birr 2400 in the box for
amount paid purchase)
1.2.3 Purchase of Items other than Inventory on account, with no purchase orders
April 7. Purchased Supplies on account, Birr 6,000, from Nile Trading. No purchase order was
issued earlier for this purchase. PI#408.
*Ignore quantity, item, description. *select A/C No. 1610 in GL accounts column, ignore unit price
and record 6,000 in the amount column. Note: The account you should debit for this
transaction is AC/No. 2110
April 8. Purchased Equipment on account, Br 1,350 from Nile Trading. No purchase order was
issued earlier for this purchase. PI#409.
*Ignore quantity, item, and description
*Seclect A/C No. 1710 in GL accounts column, ignore unit price and record Birr 1,350 in
the amount column.
Note: The account you should debit for this transaction is AC/No 171, Furniture & Equip.
Peachtree automatically records the credit part to A/C No. 2110
(Click the Journal button to see the accounts debited and credited behind the screen)
April 9. Purchased Furniture on account, Birr 3,000 from Delta Trading. No purchase order was
issued earlier for this purchase. PI#410.
*Ignore quantity, item, description
*select A/C No. 1710 in GL accounts column, ignore unit price and record Birr 3,000 in
the amount column.
Note: The account you should debit for this transaction is AC.No. 1710, Furniture &
Equip. Peachtree automatically records the credit part to A/C No. 2110
1.3. Purchase Returns (Use Tasd-Vendor Crdit Memo Window)
April 9. Issued Vendor Memo VM#1, to Nile Trading, for Birr 1,820 for the return of 100 rolls of
Ruled paper purchased as per PI#405 since it was defective. It is a Purchase Return. STAR
Company records purchase returns using the inventory account. Peachtree automatically
records the debit to A/C No. 2110 and credit part to A/C No. 1510 (This purchase return
resulted in a decrease in liability and inventory purchased for sale).
1.4. Payments
1.4.1 Payments to Vendors on account
April 12.Issued CK#1751 to Nile Trading in full settlement of PI 382
April 13.Issued CK#1752 to DELTA Trading in full settlement of PI350 &PI365.

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April 14.Issued CK# 1753 to Dire Import Export in full settlement of PI 401 (*payment with in the
discount period)
April 18.Issued CK#1754 to Delta Trading in full settlement of PI#406. (*payment after the discount
period)
April 18.Issued CK#1755 to Nile Trading in full settlement of PI#409. (*payment with in the discount
period)
April 19.Issued CK#1756 for Birr 5,000 to ETC, an advance payment, as per the contractual
agreement. *Click the box for prepayment and enter the data.
1.4.2 Payment made for items purchased on cash from sundry (cash) vendors 9use Payment
Window)
(*Do not create vendor ledger for a cash/sundry vendor instead write the sundry vendor’s
name in box for “Name”)
April 20 Purchased 50 Rolls of Ruled paper on cash from Sheno Trading (Cash Vendor) at Birr 20
per roll. CK#1757
April 20 Purchased supplies on cash from Kalu Trading (Cash Vender) Birr 2,000 CK#1758.
The account you should debit for this transaction is AC/No 1610, Supplies account.
Peachtree automatically records the credit part to A/C No. 1160
1.4.3 Payment of Expenses and other Prepayments
(write checks window, and Payment window)
(Use write checks window for transactions from April 20-29. Use the payment window for
the remaining transactions)
April 20 Write CK#1761 to establish a petty cash fund of Birr 5,000 (*Debit A/C No. 112, Petty
Cash Fund-Wro Saba)
April 21 Write CK#1762 to Eth. Insurance Corp. for Birr 1560, to pay insurance premium of Birr
1,500 and service charge of Birr 60. Use Split button and Dr. A/C No. 143 for Birr 1,500:
Dr. A/C No. 618 for Birr 60)
April 22 Write CK#1763 to Inland Revenue for employees income tax, Birr 1,900. (Dr. A/C No.
221)
April 29 Write CK#1764 to pay dividend declared on April 10, Birr 50,000 (Dr. Dividend payable
A/C No. 224).
April 29 Write CK#1765 for Birr 1,990 to pay salary expense for Birr 2,200 less employees
income tax of Birr 210.00 (*use negative sign to enter income tax payable)
If you click on the Journal button, you will see the following entry:
Dr. A/C No. 6100 Salary expense - - - - - - - - - - - - - - - 2,200

