03/09/2016

Yourfirstdayatwork

MYOBAccountingPracticeSet
ElectronicsSpecialist,AustralianEdition3

Yourfirstdayatwork
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Itisnow2January2016
Asyouarriveatthestore,youaregreetedbyPaulinawhoiseagertointroduceyoutoAdrianoMarconi,thesalesconsultant,andtoshowyouthefacilitiesaroundthestore.WhileyouarewaitingforPaulinatosetupyourusernameandpasswordtolog
ontotheassignedcomputer,sheasksyoutoreadIntermawebComputer'saccountingpoliciesandprocedures.
Instructions:Readthefollowingaccountingpoliciesandprocedures.Werecommendprintingthispageforyourreference(butitwillalsobeavailableasalinkonallfuturepages).
Clickthestartquestion1buttonbelowtoreceivefurtherinformationoncreatingacompanyfileforIntermawebComputerinMYOB.

AccountingpoliciesandproceduresforIntermawebComputer
a. Businessoperations:IntermawebComputerwassetupasacompanybasedinAdelaideandderivesitsmainsourceofrevenuefromretailsalesofelectronicgoods.PaulinaReed(thesoleshareholder)isheavilyinvolvedintherunningofthebusiness.
Shehasalsoappointedasalesconsultant(AdrianoMarconi)andanaccountant(you)toworkatthestoreonafulltimebasis.
b. Financialyear:Thebusinessadoptsafinancialyearthatendson30June,soclosingentriesarerecordedattheendofJune.
c. Purchases:Purchasesarerecordedwhenthebusinessreceivesthegoodsandallitemspurchasedarereceivedonthesamedayasrecordedinthetransactionlist.ThebusinesstrackstheirpurchaseordersusingMYOBbutneverpaysdepositswhen
placingitsorders.Thesupplierstothebusinessorganiseandguaranteethedeliveryofthosegoodsandpayforthefreightcosts.Noneoftheexistingsuppliersoffertradediscountsorearlypaymentdiscounts.Thebusinessisnotrequiredtopayits
supplierschargesforlatepaymentandthereforedoesnotkeepanexpenseaccounttotrackthosetypesofcharges.
d. Revenuerecognition:Thebusinessrecognisesrevenuewhengoodssoldaredeliveredtocustomers.Allitemssoldaredeliveredonthesamedayasrecordedinthetransactionlistexceptforsalesorders,whicharedeliveredatalaterdateasagreed
withthecustomer.Atpresent,thebusinessdoesnotcollectdepositsforsalesorders.Thefreighttermsofsaleusedbythebusinessis'FOBshippingpoint'socustomersarerequiredtoorganiseandpayfortheirownshipments.Notethattradediscounts
andearlypaymentdiscountsarenotcurrentlyofferedtocustomers.Thebusinessdoesnotchargealatefeeifcustomersarenotabletopaytheiraccountswhentheyfalldue.
e. Goodsandservicestax(GST):ThecompanyisaregisteredentityforGSTpurposesandaccountsforGSTonanaccrualbasis.Asasmallbusiness,IntermawebComputerpaysGSTinquarterlyinstalmentsandnoGSTisduetoberemittedinthe
monthofJanuary.ThepricesofgoodsandservicesthataresubjecttoGSTarequotedinclusiveof10%GST.
f.

Cash:Thebusinessacceptscashandchequesanduseschequestopayforthemajorityofitsexpenses.Paulinadepositschequesreceivedonaperiodicbasisanditmaytakeanumberofdaysforthechequestobeclearedbythebank.Thebusiness
holdsitschequeaccountwithEastPacBank.

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Yourfirstdayatwork

ThebusinessusesthreeaccountswiththeaccounttypeofBankintheMYOBaccountslist,namelyChequeAccount,UndepositedFundsandElectronicClearingAccount.Paulinaexplainsthatthesethreeaccountsaretobeusedtorecordcash
transactionsinMYOB.SheasksyoutoselecttheappropriateaccountwhenenteringtransactionsintoMYOBdependingonwhetheryouarerecordingachequepayment,achequereceivedbythebusinessoranelectronicpayment:
Issueofcheques.WhenenteringachequeissuedbythebusinessintoMYOB,PaulinaasksyoutorecordthechequedirectlyintotheChequeAccount(11110).
Receiptofcheques.PaulinainstructsyoutorecordallchequesreceivedbythebusinessintoUndepositedFunds(atemporaryaccountinMYOB)whentheyarefirstreceived.ThisisbecausePaulinanormallydepositsthosechequestothebank
inabatch.ThedetailsofthechequesdepositedonagivendatearerecordedinabankdepositslipinMYOB.Whenthedepositismade,MYOBtransferstheamountrecordedintheUndepositedFundsaccountintotheChequeAccount.
Electronicpayments.PaulinatellsyouthatsheiscurrentlyintheprocessofsettingupelectronicpaymentsforthebusinessbutthiswillnotbereadyuntilFebruary2016.Therefore,youwillnotrecordtransactionsintotheElectronicClearing
AccountforthemonthofJanuary2016.
g. AccountsReceivable:Paulinaexpectsthemajorityofaccountsreceivabletobecollectedbytheirduedateandestimatesonlyasmallnumberofaccountstobeuncollectible.Thebusinessusestheallowancemethodofaccountingforbaddebtsto
recognisethedollaramountofuncollectiblereceivables.Toestimatethebaddebtsexpenseincurredattheendofanaccountingperiod,Paulinaapplies2%tothetotalcreditsalesforthatperiod.
h. Inventories:Thebusinessusestheperpetualinventorysystemandappliestheaveragecostmethodtoallocatecoststoinventoryandcostofsales.
i.

Prepayments:Thebusinesshasapolicyofrecordingprepayments,includingofficesupplies,asassets.Attheendofthemonth,adjustmentswillbemadetotherelevantaccountstorecogniseexpensesintheappropriateperiod.

j.

Property,plantandequipment:Property,plantandequipmentitemsaredepreciatedovertheirestimatedusefullifeusingthestraightlinemethodtocalculatethedepreciationcharge.Depreciationisallocatedonamonthlybasisandthemonthly
depreciationchargeiscalculatedastheyearlydepreciationexpensedividedbythenumberofmonthsinayear.

k. Longtermliabilities:Thebusinessobtainedaninterestonlyloanof$43,000fromEarthBankon1November2015atasimpleinterestrateof6%peryear.Interestpaymentsarecalculatedonamonthlybasisandpaidattheendofthemonth.The
monthlyinterestpaymentisequaltotheyearlyinterestontheloandividedbythenumberofmonthsinayear.Theprincipaloftheloanistoberepaidon1November2020.

MYOBAccountingPracticeSet,ElectronicsSpecialist,AustralianEdition3(VMA3s)
20102014Perdisco/latin/.v.,learnthoroughly
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