Administer Accounts Payable (FNSICACC301A)
The following exercises are designed to enable practice in the following:
1:
Distribute creditors invoices for authorisation
1.1
1.2
1.3
Invoice discrepancies are identified, investigated and rectified
Invoices are encoded and recorded correctly
Authorisation for payment is requested of appropriate personnel
2:
2.1
Remit payment to creditors
Authority to pay invoices is obtained in accordance with organisation's policies and
procedures
Cheque requisition is correctly drawn up and authorised
Correct general ledger to be drawn against is identified
Correct account is debited in a timely manner and in accordance with legislative and
compliance requirements
Creditors payments are prepared in an accurate manner
2.2
2.3
2.4
2.5
3:
3.1
3.2
Prepare accounts paid report
Data is collected and entered onto spreadsheet giving details of creditors and amounts
paid
Report on accounts paid is prepared for ratification by appropriate management
4:
4.1
4.2
Reconcile balances outstanding
Statements of outstanding balances are sought from suppliers where required
Balances outstanding are reconciled to invoices received
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 1
SAM’S SALMON –
Samantha is the proprietor of an Atlantic Salmon fishing business called “Sam’s Salmon” which
is located at Post Office Box 123, Dover 7117.
Sam possesses the necessary licence from the State Fisheries Board at $20,000.00 per salmon
pen.
Sam grows the Salmon and sells them to export wholesalers. This means that for GST purposes,
Sam’s coding is EXP (sales of salmon) and NCF (spending items). (That is all of his sales are
GST free and he does not have to pay any GST on expenditure items.)
As the bookkeeper Sam has authorized you to process invoices and cheques up to the value of
$100.00, ready for her signature. Any amount in excess of this level has to have Sam’s prior
approval before any processing is to take place.
Task 1:
Establish a QuickBooks data file for Sam.
Open the program Q/Bks 2008/9. File, New Company, Startup Interview. Make sure you
complete the following
1.
Company Information
2.
Individual Tax return
3.
Financial Year – July
4.
Continue to select ‘Next’ until you are asked to create the company file and select the
location.
The balance sheet as at October 1, 2010 included:
ASSETS
$ EQUITIES
Current assets
$
Current Liabilities
Cash at Bank – Dover Com Bnk
Salmon Pens
Petty Cash
Salmon License
1200
4200
200
1,200,000
Non-current liabilities
Loan – Dover Credit Union
200,000
Non-current assets
2 Delivery Utes
Office Furniture & Equipment
Salmon Boat
2 Dinghies & Outboard Motors
TOTAL ASSETS
14500
2000
Owner’s Equity
Capital – Sam
1279600
250,000
7500
1479600
TOTAL EQUITIES
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 2
1479600
Task 2: Key in the October budget figures.
The budgeted amounts for October, 2010 include:
Sales (31 days x 150 kilograms x $35.00 per kg)
$162,750.00
Boat Expenses (tax codes NCF for each)
Petrol & Oil
Depreciation of Salmon Boat
Salmon Boat Registration & Insurance
Depreciation of Outboard Boats
Outboard Boats Registration & Insurance
Repairs to Salmon Boat Equipment
Mobile Phone Expenses
Two Assistant’s Wages, Superannuation, Sick Leave etc
50000.00
5000.00
2500.00
1250.00
1450.00
4500.00
1250.00
36000.00
Salmon Pens Expenses (tax codes NCF for each)
Repairs to Salmon Pens
Fish food Expenses
License Fee
5500.00
20000.00
2000.00
Vehicle Expenses (tax codes NCF for each)
Petrol, Oil & Tyres
Depreciation of Vehicles
Vehicles Registration & Insurance
750.00
1700.00
400.00
Administration Expenses (tax codes NCF for each)
Post Box Hire
Depreciation of Office Equipment
Stationery
Home Office Electricity
Fishing Association Subscription
Sickness & Accident Insurance
10.00
250.00
25.00
70.00
250.00
2500.00
Finance (tax codes NCF for each)
Interest Expense
State Payroll Tax
Bank Charges
3200.00
100.00
150.00
Total Budgeted Monthly Expenses
Budgeted Net Profit for October
138855.00
23895.00
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 3
Task 3:
October 1:
October 2:
October 3:
October 4:
October 5:
October 6:
October 7:
October 8:
October 9:
October 10:
October 11:
October 12:
October 13:
October 14:
October 15:
October 16:
October 17:
October 18:
October 19:
October 20:
October 21:
October 22:
October 23:
October 24:
October 25:
October 26:
October 27:
October 28:
October 29:
October 30:
October 31:
The actual salmon harvests for October were:
25
225
200
150
180
195
226
165
170
170
120
100
75
80
170
120
130
0
0
75
150
85
90
30
70
120
190
85
135
0
165
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 4