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 Cr. A/C No. 2210, income tax payable 210 - - - - - - - - - - 210
Cr. Cash at bank - - - - - - - - - - - - - - - - - - - - - - - - - - -1990
April 29 Write CK#1766 to Inland Revenue for payment of SALES TAX collected from customer,
Br. 4,000.00 (Dr. A/C No. 2220)
April 29 Write CK# 1767, for Br. 3,700 to replenish the petty cash fund. The petty cashier
submitted the following payments documents to the accounts department.
Supplies Expense - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - 400
Loading unloading, service and other miscellaneous expense - - - - - Birr 3,300
Total Birr 3,700
(Dr. A/C No. 6140 for Br 400 and A/C No. 6190 for Birr 3,300)
April 30 Issued CK#1768 for Birr 10,000 in payment of month’s salary expense. Related
withholding taxes were: Income tax payable Birr 2,000 and provident fund payable Birr
1000.
Net pay +withholdings=Gross salary exp, Br 10,000+Br2000+Br1000=Br13, 000
*debit A/C No. 6100 by gross amount, Br 13,000
*use negative signs to enter income tax and provident fund payables.
*Peachtree automatically records the credit part to A/C No. 1160 for Br. 10,000
If you click the Journal button, you will see the following debits and credits
Dr. Salary expense A/C No. 6100 - - - - - Br. 13,000
Cr A/C No. 2210 Income tax payable - - - - - - - - - - 2,000
Cr A/C No. 2640 Provident fund payable - - - - - - - -1,000
Cr. Cash at bank - - - - - - - -- - - - - - - - - - - - - - - 10,000
1.4.4 Payment to a customer

April 30 This may include refund of overpayments made by customers, for goods returned by them
and others Issued CK#1769, Birr 1,000 to Feven Family, Star Co’s customer, for overpayments
made by this customer on earlier invoices.
*References Used: PO=Purchase Order; PI=Purchase Invoice; SO=Sales order; CR=Cash
Receipt; SI=Sales Invoice; CSI=Cash Sales Invoice; JV=Journal Voucher

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2. Customer related Tasks and others-Sales and Collections of all type
Instruction: All sales are subject to 15% Sales Tax/VAT/
Tasks related to Sales on Account
2.1. Issuing Sales Orders – (Sales Orders Window)
April 1.Issued Sales Order, So#048 for 300 Pkts of Marker to Kokeb Distributors. Ship by date
(April 3, 2012)
April 2. Issued Sales Order, SO#049 for 200 Pcs of Writing Pad Small to Star Computer Center.
Ship by date (April 5, 2013)
2.2. Selling/Shipping Items with sales order, on account (Use Sales/Invoicing Window)
April 3 Sold/Shipped 100 pkts of Marker on account to Kokjeb Distributors as per SO#048. same
term. Reference:CRSI#301
(*Note: it is a partial shipment, out of 300 Pkts of Marker ordered by Kokeb Distributor
through SO#048, Only 100 pkts are shipped)
April 4. Sold/Shipped 120 Pcs of Writing pad Samll to Star Computer Center as per SO#049 same
term., Refernce: CRSI#303 (This is a 2nd shipment from SO#048)
2.3. Selling /Shipping Items with no prior sales orders, on account (Use Sales/Invoicing
Window)
April 7. Sold/Shipped 200 rolls of Ruled paper on account to Star Computer Center Ref. CRSI#304
April 8 Sold/shipped 120 rolls of Ruled paper on account to Feven Family. Ref. CRSI#305\
April 8 Sold/Shipped on account to Emi Retail store, 200 pkts of Pen; and 200 pcs of writing pad
small Ref. CRSI#306.
April 9 Sold/Shipped on account to Emi Retail store 50 pcs of writing pad-small Ref. CRSI#307
April 10 Sold/Shipped on account to Star Computer Center 50 pkts of pen Ref. CRSI #308
April 11 Sold/Shipped on account to Kekeb Distributors 100 pkts of Marker Ref. CRSI #309
April 29 Sold/Shipped on account to Star Computer Center 5 pcs of Sony 14 Ref. CRSI#314
April 30 Sold/Shipped on account to Kekeb Distributors 5 pcs of Sony 21 Fef. CRSI#315
2.4. Sales Returns/Items returned by customers (Use Task-Credit Memo Window)
April 12 Issued credit Memo CM#1, to Emi Retail Store, for Birr 345, for the return of 50 pcs of
wrting pad-small Sold as per CRSI#307. (50 pcs@6+15%Sales Rax) (Use Task-Credit
Memo Window)
 Select the tab”Apply to invoice” and select invoice #307, than enter 50 in returned column.
 Click the Journal button and edit the entry by replacing A/No. 4110 with A/c No. 4310) The
entry will look like as follows:

