ACCOUNTING SOFTWARE APPLICATIONS ASSIGNMENT (40 %)

 Step 1: Create a company with the following details.

Company name ----------------------------------- Any Name

Address -------------------oromia, Adama, franco, Ethiopia

Telephone - - - - - - - - - - - - -12345679

Website ------------------------------ - - -WWW. adama .com

Business type --------------------------- corporation

Method to create your co ---------------------- Build your own chart of accounts

Accounting method ------------------------------ Accrual

Posting method - - - - - - - - - - - - - - - - - - - - real time

Accounting period ------------------------ 12 month accounting period

First fiscal year star ------------------ January, 2023

 Step 2: maintain the following chart of account as of December 31, 2022

Account ID Balance dec 31, 2022

Account type
Description
?
Dr Cr
1100 Cash at Dashen bank 9,000

1101 Cash on hand 5,000

1102 Accounts receivable 7,000

1201 Allowance for uncollectible (800)

1300 Merchandise inventory 151,000

1301 Prepaid insurance 840

1305 Advances to employee 600

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 1400 Equipment 46,000

1401 Accumulated dep. Equip 1,000

2100 Account payable 18,000

2111 Salary payable 460

2101 Employee income tax payable 5,000

2102 Vat payable 2,000

2103 Sales Tax Payable 1,000

3101 Invested capital 191,180

3201 Retained earning

4100 Sales

4101 Sales discount

4102 Sales returns and allowance

4610 Other income

5100 Purchases

5110 Purchase discount

5120 Purchase returns and allowance

6100 Salary expense

6101 Supplies expense

6102 Depreciation expense equip.

6150 Transporting expense

6200 Miscellaneous expense

 Step 3: Maintain vendors

Maintain the following vendors default information

Maintain the following information

Payment term

- Due in number of days - Discount percent 2%

- net due in 30 days - Credit limit 100,000.00
- Discount in 10days - expense account 5100
- Discount General ledger 5110

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Aging account

- Due date
- Aging categories

Category Of days Column heading

1st column 30 0 – 30

2nd column 60 31 – 60

3rd column 90 61 – 90

4th column Over 90 days

Custom field

The company wants to record information about;

- office manager

2. Maintain the following vendors

Maintain menu vendor

Vendor Contact & amount & invoice

Vendor ID Name Address Date
type office mgr no.
E2001 Efrata trading Service Ato Teka Merkato.AA 11/20/22 Birr 5100, Invoice
Ato Dawit Ethiopia no. 20
RS2001 Rodas Co. Goods W/ro rodas Franco, adama 11/22/22 Birr 4000
Ato seid Ethiopia Invoice 22
Po 31
YS2001 Kality Goods Ato Can Kality, 12/23/22 Birr 8,900
electronics Ato Kassa A A Ethio Invoice 21
Po 512
Erc01 ERCA service A A, Wereda
06

 Step 4: Maintain the following customer default information

Payment terms

- Due in number of days - Credit limit 500,000

- Net Due in 40 days - G l sales account 4100
- Discount in 15 days - Discount GL account 4101
- Discount percent 2%

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Account aging

Category Of days Column heading

1st column 45 0 – 45
2nd column 90 46 – 90
3rd column 120 91 – 120
4th column Over 120 days

Customer field

 Second contact
 Office manager

Finance charges

- All customers failing to pay within the credit period

- 6% interest on balance up to $25,000
- 8% interest on balance above $25,000
- The minimum finance charge is determined to be $10
- Finance charge is recorded on other income account (4610)

Maintain the following customers

Cust Customer Office Invoice no, date &

Name 2nd contact Address Terms
ID type manager Balance
Addis 1/15,n/30
Ato Fkad Br.3000, inv. 33
A01 Henok goods Ababa, credit limit Bekele
Ato dawit 12/15/22
Mexico Br 550,000
Jimma, keb General Br. 2,000, inv.36 PO.
E01 Elias Ao DS goods Kirubel
04 standard 38 12/23/22
Br.2,000, inv.no
R01 Ribka W/ro goods Dukem 1/10,n/45 Degefa
41,PO 56, 12/20/22

 Step 5:Maintain inventory default information

General
 Item class – stock
 General Ledger Sales : 4100
 General ledger inventory account: 1300
 General ledger cost of sales account: 5100
 Costing method average
 General ledger transportation account : 6150

- Taxes/ shipping
 All inventory items are subject to tax

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- Custom filed
 Label the items (inventory)
1. Maintain inventory information

Item Preferred Item Quantity on

Description U/M Unit cost price level
ID vendor type hand
C21 Computer Efrata trading Acer inch 5000 6000 15

T22 Television Rodas Co. Sharp inch 3000 4000 18

TR23 Tape recorder For all Sony inch 1000 1500 22

 Step 6:Maintain Sales Tax

Total tax to be Sales tax Sales Tax Vendor to be Account to track Sales tax ID Sales tax
charged agency ID agency name send sales tax name
Vat payable STC01 VAT
15% STA01 Sales tax authority ERCA
Sales Tax Sales tax payable ST02 TOT
2% STA02 Authority
ERCA

Step 7: transactions

 Jan13, issued purchase order No 01 to Kality Electronics to purchase 5 computers and 10 tape recorders at
Birr 4500 & 1800 respectively good through Jan 20.
 January 1, sold 3 units of computers to RIBKA CO. invoice no. 37 including 15% vat.
 January 4, sold 6 units of tape recorder on account to ELIAS by invoice no 38 plus 2% TOT.
 Jan. 16, purchased 20 units of tape recorders on account from Rodas Co. for invoice no 23.
 January 6, sold 10 units of television to HENOK on account by invoice no. 39 plus 15% vat. And received 10
% of the amount on invoice at the time of sales with deposit ticket ID 001 & reference No 001
 January 7, sold 2 units of computers & 3 units of tape recorders to Elias on account by invoice No 41.
Including 2 % TOT
 Jan 9, Invested capital is increased by Birr 10,000 and deposited at dashen Bank with Jv03
 January 10. Received cash on account from ELIAS for invoice 36 & partially on invoice No 41 (50%) receipt
01 deposit ticket ID 01 cash account –dashen
 Jan. 12, received cash on account from HENOK for full settlement of invoice 33, receipt 02 and deposit ticket
ID 03. Cash account – Dashen bank
 January 26, sold 1 units of computer to LEMMA on cash for birr 6,200 receipt 06 deposit ticket ID 06 cash
account Dashen bank. Including 2 % TOT

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  Jan. 17, purchased 10 units computer on account from Kality electronics invoice no 24
 Jan 18, purchased 15 units televisions & 10 units tape recorders from Rodas co. on account by invoice No
25and paid 10 % from the invoice total with reference No 005 from Dashen Bank
 Jan 20, Purchase order No 01 is converted to invoice No 26 at Br. 4,800 and 1,900 respectively from Kality el.
 Jan. 15, paid cash on account Efrata trading. For invoice no. 20 check no. 001. Cash account Dashen
 Jan25, paid cash on account to Rodas CO. for invoice 23 check 003 cash account Dashen
 Jan. 8, Received 4 television from sale of January 6 to HENOK because of some defective on it credit memo
no 001.
 Jan. 18, Returned 2 computers to Kality Electronics for purchase of January 17 because it has some defective
on the ram, debit memo 001.
 Jan 31, paid Supplies expense during the month birr 250 reference Jv01.
 Jan 31, Paid miscellaneous expense for the moth birr 500, reference Jv 04
 Jan 31 Depreciation expense is recorded for the month 1 % of equipment with Jv05

Note: to submit your assignment back up your file and send to flash disk