8.72 MYOB AccountRight Plus v19.

Revision Exercise 3
The Timber Merchant decided to start using MYOB AccountRight Plus on July 1, 2014. The
company has recently completed its third month of trading and would like you to prepare the
Quarterly BAS Report.

Opening a QuickStart data file

1 Copy the QuickStart data file named Timber to your MYOB Data folder, and then rename it as
Timber - Your Name.MYO.
2 Start MYOB AccountRight Plus, and then open the Timber - Your Name.MYO data file.

Editing Company Information

1 Change the Company Name to The Timber Merchant - Your Name, and then click on OK to return to
the Command Centre window.

Entering opening account balances from the menu

1 Read the notes that follow the Trial Balance (below), and then enter the opening balances for The
Timber Merchant (using Setup from the menu, then Balances, and then Account Opening Balances).
The Timber Merchant
Trial Balance as of July 1, 2014
Acc’t No Account Name Balance
$ DR $ CR
1-1110 Cheque Account 2,250.00
1-1300 Merchandise Inventory 25,000.00
1-1400 Prepaid Insurance 100.00
1-1800 Accrued Revenue 100.00
1-2100 Land 75,000.00
1-2610 Yard Equipment at Cost 27,000.00
1-2620 Yard Equipment Accum Dep 13,500.00*
1-2710 Transportation at Cost 46,000.00
1-2720 Transportation Accum Dep 16,560.00*
1-3100 Investment ABC 2,000.00
2-1910 Accrued Expenses 1,050.00
2-2100 Bank Loans 70,000.00
3-1100 Capital 76,340.00

$ 177,450.00 $ 177,450.00

Amounts marked with an asterisk (*) must be entered as negatives (e.g. Yard Equipment Accum
Dep, –13500).
You will not enter the opening balance to the 1-1300 Merchandise Inventory account at this
stage. MYOB AccountRight Plus will adjust the account when the stocktake is performed later in
this exercise.
After recording the account balances, the Amount left to be allocated should be −$25,000.00.
 Chapter 8: Integrated Computer Accounting 8.73

Recording the inventory opening balances stocktake

You are now ready to enter the actual stock quantities and unit costs (shown in the table below).
1 Record the opening stocktake on 1/07/2014, using the details in the table below.
Item # H1 S1
Quantity Counted 3000 4000
Unit Cost ($) 5.00 2.50

Preparing an initial bank reconciliation

The Timber Merchant’s opening balance in the Cheque Account (1-1110) on July 1, 2014
is $2,250.00. The bank statement received on July 1, 2014 shows a closing balance of
$2,250.00 CR.
Bank Statement Date 1/07/2014
New Statement Balance $2,250.00

There are no outstanding items or bank charges.

1 Complete the initial reconciliation of the Cheque Account. You do not need to prepare the
Reconciliation Report.

Preparing reports on conversion

1 Prepare a copy of the Trial Balance for July 2014, and then use the Send To option to save the Trial
Balance as Timber_01.pdf.
2 Prepare a copy of your Standard Balance Sheet, using the July as the Selected Period, as of
1/07/2014.
3 Use the Send To option to save the Standard Balance Sheet as Timber_02.pdf and compare both
reports with the solutions on your DVD.

Preparing reversing journal entries

1 Record the necessary reversing journal entries for the previous period’s balance-day adjustments.
General Journal # = GJ000001
Date Acct # Account Name Debit Credit Job Tax
Code
1/07/2014 6-1900 Insurance $100.00 N-T
1-1400 Prepaid Insurance $100.00 N-T
Memo Reversing entry for prepaid insurance

General Journal # = GJ000002

Date Acct # Account Name Debit Credit Job Tax
Code
1/07/2014 8-1000 Interest Income $100.00 N-T
1-1800 Accrued Revenue $100.00 N-T
Memo Reversing entry for interest income owing

General Journal # = GJ000003

Date Acct # Account Name Debit Credit Job Tax
Code
1/07/2014 2-1910 Accrued Expenses $1,050.00 N-T
6-5130 Wages & Salaries $1,050.00 N-T
Memo Reversing entry for wages owing
8.74 MYOB AccountRight Plus v19.7

