2.70 MYOB AccountRight Plus v19.

Revision Exercise 3
You have been asked to establish a new MYOB AccountRight Plus data file for High & Dry
Cleaning. It has opened for business for the first time on 1 November 2014.
High & Dry Cleaning will not have any opening account balances, and its first transaction will be
an opening General Journal entry to commence business operations.

Starting MYOB AccountRight Plus

1 Start MYOB AccountRight Plus from the taskbar (or from a shortcut icon), then prepare to create a
new company file for High & Dry Cleaning.

Creating a new MYOB AccountRight Plus data file

2 Use the information below in conjunction with the New Company File Assistant:
Company Name: High & Dry Cleaning - Your Name
A.B.N.: 55 003 012 364
Address: 45 Fluid Drive
Dishwater VIC 3067
Phone Number: 5789 5625

Current Financial Year: 2015

Last Month of Financial Year: June
Conversion Month: November
Periods per Year: Thirteen

Industry Classification: Service

Type of Business: Dry Cleaners

3 Save the file in the MYOB Data folder with the file name Dry - Your Name.

Using the Accounts assistant

4 Use the Setup Assistant to create the following new accounts for High & Dry Cleaning:
Type Account Account Account Account
Classification Type Number Name
Header Asset Asset 1-2100 Furniture & Fixtures
Detail Asset Other Asset 1-2110 Furniture & Fixtures at Cost
Detail Asset Other Asset 1-2120 Furniture & Fixtures Accum Dep

Header Asset Asset 1-2400 Shop Equipment

Detail Asset Other Asset 1-2410 Shop Equipment at Cost
Detail Asset Other Asset 1-2420 Shop Equipment Accum Dep

The header accounts will require a subtotal to be generated for reporting purposes.

5 Edit the following existing accounts for High & Dry Cleaning.
Account Existing New
Number Account Name Account Name
3-1000 Owner’s/Shareholder’s Equity Owner’s Equity
3-1100 Owner’s/Sharehldr Capital Capital
3-1200 Owner’s/Sharehldr Drawings Drawings
 Chapter 2: Accounts 2.71

6 Delete the following existing account for High & Dry Cleaning.
Account Account
Number Name
6-2030 Cooperative Adv Allowance

At this point, you would normally use the Accounts Easy Setup Assistant to enter opening account
balances. Opening account balances result from closing account balances of the previous period,
but since High & Dry Cleaning has just opened for business on 1 November 2014, there cannot
be any opening balances.
7 When you have finished using the Accounts assistant, click on Close twice to return to the Command
Centre window.

Setting Preferences
8 Choose Setup from the menu bar, select Preferences, set your preferences exactly as first outlined
earlier in Chapter 2 (pages 2.23–26), and then return to the Command Centre window.

Editing Company Information

The address for High & Dry Cleaning included the suburb Dishwater when it should have been
Bathwater.
9 Amend the Company Information as indicated above.
You are now ready to commence the recording of transactions through the General Journal.

Recording transactions using the General Journal

In order to perform dry cleaning services, the owner contributed various assets and liabilities to
the business on 1 November 2014.
This transaction requires you to record the following journal entry.
10 Record the following journal entry using the details supplied below:
General Journal # GJ000001
Date 1/11/2014
Memo Assets and liabilities introduced by owner
Debit 1-1110 Cheque Account $10,000 N-T
Debit 1-2110 Furniture & Fixtures at Cost $8,000 N-T
Debit 1-2310 Bldgs & Imprv at Cost $42,000 N-T
Debit 1-2410 Shop Equipment at Cost $12,000 N-T
Debit 1-2510 Office Equip at Cost $5,000 N-T
Debit 1-2610 Dry Clean Equipment at Cost $18,000 N-T
Debit 1-2710 Motor Vehicles at Cost $16,000 N-T
Credit 2-2100 Bank Loan $61,000 N-T
Credit 3-1100 Capital $50,000 N-T

There are no further entries required for 1 November. The next General Journal entries required
are the end of month recordings of depreciation for the business.

Recurring General Journal entries

As was the case for the Practice Exercise and Revision Exercise 1, the monthly depreciation
charges of 20% pa (straight-line method) are to be recorded as recurring entries.
2.72 MYOB AccountRight Plus v19.7

11 Create and then record the following recurring depreciation entries (separately):
Remember to Save as Recurring before recording each of these journal entries. All recurring
transactions in this chapter should have Save my changes when I record this recurring
transaction checked.

Depreciation on Furniture & Fixtures

General Journal # GJ000002
Date 30/11/2014
Memo Monthly Dep’n of Furniture & Fixtures at 20% pa on cost

Debit 6-1030 Depreciation $133

Credit 1-2120 Furniture & Fixtures Accum Dep $133

Name Dep’n of Furniture & Fixtures

Frequency Monthly
Starting on 31/12/2014

Depreciation on Buildings and Improvements

General Journal # GJ000003
Date 30/11/2014
Memo Monthly Dep’n of Bldgs & Imprvmnts at 20% pa on cost

Debit 6-1030 Depreciation $700

Credit 1-2320 Bldgs & Imprv Accum Dep $700

Name Dep’n of Bldgs & Imprv

Frequency Monthly
Starting on 31/12/2014

Depreciation on Shop Equipment

General Journal # GJ000004
Date 30/11/2014
Memo Monthly Dep’n of Shop Equip at 20% pa on cost

Debit 6-1030 Depreciation $200

Credit 1-2420 Shop Equipment Accum Dep $200

Name Dep’n of Shop Equip

Frequency Monthly
Starting on 31/12/2014

Depreciation on Office Equipment

General Journal # GJ000005
Date 30/11/2014
Memo Monthly Dep’n of Office Equip at 20% pa on cost

Debit 6-1030 Depreciation $83

Credit 1-2520 Office Equip Accum Dep $83

Name Dep’n of Office Equip

Frequency Monthly
Starting on 31/12/2014
 Chapter 2: Accounts 2.73

Depreciation on Dry Cleaning Equipment

General Journal # GJ000006
Date 30/11/2014
Memo Monthly Dep’n of Dry Clean Equip at 20% pa on cost

Debit 6-1030 Depreciation $300

Credit 1-2620 Dry Clean Equipment Accum Dep $300

Name Dep’n of Dry Clean Equip

Frequency Monthly
Starting on 31/12/2014

Depreciation on Motor Vehicles

General Journal # GJ000007
Date 30/11/2014
Memo Monthly Dep’n of Motor Vehicles at 20% pa on cost

Debit 6-1030 Depreciation $267

Credit 1-2720 Motor Vehicles Accum Dep $267

Name Dep’n of Motor Vehicles

Frequency Monthly
Starting on 31/12/2014

You are now ready to prepare some basic accounting reports for High & Dry Cleaning.

Preparing reports
12 Prepare a Trial Balance as of November 2014.
13 Save the report as Dry_01.pdf, and then compare your report with the solution on your DVD.
High & Dry Cleaning would now like to see more details of the day-to-day transactions recorded
through the General Journal.
14 Prepare the General Journal report. The transaction dates should be from 1/11/2014 to 30/11/2014.
15 Save the report as Dry_02.pdf, and then compare your report with the solution on your DVD.

Combining all reports into a single pdf

Your reports for this exercise should comprise only Dry_01.pdf and Dry_02.pdf.
16 Combine Dry_01.pdf and Dry_02.pdf into a single file named Dry_all.pdf using the steps described in
the Practice Exercise for this chapter.

Exiting MYOB AccountRight Plus

17 Close the ‘Dry’ data file and exit MYOB AccountRight Plus.
Revision Exercise 3 is now complete.