Computerized Accounting Project Group Project

Zemen Electronics LLC is a VAT registered merchandising type of business owned & operated
by Meron Aklilu at city of Addis, Ethiopia. The Business buys and sells different types of
electronic materials both on credit and cash basis. After consulting an accounting firm, the
company has decided to change its accounting system from manual to automated(computerized)
starting from January 2020. Based on the Idea that the owner’s wants to handle its financial and
related affairs by using Peachtree Complete Accounting 2010 Software Package

General Instruction:

Project 1: Create a Company by using the following information

Company Name: ZEMEN Electronics LLC

Address: Line 1. Ledeta Sub City Kebele 01/18,
Line 2.House No. 128, Addis Ababa, Ethiopia.
Telephone: 251-01-00 01 01
Fax: 251- 01- 00-00 -02
E-mail: zemen@ethionet.et
Web Sit: www.zemen.ethionet.et
Business Type: Corporation
Chart of account: to be created starting from scratch (Build your Own Company)
Accounting Method: Accrual
Posting Method: Real time
Accounting Period: 12 Month accounting Period(that matches the calendar month)
Monthly accounting Period:
Fiscal year starts: January 2020
The first month data is entered: January, 2020

Project 2:User ID and password

You are assigned as an administrator of the Peachtree accounting soft ware the company maintains for
recording and reporting its financial affairs you should use your name as both your user Id and pass
word

Project 3:Audit Trial

The firm’s wants to trace any activities performed in its Peachtree accounting company records
trough all possible options that the program provided.
Required: Activate “Use audit trial “

Note:
Before performing the following activities, close your company and re open it using the user id
and password you have maintained earlier.

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Project 4: Chart of accounts

The following are the descriptions, Accounting ID and related information for the accounts, the
firm plan to handle its finical affairs by using Peachtree accounting software. ZEMEN Electronic
LLC wants to start January 1, 2020, thus it balances of its accounts as of the last datethe pervious
as follows. Below are is report showing selected GL accounts for ZEMEN Electronic LLC as of
December 31, 2019.

i) Maintain the following Chart of Accounts

Account ID Account description Account Type Debit Credit
10000 Cash on hand 10,000.00
10100 Cash at bank 650,000.00
12100 Account Receivables 80,000.00
13100 Merchandise Inventory 9,900,000.00
14100 Office supplies 5,000.00
18100 0ffice equipment 35,000.00
21100 Accounts Payable 770,000.00
21200 Employee income tax payable
21300 Pension contribution payable
21500 Value Added Tax payable 10,000.00
31100 Common Stock 20,000.00
13200 Retained Earning 9,880,000.00
41100 Sales
41100-1 Sale discount
51100 Cost of Goods Sold
51000-1 Purchase discount
61100 Rent Expense
61200 Salary expense
61300 Payroll tax expense
61400 Transportation expense
61500 Miscellaneous expense

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Project 5:Maintain the following basic default information

i) Maintaining Vendors Information

A) Vendor Information
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 worth up to $1,000, 000 on credit
and earn a 3% discount if invoices are paid within 20 days from the date of purchase or else pay within
45 days. The Company wants to record information about the City, Sub-City, and TINof each of its
vendors. The company uses the cost of goods sold Account No. 51100 to record all purchases of goods
from vendors, while it records purchases of utility services in the Utility Expenses Account No. 61600.
Purchase discounts taken are recorded in the Purchase Discounts Account No. 51000-1 while Purchases
Returns and Allowances are recorded in Purchases Returns & Allowances Account No. 51000-2. The
company allowed its vendors to deliver goods and services in the best ways possible. The company wants
to age vendor invoices by due date. The invoices are to be categorized as follows; 0-25, 26-60, 61-120,
and over 120 days overdue in categories I, II, III and IV, respectively. Besides, the company has special
agreements with the following vendors.
B) The balance of creditor ledger as of December 31, 2019 was as follows
Additional
Vendor Name Contact Business Information Balance Invoice
ID Type City Sub TIN Number
Birr
City
V-001 Jupiter trading Adem R A.A Arada 0111 255,000 PI-0051
V-002 Glories PLC Selam HS A.A Bole 0222 260,000 PI-0052
V-003 ABC Trading Henok HS A.A Yeka 0033 140,000 PI-0053
V-004 SMADEL trading Aron MFG A.A Ledeta 3333 115,000 PI-0054

