Computerized Accounting for Degree students Practical Project

Project 1.Company Name and Address Information:

- ASHEGODA PLC + Your Name and ID No., P.O.Box 42522, Tel. 251-1-75-88-90, Fax 251-
1-51 40-41, [email protected], [email protected] Addis Ababa, Ethiopia,
Business Type: Private Limited Liability
- Chart of accounts: Build your own chart of accounts
- Accounting Method: Accrual
- Posting Method; Real Time
- Accounting Period : 12 month calendar
 First period fiscal year started: Jan – Dec, 2013
 First period data will be entered: November, 2013
 First period payroll data entered: 2013
Project 2. Maintaining Peachtree Security:
- You are assigned as an administrator of the Peachtree Accounting Software for this Co. Maintains for recording
and reporting its financial affairs. You should use your name as both your user ID and Password (use small letter)
Project 3. Activate the “Use Audit Trial”:
- The firm wants to trace any activities performed in its Peachtree Accounting Co. records through
all possible options that the program provides.
Project 4. Maintaining Chart of Accounts & Beginning Balance:
Trial Balance as of October 31, 2013
Acct. No. Account Description Account Type Debit Credit
1110 Petty Cash 10,000.00
1115 Cash at Bank Saving 10,000.00
1120 Cash at Bank checking 35,000.00
1140 Account Receivable 1,800.00
1141 Allowance for Uncollectible 197.00
1145 Inventory 102,560.00
1150 Office supplies 6,500.00
1160 Prepaid Insurance 2,800.00
1220 Equipment 50,000.00
1221 Acc. Depreciation Equipment 5,000.00
1230 Vehicle 120,000.00
1231 Acc. Depre-Vehicle 10,000.00
1240 Furniture & Fixture 50,000.00
1241 Acc. Depre - Furnit. & Fix 4,680.00
2110 Accounts payable 11,780.00
2115 Income Tax payable 500.00
2120 Salary payable 5,000.00
2210 Mortgage payable 50,000.00
3110 ASHENDA’S Capital 257,615.00
3115 ASHENDA’S Withdrawal
3220 Retained Earnings 43,888.00
4110 Sales
4215 Sales Allowance
4220 Miscellaneous Income
5110 Cost of Good Sold
6210 Salaries & wages expense
6220 Shipping Expense
6225 Repair & Maint. Expense
6230 Income tax expense
6235 Supplies Expense
6240 Rent Expense
6245 Miscellaneous Expense
6250 Transport Expense
6255 interest Expense
6260 Electricity Expense
6265 Fuel Lubricant Expense
6270 Telephone Expense
6275 Insurance Expense
6280 Depr’ Expense - equipment
6285 Depr' Expense -Vehicle
6290 Depr' Expense -Furniture ------------------- --------------
Total 388,660.00 388,660.00
Admas University August, 2022 G.C. 1
Department of Accounting Fahmi S.
 Computerized Accounting for Degree students Practical Project
Project 5. Maintaining Customer & related information:
5.1. Customer’s Default information
The company sells goods to its customers both on cash and credit basis. Sales and related discounts
are recorded in the Sales Account No. 4110 and Sales Discounts Account No. 4120 respectively.
Finance charges on overdue accounts are recorded in the Interest Income Account No. 4130. All
credit customers, except those Having special agreements with the company, are required to settle
their obligations for goods bought on credit within 30 days from the date of each credit sales invoice.
They are entitled to 2% discount for payments within 10 days from the date of each credit invoice.
The credit limit is set at $300,000 per credit customer. All customers failing to pay within the
credit period (30 days) are subject to 5% interest on balances up to $10,000 and 7% interest on
balances above. The minimum finance charge is determined to be $5. The company does not
charge interest on finance charges. Finance charges are included and explained in customer invoices
and statements as late charges. The Company wants to record Additional information about the
Sub-City, Woreda and TIN of each of its customers. At present, the company accepts only cash
and checks as payment methods. Customer invoices are age by invoice date and are to be
categorized as follows; 0-45, 46-90, 91-120, and over 120 days overdue in categories I, II, III and
IV, respectively.