Task 4: Record the following transactions in Sam’s QuickBooks
During October, Sam undertook the following transactions:
October 1:
October 1:
October 1:
October 1:
October 1:
October 2:
October 3:
October 7:
October 8:
October 9:
October 10:
October 11:
October 11:
October 12:
October 13:
October 14:
October 14:
October 15:
October 16:
October 17:
October 18:
October 19:
October 20:
October 20:
October 20:
October 21:
October 22:
October 23:
October 24:
October 24:
October 25:
October 26:
October 27:
October 28:
October 29:
October 30:
October 31:
Purchased frozen Salmon Fish food from Dover Fisheries ch200 $4250
Sam purchased petrol for the salmon boat ch201 $10000
Sam purchased petrol for the vehicles ch202
$200
Purchased salmon pen license ch203
$10000
Purchased Salmon Boat ($12500) & Outboard Boats Rego & Insurances ($7250) ch204
Cash Sale of 483 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Sam purchased petrol for the salmon boat ch205 $10000
Paid Dover Engineering for salmon pen repairs ch206 $2500
Cash Sale of 951 kilograms of Salmon to Geveston Enterprises @ $39.00 per kg
Purchased frozen Salmon Fish food from Dover Fisheries ch207 $2800
Purchased spare light globes (petty cash voucher 25)
$3
Cash Sale of 625 kilograms of Salmon to Huon Fisheries @ $35.00 per kg
Sam purchased petrol for the salmon boat ch208 $10000
Paid Fishing Association subscriptions ch209
$250
Purchased frozen Salmon Fish food from Dover Fisheries ch210 $3000
Cash Sale of 255 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Purchased tea, sugar & biscuits for morning teas (petty cash voucher 26) $10
Purchased frozen Salmon Fish food from Dover Fisheries ch211 $2150
Sam purchased petrol for the vehicles ch212
$250
Cash Sale of 420 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Paid Dover Engineering for salmon pen repairs ch213 $500
Sam purchased petrol for the salmon boat ch214 $10000
Cash Sale of 75 kilograms of Salmon to Geveston Enterprises @ $42.00 per kg
Paid for petrol for the delivery van ch215
$60
Purchased frozen Salmon Fish food from Dover Fisheries ch216 $1500
Cash Sale of 150 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Paid Dover Printing for new office stationary ch217
$100
Paid Dover Insurance Co for Sickness & Accident Insurance ch 218 $2500
Paid Eastern Energy for lighting ch219 $55
Sam purchased petrol for the salmon boat ch220 $10000
Cash Sale of 275 kilograms of Salmon to Geveston Enterprises @ $37.00 per kg
Purchased frozen Salmon Fish food from Dover Fisheries ch221 $2650
Cash drawings ch222 $300
Purchased milk for morning teas petty cash voucher 27) $2
Paid phone account ch223
$1150
Paid Assistants wages 30000; superannuation 2400; tax 600; Work cover 2000 ch224
Cash Sale of 695 kilograms of Salmon to Huon Fisheries @ $30.00 per kg
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 5
Task 5: Reconcile Sam’s bank account.
Bank Statement for October:
SAM’S SALMON
Dover Community Bank
BANK STATEMENT
Branch
Number
6666
DATE
TRANSACTION DETAIL
1 OCT
6 OCT
6 OCT
8 OCT
8 OCT
9 OCT
11 OCT
13 OCT
13 OCT
14 OCT
15 OCT
16 OCT
16 OCT
17 OCT
18 OCT
18 OCT
20 OCT
23 OCT
23 OCT
23 OCT
25 OCT
25 OCT
25 OCT
26 OCT
26 OCT
26 OCT
27 OCT
27 OCT
28 OCT
29 OCT
29 OCT
30 OCT
30 OCT
30 OCT
31 OCT
31 OCT
BALANCE FORWARD
200
DEPOSIT
202
DEPOSIT
201
DEPOSIT
203
204
INTEREST EXPENSE
205
210
DEPOSIT
211
212
DEPOSIT
216
217
206
DEPOSIT
BANK FEES
213
DEPOSIT
207
215
DEPOSIT
208
209
214
BANK FEES
218
220
222
219
DEPOSIT
BALANCE
DEBIT
CREDIT
4250.00
18354.00
200.00
37089.00
10000.00
21875.00
10000.00
19750.00
3200.00
10000.00
3000.00
9690.00
2150.00
250.00
15960.00
1500.00
100.00
2500.00
3150.00
112.50
500.00
5700.00
2800.00
60.00
10175.00
10000.00
250.00
10000.00
125.25
2500.00
10000.00
300.00
55.00
20850.00
Account
Number
1000-0000
BALANCE
1200.00
3050.00
15304.00
15104.00
52193.00
42193.00
64068.00
54068.00
34318.00
31118.00
21118.00
18118.00
27808.00
25658.00
25408.00
41368.00
39868.00
39768.00
37268.00
40418.00
40305.50
39805.50
45505.50
42705.50
42645.50
52820.50
42820.50
42570.50
32570.50
32445.25
29945.25
19945.25
19645.25
19590.25
40440.25
40440.25 CR
CR
DR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
CR
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 6
Task 6:


complete the balance day adjustments for depreciation
Print the following reports for the month of October
From the Report Centre:
Select a type of report:
Select a Report
Company & Financial
Profit & Loss – October
Budgets & Forecasts
Budget v/s Actual Graph
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 7
Task 7:
From the Report Centre, select Company & Financial, Balance Sheet Change the date to
October 31, 2010. Click on Refresh.
