Introduction to
MYOB AccountRight Plus
An introduction to the basic operations of a
computer-based accounting system using
MYOB AccountRight Plus.
Introduction
The aim of this book is to help people learn the accounting process using a modern
integrated accounting package. People in education and those small businesses
contemplating MYOB AccountRight Plus should find it a useful addition to the manual
and tutorial supplied by the distributors of MYOB AccountRight Plus. The exercises are
designed to reinforce the MYOB AccountRight Plus tutorial as well as helping with –
It is not necessary to go through the chapters in any particular order as each will
commence as a separate module – for example, the chapter on cash book will start by
learning how to process transactions through a cash book where the accounting system
is already set up. A simple set-up of accounts will then be undertaken so that any person
may use the cash book ‘stand-alone’. Later chapters will integrate the cash book with
other modules (called command centres in MYOB AccountRight Plus).
Included in this edition is a chapter on MYOB AssetManager Pro v3.5, a stand-
alone package for keeping track of assets.
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Chapter 1: Introduction to MYOB AccountRight Plus
chapter. The ‘How to …’ list is followed by an example and often a self-test exercise.
When you cannot remember how to carry out a task that was demonstrated in an
earlier chapter, you can look up the ‘How to …’ index at the front of the book. This
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index is shown by chapter, and by function. For example, if you are using the payroll
chapter and you are asked to “Open the file dem81.myo” and you cannot remember
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how to open an existing file, you can look up the instruction in the list by chapters or
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in the list by function. This will give you the page in the book that has the step-by-step
instructions to open an existing file.
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Step Instruction
3 From the list of files on your disk, highlight the file required and click the
Open button (or double click on the file name). The following picture shows
the file called dem11.myo in a folder called MYOBDATA on the hard disk
selected:
4 The ‘User ID:’ field will show “Administrator”. You are strongly advised
NOT to use passwords in exercises. Click on the OK button as shown below:
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Video: A video showing you how to open an existing file is on the CD-ROM
Self-test exercise 1.1
Start MYOB AccountRight Plus.
Open the file called dem11.myo and sign on as the “Administrator” without a
password. What is the name of the business?
Command centres
A major difference between MYOB AccountRight Plus and other accounting packages
is its menu system. Rather than produce a list for selection, it displays icons or names
that are selected by pointing to them with the mouse and clicking. Figure 1.1 shows
the selections available when the Accounts command centre button is selected:
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Every command centre window has four other options with drop-down
selections at the bottom of the window. These are the To Do List, Find Transactions,
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Reports and Analysis. Figure 1.2 on the next page shows the To Do List window as at 15
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August 2011 with the A/P (accounts payable) tab chosen (overdue days will depend on
your system date):
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To select a command centre (or an option within a command centre) you use the
mouse to move the on-screen arrow so that the point of the arrow is in the object being
selected. The mouse button is then “clicked” – a quick press of the left-hand button. This
process is called “point and click”. An instruction in these notes to “Select ...” will mean
that you use the mouse to move the on-screen pointer (arrow) so that the point of the
arrow is on the item to be selected and you tap (click) the mouse button – do not hold
your finger down on the button, but give it a quick press.
Menu system
Menus allow you to select from displayed alternatives. You have already been using
one of the MYOB AccountRight Plus menus – clicking on a displayed command centre
area selects that command centre. You will have noticed that each command centre
has a different set of options displayed, and these options represent another level of
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menu – clicking on an option selects a particular course of action.
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Another menu system is displayed at the top of the MYOB AccountRight Plus
window. These are the pull-down (or drop-down) menus, which will be familiar to
anyone who has used any Windows based program. In Windows XP, the title bar and
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menu bar with the Setup pull-down menu selected will look like Figure 1.4 on the
next page.
A drop-down menu item may have a small arrow at the right-hand side and this
indicates that a sub-menu exists. Click on the small arrow to display a sub-menu:
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Figure 1.5 on the next page shows a sub-menu for the Payroll Categories item in the
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Lists menu.