5.2. ASHEGODA Customer Ledger Balance as October 31, 2013

Code Customer Address Contact Additional Info. Inv. Date Inv. Acc.
Name Sub-City Woreda TIN # Balance
C-1001 KT Saris Alemitu Lafto 02 00123 10/01/13 0051 300
C-1002 AB Piassa Chala Arada 10 00124 10/01/13 0052 400
C-1003 ET Merkato kebede A.Ketema 04 00135 10/01/13 0053 500
C-1004 BE Bole Abdu Bole 03 00453 10/01/13 0054 600
Total 1,800

Project 6. Maintaining Vendors & related information:

6.1. Vendor’s Default information

The company buys goods and services from different vendors/suppliers both on cash and credit basis.
Majority of its vendors allow the company to buy goods and services worth up to $250,000 on
credit and earn a 3% discount if invoices are paid within 20 days from the date of purchase or else
pay within 40 days. The Company wants to record information about the office manager and
establishment (est.) date of each of its vendors. The company uses the Purchases Account No.
5120 to record all purchases of goods from vendors. Purchase discounts taken are recorded in the
Purchase Discounts Account No. 5125 while Purchases Returns and Allowances are recorded in
Purchases Returns & Allowances Account No. 5130. The company allowed its vendors to deliver
goods and services in the best ways possible. The company wants to age vendor invoices by due
date. The invoices are to be categorized as follows; 0-25, 26-60, 61-120, and over 120 days overdue
in categories I, II, III and IV, respectively. Besides, the company has special agreements with the
following vendors.

6.2. ASHEGODA Vendor Ledger balance of October 31, 2007

Code Vendors Address Contact Office Est. Inv. Date Inv. # Acc.
Name Manager date Balance
V-1001 EAT Bole Bayu Ato. Mekuriya 1980 10/01/13 0091 3600
V-1002 PC Mexico Lemlem W/ro Meron 1970 10/01/13 0092 2180
V-1003 BLTD Merkato Hailu Mr. Alemu 1890 10/01/13 0093 2000
V-1004 SP Piassa Amare Mis. Hlina 1997 10/01/13 0094 4000
Total 11,780
Project 7. Maintaining Inventory Items & related information:
Admas University August, 2022 G.C. 2
Department of Accounting Fahmi S.
 Computerized Accounting for Degree students Practical Project

7.1. Inventory Items Default information

The firm buys and sells 5 inventory items, which are all stock items, and Average is considered to
be the default inventory costing method. All inventory items are subject to VAT. The company uses
the Inventory (1145), Sales (4110) and Cost of Goods sold (5110) accounts to record
transactions related to inventory items. The Fright -in Account No. 6251 is used to record delivery
costs. Inventory items are received from vendors through the appropriate and best method of
delivery. The company wants to record additional information related to alternative vendors and
substitutes (subst.) of all its inventory items. At present the company uses one price levels
named W-Price, but has the plan to use additional one price levels named R-Price at which its
inventory items are offered for sell. The current price levels need no calculation.
7.2. ASHEGODA Stock Balance as October 31, 2013
Produc vendors substitutes Sales
Unit of Cost
ID t (subst.) Location Qty. Price
Measure Preferre Alternative
Price
Name d
I-1001 S Cartoon EAT AB T WH-1 456 10 550
I-1002 HM Unit PC XYZ MH Shelf B 25 200 30
I-1003 MCH Cartoon BLTD AK HCM Shelf C 500 100 650
I-1004 BI Cartoon SP BYD IB Shelf D 200 200 300
I-1005 HP Unit PC Admas PH Box 15 20 150 35