Click on the Export button.
Send the report to a new Excel workbook. Click on Export.
1:
Calculate the Working Capital ratio.
2:
Graph the Working Capital
3:
Calculate the Quick Asset ratio
4:
Calculate the Equity ratio
5:
Copy, into Excel, the Profit & Loss Standard for October and calculate the gross
profit ratio & the net profit ratio.
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 8
Task 8: Key in the budget figures
The budgeted amounts for November include:
Sales (30 days x 150 kilograms x $35.00 per kg)
$157,500.00
Boat Expenses (tax codes NCF for each)
Petrol & Oil
Depreciation of Salmon Boat
Salmon Boat Registration & Insurance
Depreciation of Outboard Boats
Outboard Boats Registration & Insurance
Repairs to Salmon Boat Equipment
Mobile Phone Expenses
Two Assistant’s Wages, Superannuation, Sick Leave etc
48000.00
5000.00
2500.00
1250.00
1450.00
6500.00
1200.00
36000.00
Salmon Pens Expenses (tax codes NCF for each)
Repairs to Salmon Pens
Fish food Expenses
License Fee
7500.00
18000.00
2000.00
Vehicle Expenses (tax codes NCF for each)
Petrol, Oil & Tyres
Depreciation of Vehicles
Vehicles Registration & Insurance
730.00
1700.00
400.00
Administration Expenses (tax codes NCF for each)
Post Box Hire
Depreciation of Office Equipment
Stationery
Home Office Electricity
Fishing Association Subscription
Sickness & Accident Insurance
10.00
250.00
25.00
70.00
250.00
2500.00
Finance Expenses (tax codes NCF for each)
Interest Expense
State Payroll Tax
Bank Charges
3200.00
100.00
150.00
Total Budgeted Monthly Expenses
138785.00
Budgeted Net Profit for November
18715.00
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 9
Task 9: The actual salmon catches for November were:
November 1:
November 2:
November 3:
November 4:
November 5:
November 6:
November 7:
November 8:
November 9:
November 10:
November 11:
November 12:
November 13:
November 14:
November 15:
November 16:
November 17:
November 18:
November 19:
November 20:
November 21:
November 22:
November 23:
November 24:
November 25:
November 26:
November 27:
November 28:
November 29:
November 30
165
175
100
250
180
135
206
55
170
190
180
130
175
180
70
20
30
0
0
35
10
55
50
30
90
120
90
95
15
60
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
kilos
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 10
Task 10: Key in the following transactions:
During November, Sam undertook the following transactions:
November 1:
November 2:
November 2:
November 4:
November 4:
November 7:
November 7:
November 8:
November 9:
November 10:
November 11:
November 11:
November 13:
November 14:
November 14:
November 15:
November 16:
November 17:
November 19:
November 20:
November 20:
November 20:
November 21:
November 22:
November 23:
November 24:
November 24:
November 25:
November 26:
November 27:
November 30:
November 30:
Purchased frozen Salmon Fish food from Dover Fisheries ch225
$3250
Sam purchased petrol for the salmon boat ch226
$11000
Sam purchased petrol for the vehicles ch227 $300
Paid for Post Box Hire ch228
$50
Cash Sale of 690 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Sam purchased petrol for the salmon boat ch229
$8000
Paid Dover Engineering for salmon pen repairs ch230$1500
Cash Sale of 576 kilograms of Salmon to Geveston Enterprises @ $39.00 per kg
Purchased frozen Salmon Fish food from Dover Fisheries ch231
$4800
Purchased tea, sugar & biscuits for morning teas (petty cash voucher 28)
$20
Cash Sale of 540 kilograms of Salmon to Huon Fisheries @ $35.00 per kg
Sam purchased petrol for the salmon boat ch232
$11000
