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Tutorial Solutions 3

The document discusses the benefits of a computerized accounting system over a manual one, including speed, reliability, accuracy, and internal controls. It also explains how MYOB uses a 13th period for transactions that should not affect a specific reporting period, such as repairs or year-end adjustments. Finally, it differentiates between header and detail accounts in MYOB, with header accounts as non-postable summaries and detail accounts as postable individual accounts.

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182 views3 pages

Tutorial Solutions 3

The document discusses the benefits of a computerized accounting system over a manual one, including speed, reliability, accuracy, and internal controls. It also explains how MYOB uses a 13th period for transactions that should not affect a specific reporting period, such as repairs or year-end adjustments. Finally, it differentiates between header and detail accounts in MYOB, with header accounts as non-postable summaries and detail accounts as postable individual accounts.

Uploaded by

rikansha
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TUTORIAL 3 – SOLUTIONS

Question
1. What are the benefits of a computerized accounting system as compared to a
manual based accounting system?
a. high speed and mobility of reporting,
b. reliability,
c. no routine work,
d. increased accuracy,
e. internal control system of increased productivity,
f. easy back up and restoration of records;

2. What is the 13th period in MYOB?

MYOB Accounting software's 13th period provides a convenient method of dating certain
transactions so they don't affect a particular reporting period.

In normal accounting practices, there are twelve reporting periods in a financial year. Each of
these periods is represented by a calendar month, and is a defined chronological period.

The 13th period isn't an actual period of time; it's merely a 'placeholder' period that contains
year-end adjustments. Transactions dated in the 13th period are done so with the intention of
the transaction not affecting any one of the twelve actual reporting periods.

Common business reports, such as the profit and loss report, base themselves on transactions
that are dated within the report date range. It is not always practical to have a transaction
influence one particular reporting period.

For example: A piece of machinery of a manufacturer fails unexpectedly. The repair is


expensive and will have an adverse effect for the particular month's reporting.

This type of expense could be dated in the 13th period, avoiding the expense being attributed
directly to the affected month.

The 13th period is also quite commonly used for end of year adjustments such as
prepayments and accruals.
3. Differentiate between a header and detail account in MYOB.

Header Account (Non-Postable)

Used to enter headings. E.g. Current Assets, Income. Does not accept figures from
transactions. The figure recorded in the Header Account is a summary of the Detail
Accounts under it. Header Accounts are displayed in bold.

Detail Account (Postable)

These accounts are listed under the Header Account and can accept figure from
transactions.

VAT Exercise

Pacific Brown Ltd is a listed company on the Suva Stock Exchange. The company manufactures
coconut furniture and is based in Sigatoka. The company exports furniture to overseas customers
and also sells locally. During the month of April, the company made $56,731 (VEP) worth of
sales which included $23,231 export sales.

The company also incurred the following expenses during the period:

Expense Amount (VEP)


Glue $150
Varnish $260
Leather cushions $3,258
Wages $12,000
Raw Materials Purchases (Coconut Timber) $5,600

Required:

Assuming a 9% VAT rate, calculate the VAT refund/payable for Pacific Brown Ltd for the
month of April. (Show all working)

VAT Collected
Total Sales less Export Sales
$56,731 - $23,231
=$33,500 * 9%
= $3,015

VAT Paid
Total Expenses exc. Wages and Raw Materials = 3,668
=3,668*.09
- =330.12
VAT Payable = Vat Collected – VaT Paid
VAT Payable = $3,015 - $330.12
VAT Payable = $2,684.88

Exercise 1:
Ask students whether they have been able to edit, add and delete the accounts.

VAT Consequences:

VAT Amount
VAT Collected 13,212.23
VAT Paid -7,659.47
VAT Payable 5,552.76

For the period, the company will have to pay VAT to the FRCA of $5,552.76

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