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 Dr. A/C No. 4310 Sales returns and Allowance - - - - - - - - 300
Dr. A/C No. 2220 Sales Tax payable - - - - - - - - - -- - - - - - 45
Cr. A/C No. 1210 A/Receivable-Emi Retail Store - - - - - -345
2.5. Sales Allowances granted to customers/price reduction (Use Task-Credit Memo Window)
April 12. Issued credit Memo CM#2, to Star Computer center, for Br 100, Sales allowance (price
reduction) for inferior quality Pen sold as per CRSI#308.
(a price reduction of Br 2.00 per pcs, that is, 50 pkt@Br2/pcs=100 Aplly tax.
Since items are not returned, cancel unit price from the unit price column, and enter the
reduction 100 in the amount column.
 Select the tab “Apply to sales” and enter Birr 100, then 15% Sales tax wll be considered, in
sum br115 will be deducted.
 (Note the entry: Dr. sales returns and Allow. 100; Dr. Sales tax payable 15; Cr customer’s
account by 1150.)
2.6. Issuing Sales Quotes/Proforma Invoices/Offers Given to Customers/ (Use Quotes
Window)
April 13. Issued Proforma invoice or issued Qoute#022 to sell 100 rolls of Rulled paper to Feven
Family. Good Thru June 13, 2013
April 13.Issued Proforma invoice or issued Qoute#023 to sell 100 pkts of Pen to Emi Retail Store,
Good Thru June 23, 2013
April 14. Issued proforma invoice or issued Qoute #024 to sell 100 pcs of writing pad small to
kokeb Distributors. Good Thru June 24, 2013
April 14. Issued proforma invoice or issued Qoute #025 to sell 100 pcs of Hair Crame to Selam
Beauty Salon Good Thru June 24, 2013.
2.7. Converting Sales Quotes to Sales Orders (Use Quotes Window)
April 15 Issued Sales Order (SO)#050 for items quoted per Quote #022 same term.
(This refers to the conversion of Quote #022 to Sales Order (SO)#050, (100 rolls of Rolled
Paper to Feven Family)
April 15 Issued Sales Order (SO)#051 for items quoted per Q#023 same term.
(This refers to the conversion of Quote#023 to Sales Order (SO) #051, 9100 pkts of Pen to
Emi Retail Store)
2.8. Converting Sales Quotes to Credit Sales Invoice(Use Quotes Window)
April 16 Shipped/Sold all items quoted per Quote#024 by CRSI#310 same term

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 (This referees to the conversion of Quote#024 to CRSI#310, OR the shipment on account
of 100 pcs of Writing pad Small to Kokeb Distributors)
April 16 Shipped/Sold all items quoted per Quote #025 by CRSI#311 same term.
(This refers to the conversion of Quote #025 to CRSI#311, Or the shipment on account of
100 pcs of Hair Crame to Selam Beauty Salon)
2.9. Selling/Shipping Items with sales order, on account (Use Sales/Invoicing Window)
April 17 Sold/Shipped 50 rolls of Rulled paper on account to Feven family as per SO#050, same
term. Reference: CRSI#312 (Partial Shipment)
April 18. Sold/shipped 100 pkts of Pen to Emi retail store as per SO#051, same term., Reference:
CRSI#313(This is 100% shipment)
3. Receipts
Instruction: 1. Use cash at bank account (A/C No. 116) in recording collections and payments
(This is because collections are deposited intact to the bank and all payments are made through
check).
2. Use Cash receipt No. as a reference in recording cash receipts
3. All sales are subject to 15% SALES TAX
4. It is known that sales discounts are computed based on sales amount excluding SALES
TAX/Sales tax.
However the system computes sales discounts on the total amount of the invoice including
SALES TAX/sales tax, So you have to edit the amount of sales discounts related to invoices
collected with in the discount period. Edit such invoices through the sales invoicing window).
5. Assign deposit slip ticket ID’s in receipts, begin deposit slip with DS#051
3.1. Cash Collections From on account Customers (use Receipts Window)
April 2 Received check from Emi Retail Store, in full settlement of CRSI#254 &#257, Ref
CRs#051, DS#051
April 3 Received check from Feven Family, 50% of CRSI#251. Ref CR#052 (50% of
9,500=4,750),DS#052
April 17 Received cash from Kokeb Distributors in full settlement of CRSI#303. Ref CR#053,
DS#053
April 17 Received check from Star Computer Center in full settlement of CRSI#304. Ref
CR#054, DS#054 (This is collection with in the discount period. Sales discount should
be 2% of 4000=80; but Peachtree computes 2% of 4,600=92. *edit the amount of
discount through sales invoicing window.) Procedure: Tsak-sales invoicing-select

