Queens’ College

Department of Accounting and Finance

Teaching Material for Computerized Accounting
Set by
Samson WorkuTeshome (MBA)

I. Create Your Company Information

 Company Name: Green Merchandise–Include your Group Name
 City: AA
 Business Type: Limited Liability Company
II. Select a Method to Create Your Company—Buildyour own chart of accounts
III. Choose Accounting Method—Accrual
IV. Choose a Posting Method--Real Time
1) Choose an Accounting Period Structure--12 months accounting period per
year ans January in the box 2020
V. Build the following Chart of Accounts
Acct. ID Account Description Account Type
1160 Cash at Bank checking Cash
1150 Accounts Receivable Accounts Receivable
1143 VAT Receivable Other Current Asset
1140 Inventory Inventory
1130 Office Supplies Other Current Assets
1110 Equipment Fixed Assets
1120 Acc. Dep—Equipment Accumulated Depreciation
2110 Accounts Payable Accounts Payable
2130 VAT Payable Other Current Liabilities
3110 Paid up Capital Equity does not close
3120 Dividend Equity—gets closed
3130 Retained Earnings Equity—Retained Earning
4110 Sales Income
5110 Cost of Goods Sold Cost of Sale
6110 Salaries & Wages Expense Expense
6120 Rent Expense Expenses
6130 Miscellaneous Expense Expenses

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VI. Enter the following beginning balance—Selectdate (from 11/1/20 through
11/30/20)

Account Description Debit Credit

Petty Cash 1,000
Cash at Bank checking 15,000
Account Receivable 500
Inventory 1,500
Office supplies 6,500
Equipment 50,000
Acc. Dep—Equipment 20,000
Accounts Payable 2,000
Paid up Capital 52,500
74,500 74,500

VII. Enter the following customer ledger as of November 30, 2020.

Customer Name Code Address Inv. Date Inv. # Acc. Balance
ET ET 1001 Merkato 11/01/20 0053 300
ZZ ZZ 1001 Ayertena 11/01/20 0054 200

VIII. Enter the following Vendor Ledger balance as of November 30, 2020
Vendor Name Code Address Inv. Date Inv. # Acc. Balance
EAT E 2001 Bole 11/01/20 0091 500
PC P 2001 Mexico 11/07/20 0092 500
BLTD B 2001 Merkato 11/09/20 0093 500
SP S 2001 Piassa 11/11/20 0094 500
Total 2,000

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IX. Enter the following Stock Balance as of November 30, 2020
Product Unit of Cost Sales Qty. on
ID Location
Name Measure Price Price Hand
S S1001 Cartoon 500 550 1 Shelf C-7
MCH MC1001 Unit 500 650 1 Shelf C-7
BI BI 1001 Cartoon 250 300 2 Shelf C-7

X. Set up Customer Default Information

XI. Set up Vendor Default Information
XII. Set up Inventory Default Information
XIII. Setup VAT.
XIV. Post the following transactions for the month of December.

1. Cash Purchase

Steps:
1. Tasks
2. Payments
3. Select Vendor ID
4. Enter Check Number
5. Enter Transaction date
6. Select Apply to Expense when there is direct cash purchase
7. Enter Quantity, Item
8. Add VAT
9. Save
10. Close

Transaction: December 5,2020. Purchased 34 cartoons of BI from BLTD $8,500 by CPV

number 111 and CK#F0012352, Include VAT $ 1,275.

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 2. Credit Purchase
Steps:

1. Tasks
2. Purchase/Receive Inventory
3. Select Vendor ID
4. Enter Transaction date
5. Enter Invoice Number
6. Use Apply to purchase when there is direct credit purchase
7. Enter Quantity, Item Type
8. Add VAT
9. Save
10. Close

Transaction: December 10, 2020. Purchased 15 Cartoons of S from EAT on account, $7,500
CRSI 0086, include VAT $ 1,125.

3. Cash Sales

Steps:
1. Tasks
2. Receipts
3. Select Customer ID
4. Enter Reference number, Receipt number
5. Enter transaction date
6. Select Apply to Revenue tab when there is direct cash sales
7. Enter Quantity, Item Type
8. Add VAT
9. Save
10. Close

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Transaction: December 12, 2020. Sold 3 Cartoons of BI to ET on cash Birr 900, FS No.
00000001 and CSI number 554 and Deposit Slip # 001 include VAT.

4. Credit Sales
Steps:
1. Tasks
2. Sales/Invoicing
3. Select Customer ID
4. Enter Transaction Date
5. Enter Invoice Number
6. Select Apply to Sales when there is direct credit sales transaction
7. Enter Quantity, Item Type and
8. Add VAT
9. Save
10. Close

Transaction: December 25, 2020. Sold on account 2 cartoons of S and 5 cartoons ofBI to ET
by CRSI 0055, $ 2,600, include VAT.

XV. Format and Print thefollowing reports;

a) Vendor ledger
b) Customer ledger
c) Stock ledger
d) General ledger of the company.
e) Balance sheet of the company
f) Income Statement
g) Statement of Retained Earnings
h) Statement of Cash flow