Purchased frozen Salmon Fish food from Dover Fisheries ch233
$3500
Cash Sale of 485 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Paid Dover Engineering for salmon pen repairs ch234$1500
Purchased frozen Salmon Fish food from Dover Fisheries ch235
$2550
Sam purchased petrol for the vehicles ch236 $150
Cash Sale of 120 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Sam purchased petrol for the salmon boat ch237
$7000
Cash Sale of 35 kilograms of Salmon to Geveston Enterprises @ $42.00 per kg
Paid for petrol for the delivery van ch238
$160
Purchased frozen Salmon Fish food from Dover Fisheries ch239 $1500
Cash Sale of 10 kilograms of Salmon to Huon Fisheries @ $38.00 per kg
Sam purchased petrol for the salmon boat ch240
$10000
Purchased milk for morning teas petty cash voucher 29)
$22
Paid Eastern Energy for lighting ch241
$45
Paid phone account ch242 1150
Cash Sale of 225 kilograms of Salmon to Geveston Enterprises @ $37.00 per kg
Purchased frozen Salmon Fish food from Dover Fisheries ch243
$1450
Cash drawings ch244
$700
Cash Sale of 380 kilograms of Salmon to Huon Fisheries @ $30.00 per kg
Paid Assistants wages $30000; superannuation $2400; tax $600; work cover $2000 ch245
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 11
Task 11: Reconcile Sam’s bank account for November.
Bank Statement for November:
SAM’S SALMON
Dover Community Bank
BANK STATEMENT
Branch
Number
6666
DATE
TRANSACTION DETAIL
1 NOV
3 NOV
4 NOV
5 NOV
6 NOV
8 NOV
9 NOV
10 NOV
10 NOV
11 NOV
13 NOV
15 NOV
17 NOV
17 NOV
18 NOV
20 NOV
20 NOV
22 NOV
23 NOV
23 NOV
25 NOV
25 NOV
26 NOV
26 NOV
27 NOV
27 NOV
27 NOV
29 NOV
30 NOV
30 NOV
30 NOV
30 NOV
30 NOV
30 NOV
31 NOV
BALANCE FORWARD
225
227
DEPOSIT
221
226
228
229
DEPOSIT
230
223
224
INTEREST EXPENSE
231
234
232
DEPOSIT
DEPOSIT
DEPOSIT
233
DEPOSIT
BANK FEES
DEPOSIT
237
238
239
244
BANK FEES
240
241
242
243
DEPOSIT
245
DEBIT
CREDIT
3250.00
300.00
26220.00
2650.00
11000.00
50.00
8000.00
22464.00
1500.00
1150.00
35000.00
3200.00
4800.00
1500.00
11000.00
18430.00
4560.00
1470.00
3500.00
380.00
112.50
8325.00
7000.00
160.00
1500.00
700.00
125.25
10000.00
45.00
1150.00
1150.00
11400.00
35000.00
BALANCE
Account
Number
1000-0000
BALANCE
40440.25 CR
37190.25 CR
36890.25 CR
63110.25 CR
60460.25 CR
49460.25 CR
49410.25 CR
41410.25 CR
63874.25 CR
62374.25 CR
61224.25 CR
26224.25 CR
23024.25 CR
18224.25 CR
16724.25 CR
5724.25
CR
24154.25 CR
28714.25 CR
30184.25 CR
26684.25 CR
27064.25 CR
26951.75 CR
35276.75 CR
28276.75 CR
28116.75 CR
26616.75 CR
25916.75 CR
25791.50 CR
15791.50 CR
15746.50 CR
14596.50 CR
13446.50 CR
24846.50 CR
10153.50 DR
10153.50 DR
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 12
Task 13:

Complete the balance day adjustments for depreciation

Print the following reports for the month of November
From the Report Centre:
Select a type of report:
Select a Report
Company & Financial
Profit & Loss –November
Profit & Loss –October & November
Budgets & Forecasts
Budget v/s Actual Graph
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 13
Task 13:
From the Report Centre, select Company & Financial, Balance Sheet & Net Worth,
Standard. Change the date to November 30, 2010. Click on Refresh.
Send the report to a new Excel workbook. Click on OK.
1:
Calculate the Working Capital ratio.
2:
Graph the Working Capital
3:
Calculate the Quick Asset ratio
4:
Calculate the Equity ratio
5:
Copy, into Excel, the Profit & Loss Statement for October and November and
calculate the gross profit ratio & the net profit ratio.
Notes prepared for Quicken by Ken Boyle – Education Consultant Page 14