Project 8. Maintaining Sales Tax

The Company has VAT registered and settled the necessary balance on Account No. 2125
(VAT Payable)
8.1. Maintain Sales Tax Authority
ID Description Tax Rate Tax payable to Sales tax payable Account
ERCA Ethiopian Revenue & 15% ERCA Value Added Tax Payable
Custom Authority
8.2. Maintain the following sales Tax Code
ID Description Tax Fright Taxing Authority ID
VAT Value Added Tax No ERCA
Project 9. Maintaining Business Transaction:
Enter the following cash sales and credit sales as November 2013
1. Sold on account 2 cartoons of S and 5 units HP to ET by invoice @ 0055 including VAT.
2. Collected Birr 400 from AB for settlement of outstanding invoice # 0052, Cash Rec. # 551 and Deposit
Slip # 001.
3. Sold 2 Cartoons of MCH and 3 units of HM Birr 1598.5 to Cash Customer Cash Rec. # 552 and
Deposit Slip # 002 including VAT
4. Sold 2 cartoons BI on account to KT by invoice # 0056 including VAT
5. Received 600 cash from BE for settlement of Inv. # 0054 by cash Rec. # 553 and Deposit slip # 003
6. Sold 30 units of HP on account to ET by Inv. # 0057 including VAT
7. Sold 3 Cartoons of BI to BE on cash Birr 900, cash Rec.# 554 and Deposit Slip # 004 including VAT
8. Sold 10 Cartoons of MCH to AB on cash Birr 6,500 cash Rec. # 555 and Dep. # 005 including VAT
9. Collected Birr 300 from KT for settlement of outstanding invoice # 0051, Cash Rec. # 556, Dep. # 006.
10. Sold 25 units of HM, 15 Cartoons of MCH and 10 Cartoons of BI for AB on account. Inv. # 0058
including VAT
11. Sold 2 Cartoons of MCH and 20 unit of HM on cash Birr 2185.00 to a Cash Customer, Cash Rec. #
557, Dep#007 including VAT.
12. Granted Credit to KT 1 Cartoon of BI returned by him, Inv. #0056 and Credit Memo 31.
13. Sold 5 units of HM on account to KT Inv.#0059 including VAT
14. Granted allowance for damage of one cartoon of BI to KT by Invoice #0056 and credit memo 32.

Admas University August, 2022 G.C. 3

Department of Accounting Fahmi S.
 Computerized Accounting for Degree students Practical Project

Enter the following cash Purchase and credit purchase as November 2013
14. Paid on accounts to PC for purchase of Inv. # 0092 $2,180 by CK # F0012351, Ref. PV-1
15. Purchase 20 cartoons of BI from BLTD $4,000 by CK#F0012352, Ref- PV-2
16. Bought supplies on cash from EAT, $ 5000 by CK#F0012353 Ref. PV-3
17. Purchase office furniture from OMEDAD on account $ 45,000 Inv. # 0095, Ref. IV-2
18. Purchase 50 Cartoons of S from EAT on account, $22,800, INv#0096, Ref. JV-3.
19. Purchase of computer from OMEGA systems on cash, $10,000 CK#F0012355, Ref, PV-5
20. Purchase of 20 cartoons of MCH from PC on account $10,000 Inv. #0097, JV-4
21. Purchase of 400 units of HP on account from BLTD, $8,000, Inv. #0098, Ref JV-5
22. Paid on account to EAT for purchase of Inv # 0091, $3,600 CK#F00012356, Ref. PV-6
23. Paid on account to BLTD for purchase of Inv. #0093, $2000, CK#F0012357, Ref. PV-7
24. Settled monthly principal payment of $5,000 and interest of $375 on Mortgage loan to Dashen Bank
by CK#F0012358, Ref, PV-8.
25. Bought 10 units of HM on cash from Cash Customer on $250 by CK#F0012359, Ref. Pv-9.
26. Paid Electricity Expense to EELPA Birr 200 for the month by CK#F0012360, Ref. Pv-10.
27. Paid September Monthly Payroll Birr 5,000 covering Salary Expense Birr 5,500 less deduction from
employees income tax Birr 500 paid by Casher by CK#F0012361, Ref. PV-11
28. Paid Telephone Expense to ETC Birr 450 for the month by CK#F0012362, Ref. PV-12
30. Enter the following Adjusting Entries for the month ended November 30. Ref.# JV-001.
- Supplies on hand 3,600.00
- Unexpired insurance 1,200.00
- Depreciation Expense – Equipment 10% of the original value
- Deprecations Expense – Vehicle 15% of the original Value
- Depreciation Expense Furniture & Fixture 10% of the original value