Project 6:Maintaining Customer Information

a) Customer’s information
[

The company sells goods to its customers both on cash and credit basis. Sales and related discounts are
recorded in the Sales Account No. 41100 and Sales Discounts Account No. 41100-1 respectively. Finance
charges on overdue accounts are recorded in the Interest Income Account No. 41200. All credit
customers, except those Having special agreements with the company, are required to settle their
obligations for goods bought on credit within 45 days from the date of each credit sales invoice. They are
entitled to 2% discount for payments within 15 days from the date of each credit invoice. The credit
limit is set at $500, 000 per credit customer. All customers failing to pay within the credit period (45 days)
are subject to 5% interest on balances up to $15,000 and 10% interest on balances above. The
minimum finance charge is determined to be $50. The company does not charge interest on finance
charges. Finance charges are included and explained in customer invoices and statements as late charges.
The following warning message is declared in customer statements and invoices; “Let’s keep our
relationship smooth by timely discharging our respective duties!” At present, the company
accepts only Cash, check, and VISA as payment methods. The company wants to record information
about the City, Sub-City, and TIN of each of its customers. Customer invoices are age by invoice date
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. Deposit Ticket ID is assigned to collections from customer at the
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time of collection. Besides, the company has special agreements with the customers included in the
following table. Wholesale prices are offered to these customers. Goods are delivered to customers via
means preferred by each customer. All customers reside in Ethiopia

b) The balance of the customer's ledger as of December 31, 2019 was as follows
Additional
Name Contact Business Information Invoice
Customer Balance
Type City Sub TIN Number
ID Birr
City
C-001 Habesha trading Rahel MFG A.A Lafto 0523 25,000 SI-0010
C-002 Nile trading Zewdu HS A.A Akaki 2455 30,000 SI-0011
C-003 GYB trading Lema R A.A Kolfe 3654 10,000 SI-0012
C-004 Kiya trading Beza HS A.A Arada 2121 15,000 SI-0013

Project 7:Inventory Information

a) Inventory Default Information

The firm buys and sells 4 inventory items, which are all stock items, and FIFO is considered to be the
default inventory costing method. All inventory items are subject to VAT. The company uses the
Merchandise Inventory (13100), Sales (41100) and Cost of Goods Sold (51100) accounts to
record transactions related to inventory items. The Transportation Expenses Account No. 61400 is
used to record delivery costs. Inventory items are received from vendors through the appropriate and
best method of delivery. The company wants to record additional information related to alternative
vendors and substitutes (subst.) of all its inventory items. At present the company uses two price
levels named Wholesale Price (WP) and Retail Price(RP) but has the plan to use additional three
price levels at which its inventory items are offered for sell. The current price levels need no calculation.
Given below is additional information related to the inventory items the company sells.

b) The balance of inventory subsidiary ledger accounts as December 31, 2019 are as follows
ID Description Quantity Last /Unit cost Price level (Selling Price)
WP RP
I-001 Sony 500 4,500.00 Last unit cost + 300 Last unit cost +500
I-002 Apple 350 12,000.00 Last unit cost + 800 Last unit cost +1,000
I-003 Dell 600 2,000.00 Last unit cost +100 Last unit cost +200
I-004 Toshiba 450 5,000.00 Last unit cost +300 Last unit cost +500

Project 8: Maintaining Sales tax and sales tax authority

a) Maintain Sales Tax Authority
ID Description Tax Rate Tax payable to Sales tax payable General
Account
FIRA Ethiopian Revenue & Customs Authority 15% ERCA Value Added Tax Payable

b) Maintain the following sales Tax Code

ID Description Tax Fright Taxing Authority ID
VAT Value Added Tax No ERCA

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Record the following transactions appropriately

Project 1: Quotes
Date Quotes no. For the sale ----------------- Customer ID
January 01 SQ-001 200 units Apple @ WP price, Including VAT C-002
January 07 SQ 002 300 units of Toshiba@ WP price, Including VAT C-004
January 12 SQ-003 150 units of Sony @ WP price, Including VAT C-001

Project 2: Sale orders

Date SO .No For the sale ----------------- Customer ID
January 04 SO-001 150 units of Dell @ RP price, including VAT C-004
January 10 S0-002 100 units of Dell @ WP price, including VAT C-003
January 12 S0-003 250 units of Apple @ RP price, including VAT C-001

Project 3: Credit sale invoice

Date Doc No For the sale ----------------- Customer ID
January 05 SI-0014 SQ-001 (Convert from Sales Quotes) C-002
January 07 SI-0015 100 units Dell @ WP price, including VAT C-002
January 14 SI-0016 150 units of Sony @ RP price, including VAT C-001
January 18 SI-0017 SQ-002(Convert from Sales Quotes) C-004
January 21 SI-0018 SQ-003(Convert from Sales Quotes) C-001
January 25 SI-0019 200 units of Apple @ RP price, including VAT C-002

Project 4: Sales Credit Memo

Date Credit No Units returned -------- Customer ID
August 20 CCM-001 10 units, Including VAT, from SI-0016 C-001

