GOROKA TECHNICAL COLLEGE

Computerised Accounting Systems

Topic Four: ACCOUNTS PAYABLE

Lesson Eight

Learning Outcomes:

After this topic the student should be able to:

1. Record opening stock balances.
2. Assign opening stock values.
3. View the opening balance sheet.
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Record opening stock balances.
This function would be used for any stock-take but it is also the way MYOB enters the
beginning units on hand.
Follow these steps:

1. Click the Count Inventory button. The items list appears, with the cursor at
the first item, Ceiling Paint.
2. Key 15 and press the Down arrow.
3. Key 13 for Furniture Paint, 16 for Indoor Paint and 14 for Outdoor Paint.
4. Click the Adjust Inventory button. A warning appears to assign ledger
account to receive any adjustments.
5. Leave the default account blank and click Continue. MYOB will now ask
whether you are entering opening balances.
6. Click the Opening Balances button.
7. Click Adjust Balances in the Account Balance Check window. The
Inventory Adjustments window will appear (see figure 4.18).

Do not Click Record yet. You will now assign opening stock values allocate
stock to their relevant ledger account.

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You have now entered the opening stock quantities at the beginning of the accounting period.
This information should come from the last physical stock count that was done.

Assign opening stock values.

Follow the steps to assign a value to the opening stock on hand. Henry has decided to use the
last cost from vendor invoices that he has.
Follow these steps:
1. Key the date: 1/4/98. (MM/DD/YY)
2. Click the unit cost for ceiling paint and key 8, then press TAB. MYOB has
automatically calculated the value of ceiling paint (15 units @ K8 = K12).
3. Click the account column and enter 1-1310.
4. Press ENTER.
5. Key the following unit costs for:
Furniture Paint K5.00

Indoor Paint K9.00

Outdoor Paint K3.50

6. Allocate each amount to the relevant asset account.

7. Click Record. The completed entry will record a value of K378 in the
inventory accounts. You can view this in the chart of accounts.
8. Resave the file.
9. Henry’s business is now ready to start trading.
After the completion of these steps your screen should look like figure 4.18

Fig: 4.18 Inventory adjustment window with costing.

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You now have entered individual stock opening balances, the total sum of these stock
items should correspond to inventory control accounts in the trial balance. Check your
inventory journal solution with the figure below and click Ok to record it.
To confirm your entries, refer to figure 4.19 (Trial Balance) by going to report icon
from the accounts commend center.

Fig: 4.19 Trial Balance April 1998.

The trial balance shows the current period (April) figures.

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View the opening balance sheet.
Now you will take a quick look to see whether the inventory asset account did record
the opening entries, and to check all the other balances.

Follow these steps:

1. From the accounts commend center click reports and select accounts from
the scrow down list.
2. Click standard balance sheet from the list.
3. Click customize to select date (reporting period sought).
4. Click display.
5. The balance sheet be displayed on the screen, refer to figure 4.20
6. To print, click print on the bottom left side of the screen and follow the
prompts.

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 Fig: 4.20 Balance Sheet as at April 1998.

Note that Assets (K19,800) = Liabilities (K11,497) plus Equity (K8,303). It is

essential that your balance sheet matches figure 4.20. If necessary follow these steps
to correct errors in opening stock balances.

Follow these steps:

1. At the Inventory commend center click the Count Inventory icon.
2. Make changes to the inventory count sheet.
3. Click Adjust Inventory.
4. Key 3.9999 (Historical Balancing).
5. Change the date to 4/1/98.
6. Click Record.

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