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CLASS 2 Account Receivable & Account Payable 1ACC1215 Accounting Simulation.

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Presentation on theme: "CLASS 2 Account Receivable & Account Payable 1ACC1215 Accounting Simulation."— Presentation transcript:

1 CLASS 2 Account Receivable & Account Payable 1ACC1215 Accounting Simulation

2 A/P- Case: Chai Tea Room Business Background Chai Tea Room serving specialty teas from all around world, also provides light lunches and superb dessert,coffee and other beverage Chai Tea Room does not pay HST on its food purchase, but its other purchases subject to HST, and HST 13% is charged to customer on all good and service in cafe. To keep the cafe clean, their supplier Sudbury Cleaning do clean and wax the floor, and steam clean the carpets and furniture once a week. Instruction: Supplier Information Accounting Procedures 1.Open Invoice Accounting for Payable, not using General Journal 2.Discount: when payment term are set up correctly for supplier, and the date are entered correctly, discount are calculated automatically and credit to purchase discount, contra expense account with credit balance and reduce overall expenses 3.Purchase of Inventory Item and Cost of Good Sold Food purchased are recorded in inventory asset account, usually at month end, manager will count inventory and determine the value of item remaining in inventory. Then, manger will issue the memo to reduce the inventory (assets account) and charge the cost price to Cost of Good Sold (expenses account).

3 Chai Tea Room (1) Session Date: August 7,2013 #Input Date Source TypeSourc e Code DescriptionAccounting Prodedure 1August 1,2013 Purchase InvoiceFG- 642 Purchase from Fundy Gift House, $800 plus $104 HST for eight tea services set, invoice total $904, term net 30 Open-Invoice Accounting 2August 1,2013 Purchase InvoiceBF From Bathurst Food Supplies, $800 for bread, there is no HST on food products, term 1/10,n/30. Store as weekly recurring entry Open Invoice Accounting, Recurring entry Recall Tool August 7, 2013 Purchase InvoiceSC- 701 From Sudbury Cleaning Company, $250 plus $32.5 HST for weekly cleaning of store premise, purchase invoice total $ Store as weekly recurring entry Recurring Entry

4 Chai Tea Room (1) Session Date: August 7,2013 Input Date Source Type Source Code DescriptionAccounting Prodedure 3August 2,2013 Payment Cheque #171To Fundy Gift House, $700 in payment, to reference invoice #FG- 361 Accounting for Payment 4August 3, 2013 Cash Purchase Invoice ACA-3492From All Campus Ads, $200 pluse $26 HST for advertising brochures, term: due on receipt, paid by cheque #173 Adding a New Supplier Record

5 Chai Tea Room (1) Session Date: August 7,2013 Input Date Source Type Source Code DescriptionAccounting Prodedure 5August 4,2013 Memo#13From Owner, adjust purchase invoice FG-642, the order recieved from Fundy House was 10 tea services, not 8 services, the invoice amount is $900 plus $117 HST. Change purchase invoice by open invoice method 6August 4, 2013 Payment Cheque #174The payment to Bathurst Food Supply, $792 in payment, including $8 discount for early payment, reference invoice BF-1044 Accounting for earlier payment

6 Chai Tea Room (1) Session Date: August 14,2013 Input Date Source Type Source Code DescriptionAccounting Prodedure 7August 8,2013 Purchase Invoice #BF From Bathurst Food Supplies, $800 for bread, there is no HST on food products, term 1/10,n/30. Recall restored entry Recall Restored entry 8August 9, 2013 Memo#14From Owner: Edit the supplier record for NB Gas to include the default expenses account, create a new Group account 5110 Heating expenses Set up or change suppliers information

7 Chai Tea Room (1) Session Date: August 21,2013 Input Date Source Type Source Code DescriptionAccounting Prodedure 9August 21,2013 Purchase Invoice SC-1790Cleaning company Sunbury Cleaning $300 plus $39 HST for weekly service, purchase invoice total $339. Restore the changed entry Change a Stored Entry 10August 21, 2013 Memo#17From Owner: making adjusting entry to reflect inventory used in tea room during August, inventory was sold as following: Beverage inventory: $2200 Food inventory: $3300 All used inventory is charged to COST OF GOOD SOLD. Record month end inventory count and journal entry for COGS.

8 Chai Tea Room (1) Session Date: August 21,2013 Report: 1.Display Supplier Aged Report 2.Display purchase journal 3.Display payment journal 4.Recurring Transactions Report

9 A/R- Case: AirCare Services Business Background: providing solar energy. Revenue come from installation, repair and subcontracting. Instruction: Customer Information Accounting Procedures: 1.Open Invoice Accounting for receivables 2.Discount for earlier payment 3.NSF Cheques 4. Cash & Credit Card Sales of Services

10 AirCare Services (1) Session Date: May 8, 2013 Input Date Source Type Source Code DescriptionAccounting Prodedure 1May 1, 2013 Sales InvoiceA-710Sales To Selkirk Community Centre, $1800 plus $90 GST & $126 PST for removing and reapplying solar panels for roof replacement, term: 1/10, n/30 Create a new account 4120 Repair revenue Open Bill method Customize the Sales Invoice Previewing Invoice 2May 2, 2013 Cash Receipt#20From Grande Pointe Tower, cheque#3499 for $8662 including $6662 in full payment of invoice #A- 696 AND $2000 partial payment of invoice #A-698. Allowing $138 discount for earlier payment. Customize the journal by changing tabbing orders Customer Payment

11 AirCare Services (1) Session Date: May 8, 2013 Input Date Source Type Source Code DescriptionAccounting Prodedure 3May 3, 2013 Cash Sales Invoice A-711Sales to Midwestern Funeral Home, $19000 plus $950 GST and $1330PST for installation solar panel. Term: cash on completion of work Received cheque #394 for full payment payment 4May 3, 2013 Sales InvoiceA-712To Hazel Estates, $1200 plus $60 GST & $84 PST for one year service contract *use Full Add fro new customer Add new customer

12 AirCare Services (1) Session Date: May 8, 2013 Input Date Source Type Source Code DescriptionAccounting Prodedure 5May 4, 2013 Bank Debit Memo 14321From Flatlands Credit Union, cheque #3499 for $8662 from Grande Pointe Tower has been returned because of non-sufficient fund Reverse the payment and notify customer of outstanding charge NSF cheque 6May 4, 2013 Credit Card Sales Invoice A-713Sales Summary from various customer 1.Repair revenue: $ Service contract revenue: $ HST charge: $320 GST & 448 PST Credit Card Sales

13 ASSISGNMENT 2- Due: Oct 17/18 Format: In Class Group Project Requirement: review the cases of today 1.Chai Tea Room 2.Aircare Services Complete all entries as per request Submission methods 1.Submit in class with instructors review 2.Submit in backup format with your USB.

14 Midterm – Oct 17/18 Multiple Choices: 18x 4marks/question=72 Short Answers: 4x7marks/question=28 Total Marks 100 How to prepare? 1.Install the Simply Accounting Software 2.Do sample exams, get yourself familiar with the each modules: General Journal, A/R, A/P 3.Find your sample exam attached in your student account in Words Doc. 4.Answers to Sample exam are blue colored.


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