Cash transactions Record the receipt of money and payment of cheques. Prepare a bank reconciliation and print reports. Enter receipts of money and deposit daily cash into a bank account. Prepare cheques for payments and record into a cash disbursements journal Maintain a Petty Cash record Use the Card File for Payee names Sct up and use periodical payments. Reconcile the bank account in the general ledger with the details received from the bank Record data from bank statement into ledger accounts Print a bank reconciliation statement Print GST Cash Reports for preparation of the Business Activity Statements 10 Print finaneial statements.Computer accounting us 42 ng MYOB business software Introduction ‘A small business may only want to record cash received and paid throughout an accounting period. MYOB AccountRight bas a Ranking command centre that allows thi provided an Aceounts List already exists and there is at least one Detail Cheque account, The resulting general ledger accounts can then be adjusted by am accountant or tax agent to produce final financial statements. This chapter uses the Banking command The entries in the general ledger bank received from the bank (a bank centre to enter cash received and cash paid. account will then be reconciled to information statement), Under the Goods and Services Tax (GST), a business is required to prepare a Business Activity Statement (BAS) each tax period (monthly or quarterly depending on turnover or elections made), Part of the BAS relates to the GST. MYOB AccountRight has tax codes that keep track of GST transactions, and the final task in this chapter is the production of'a GST report that will help in preparing the BAS on a cash basis, You should have completed Chapters 1 and 2 before starting this chapter. It is expected that you can: Start MYOB AccountRight. ‘Change the business name and/or address. Select command centres and options. Recognise the conventions used in this book (for example, the sign -1 is an instruction to tap the Enter key) You may need to refer back to Chapter 1 to do these tasks. A quick way of finding the place for instructions is to use the ‘How to...’ index at the front of the book. The Goods and Services Tax (GST) ‘A Goods and Services tax of 10% is applied in Australia on most goods and services. The demonstration, exercises and assessments in this chapter will include the GST where necessary. The Accounts List for each file includes the necessary accounts for recording the GST. A business with a turnover of less than $2,000,000 per annum may account for the GST on a cash basis (provided some other criteria are also met). You are not required to know the legal aspects of the GST, but you will be required to record the GST included in cash received and cash paid. Where a business accounts on a cash basis, the GST rec credited to an account usually called “ i ed in a payment is re IST Collected”. This account will accumulate the GST collected that will be paid to the Australian Taxation Office (ATO). The GST paid by a business for purchases (trade goods, most expenses and purchases of assets) is debited to an account usually called “GST Paid”, The balance of this account at the end of a tax period is deducted from the balance in “GST Collected” account to arrive at the net GST to be paid to the ATO (ora refund to be received from the A’ Paid exceeds the GST Collected). e ATO where oa ‘The payment to the ATO (or refund from the ATO) will be either monthly or quarterly depending on the tax period of the taxpayer, ne is ue the month following the end of the tax period, auae ___ Chapter 4: Cash transactions The Banking command centre = A file called dem41.myo will be used to demonstrate the options in the Banking command centre. The month for entering examples and self-test exercises throughout this chapter is July 2011. Whenever you start a file, you should sign on with the User ID “Administrator” and you should avoid using a password. Use the self-test exercise 4.1 to start this file and enter your name in the address field. Self-test exercise 4.1 If you are not sure how to start MYOB AccountRight and open an existing file, refer to the “How to ... instructions for Chapter 1 (look in the index of ‘How to instructions at the front of this book) or look at a video on this on the CD. Start MYOB AccountRight. Open the file dem4 myo (remember to sign on as the Adn password). istrator without a Change the ‘Company Information’ by entering your name in the address field. Refer to Chapter 1 if' you are not sure how to do this. Print the Accounts List [Summary], Refer to the ‘How to ...’ index for Chapter | or Chapter 3 if you are not sure how to do this. The business in this exercise started on 1 October 1994. It sells craft material and craft ‘books. Most of the transactions are for cash but some eredit transactions do occur. The owner is going to use MYOB AccountRight from 1 July 2011 to record the cash transactions only and will employ an accountant to produce monthly financial reports and year-end reports. The business uses a cash basis to account for the GST and the BAS (Business Activity Statement) information has already been set up. Select the Banking command centre. Figure 4.1 on the next page shows its main features. Spend Money is used to enter all cash payments, Payments not involving an actual cheque can also be entered using this option (for example, a bill of exchange paid). Receive Money is used to enter cash received. Prepare Bank Deposit is used when several receipts in a day are taken to the bank and deposited in a single deposit. Reconcile Accounty is used to reconcile the balance of the bank account in the general ledger with a statement received from the bank. Prepare Electronic Payments allows you to pay accounts payable and expenses electronically through the bank. Account name or account number? When you record a payment or a receipt using the Banking command centre. the program automatically records one side of the transaction in the nominated bank hecount or “Undeposited Funds”, You will have to nominate the account(s) involved in the other side of the transaction. For example, if you record a receipt of money for a cash sale using the Receive Money option, you will need to tell MYOB AccountRight 10 credit the account for “Sales”Compuiter aceouinting using MYOB business soft 44 rode (number) or bY account race account code (numbe ‘You can list and enter accounts either by account Coe CO ce account name. If you use the name you can type in the first Se pon Olea numbers you may type in the number. You can also use Te © ference for either usi accounts either by number or by name. You select your oe etn oe a account ‘or account numbers in the Window Prefe . Spend Money le -- -» Bank Register + @ Receive Money z « Prepare Electronic Payments ° = i Recondile Accounts Prepare Bank Deposit Brint Cheques =~ « ° PrinvEmeil Remitiance Advices -.- @ Transaction Journal TeDotist + Find Trensacions Reports ~ Analysis Figure 4.1: The Banking command centre options Figure 4.2 shows preferences used in this chapter ~ accounts will be selected and listed by account name as indicated by the fourth checkbox. If you prefer to use account numbers, deselect this checkbox. Throughout this book, you may use whichever option you prefer.ee “How to record money received and deposited in a bank account ‘Chapter 4: Cash transactions Recording money received There are two methods of recording money received by the business. Money received from accounts receivable must be entered using the Receive Payments option in the Sales command centre, and this is covered in the following chapter. The Receive Money option in the Banking command centre is used for all cash received other than money received from customers who were invoiced using the Sales command centre. If a business normally records several receipts in any one day. from both accounts receivable and from other sources, these should be recorded in a temporary “Undeposited Funds” account. The money in the “Undeposited Funds” account can then be banked using the Prepare Bank Deposit option. This means that there will be ‘one entry in the general ledger bank account that will correspond to the amount of the deposit shown on the bank statement. This makes the task of reconciling the bank account in the general ledger with the statement received from the bank a lot easict (see later). If there is only one receipt in a day, the amount can be entered directly into the general ledger bank account without going through “Undeposited Funds” Step | Instruction 1 Select the Banking command centre: 2 _| Select the Receive Money option 3_| Ifnot already selected, the option button for deposit to a bank account should be selected. Change the bank account if necessary by using the selection List button EJ at the end of the “Deposit to Account’ field and select a bank account from the list. [4 __| Look at the “Tax Inclusive’ checkbox and change if necessary 5 _| Leave the ID #. This is automatically incremented by one for each new deposit © | Type inthe date «1 IF the month and year are already correct, only type in the day of the month Ifa card exists for this payor (see later), type in