Project 10. Maintaining Payroll and Payroll related Information:

10.1. Additional Information

1. Assume that all employees were hired on Different period of Time.

2. Almaz average hourly compensation rates for regular and overtime work are Birr 10 and Birr 15, respectively.
Besides, the company pays Birr 400 monthly tuition fee.
3. The company's employee pension Contribution fund plan is maintained with Commercial Nominees Plc as per
the current Pension Contribution tax regulation.
4. All permanent employees of the company, except Girma - the GM, make monthly contribution to the
Ethiopian Labor Union 1% of his basic salary.
5. The company regularly remits employee withholding, including income tax, provident fund contribution,
union due and bank loan, to the appropriate institutions within 10 days of the month next to the salary month.

Admas University August, 2022 G.C. 4

Department of Accounting Fahmi S.
 Computerized Accounting for Degree students Practical Project
10.2. Maintaining employee’s information:
Based on the above information complete all the necessary payroll procedures and generate payroll
register for the month ended November 2013.

Custom Fields Other

Employee Hired
Over-time Monthly

Basic Salary
Status (Hrs) Deductio

Qualification
Educational
Employee

date
Name

ID ns (Birr)

Birth day
Position

Normal

Advance
Sunday

Salary
Holiday

Loan
Bank
Employ. Marital

Night
Girma G11 G. Manager 02/12/71 MBA Permanent Married 01/11/99 6,000 - 5 - 8 400 -
Lemma L12 Personnel 13/09/78 HRM Permanent Married 12/02/95 4,500 - 6 - 5 300 200
Hiwot H13 Accountant 07/06/80 ACCA Permanent Single 02/05/02 3,000 5 3 - 2 - 100
Alemu A14 Purchaser 26/07/83 Diploma Permanent Married 07/07/03 2,400 4 3 - 2 - 200
Almaz A15 Secretary 19/01/81 10+2 Temporary Single 10/01/04 100Hr 40 30 - 2 - -

NB: you should create all the necessary company payroll tax tables using your own Tax knowledge.

Project 11. Prepare bank reconciliation as of November 30, 2013.

Dashen Bank
Monthly Bank Statement (Checking Account)
ACCT NO. 2895

Date Trans No Trans Description Ck Amount Deposit Amt Balance

1/1/13 BEGBAL 35,000.00 35,000.00
1/1/13 F0012351 PC 2,180.00 32,820.00
1/2/13 001 AB 400.00 33,220.00
1/2/13 F0012352 BLTD 4,000.00 29,220.00
1/3/13 002 Cash customer 1,598.50 30,818.50
1/3/13 F0012353 EAT 5,000.00 25,818.50
1/5/13 003 BE 600.00 26,418.50
1/6/13 F0012355 Purchas from Omega System 10,000.00 16,418.50
1/7/13 004 BE 1,035.00 17,453.50
1/9/13 F0012356 EAT 3,600.00 13,853.50
1/10/13 005 AB 7,475.00 21,328.50
1/10/13 F0012357 BLTD 2,000.00 19,328.50
1/11/13 006 KT 300.00 19,628.50
Bank Service Charge 24.00 19,604.50

Admas University August, 2022 G.C. 5

Department of Accounting Fahmi S.