Accounting software Applications Practical Exercise

Exercise1: Maintaining Company

Company name . . . . . . . . . . . . (your name)

Business type . . . . . . . . Partnership
Address. . . Ethiopia, Addis Ababa, bole kefle ketema, kebele17
Telephone . . . . . . . . . . . . . . +251-67345678,
Fax . . . . . . . . . +251-23456789
Website . . . . . . . . . . . . . . . . www.your co. net
Email address . . . . . . . . . . . . your co @yahoo.com
Chart of Accounts . . . . . . Build your own company
Accounting method: accrual
Posting method. . . . . . . . . Real time/online
Accounting period . . . . . 12 months
First year of the fiscal period . . . . . . January, 2022

Exercise2: Maintaining the following chart of account as of December 31,

2021.

Click on Maintain item chart of accounts

To enter the
beginning balance
Account ID Description Account type use:
12/1/2021 through
12/31/2021
1000 Cash at Bank Cash 110,000
1010 Cash on hand Cash 55,000
1130 Account Receivable Account receivable 220,000
1140 Allowance for uncollectable Account receivable (13,200)
1150 Merchandise inventory Inventory 2,970,000
1160 Prepaid Insurance Other current asset 22,000
1200 Computers Fixed asset 440,000
1210 Accumulated depreciation Computers Acc. Depreciation 16,500
1300 Other Fixed asset fixed asset 990,000
1310 Acc. depreciation other fixed asset Acc. Depreciation 49,500
2000 Account Payable Account payable 20,400
2100 Sales tax (VAT) payable Other current liability 300
311 Capital stock Equity doesn’t close 4,299,400
312 Retained earning Equity retained earning 407,700
313 Dividend Equity gets close
4000 Sales Income
4100 Sales Discount Income
4120 Sales returns and allowance Income
 4130 Interest Income Income
5000 Purchases Cost of sales
5100 Purchases Discount Cost of sales
5120 Purchases returns and allowances Cost of sales
5160 Cost of goods sold Cost of sales
6000 Salary Expense Expense
6120 Supplies Expense Expense
6320 Transportation expense Expense
6520 Utility Expense Expense
6720 Miscellaneous expense Expense

Exercise3. Maintaining the following Vendor information’s

Step1 Maintain vendors Default

Click on maintain default information vendor

Payment term

Due in number of days

Net Due in 35

Discount date 15

Discount % 2

Credit limit 450,000

Expense account 5000

Discount GL account 5100

Step2 maintain the following vendor:

Click maintain menu vendor

Vendor Name Vendor Office Mgr Address

ID type History vendor beginning balance
Vendor date Amount
V01 VJ import-Export Goods MR. Kebe Adama Dec 9,2021 Birr7,400 Invoice #36
share company Kelbele 09 PO #512
Tel. 6464656
V02 GK business group Goods Ato Ali Addis Ababa Dec 4,2021 Birr 13,000
share company W28, K02 Invoice # 92
Tel. 2222 Po # 022
V03 Ethiopian revenue & Tax W/ro Hiwot Addis Ababa Dec 7,2021 Birr 300
custom authority W13K22 Invoice # 95
Tel. 1111111
 Exercise4: Maintain Sales Tax
STEP 1 maintain sales tax

Sales tax Sale

Sales Tax Sales Tax agency Sales Tax
Vendor Tax Rate ID tax
Agency ID Name account
name

Sales tax (VAT) T2020 VAT

ST CBE ERCA 15% payable

Exercise5: Customers’ information

Maintain Customer default
Step 1 Maintain default information customer
TERM AND CREDIT
Fill the following items:
Due in numbers of days
Net Due in 32
Discount in 15
Discount % 3
Credit limit 500,000
GL sales account 4000
Discount GL account 4100
Maintain customer information
Step 2 Maintain customers/prospects

Customer Name Contact Customer Address History customer

ID type beginning balance
Date Amount
C01 Snap PVt. Co. Mr. R5 W14k15,HNo123 Oct 23.2021 Birr 120,000
Nuru Tel 1234,Assosa Invoice# 330
PO # 212
C02 LLL Music Ato Ali R1 W01K14,HN0369 Oct. 27,2021 Birr 100,000
Shop Tel. 111, Mekelle Invoice # 36
PO# 30

Exercise6: Maintain Inventory information

Step 1: Maintain default information inventory item
GL account /costing
Stock item
GL sales account 4000
GL inventory account 1150
GL cost of sales account 5160
Costing Average
GL Fright account 6320
Step 2: Maintain inventory items

Item ID Description Preferred Item Type Price level

Vendor Beginning balance
Unit cost Quantity on hand
C01 Computer GK business Acer 10,300 9,900 150
group
TV01 Television VJ Import export Sharp 5,700 5,500 180
Share co.
TR01 Tape recorder Sony 2,600 2,200 225

Exercise 7: Transactions processing for the month of January, 2022

Record the following sales transaction for the month of January.

Task quotes /sales order/ proposal Sales order

Jan1, Sales order #11 has been issued to LL Music Shop for the sales of 20 televisions at Birr
5,000 and 15 tape recorders at Birr 2,500 Shipped after 5 days

Task menu sales invoicing

January 1. Sold 5 computers to snap PVT co. Invoice #0001, including 15% vat
January 4, Sold 3 tape recorder on account to LLL music shop by invoice #0002 plus 15%vat.
January 6, accepted SO# 11 for 20 units of television at birr 5,500 and 10 tape recorders at birr 2,700 to
LLL music shop on account by invoice #0003, plus 15%vat

Record the following cash receipt transaction for the month of January.
Task menu cash receipt

January 10. Received on account from Snap PVT Co. for the amount on invoice# 0001 receipt# 01
deposit ticket ID 01 Ref 101
January 12. Received cash on account from LLL music shop for full settlement of invoice #0002, receipt#
02 and deposit ticket ID 02. Ref. 102
January 13. Cash sale to the cash customer Mr. Amare for 20 computers Deposit ID 03 receipt# 03 Ref.
103
Task menu credit memo
January 7. Returned 10 television from sale of January 6 to LLL music shop because of some defective on
it credit mem#13

Record the following Purchase Transactions for the month of January.

TASK purchase order

January 10 issued Po # 10 to Vj import export to purchase 20 computer at birr 9,500 and 10 tape
recorders at birr 2, 000 good through January 20
Task menu purchase/receive inventory
January 16. Purchased on account from VJ import export Co for 150 Tape recorder invoice #003
January 20. Purchased on account from VJ import export for goods issued at purchase order 10 invoices
#005
January 22. Purchased on account from GK business group 2000 computers invoice #006
Record the following Cash payment transactions for the month of January.
Task menu payments
January 23. Paid cash on account from VJ import export for invoice # 36 check# 001
January 24. Paid cash on account to GK business group for invoice# 92 check#002
January 25. Paid cash on account to GK business group co for invoice#002 check#003
Record the following Debit and Credit Memo for the month of January.

Task menu vendor credit memo

January 23. Returned 500 Computers to GK business group because it has some defective when the co.
purchase on January 22 debit memo#14

Record the following general journal transaction FOR THE MONTH OF JANUARY.
Task general journal entry
January 31. Paid miscellaneous expense during the month birr 200.reference Jv01
January 31. Incurred supplies expense for the month Birr 250 reference Jv002
Exercise 8: Maintain Backup and Restore from the file menu.
8.1 Take a backup in the Desktop in the name of FINAL
8.2 Restore the Backup file with a new Company