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Group work on computerized accounting

Exercise 1. Maintaining company

Company name: DBLE plc

Business type: registered partnership

Address: Ethiopia, Addis Ababa, Bole Kefle Ketema, kebele17, Tel.+251-64345600,fax +251-53456700
Select a method to create your company: Build your own Chart of accounts
Define account segment: No, I do not want to use accounting masking
Accounting method: Accrual method
Posting method: real time posting
Accounting periods: 12 monthly accounting periods
Starting of the fiscal periods: January 2017

Required: based on the above data create and set up DBLE plc.
Exercise 2.Maintaining chart of account and its balances

Accoun Account description Active Account type Beginning balance

t ID period 7: 7/01/17 through 7/31/17
Dr Cr
1101 Cash Yes Cash 1500
1102 Cash on hand 200
1103 Cash in bank 66200
12001 Account receivable 55200
1201-1 AFDA 1200
1301 Merchandising investor 26550
1401 Prepaid insurance 2000
14001 Prepaid rent
1402 Supplies 6500
1601 Furniture 127500
1601-1 Acc/ depreciation furniture 22500
1602 Equipment 46000
1602-2 Acc/ depreciation 16000
equipment
1603 Vehicle 83000
1603-3 Acc/ depreciation vehicle 23000
1604 Building 200000
1604-4 Acc/ depreciation building 42000
2101 Account payable 47750
2102 Note payable 12000
2103 Value added payable (VAT)
2104 Divided payable
2105 Salary payable
2106 Employee income tax
payable

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2107 Pension payable

2108 Union due
2109 Credit association payable
2201 Bonds payable 98000
3103 Capital stock 284300
3201 Retained earnings 67900
3401 Divided
4101 Sales
4101-1 Sales return and allowance
4101-2 Sales discount
4102 Income summary
4103 Interest income
5000 Purchase
5101 Cost of goods sold
5101-1 Purchase return and
allowance
5101-2 Purchase discount
6101 Bad debit expense
6102 Salary expense
6103 Advertising expense
6104 Depreciation expense
6105 Insurance expense
6106 Supplies expense
6107 Utility expense
6108 Rent expense
6109 Miscellaneous expense
6110 Payroll tax expense
6111 Freight expense
6112 Service change expense

Required: based on the above data setup the chart of account for the company and its balances

Editing the chart of account

2.1 Delete the Prepaid rent account
2.2 Change the account Id of account Receivable to 1201
2.3 Add one new asset, liability, capital, expense, income, cost of goods sold account that you know
2.4 Change the company name to your first letter of name the group followed G1 plc.
Exercise3. Maintaining Vendors

3.1 Maintain vendors Default

The company buys goods and services from different vendors/suppliers both on cash and credit basis.
Majority of its vendors allow the company to buy goods and services up to birr 400,000 on credit and
earn a 2% discount if invoices are paid within 15 days from the date of purchase or else pay within 35

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days. The company uses the purchase account No 5000 to record all purchases of goods from vendors.
Purchase discount taken are recorded in the purchase discount account No 5101-1 while purchases returns
and allowances account No 5101-2. The company allowed its Vendors to deliver goods and services in
the best ways possible. The company wants to age vendor invoice by due date. The invoice are to be
categorized as follows; 0-35, 36-71, 72-127, and over 127 days overdue in categories, I, II, III and IV
respectively.

3.2. Vendor/ account payable information

vendor Vendor Address Term Invoice Date Amount
name
2101-01 Genna PLC Arada-06 Standard PI 120 7/30/17 15,000
2101-02 Bezi import Yeka-05 Standard PI 104 7/20/17 13,900
2101-03 Holiday Kotebe-03 3/8,45 PI 179 7/18/17 12,250
store days
PI 076 7/27/17 6,600
2013-01 ERCA Gov′t Kirkose-04
agency

Required: Based on the above data maintain vendor defaults information and vendor records

Exercise4. Maintain Sales Tax authority

Sales taxes code
ID : ERCA code: VAT

Description: Ethiopian revenue costume authority

Description: value added tax

Tax payable to: 2013-01

Tax liability account: value added payable

Single tax rate: 15%

Required: Based on the above data setup sales tax authority and code

Exercise5. Customers’ information

5.1 Maintain Customer default
The company sells goods to its customers both on cash and credit basis. Sales and related discounts are
recorded in the sales account. No 4101 and sales discounts account No. 4101-2 respectively. Finance
charges overdue accounts are recorded in the interest income account No. 4103. All credit customers,
except those having special agreements with the company are required to settle their obligations for goods