Recording transactions for the month of July 2014

1 Record the following transactions using the details supplied.
Purchase # and Supplier Inv # will be the same as each other for purchase transactions.
Customer PO #s are not used here.
Assume all prices shown are correct.
Date Transaction
31/07/2014 Sale to Knot Long for the month of July on invoice #1
2,200 x item #H1 @ $10.00, GST
1,650 x item #S1 @ $5.00, GST
31/07/2014 Purchase from Woody Supplies for the month of July on invoice #678
1,100 x item #H1 @ $5.00, GST
1,100 x item #S1 @ $2.50, GST
31/07/2014 Paid Woody Supplies $2,000.00, Cheque No. 661
Allocate to purchase #678 on 31/07/2014, $2,000.00, no discount

Recording transactions for the month of August 2014

1 Record the following transactions using the details supplied.
Purchase # and Supplier Inv # will be the same as each other for purchase transactions.
Customer PO #s are not used here.
Assume all prices shown are correct.
Date Transaction
31/08/2014 Sale to Knot Long for the month of Aug on invoice #2
1,200 x item #H1 @ $10.00, GST
1,400 x item #S1 @ $5.00, GST
31/08/2014 Purchase from Woody Supplies for the month of Aug on invoice #696
1,000 x item #H1 @ $5.00, GST
1,000 x item #S1 @ $2.50, GST

Recording transactions for September 2014

1 Record the following transactions using the details supplied.
Purchase # and Supplier Inv # will be the same as each other for purchase transactions.
Customer PO #s are not used here.
Assume all prices shown are correct.
Date Transaction
30/09/2014 Sale to Knot Long for the month of Sept on invoice #3
1,500 x item #H1 @ $10.00, GST
1,600 x item #S1 @ $5.00, GST
30/09/2014 Purchase from Woody Supplies for the month of Sept on invoice #708
1,200 x item #H1 @ $5.00, GST
1,000 x item #S1 @ $2.50, GST
30/09/2014 Paid Woody Supplies $6,250.00, Cheque No. 662
Allocate to purchase #678 on 31/07/2014, $6,250.00, no discount
30/09/2014 Knot Long paid $30,250.00, CR0000001
Allocate to invoice #1 on 31/07/2014, $30,250.00, no discount
 Chapter 8: Integrated Computer Accounting 8.75

Reconciling the Cheque Account (end of quarter) and

recording service charges
It is now time to carry out the quarterly reconciliation of the Cheque Account. You will need to
record bank charges of $10.00 (using Bank Entry) in the process of doing the reconciliation.
1 Commence the reconciliation procedure by entering the following information:
Account 1-1110
Bank Statement Date 30/09/2014
New Statement Balance $30,490.00

2 Before marking transactions as cleared, record the bank charges using the following details:
Service Charge $10.00
ID# SC300914
Date 30/09/2014
Expense Account 6-1200 Bank Charges
Memo Bank charges
Tax Code FRE

3 Next, mark all items as cleared, except for the outstanding item listed below.
Outstanding cheque
Cheque No.662 $6,250.00

4 Now complete the reconciliation of the Cheque Account and then, when the reconciliation has been
completed, save the Reconciliation Report as Timber_03.pdf.
5 Check the report against the solutions on your DVD.
6 When the reconciliation process is completed, return to the Command Centre window.

Creating a batch of reports

1 Create a batch of reports with the Batch Name End of Quarter Reports, including a Trial Balance,
Standard Balance Sheet, Profit & Loss [Accrual] and General Journal.

Preparing reports for September 2014

Before you prepare the Business Activity Statement (BAS) for the quarter ended September 30
you should prepare the End of Quarter Reports.
1 Prepare your report batch, using the Period as 1st Quarter.
2 Save each of the reports separately as follows: Trial Balance (Timber_04.pdf); Standard Balance Sheet
(Timber_05.pdf); Profit & Loss [Accrual] (Timber_06.pdf); and General Journal (Timber_07.pdf).
3 Compare your reports with the solutions on your DVD.
With the reports prepared, you will now be returned to the Command Centre window.