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Click to see a
sub-menu
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Figure 1.5: The Lists drop-down menu and Payroll Categories sub-menu
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Any number of
checkboxes may
be selected
The files provided with this book have been set up so that changes can be readily made
and errors corrected easily. This is not necessarily the best internal control procedure
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and in practice the first security option should be turned on and password protected. This
forces people to reverse incorrect entries so as to leave a trail. When you create a new
file in class for an exercise however, this facility for easy correction may be barred, and
you may need to re-set the security options. Figure 1.7 shows the preferences window
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How to set the security preferences and add users with passwords
Step Instruction
1 Select the Setup pull-down menu.
2 Select the Preferences item from the menu.
3 Click on the tab for Security.
4 There are several items which can be turned on or off by clicking in the
appropriate selection checkbox. For ease of correcting errors or cancelling a
transaction, the first checkbox should be turned off (no tick in the box). If
you do not want a backup message to appear when you exit MYOB
AccountRight Plus, turn the third checkbox off.
5 The second item has a drop-down selection list. Tick this preference and
point to the white box and drag down to make your selection.
6 To add users and set passwords, click on the User IDs button at the foot of
the security window.
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7 Only the person logged in as the Administrator with the master password can
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add or edit users and their passwords. To add a user click on the New button.
8 Enter a ‘User ID:’ and TAB to the ‘Password’ field.
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Step Instruction
13 To stop a user using a particular function, make sure the user is selected on
the left-hand side of the User Access window and click in the column headed
‘Not Allowed’ against the function that is barred. (Clicking on a function
heading selects all of the functions under that heading.)
14 Click on the OK button.
6. Type in “OZZIE” as the ‘User ID’ and use the TAB key.
7. Type in the ‘Password’ as “HATARI” (all in capital letters) and use the TAB key.
8. Repeat the password “HATARI” in the ‘Confirm Password’ field and click on the
OK button if your New User Details window looks like Figure 1.8:
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Note: You can use the drop-down list at the end of the ‘Copy Restrictions:’ field if you
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already have another user set up with the same restrictions as this new user.
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9. In this example, the user “OZZIE” is not allowed to access any Banking functions.
In the right-hand side of the User Access window, scroll down and click against
the Banking function as shown in Figure 1.9:
Click in this
column to stop a
user accessing
the function
System preferences
The preferences are set and removed by clicking in the checkbox next to the
preference. A checkbox with a tick in it means that the preference is “on”. The system
preferences that may be selected are shown in Figure 1.10:
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Windows
The Windows preferences determine how the windows will look and act when entering
or selecting fields. Figure 1.12 shows the setup for the file dem11.myo.
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Click on the Spelling button to
select the spell check options.
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Memo:
Account name or account number?
A most important Windows preference shown in Figure 1.12 that you may select is
the choice of listing and selecting accounts by either the name of the account or
the account number. A tick in the fourth box from the top as shown above will
mean that accounts will be listed by name. If the tick is removed, the accounts will
be listed by account number. Throughout this book, you may use whichever option
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Printing (in general)
Printing in MYOB AccountRight Plus often causes a certain amount of confusion
because there are a number of ways of obtaining printouts.
Options for printing documents are available directly from the command centre
menus. For example, the three options shown above are directly available from the
Sales command centre. Similar options will be found in the other command centres.
They are restricted to printing all or a “run” of documents each with the same
attribute.
OR
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The Send To button allows you to export the report instead of printing.
The report can be exported to an Excel spreadsheet, emailed, set as a
“PDF” or an “HTML” file or a simple text file. You must have the
requisite programs installed on your computer for all of these to work.
number “D-118”.
6. Click on the Selling Details tab at the top of the Item Information window.
7. Check that the ‘Base Selling Price’ of this item is $48.00 each, the ‘Tax Code
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When Sold:’ field is ‘GST’, and that sales prices are tax exclusive (checkbox not
ticked).
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Zoom or
detail arrow
Video: A video showing you how to use “detail arrows” is on the CD-ROM
Self-test exercise 1.5
Use the file dem11.myo. You should be signed on as the Administrator.
Select the Sales command centre Transaction Journal item.
Select the detail arrow for Invoice #8301. What is the description of the item sold?