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bought on credit within 32 days from the date of each credit sales invoice. They are entitled to 3%
discount for payments within 14 days from the date of each credit invoice. The credit limit is set at
$500,000 per credit customers. All customers failing to pay within the credit period (42days) are subject
to 5% interest on balance up to $15,000 and 8% interest on balance above $25,000. The minimum finance
charge is determined to be $10. The company does not charge interest on finance charges. Finance
charges are include and explained in customer invoices and statements and invoices “Let’s keep our
relationship smooth by timely discharging our respective duties!” At present the company accepts only
cash and checks as payment methods. Customers involves are age by due and are to be categorized as
follows: 0-45, 46-90, 91-120, and over 120 days overdue in categories I, II, III and IV respectively.

5.2 Customers Background

Customer/ account receivable information

Customer ID Customer address Invoice Date Balance
name
1201-01 Sholla retails Lafto-03 SI 194 7/30/17 10,500
1201-02 Mendi super Kirkos-02 SI 195 25,800
market 7/30/17
1201-03 Family storers Bole-04 SI 185 7/20/17 6,400
SI 188 7/22/17 4,500
SI 191 7/28/17 8,000
Required: Based on the above data maintain customer defaults information and customer records

Exercise6.Maintain Inventory information

The firm buys and sells 9 inventory items which are all stock items and AVERAGE is considered to be
the default inventory costing method. All inventory items are subject to VAT. The company uses the
Merchandise inventory (1301), sales (4101) and cost of Goods Sold (5101) accounts to record
transactions related inventory item. The FREIGHT expense account No. 6111 is used to record delivery
costs. Inventory items are received from vendors’ through the appropriate and best methods of delivery.
At present the company uses two price levels and wholesale (W) and retail (R) but has plan to use
additional three price levels at which is inventory items are offered for sell. The current price levels need
no calculation.
Inventory items information
Item ID Items Selling price Stoking U/M Quantity Unit cost
description
1 Plastic chair 60 Each 150 50
2 Sleeping bag 70 Each 200 60
3 Pen 3 Each 800 1.25
4 Marker 9 Each 500 6
5 Highlighter Each
6 Coca-cola 4 Bottles 500 2
7 Mineral water 5 Bottles 200 3.5

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8 Pepsi-cola 3.5 Bottles 400 1.75

9 Beer 6 Bottles 200 3.25
Required: Based on the above data maintain inventory default information and inventory records

The following transaction occurred during the month of AUG 2017

Change the period to period 8

2. Goods thru/expire September 2,2017. Issued purchases order number PO051 to Bezi importer to buy 550 unit
of plastic chairs at Br 45 per unit.

5. bought 1000 unit of highlighter from Genna PLC at Br 4.5 each on account. Invoice no PI 121.

6. received a cheque for Br. 15000 in partial payment of invoice #SI 195 from Mendi super market. Reference
#M566 and receipt #R 198

7. good thu/expire September 7,2017, issued purchase order number PO 052 to HOLIDAY STORE to buy 600
bottles of Coca-cola at birr 1.9 per bottle on account

8. received from Bezi imports 450 unit of plastic chairs ordered on purchase order #PO 051. Purchase inv. #PI122 .

9. received a chaque from family stores in full settlement of invoice #SI185 and SI 188. Reference #AS11 and
receipt #R199

10. received birr 57,000 cash donation from UICEFF. Reference #UNOI and receipt #R200

11. Returned 50 units of defective highlighters bought on inv. #PI121 TO Genna PLC. Supplier credit memo #CM44

13. Good thur September 15,2017 issued purchase order number PO053 to Genna PLC to buy 200 units of
sleeping bags at birr 60 per unit on account

14. issued cheque #101 to Genna PLC in settlement of inv.# PI 121

15. ships by august 25,2017. Issued sales order #SO 45 to Sholla retails for the following items

300 units of plastic chairs at birr 70 per unit

100 units of sleeping bags at birr 75 per unit

250 bottles of coca- cola at birr 3 per bottle

150 bottles of Beer at birr 4 per bottle

18. good thru august 25,2017. Issued sales quote #SQ 150 to Mendi super market for 400 units of pen at birr 1.7
per unit and 300 units of marker at birr 8 per unit.

