INSTRUCTION I:

THIZ has been running a retail business named THIZ Retail Company (sole trade business).
He has planned to computerize accounting system of the business in 2017 use the following
information to complete new company setup wizard in Peachtree complete Accounting

Company information  Company name: THIZ Retail Trade

 Address Line 1: Addis Ketema Sub City; W-17
 Address Line 2: House 777; P.O Box : 20543
 City Addis Ababa
 Country Ethiopia
 Telephone +251950150042
 Fax +251950150088
 Business type Sole proprietorship
 Tin in place of Federal Employer ID 0000014545
 Web – site Http/www.zelalem net/
 E-mail zelalem@ ethionet .et
Chart of Accounts Build your own company
Accounting method  Accrual
Posting method  Real time
Accounting period  Number of accounting periods fiscal 12
 First Fiscal year to start January 2017
 First month to enter data march 2017

Note :One you enter the Accounting method, you cannot change it if you wish to do this, you must delete
the company and re- enter it
INSTRCUTION II
Use the information below to setup chart of accounts, customers, vendors and inventory items opening
balance as of March 1,2016 the post closing trial balance, including accounts with zero balances are
given below as of March 1,2017

Account Account Account Beginning Balance

ID/Code Description Type
Debt Credit
1010 Petty cash Cash 2,000.00
1020 Cash bank- saving Cash 18,000.0
0
1030 Cash in Bank- Cash 15,000.0
Checking 0
1100 Account Receivable A/Receivable 1450.00

Computer Accounting accounting, yohanes M

1150 Allowance for uncollectible A/Receivable 150.00
1200 Note Receivable (current) Other CA 1,000.00
1300 Loan to Employees Other CA 1,200.00
1400 Inventory Inventory 12,200.00
1600 Supplies Inventory 2,500.00
1700 Prepaid insurance Other CA 1,400.00
1710 Prepaid Rent Other CA 400.00
1810 Equipment Fixed Assets 48,000.00
1815 Accum. Deprecation – Equipment Accum. Depreciation 10,000.00
1820 Automobile Fixed Assets 60,000.00
1825 Accum, Deprecation- Automobile Accum Depreciation 11,200.00
1830 Furniture Fixed assets 38,600.00
1835 Accum. Deprecation – Funitrue Accum. Depreciation 6,000.00
2000 Accounts payable A/Payable 2,160.00
2310 Accruals Other current Liabilities
2320 Notes payable Other current Liabilities 5,000.00
2330 Employee Income Tax payable Other current Liabilities 100.00
2340 Turnover Tax payable Other current Liabilities
2350 Pension payable Other current Liabilities
2360 Credit Association payable Other current Liabilities
2370 Union Fee payable Other current Liabilities
2400 Mortgage payable Long – Term liability 14,000.00
3000 This capita Equity not closed 144,340.00
3100 THIZ withdrawal Equity Gets Closed
3200 Retained Earning Equity Retained Earnings 8,800.00
4000 Sales Income
4050 Sales retrns and Allowances Income
4051 Sales Discounts Income
4100 Miscellaneous Revenue Income
4200 Finance charge Income Income
5000 Cost of Goods sold Cost of sales
6000 Basic salary Expense
6010 Over time Expense
6020 Allowance taxable Expense
6030 Allowance- none taxable Expense
6100 Repair and maintenance expense Expense
6200 Income tax expense Expense
6300 Interest expanse Expense
6500 Depreciation expense – Equipment Expense
6510 Depreciation expense – automobile Expense
6520 Depreciation expense- Furniture Expense
6600 Payroll tax Expense Expense
6700 Purchase discount Cost of sales
6800 Rent expense Expense
6810 Insurance Expense Expense
6820 Transportation Expense Expense
6830 Supplies Expense Expense
6840 Miscellaneous Expense Expense
6850 Gain /Loss on sales of assets Expense
6900 Utilities Expense Expense
Grand total Br Br 201,750
201,750
 2 Computer Accounting accounting, yohanes M