Registers
The Registers are journal search and edit facilities for banking, purchases, sales and
inventory transactions. For example, in the Purchases command centre there is an option
called Purchases Register. This option is used to search for purchase quotes, orders,
open bills (unpaid supplier invoices), closed bills (paid supplier invoices), debit notes
and recurring purchase templates. Similar registers are found in the Sales, Banking and
Inventory command centres. s
How to use the Purchases Register to search
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Step Instruction
1 Select the Purchases command centre.
2 Select the Purchases Register option.
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3 If necessary, use a tab at the top of the Purchases Register window to narrow
the search to the type of purchase required.
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Backing up a file
You will see reminders throughout this book to back up the MYOB data file. You
should put the backup file in a separate location (not on the same disk that contains
your original file). The backup file is a condensed “zip” file that you should rename if
necessary to distinguish it from other backups.
3 Select Backup Company File and M-Powered Services Centre only and
either with or without checking for errors and click on Continue. If you
selected Check Company File for errors a message will report any errors
found. Check it and click the OK button.
4 Type in the file name of the backup file (it usually has a .zip extension).
Note: MYOB AccountRight Plus default backup name is MYOBmmdd.zip
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The mmdd is the date in the format of month and day. For example, if you are
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backing up on 30 June the default name would be MYOB0630.zip. Usually a
business would only have one MYOB AccountRight Plus data file but numerous
backup files, each identified by the date in the name. As a student you will be
working with a number of data files and it is necessary to name the backup files
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differently (i.e. use the original file name but with the .zip extension).
5 Change Drive and Folder if necessary (the default is a folder called Backup
in the directory containing the main file).
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Note: MYOB AccountRight Plus will NOT save a backup file to a floppy
disk if the original (source) file is also located on the floppy.
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Sample operations
All of the operations in this part will be covered in detail in later chapters. The
purpose here is to let you see how MYOB AccountRight Plus works when it has already
been set up. Later lessons will show you how to set up the business and the command
centres so that everyday transactions are automatically entered correctly in the accounts.
Some people will have to get used to the mouse while others will have to get used to
window operations. The style of future exercises and notes will also be the same.
4 Change a field by selecting it and editing the contents. To select a field, point
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Debit Credit
Accruals $2,778.00
Salaries and wages $2,778.00
Reversal of accrued wages
For this demonstration, type in the first few letters of “Accruals” until the full
account name is shown and then use TAB to go to the ‘Debit’ column.
6. Enter “2778” in the Debit column and .
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Unlike many other accounting packages, MYOB AccountRight Plus will not object
to the dollar sign or commas in the entry of dollar amounts, but you need not type
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Chapter 1: Introduction to MYOB AccountRight Plus
7. You could also allocate the amount to a particular job by entering in a job
reference in the ‘Job’ column. An additional Memo may also be entered for each
line of the journal entry in the ‘Memo’ column. The first line of the journal entry
should show a default tax code of “N-T”. This tax code is used for any entry that
has no effect on GST collected or paid. For tax codes and their meaning look at
Chapter 2.
8. Type “Sa” to select the “Salaries and Wages” account or type the account number
for “Salaries & Wages”.
9. TAB to the ‘Credit’ column and enter “2778” and (Note: The TAB key is used
extensively in MYOB AccountRight Plus whenever a line of a journal or document
is being entered).
10. Make sure that at the bottom of the window the totals of the Debits and Credits
agree and that the ‘Out of Balance’ field is $0.00. Your Record Journal Entry
window should look like Figure 1.17.
11. If you have made a mistake, point to the field, click and correct the error. If you
want to cancel the whole entry, use the EDIT pull-down menu and select Erase
General Journal Transaction.
12. Before you record any transaction you can use the EDIT pull-down menu at the
top of the screen and select the Recap Transaction menu item. This will give you a
preview of how the transaction will affect the accounts in the general ledger.
Figure 1.18 on the next page is the Recap Transaction window for the journal
entry shown in Figure 1.17.
13.
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Figure 1.17: A general journal entry in the Record Journal Entry window
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4. In this example, the window should be headed Purchases – New Item. In other
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cases, this can be changed to a services purchase by selecting the Layout button at
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the foot of the window. A purchase order may be for an item of inventory or for a
service (e.g. repairs to a fork lift).
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5. Make sure that the ‘Tax Inclusive’ box at the top of the Purchases – New Item
window is ticked (that is, the purchase price on this purchase includes GST).