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 CRSI#304-click on the box for Terms, then change the amount of discount from 92 to
80.
April 23 Received cash from Kokeb Distributors in full settlement of CRSI#292 and 301. Ref
CR#055, DS#055
April 28 Received cash from Star Computer Center in settlement of CRSI#308 less CM#2. Ref
CR#056, DS#056
(*click on both CRSI#308 and CM#2, Br 1035-Br115, amount received=Br920)
3.2. Cash Sales (Use Receipts Window)
(*Do not create customer ledger for a cash/sundry customer, Use the “Name” field to write the
name of the sundry customer, apply SALES TAX
April 28 Sold 100 pcs of writing pad-small on cash to Selam, a cash/sundry customer at Br 6.50
per unit. Ref CR#057, DS#057. (Note for the change in price form Br 6 to Br 6.50)

3.3. Collections from other sources (Use Receipts Window)

Write the cash sources on “the Name field”, Ignore SALES TAX.
April 29 Issued 100 shares of Br 100 par common stock at Br 130 per share. CR#058, DS#058
The account you should credit for this transaction is AC/No 3110: Common stock, for Br
10,000 and A/C No. 315: Additional paid in Capital Br 3,000. Peachtree automatically
records the debit part to A/C No. 1160.
April 29 Borrowed Br 60,000 from Devt Bank, Ref CR#059. DES#059
The account you should credit for this transaction is AC/No 2810, Long term loan
payable. Peachtree automatically records the debit part A/C No. 1160
4. Tasks affecting General Ledger Accounts
General Journal Entries – (Use the General Journal Task Window)
Use JV 4/1 as a reference for entry No. 1, and JV 4/2 for the rest to record the following
transactions
Date Entries
April 10.The Board of Directors of the corporation declared dividend of Br 50000 to be paid at the
end of the month (Declaration dividend) JV4/1
April 30. Supplies Consumed during April totaled Br 300 record the adjusting entry,. (Adjusting
Entry)
Dr. A/C No. 6140 Supplies Expense - - - - - - - 300
Cr. A/C No. 1610 Office Supplies - - - - - - - - - - 300

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April 30. Depreciation expense for the month was Br 2,200 record the adjusting entry (Correcting
Entry):
Dr. A/C No. 6160 Depreciation Expense - - - - - - - - 2,200
Cr. A/C No. 1710-01 Accumulated Dep- - - - - - - - - - -1200
Cr. A/C No. 1720-01 Accumulated Dep - - - - - - - - - - - 1000
April 30 .Estimated bad debt expense for the month Br. 200 Record the adjusting entry, (Adjusting
Entry)
Dr. A/C No. 6170 Uncollectible accounts expense - - - - - - - - 200
Cr. A/C No. 1230 Allowance for Doubtful Accts- - - -200
April 30. Telephone, water, electric expense (Utilities) incurred but not paid in April: Br7,000.
Record the adjusting entry, (Adjusting Entry)
Dr. A/C No. 6150 Utilities expense - - - - - - - - 7,000
Cr. A/C No. 2250 Accrued expense Payable - - - - - - - -7,000
April 30. Salaries expense incurred but not paid in April: Birr 3,000.Related withholding taxes
were: Income tax payable Birr 480; provident fund payable Birr 120.
Record the adjusting entry
*Create salary payable account, A/C No. 2260, Acct type: Other Current
liability. Use also Provident Fund/Pension Payable A/C No. 2640
(Adjusting Entry)
Dr. A/C No. 6100 Salaries expense - - - - - - - - - 3,000
Cr. A/C No. 2210 Emp. Income tax payable- - - - 480
Cr. A/C No. 2260 Salary Payable - - - - - - - - -- - 2,400
Cr. A/C No. 2640 Provident fund Payable - - - - - 120
Note: It is possible to create new accounts when needed.
1b. Edit the following journal entry:
April 30. Particulars
 The correct amount of supplies consumed was Br 800; it was wrongly recorded as Br 300;
(edit the 2nd entry)
 It is also possible to delete a journal entry by selecting the journal entry to be deleted and
clicking on the Delete button.
For the adjusting entry of April 30, 2013 use JV4/8 (Accounting period should be October); for the
adjusting entry of June 31, 2013 use JV5/8 (Accounting period should be June)
5. Adjustment (Use Inventory Adjustments Window)

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 As per the physical count of October 30, 2012 there is a discrepancy in qty, between Qty on
hand and book balance for the following items:
**Debit cost of goods sold, Acct No. 5110 for shortages and credits the same account for
overages.
April
30 10 pkts of Markers were missing JV 4/6
April 30 20 pcs of writing pads were damaged JV#4/7
April 30 5 rolls of ruled paper were reported as overage. JV#4/8
Required: After completing the above transactions of April 2013:
 Show on the screen the following reports related to vendors, Customers and Inventory
- Vendors ledger, Customers ledger, Inventory Unit Activity Report
 Show on the screen the following journals produced by the system.
- Cash Receipts Journal, Cash Payments Journal, Purchase Journal, Sales journal,
General Journal

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