19. shipped/ supply to sholls retails all the items ordered on sales order #SO 45, sales invoice,SI196

20. convert the sales quote #SQ 150 to sales invoice , SI197

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22. Issued cheque # 102 for birr 1500 to Dibaba promotion in payment of advertising expense

22. issued credit memo # CM 15 for 50 units of defective marker returned from Mendi super market on invoice
SI197

23. Purchase 400 unit of highlighter from Holy day store @birr 5 per unit. Invoice no PI 123

24. sold 150 botties of mineral water on cash to Zeru PLC at birr 3.5 per bottle for cash REFERENCE #R197

25. collected a cheque from sholla retails in payment of invoice # SI 196. REFERENCE # GS 449 and receipt #R 201

26. Issued cheque #105 for birr 2,500 the amount is chargeable as follows: utilities expense of birr 2100 and
miscellaneous expense of birr 400 to CLIMES CO.

27. issued cheque # 105 to Mara PLC birr 4,500 the amount is chargeable as follows: rent expense for the month
of july birr 2,500, advertising expense birr 1,700 and the balance for miscellaneous expense

Transitions during month September 2017 are the following

Change the period to period 9

1. Received a check from sholla retails in full settlement of invoice #SI194 reference #GS465 and
Receipt #R202
2. Received a check from a cash customer Abate shopping center, for the sale of 400 units of
highlighter at Birr 5.5 per unit. Reference AM 110 and receipt #R206.
4 Bought 64 sleeping Bags @ Birr 64 and 890 Makers @Birr 7.5;and 475 highlighters @ Birr 5
each from holiday stored on account purchase invoice #PI125.
5 Sold on account 250 units of pen at Br 1.75 per unit to family shop invoice #SI198.
7 Good thru September 22, 2017. Issued purches order #PO054 for the following items to Bezi
imports:
200 Unit of plastic chair at B r 55 each
100 Unit of sleeping bags at Br 65 each
300 Units of pens at Br 1.5 each
500 its of highlighter are Br 4.5 each
10 Received a check from family store in full settlement of invoice #SI198. Reference #Am34 and
Receipt #R203
11 Received all the items ordered on PO52from holiday store. Invoice #PI124
15 Issued check #106 for Br. 1,500 in buying supplies from Mega stationary for cash
17 Ship by September 20,2017, Issued sales order #SO46 for 200 bottle of mineral water at Br 4.75
per bottle,and 500 units of highlighter at Br 5.5 per unit and 150 unit of sleeping bags at Br 75 unit of
Mendi supermarket.
18 Received all the plastic chairs, pens, and highlighter and sleeping bags ordered on PO054 from
Bezi imports, invoice #PI125.
18.Shipped all ordered on sales order #SO46 to Mendi supermarket invoice no. SI 199
19. issued cheque #107 to bezi imports in full settlement of invoice no. PI 104

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20 Sold on account to sholla retails 700 units of market Br 7 each and 100 bottles of mineral water at
Br 4.5 per bottle Invoice # SI100.
21 Issued checks #108 to Bezi iports in full settlement of invoice no.PI 125
22 Issued checks #109 to Centeral Garage for Vehicle maintenance Birr 480. (Miscellaneouse
Expense)
25 Bought 50 Bottles of beer at br 3.25 each from Sheger Brewery of cash. Check# 110
26 Sold 800 markers at Br 7.5 per unit Jampo PLC for cash Receipt #R207. Ref # JS45.
28 Received a check from Mendi Supermarket in full settlement of invoice #S I 199. Receipt #R204
Reference #MS113
29 Sold on account 500 units of highlighter at Br 7.5 per unit and 400 plastic chairs at Br 80 per unit
of family store with down payment of br 2,000 cash Ref-28 invoice #R208.
30 Received a check from sholla retails in settlement of SI100. Reference# GS480 Receipt # R208.
30. Record separate adjusting entry for following items using general joural entry
- Declared quarterly divided of Br 5,000. Which is to be paid at the beginning of the
following month. REF-JV1
- Deprecaition expense for the two months ending September 30.2017 Accumulated
Depreiceation of furniture Br 1,500 and accumulated depreciation of Equipment Br
500 buldig 6000 REFJV2.
- Supplies on hand as of September 30, 2017 Br 2,000. REF-JV3
- Unexpired insurance as of September 30,2017 amount to 1,500, REF JV4
30 use source document number stating fromREF-JV5
Hand with respect to plastic chaire and sleeping bugs showed shortages of 3 and 2 unites respectively while
the markers and beer inventory items indicated overage of 10 units and 2 bottles respectively

Required: record all Peachtree transactions

Submission should include the following:

1. Your full company Peachtree data backup

2. Standard balance sheet, income statement ,inventory profitability report, customer ledger vendor
ledger and general ledger trial balance as of September 30 2017 in Excel format in softy copy ( with
CD). NB YOUR NAME & ID NO should included in the softcopy

7 submission day and presentation is ended