6. With the cursor on the ‘Supplier:’ field, enter the supplier’s name – you may:
Tap the Enter key and select the supplier from the resulting list; or
Use the Selection List icon to the right of the field and select from the
list; or
Type in the first, or some of the first few letters, of the name and ; or
Type in the full name and .
For this exercise, type “D” for the supplier and . The full name “Delefontes Inc”
should appear in the ‘Supplier:’ field. Your business name should appear in the
‘Ship to:’ field. If you want to leave the field as is, you use the TAB key.
7. TAB through to the ‘Purchase #’ field and enter “100287” .
8. In the ‘Date’ field, change the date to “28/07/2011” .
9. Enter the ‘Supplier Inv#’ as “4890” .
10. The cursor will now be on the first line item under the column headed ‘Bill’. Enter
“100” for the quantity on the Bill and press the TAB key. If you press the Enter
key you will jump down to the next line item! If you accidentally do this, use the
up-arrow key – the cursor should move to the previous line. You will find that the
TAB key must be used in any window to enter information across a line.
11. Use TAB to leave the ‘Backorder’ field blank.
12. Enter the inventory ‘Item #’. Use the same technique as before – i.e. use the Enter
key for a selection list and select the item from this list, click on the Selection List
button or type in the item number and TAB. Select the item number by tapping
the Enter key and select item D-113 from the list as shown in Figure 1.19:
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15. The Total column should show the extension of $1,980.00. The code ‘GST’ should
also appear in the Tax column. The summary at the bottom of the invoice should
also show that $1,980.00 is the total amount and the balance on this invoice due
($1,800.00 plus GST of $180.00). You could change the ‘Journal Memo’ and other
fields by pointing to them, clicking and entering in different data. You can also add
comments to the Purchase Order. This will be covered in Chapter 6.
16. If your screen is not as per Figure 1.20 you may point to any incorrect field, click,
and re-enter the correct data. You may also abandon this purchase by selecting
Erase Purchase from the Edit pull-down menu and re-do the entry
17. Use the Edit menu, Recap Transaction menu item and compare the transaction
with Figure 1.21. Click on the OK button to close the Recap Transaction window.
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19. Click on the Cancel button to close the Purchases – New Item window. You will
return to the Purchases command centre window.
20. Click on the Transaction Journal option. Set the dates from 1/7/2011 to 31/7/2011.
21. Use the scroll bar to go to the end of the journal display and you should see your
entry for the $1,800 plus $180 GST for goods purchased from Delefontes Inc.
22. Close the Transaction Journal window.
5. Make sure that the ‘Tax Inclusive’ box at the top of the Sales – New Item window
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is ticked (that is, the sales price on this sales invoice includes GST).
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6. With the cursor on the ‘Customer:’ field, enter the customer name – you may
Tap the Enter key and select the customer from the resulting list; or
Use the Selection List icon to the right of the field and select from the
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list; or
Type in the first letter, or some of the first few letters, of the name and ;
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or
Type in the full name and .
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For this exercise, type “m” for the customer and . There are two customers with
names beginning with “M”, but ‘Macho Menswear’ is the first name in
alphabetical order and is displayed in the field. The full delivery address for
Macho Menswear should appear in the ‘Ship to:’ field.
7. TAB through to the ‘Date’ field and enter the date “29/07/2011” and .
8. Enter “3686” as the ‘Customer PO #:’ (purchase order number) and .
9. Enter “60” for the quantity under the ‘Ship’ field and use the TAB key.
10. TAB to leave the ‘Backorder’ field blank.
11. Enter the ‘Item Number’. Use the same technique as before – i.e. tap the Enter key
for a selection list and select the item from this list, or type in the item number and
, or use the Selection List button . Select the item number “D-113”. Tap the
Enter key to go to the next line of the invoice.
12. Enter “100” for the quantity to ship and TAB to the ‘Item Number’ field.
13. Select “I827” as the ‘Item Number’ and . The sales invoice should appear as in
Figure 1.22:
with Figure 1.23 on the next page. As a perpetual inventory system is used with
items of inventory, the entry combines the sale to a customer and the transfer of
cost from inventory to the cost of goods sold account. Click on the OK button to
close the Recap Transaction window.
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17. Click on the Cancel button to close the Sales – New Item window.