 MAINTAINING VENDORS RECORDS

Before you enter vendors’ balances, vendors default should be setup. Vendors Default setup is
as follows (mainatain menu default information vendors)
 Most of the vendors provide a credit term of 3/15,n/45. The vendors usually provide credit
limit of br 10,000.00 with certain transactions being able to go beyond this limit depending
on the circumstances.
 The expences account shall be “inventory” and the discount GL Account shall be the
“purchase Discount”
 The aging reports are presented based on due date and the aging categories being presented
as follows 1st column 0-15 days 2nd column, 16-30 days 3rd column. 31-45 days and 4th column
above 45 days

THIZ Retail company

Vendor Ledger Balance as of March 1,2017

Vendor Vendor name Address Purchase Invoice Account

ID invoice No Date balance
v-001 BIRUK Supply Co Ayere Tena 077 02/15/17 Br 200.00
v-002 Michale & sons co Afica Avenue 079 02/13/17 375.00
v-003 Philips Company Debrezeit Road 078 02/26/17 600.00
v-004 Rebecca Company Wollo sefer 074 02/20/17 360.00
v-005 Shalom & company Arat- kilo 076 02/24/17 225.00
v- 006 Valley company Merkato 075 02/24/17 400.00
v-007 ERCA mecico - - -
Total - - - - Br 2,160

 MAINATAINING SALES TAX

 The company collects a turnover tax (tot) of 2% on all products it sales. The sales tax is
remitted to the Ethiopian Revenues and customs authority ( ERCA) – man sales tax
Sales tax authority

Id Description Tax payable to Sales tax GL Account Tax Rate(%)

ERCATOT Turnover Tax ERCA TOT Turnover Tax payable 2%

Tax code:

Tax id Description Tax made up of Tax freight

TOT 01 Turnover Tax ERCA TOT No

 MAINTAINING CUSTOMERS RECORDS

Customers Default setup :step( maintain menu default information customers)
 The company provides to majority of its credit customers a term of 2/10. Maximum credit
 limit of Br 1,500 is given to all customers but specific decision will be made depending on

Computer Accounting accounting, yohanes M

Circumstance requiring credit of more than this balance( the Peachtree shall notify over the limit)
The GL sales Account shall be the “sales” and discount GL Account shall be the: sales discount
 The aging report is based on invoice date and categorized as: 1st column, 0-15 days; days 2nd
column, 16- 30 days; 3rd column, 31-45 days; and 4th column above 45 days.
 The company charges 10% simple interest on invoices 15 days overdue balances up to br
2,000 but 15% for a balance above br 2,000 with a minimum charge of Br 5. It appears on
invoices and statements as “ late charge” print finance charge warning message as “overdue
invoices are subject to charges”
 The company’s credit policy requires that all customers who fail to act according to the
agreement shall be able to pay interest on all over due invoices.
THIZ Retail company
Customer ledger balance as of march 1.2017

Custome Customer Address Invoice Invoice

r Name No Date Account
ID Balance
C-001 Daniel kidane bob marley square - - -
C- 002 Edem mitiku Kaliti - - -
C-003 Getahun mamo Balch areas - - -
C-004 Nardos dagmawi Arat- kilo CSI- 142 02/24/11 180.00
C- 005 Rahel mekonnen Ethio-China Road CSI-138 02/01/11 220.00
C-006 Robel Gizaw Gottera area CSI-140 02/08/11 400.00
C-007 Ruth abiy Megenagna area CSI-139 02/25/11 230.00
C-008 Selam Alene Haile selassie Road CSI-141 02/17/11 420.00
TOTAL BR 1,450