Project 5: Purchase orders

Date Doc No For purchase 0f -------- Vendor ID
January 01 PO-001 500 units of Apple @ 11,000.00 V-002
January 02 PO-002 400 units Toshiba @ 4,500.00 V-004
January 5 PO-003 350 units of Sony @ price 4,000.00 V-001

Project 6: Purchase on account

Date Doc No For purchase of ------------- Vendor ID
January 03 PI -0055 PO-001 V-002
January 04 PI-0056 300 units Dell @ 1,400.00 V-003
January 07 PI-0057 300 units of Toshiba @ 4,400.00 V-004
January 08 PI-0058 PO-002 V-004
January 11 PI-0059 100 units of Sony@ 4,200.00 V-001
January 15 PI-0060 150 units of Apple @ 11,200.00 V-002
January 20 PI-0061 PO-003 V-001

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Project 7: Vendors Credit Memo

Date Credit No Units returned -------- Vendors ID

January 15 VCM-001 50 units from PI-0059 V-001

Project 8: Cash sales invoice (CSI) and cash receipts (CR)

Date Doc. No Deposit Ref. For the sale ----------------- Customer

Ticket ID No ID
January 01 CSI- 001 001 001 100 units of Apple @ RP price, including VAT C-003
January 05 CSI-002 002 002 300 units Dell @ WP price, including VAT for new C-005
customer XYZ CO.
January 07 CR -001 003 003 SI-0014 full collection C-002
January 10 CR-002 004 004 SI-0015 half collection C-002
January 15 CSI -003 005 005 200 units of Sony @ RP price, including VAT C-001
January 20 CR-003 006 006 SI-0017 Full collection C-004
January 25 CR-004 007 007 SI-0019 half collection C-002
January 26 CSI-004 008 008 400 units of Toshiba@ WP price, Including VAT C-002
January 27 CSI- 005 009 009 200 units of Apple @ RP price, Including VAT C-001
January 31 CR-005 010 010 SI-0018 full collection C-001

Project 9: Check payment

Date Check No Memo Paid for ------------------ Amount
( Birr)
January 03 Ck-00001 CVP-001 Paid for vendor V-002, PI-0052 Full Payment
January 07 Ck-00002 CVP-002 Acquisition of new office equipment from GM Furniture 55,000
January 09 Ck-00003 CVP-003 Paid for vendor V-001, PI-0051 200,000
January 14 Ck-00004 CVP-004 Paid for vendor V-003, PI-0056 Half payment
January 22 Ck-00005 CVP- 005 Paid for Vendor V-004 PI-0057 Full Payment
January 24 Ck-00006 CVP- 006 Paid for vendor V-002 , PI-0060 Half payment
January 26 Ck-00007 CVP- 007 Purchase 100 units of Dell $1,500 from Laser Computer Full Payment
January 29 Ck-00008 CVP –008 Paid for , V-001 , PI-0061 Full Payment

Project 10: Other Transaction

Date Doc. No Paid for ------------------ Amount (Birr)

January 01 JV-001 Payment of insurance expense (miscellaneous expense) 25, 000
January 18 JV-002 Other expense 42,000

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Project 11: Bank reconciliation
Bank statement as of January 31, 2020 indicate as follows
Bank of De’Napoli
Statement of Bank
As of the month ended January 31, 2020

S.NO Date Withdrawals Deposits Interest Balance

650,000 00 650,000 00
1 Initial Deposit
2 01/01/2020 1,495,000 00 2,145,000 00
3 01/01/2020 25,000 00 2,120,000 00
4 01/03/2020 260,000 00 1,860,000 00
5 01/05/2020 724,500 00 2,584,500 00
6 01/07/2020 55,000 00 2,529,500 00
7 01/07/2020 2,885,120 00 5,414,620 00
8 01/09/2020 255,000 00 5,159,620 00
9 01/10/2020 120,750 00 5,280,370 00
10 01/14/2020 210,000 00 5,070,370 00
11 01/15/2020 1,150,000 00 6,220,370 00
11 01/18/2020 42,000 00 6,178,370 00
12 01/20/2020 1,791,930 00 7,970,300 00
13 01/22/2020 1,280,400 00 6,689,900 00
14 01/24/2020 840,000 00 5,849,900 00
15 01/25/2020 1,495,000 00 7,344,900 00
16 01/26/2020 150,000 00 7,194,900 00
17 01/26/2020 2,438,000 00 9,632,900 00
18 01/27/2020 2,990,000 00 12,622,900 00
Bank
18 01/31/2020 Service
Charge 500 00 12,622,400 00
Interest
19 01/31/2020 Income 1,000 00 12,623,400 00
Total Balance 12,623,400 00

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