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18. Click on the Transaction Journal option. Set the dates at the top of the window
from 1/7/2011 to 31/7/2011.
; or
Type in the full name and .
For this exercise, enter “j” for Jag Gear Pty Ltd and .
Enter “5280” as the amount received .
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5. Jag Gear has paid by cheque. Use the Selection List icon in the ‘Payment
Method:’ field and select “Cheque” from the list of methods. You can also type
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15. You should see your entry for the receipt of $5,280.00 from Jag Gear Pty Ltd on
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30 July 2011.
16. Close the Transaction Journal window.
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Make a deposit
The previous section showed the receipt of a cheque from an account receivable.
There could be several cheques received in any one day in addition to other methods
of payment. You will see in Figure 1.24 that the money received has been debited to
an account called “Undeposited Funds”, and this must now be deposited at the bank.
The Prepare Bank Deposit option is used to bank these payments in a single deposit to
the bank.
1. Select the Banking command centre.
2. Click on the Prepare Bank Deposit option.
3. Enter the date as “30/07/2011” .
4. Leave the ‘Select Receipts by:’ field as “All Methods” and the ‘Memo:’ as “Bank
Deposit”.
5. In the ‘Deposit’ column, click against the cheque that is going to be deposited and
a “√” should show. The total deposit should show $5,280.00 as in Figure 1.25:
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Memo: If you only have a single receipt in a day, you can override the
default setup in this file and record the receipt directly to the bank
account. At the top of the Receive Payments window in Figure 1.24 you
will see that the receipt from Jag Gear was debited to “Undeposited
Funds”. If you select the option button for Deposit to Account, the receipt
is debited to the account for “Corporate State Bank” and you would not
use Prepare Bank Deposit.
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7. In the ‘Payee:’ field type in “Prospero County Council” and use the TAB key to
move to the ‘Memo:’ field. (If you use the Enter key in the ‘Payee:’ field it will
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11. If your Spend Money window is not as per Figure 1.27 you may point to any
incorrect field, click, and re-enter the correct data. You may also abandon this
receipt by selecting Erase Cheque Transaction from the Edit pull-down menu.
12. Use the Edit menu, Recap Transaction menu item and you should see that account
number 6-1050 “Electricity” has been debited with $420 (the expense excluding
the GST), account number 2-1430 “GST Paid” has been debited with $42, and the
bank account number 1-1120 “Corporate State Bank” has been credited with $462.
Click on the OK button to close the Recap Transaction window.
13. Click on the Record button.
14. Click on the Cancel button to close the Spend Money window.
15. Click on the Transaction Journal option. If your system date has been set correctly
you will see the journal entries for all the payments in July 2011 (if not, set the
beginning and ending dates at the top of the window).
16. You should see your entry for the payment of $462.00 to Prospero County Council
on 31 July 2011 ($420.00 for electricity and $42.00 for the GST paid).
17. Close the Transaction Journal window.
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2 To select a report, click on its name. Select Standard Balance Sheet in the
Index to Reports window. Your screen should be similar to Figure 1.28 on
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the next page, which shows the Standard Balance Sheet report selected.
(continued on the next page)
3 Click on the Display button to review the report on screen.
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If you set up preferences to always show Customise options (as per Figure
1.11 on page 1-15 earlier), the Report Customisation window will be
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Step Instruction
displayed.
4 To change print options before displaying the report you can click on the
Customise button.
5 Make selections from the resulting Report Customisation window under the
Advanced Filters tab – report level, selected period, date, and financial year
etc. This is shown in Figure 1.29 on the next page.
6 Click on the Finishing tab in the Report Customisation window and click
on the checkboxes for report preferences. Figure 1.30 on page 1-40 shows
selections for a balance sheet with zero balances included.
Note: If you want to save the particular customisation set up for the report,
click on the last checkbox for ‘Add Reports to Menu’.
7 Select the Display button to review the report on screen. Check for all
possible errors of fact or formatting (this is important to avoid unnecessary
printing of incorrect reports).
8 Click on the Print icon at the bottom left of the screen to obtain a printout.
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Figure 1.30: Report Customisation – Finishing options for a balance sheet
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Print the balance sheet. Compare your printout with the answer to this exercise.
