GOROKA TECHNICAL COLLEGE

Computerised Accounting Systems

ACCOUNTS PAYABLE

LESSON THIRTEEN

Learning Outcomes:
At the end of this lesson the student will:
1. Demonstrate using a recurring cheque.
2. Prepare petty cash payments.
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CREATING A RECURRING CHEQUES
For regular payments MYOB can save a cheque as a recurring payment by recording the cheque details.
Henry is going to place a weekly advertisement in The Melbourne Trader on Visa at K27.40 per week.
Follow these steps:
1) Click the spend money from the banking commend centre.
As this account is to be paid by credit card, the payment must be recorded against the liability
account Visa.
2) Click the search scroll down arrow (next to pay from account) and locate Visa and click use
account.
3) Accept the cheque number (1) and enter 6/4/98 in the Date: field.
4) Click Amount and key 27.40.
5) Click the Card search icon.
6) Click the New icon.
7) Key the following new vendor card details and click Ok when finished:
The Melbourne Trader
1 Market Place
Melbourne Vic 3000
Ph 03 5675 0989
Contact: John Burgess

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 8) Select The Melbourne Traders as the card and click Memo field.
9) Key Classified ad-4 lines with border and press TAB.
10) Key 6 and press TAB to see expense accounts.
11) .Select the Advertising account. The details should match figure 5.10.

Fig: 5.10 Completed Visa Payment

12) Allocate to Retail job card.

13) Click the Save (Recurring) icon. The Save a Recurring Transaction dialog box will appear (see
figure 5.11).
14) Click Frequency and select monthly from the list.
15) Key in date 6th April 1998.
16) Click Continue indefinitely.
17) Remind to record, select on its due date.
18) Click Save to return to the cheque.
19) Click Ok to record.

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Fig: 5.11 Recurring Transaction dialog box

USING A RECURRING CHEQUE

A month has gone by and the next payment is due to The Melbourne Trader. Follow these steps to record
the payment.
Follow these steps:
1) Click spend money from the Banking commend centre.
2) Click the Use Recurring icon. A recurring transaction dialog window will appear.
3) Click Select. You are back at the window to complete writing the cheque.
4) Click date box and change the date to 6/5/98.
5) Click Record.
6) Click Cancel to return to the commend centre.

PETTY CASH PAYMENTS

Petty cash refers to a cash fund specifically designed for minor payments where a separate cheque for
each item is unwarranted. You are going to write cheques from Henry’s cash drawer to record payments
for these items.

As minor purchases occur Henry has kept the receipt. At the end of the month you will allocate petty cash
disbursements to the following expense accounts:
6.4200 Postage K14.50
6.4100 Cleaning K22.95
6.2300 Office Expense K16.10
6.3110 In-store Promotions K 7.50

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 Activity 5.4
Prepare the cheque shown in figure 5.12 and record it.
Remember to change the allocation account in the top left-hand corner to the cash drawer. When filling in
the cheque leave the amount blank and fill in the four expenses and individual amounts first. When you
finally click the cheque amount, MYOB will automatically sum the amount required to balance the
transaction. When you click Record, MYOB will adjust the Cash Drawer balance.

Your cash drawer account balance should now be K38.95.

Fig: 5.12 Petty cash purchases for April

Note: Create new ledger accounts if not on the accounts list and allocated Jobs for the petty cash
expenses.

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Reference:
Keeping Account with MYOB by Cathy Grundy & Doug Lyte.