 Maintaining inventory records

Inventory default setup steps( maintain menu default information inventory)
Purchas order shall be included when calculating quantity available. The warning message for
“sales invoice” shall be “warn if the inventory item is out stock based on the quantity on hand
“and for “sales orders” shall be “warn of the inventory item is of stock based on the quantity
available”
Sales of stock items and master stock items is accounted for in “sales” account ;the cost of sales is
a accounted for in “inventory” and cost of goods sold account based on the quantity
The company has two price levels for all its products; price level 1: retail price& price level 2:
 wholesale price wholesale price is 10% less retail price on all products. A minimum quantity of
one dozen(12unites) of vending of any inventory item is considered as

Computer Accounting accounting, yohanes M

Whole sales; any quantity less than 12 units CSI a retail sales. In addition, it uses average cost
method to value all inventory items.
THIZ Retail company
Inventory subsidiary Ledger balance as of march 1,2011

Item Products Measurement Quantity Unit cost Selling Location

ID Unit On ii and Price
I-001 Product -A case 40 20 30 w-1
I -002 Product- B case 50 20 80 w-1
I-003 Product-C case 100 10 20 w-1
I-004 Product- D case 120 30 50 W-1
Master stock
I-005 Beverage
01-01 Coca Cola, 500ml Bottle 125 5.00 6.00 w-2
01-02 Coca cola, 300ml Bottle 250 2.50 3.00 w.2
01-01 Coca cola, 500ml Bottle 125 5.00 6.00 w-2
02-02 Pepsi cola, 300ml Bottle 250 250 3.00 w-2
03-01 Water,500ml Bottle 90 8.00 10.00 w-2
03-02 Desse mineral Bottle 240 4.50 6.00 w-2
Water,300ml

For the master stock

 The primary attribute (name: type of product, ID 01,02&03; Description. Coca cola, Pepsi cola,
& mehemd
 The secondary attribute( name size of product ID 01&02 Description 500ml & 300ml
Instruction III
RECORD TRANSACTIONS OF THE MONTH MARCH 2017
The following transactions have been undertaken during the month march 2011. The include 1.
sales quotes, sales orders sales/invoicing( direct or from sales orders) credit memo cash receipts
(from credit collection or form advance collection) etc,
2. purchase and Accounts payable transactions- these include purchase order, our
chases/Received inventory, payments( cash purchases or credit purchases) write checks, vendor
credit meno
 3. additional transactions- use the appropriate windows or general journal entry to record these
transactions
 Sales /invoicing direct credit sales

Computer Accounting accounting, yohanes M

Sold 5units of product –a to Eden Mitiku on account and issued sales invoice csi-i43

Cash receipts credit collection

Received on account from rahel mekonnen for sales invoice csi-38.received check 578.
Cash receipt Cr -230. Deposit ticket 001

Received on account from ruth abiy for sales invoice is 39 received checks 295 and issued
cash receipt Cr 231 deposit ticket 002
Sales orders
Customer purchase order (po-125) has been received from Eden mitiku for 5 units of
product A- at Br 30 each. Sales order so – 114 is issued to Ened the goods are expected to
be delivered on March 15
 Additional investment
 Received cash from the owner THIZ, as an additional investment in the business, Br
20,000 cash receipt no Cr -232. Deposit ticket 003
 Sales/invoicing direct credit sales
 Sold 10 units of product – B on account to SEL AM ALENE and issued sales invoice
CSI -044
 Cash receipt credit collection
 Received on account from selam alene br 420 sales invoices CSI 41 received cash
receipt CR – 233. Deposit ticked 004
 Payments: Credit purchases

Paid BR 600 accounts possible to Phtion Company for purchase invoice 078 and issued
check 10

Cash receipt credit collection

Received on account from Eden mitku for sales invoice CSI 043. Received check 443 and
issued cash receipt Cr -238
  Cash receipt cash sales
Sold the following items for cash (received check 235 and issued cash receipt
reference Reference CR -234 deposit ticket 005
 Coca –cola, 500ml 60 bottles
 Coca – cola 300ml 100 bottles
 Pepsi cola 500ml 60 bottles
 Pepsi cola, 300ml 100 bottles
 Desse mineral water 500ml 40 bottles
 Desse minral water 300ml 100 bottles