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Try self-test exercise 1.13. Remember that the purpose in this introduction is to
become familiar with MYOB AccountRight Plus, the mouse and Windows. If you look
back at pages 1-22 to 1-39 for examples, the following transactions will follow the
order given on those pages.
Self-test exercise 1.13
Use the file dem11.myo. This self-test problem follows on from the Hat business
example above.
All of the following entries are at 31 July 2011.
Record a general journal entry to accrue $2,438 salaries and wages at the end of the
month. This entry is –
Debit Credit
Salaries and Wages $2,438.00
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Accruals $2,438.00
Accrued salaries and wages at 31/7/2011
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(see page 1-24 for example)
Record a bill for the purchase of 60 A-D40 hats from Acubra Hats Pty Ltd on credit at
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$49.50 each (including GST). Supplier invoice number is 8948. Select the comment
“We appreciate your business” and the Ship Via is Best Way Transport (see page 1-26
for example).
Record an invoice for the sale of 40 Golf Caps (Item # I827) on credit to Jag Gear Pty
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exercise. In later chapters you will learn to set up MYOB AccountRight Plus correctly
and learn in greater detail the various options available. You will also get plenty of
practice in transaction entry!
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email address.
Print the accounts list summary (include zero balances).
Exit MYOB AccountRight Plus.
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1.3 Using the abbreviations given, indicate the classification of the accounts listed:
CA – Current Assets
NCA – Non-Current Assets
CL – Current Liabilities
NCL – Non-Current Liabilities
P – Equity (Proprietorship)
I – Income
E – Expense
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1.4 Using the information in Question 1.3 (and your answer), prepare a draft balance sheet.
Use group headings, indent account names for items that will be totalled, and indicate
where totals will appear. Here is a start –
Assets
Current Assets
Cash
Commonwealth Bank
Westpac
Petty Cash
Total Cash
Accounts Receivable
Accounts Receivable
Provision For Doubtful Debts
Net Accounts Receivable
Bills Receivable
Inventory
Prepayments
Total Current Assets
Non-Current Assets
etc.
Note: In the example above, there are four indents (or margins). From left to right
they go from the most general heading to the most specific posting account.
This four-level layout, and the difference between headings and posting
accounts is most important in designing a Chart of Accounts in MYOB
AccountRight Plus.
1.5 List the advantages of using a computerised bookkeeping system rather than a manual
system. Are there any disadvantages? s
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1.1 The business name for the dem11.myo file is “Possum Hats Company”.
1.2 (a) There are 8 Command Centres. The Banking Command Centre contains options
for receiving and paying money. This includes electronic payments and bank deposits.
The other principal option in this Command Centre is “Reconcile Accounts” and this
is used mainly for bank reconciliations.
The Sales Command Centre is used to record invoices for goods and services sold to
customers on credit and to record payments received from them. There are also
options for printing or emailing documents.
The Card File Command Centre is used to maintain (add/edit/delete) information
about customers, suppliers, employees and personal contacts. Options are also
available to use the card information for labels and form letters.
(b)
Enter sales – Sales Command Centre
Pay bills from suppliers – Purchases Command Centre
Spend money – Banking Command Centre
Set item prices – Inventory Command Centre
Print Payment Summaries – Payroll Command Centre
Prepare time billing invoice – Time Billing Command Centre
Reconcile accounts – Banking Command Centre
1.3 The preferences are shown in Figures 1.9 and 1.10. Part of the User Access window
for the user called “MKUBWA” is:
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1.4 The window for the reports and forms preferences is already shown in Figure 1.11.
The Report Format window showing the new font for the report line:
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1.7 No answer – you should be able to exit and to make a backup of your file.