Prepare the GST Summary report

4 Select Reports from the menu bar, and then select Index to Reports.
5 Click on the GST/Sales Tax tab and highlight the GST [Summary – Accrual] report.
6 Click on the Customise button, make sure Dated From is 1/7/2014 and To is 30/09/2014, and then
select Both Collected and Paid from the Collected/Paid drop-down menu.
7 Click on Display, then use the Send To option to save it as Timber_08.pdf.
8 Compare your report with the solution on your DVD.
8.76 MYOB AccountRight Plus v19.7

Completing the BAS using BASlink

Using the summary below, complete the BASlink for The Timber Merchant for the three months
ending September 2014. The Timber Merchant uses the accrual method of accounting for GST
and submits a BAS on a quarterly basis.
1 From the Accounts Command Centre, click on the BASlink button.
2 The following options have been selected at the BASlink window: This Year (FY 15), Include 13th
Period Transactions and the last month of the reporting period is September.

BAS Info
3 Complete the BAS Info using the information supplied over page.
GST reporting frequency Quarterly
Calculation Method Calculation worksheet
GST accounting basis Non-Cash (Accruals)

I Use the Simplified Accounting Method is not selected.

I Claim Fuel Tax Credits is not selected.

GST option Option 1

PAYG Instalments
Instalment reporting frequency Not Registered

PAYG Withholdings
Withholding reporting frequency Not Registered

I have FBT, WET or LCT obligations is not selected.

4 Click on OK to return to the BASlink window.

5 Click on Prepare Statement to start BASlink.
6 If the warning message appears, tick the box next to Don’t display this message again, and then click
on OK.
7 Click on OK to accept the MYOB disclaimer message.
8 Click on No when asked whether you wish to use the last saved setup.
9 Click on No when asked whether you wish to view the information on BASlink setup.

GST worksheet
10 Complete the setup process using the following information.
BAS Field Tax Codes Selected

G1 GST and FRE (Select G3, Other GST free sales)

G3 FRE
G11 GST and FRE (Select G14, Purchases without GST in the price)
G14 FRE

Front sheet
11 Enter the Document ID 123456791 and Your Name as the contact person on the Front sheet page.
 Chapter 8: Integrated Computer Accounting 8.77

Back sheet
12 Enter the Time taken to complete this form as 30 MINS on the Back sheet page.

Check for errors

13 Click on the Check button located beneath the sheets to check for errors.
There should be no errors applicable to this exercise.

14 Click on Close to accept these errors.

Prepare the Business Activity Statement and Transaction report

15 Prepare a copy of the GST worksheet, Front sheet and Back sheet of the BAS for the quarter
ended September 30, 2014, save the BAS report proforma as Timber_09.pdf, and then compare your
report with the solutions on your DVD. Ignore the warnings and any disclaimers.
With the report prepared, you will now be returned to the BASlink Instalment Activity window.
16 Click on the Transaction button located (below the sheet area).
17 Prepare a copy of the Transaction report, save the report as Timber_10.pdf, and then compare your
report with the solutions. Ignore the date on the transaction as it will correspond with your computer’s
system date.
18 Click on the Save Setup & Exit button when you have the prepared the documents necessary to
complete the BAS form.
19 Click on the Yes button, and save the activity statement data in the MYOB Data folder, using the name
provided by MYOB AccountRight Plus.

Reviewing your GST Summary report

To check if all the GST-related transactions have been included in the MYOB BASlink activity
statement you need to view your report from earlier on. If you cannot find it, you can always
prepare it again now. Both the GST Collected and GST Paid amounts should match the ones
shown in the GST Summary report and the Transaction report taken from BASlink.

Combining all reports into a single pdf

Your reports for this exercise should comprise Timber_01.pdf through to Timber_10.pdf.

1 Combine Timber_01.pdf through to Timber_10.pdf into a single file named Timber_all.pdf.

The reports have been prepared and checked, and there are no further tasks to be done in
this exercise.

Exiting MYOB AccountRight Plus

1 Close the data file and exit MYOB AccountRight Plus.
Revision Exercise 3 is now completed.