Cash receipts: advance collection

Computer Accounting accounting, yohanes M

Received prepayment of Br 108 from robel gizaw to sell 5 units of product –B Received
check 585 and issued cash receipt Cr 2356 deposit ticket 007

Mar 12: bought the following items from st. George Brewery Factory on cash and issued
check 101

 Desse mineral water, 500ml 125 bottles

 Desse mineral, water 300ml 100 bottles
 Cash receipts cash sale
 Sold 15 units of product A- for cash received check 785. Issued cash receipt cr
236. Deposit ticket 008
 Sales/ invoicing: direct credit sales
 Sold 4 units of product Ato getahun mamo on account and issued sales invoice
number CSI 045
 Sales /invoicing from sale order
 Shipped the order made on march 4 to EDEN MITIKU and issued sales invoice
number CSI 040 customer po 125
 Payments credit purchases
Paid on account to Valley Company for purchase invoice 075 issued checks 102.
 Cash receipt credit collection
Received on account from nardos dagma wi br 180 sales
Invoice CSI -042 recived 765 cash receipt reference
Number Cr -237 deposit ticket 009
 Payment cash purchases

Purchase 20 units of prodeet c from Valley Company on cash and issued check 103

 Purchases/ Receive inventory

 Purchase 20 units of pro d on account from valley company Br 50 each purchase
in
 Credit memo
 Issued credit memo 20 unit of defective product B returned by SEL AM ALENE
number po- 025 good through

 Payments cash purchase

Bought coca cola from facing bottling company on cash and issued check 104.

 Coca –cola 500ml 100 bottles

 Coca- cola 300ml 100 bottles
 Bought Pepsi cola from drinking’s co. on cash and issued check 105
 Pepsi cola, 500ml 100 bottle
 Additional transaction
 Bought supplies on account from ruk supply company Br 300
 Purchase invoice no 056
 Cash receipts cash sale
7

Computer Accounting accounting, yohanes M

Sold 20 units of product – B for cash. Cash Receipt CR -238 deposit ticket 010

Vendor/ supplier/credit memo

Returned 5 units of defective product D bought on purchase invoice 240 to valley co.
supplier credit memo cm 66( the company records purchase reurns unsing the inventory
account

 Additional transactions

Bought supplies for cash from BIRUK supply company Br 300, check 106

Sales/invoiceing Direct credit sales

Sold 30 units of product D to NARDOS DAGMAWI on account and issued sales invoice
CSI 047

Sold 9 units of products to ROBEL GIZAW on account issued sales invoice CSI- 048

Write checks

Paid Br 600 from petty cash. Br 300 is for utilities expense and the remaining for
miscellaneous expense. PVC 025 (use the write check window

 Additional transactions
 Settled monthly principal payment of 2,00 and interest of Br
150 on mortgage loag check 107 to construction and business bank
The following are gen journal transactions for the month reference AE -
800memolred transactions
 Insurance expect …………………………………………..100.00
 Depreciation except ………………………………………..150.00
 Depreciation except furniture …………………………..100.00
  Depreciation except date revealed that there is a discrepancy in quantity
natities on hand and book for adjustment entry for the oducts use inventory
counting sheet number ICS 102 as
 Three units of product spoiled
 Two units of missing from the ware house

Computer Accounting accounting, yohanes M

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በመሆኑም ግለሰቧ በወረዳ 6 ቀበሌ 31 አፀደ ህፃናት ውስጥ ከ 2005 እስከ 2009 ለአራት አመታት
በርዕሰመምህርነት ውስጥ ሲያለገለገሉ የቆዩ ሲሆን በአፀደ ህፃናት ውስጥ ሲያገለግሉ ከቆዩ በኃላ በገዛ ፍቃዳቸው
ስራቸውን ለቀዋል፡፡ ሆኖም ስራ ላይ በነበሩበት ጊዜ ሰዓት በማክበር ሰራተኛዋ ስራውን በአግባብነት እንዲሰራ
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