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Chapter 1: Introduction to MYOB AccountRight Plus
1.8
1.9 The details on Invoice #8301 made out to Jag Gear on 3 July are:
(e) The carrier as per the ‘Ship To:’ field was “Hills Transport”
(f ) The full comment is “Call Steven on 0457 893 456 for next month’s specials” s
(g) The promised delivery date was 15/7/2011
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(h) The delivery address for Jag Gear is 44A Silvertail Drive, Manly, NSW 2095
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1.10
Possum Hats Company
Answer to self-test exercise 1.10
Balance Sheet
As of July 2011
Assets
Current Assets
Cash and Bank
Corporate State Bank $14,024.00
Petty Cash $500.00
Undeposited Funds $0.00
Electronic Clearing $0.00
Payroll Cheque Account $0.00
Total Cash and Bank $14,524.00
Accounts Receivable
Accounts Receivable $43,296.00
Provision for Doubtful Debts ($500.00)
Total Accounts Receivable $42,796.00
Inventory $14,440.00
Deposits $0.00
Prepayments $2,100.00
Total Current Assets $73,860.00
Non-Current Assets
Furniture & Fixtures
Furn. & Fittings – at cost $11,800.00
Acc. Depreciation – F&F ($2,360.00)
Total Furniture & Fixtures $9,440.00
Office Equipment
Office Equipment – at cost $26,000.00
Acc. Depreciation – Off.Equip. ($8,400.00)
Total Office Equipment $17,600.00
Motor Vehicles
Motor Vehicles – at cost $88,000.00
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Acc. Depreciation – Motor Veh. ($18,200.00)
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Total Motor Vehicles $69,800.00
Deposits Paid $0.00
Total Non-Current Assets $96,840.00
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Liabilities
Current Liabilities
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1.10 (continued)
PAYG Withholding Payable $1,664.00
Payroll Liabilities $0.00
GST Control
GST Collected $18,426.00
GST Paid ($20,079.71)
Total GST Control ($1,653.71)
Customer Deposits $0.00
Unearned Service Contracts $0.00
Total Current Liabilities $29,985.29
Non-Current Liabilities
Loan – D. Doubleday & Crap $5,000.00
Loan – A.G.C. Finance $15,000.00
Total Non-Current Liabilities $20,000.00
Total Liabilities $49.985.29
Equity
Capital – P. Doubleday $92,931.15
Drawings $0.00
Retained Earnings $0.00
Current Year Earnings $3,004.91
Reserves $24,778.65
Historical Balancing $0.00
Total Proprietorship $120,714.71
1.11
Possum Hats Company
Answer to self-test exercise 1.11
Profit & Loss Statement
July 2011
Income
Sales – Acubras $19,600.00
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Sales – Delefontes $6,960.00
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Sales – Imports $5,900.00
Total Income $32,460.00
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Cost of Sales
Cost of Goods Sold – Acubras $12,440.00
Cost of Goods Sold – Delefontes $3,480.00
Cost of Goods Sold – Imports $4,500.00
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1.11 (continued)
Expenses
Advertising $413.23
Bank Charges $56.00
Depreciation $0.00
Discount Allowed $0.00
Electricity $420.00
Employer Expenses $0.00
Insurance $661.15
Interest $28.00
Motor Vehicle $401.66
Office Expenses $206.61
Postage $71.07
Professional Fees $0.00
Rent $1,652.89
Repairs & Maintenance $56.20
Salaries & Wages $4,222.00
Telephone $347.11
Travel $499.17
Payroll Tax $0.00
Workers Compensation $0.00
Penalties (non-deductible) $0.00
Entertainment (non-deductible) $0.00
Total Expenses $9,035.09
Other Income
Interest Received $0.00
Commission Received $0.00
Total Other Income $0.00
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Liabilities
Current Liabilities
Accounts Payable $24,695.00
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Accruals $2,438.00
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PAYG Withholding Payable $1,664.00
GST Control
GST Collected $18,506.00
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1.11 (continued)
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Proprietorship
Capital – P. Doubleday $92,931.15
Current Year Earnings $720.91
Reserves $24,778.65
Total Proprietorship $118,430.71
Cost of Sales
Cost of Goods Sold – Acubras $12,440.00
Cost of Goods Sold – Delefontes $3,480.00
Cost of Goods Sold – Imports $5,100.00
Total Cost of Sales $21,020.00
Expenses
Advertising $413.23
Bank Charges $56.00
Electricity $420.00
Insurance $661.15
Interest $28.00
Motor Vehicle $401.66
Office Expenses $252.61
Postage $71.07
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Rent $1,652.89
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Repairs & Maintenance $56.20
Salaries & Wages $6,660.00
Telephone $347.11
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Travel $499.17
Total Expenses $11,519.09
Operating Profit $720.91
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