the first few letters of the payor’s name and .J. If several ree ipts are being deposited, a card for “Daily Banking” or “Daily Deposit” might be used & | Enter the total amount of the deposit and 9 _| Select a payment method. You may type this in or use the selection List Pon ES at the end of the ‘Payment Method? field and select from the list 1 You may also enter details of cheques or credit cards by clicking on the Details button TO | Entera memo for this transaction and ., This might appear on transaction listings, so it should describe the transaction fully (continued on the next page) 45Computer accounting using MYOB business software __— Step | Instructions ee Enter the account name (or number) for the account to be credite wr the first receipt being deposited and use the TAB key TAB to the Job’ column and enter a 12 | Fnter the amount of the first receipt. job number if you are using jobs. ded “Memo” and enier any line memo if necessary. cter code for the G! 13 | TAB to the column hea [14] TAB tothe ‘Tax’ column and enter the three-chat tax involved 1 15 | Continue entering any other line items making up this deposit 16 | Click the Record button © Example 4.1—Recording a single receipt and depositing to a bank account 1, Make sure that you have the file dem41.myo open. A cash sale of books amounting to $3,212.00 (including the GST) is to be recorded. 2. Seleet the Barking command centre, 3. Click on the Receive Money button. 4. Atthe top left-hand corner of the Receive Money window a choice can be made to record the receipt directly to a bank account or to Group with Undeposited Funds, As this is a single receipt to be deposited into the Standard Bank, leave this selection as shown here count [3 rdaid Bank Si] Balance >: $4,514.60 Group with Undeposited Funds: Tax Inclusive © Deposit toi Check that the checkbox for ‘Tax Inclusive’ at the top of the Receive Money window is on that is, there is a tick in the box as shown above. 6. Leave the ID 4 as “CROO0001~ This is a computer-generated number to identify the receipt (or in this case a deposit). Enter the date as “1/07/2011”. You can press the space bar to activate the calendar and click on the date or if the month and year are already correct (July 11), type 1. 8. The ‘Payor’ field is used to enter the name of the Person or business making the payment. In MYOB AccountRight “cards” can be created for names, addresses and other permanent information for eustomers, suppliers (vendors), employees and contacts, ‘The information on a card can be entered into various forms by selecting the card from a card file, and this saves i i le a a great deal of ty a “d” to select “Daily Banking” «1 : Bact! 9. Enter the total amount of the deposit as “3212” and —1 (not i required, and the resulting figure will be shown as $3,212. 00). 10. This payment is made in cash. Type “Cash” i ea lethod” Yy sh, in the *P; s use the List button Bl and select “Cash” from the ist Theres roe required for cash. oh 46MW 12; 16. ee Chapter 4: Gash trananetions TAB through to the “Memo” field, Leave the memo as “Daily Banking" and «) The account to credit is “Sales — Books”, account number “4-1200", If you are using account names, type in the first few letters “sa” and ‘TAB twice, If you 1 using account numbers, type in the account number as 41200 and use TAB. Remember that a slower method is to use the Lise button BI or hit Enter (2), search for the account and use it, If the account number is kiows it iy fat quicker to type in the known account number The amount $3,212.00 should be showing in the “Amount” field (the GST inclusive amount). TAB through to the ‘Memo’ column, | column blank Type in additional (optional) information about this line item in the ‘Memo column — enter “Cash sale of books for the day” Check that code of GS as the line memo and TAB, GST” is the tax code (this account has heen set up with a default ta ) Your Receive Money window should look like Figure 4.3 Cr Fiber eAceoin [Slendad bork Rolance € E454 50 © you ih Undepeied Funde FE Tetnchinive Pasor 2: [DahGating | pociek Tec Payment Metnod: [ESR Tata Mesto: [Dai Banking | aes Bor 21200 c oes 7 Total Allocated [$9292.00 Taco: [ea Tela fecaves [6321200 OuctBaance | $0.00 | Gap Save or Reestie| C9 lie z = Hel FI Figure 4.3: Daily banking deposit 17. Ifthere are any errors click in the incorr 18. Before recording the deposit, you can examine 19. The Recap Transaction window for the deposi 0. Click on the OK button to close the Recap Transaction 1 field and edit it how the amounts will be recorded at the top of the sereen and in the weneral ledger. Select the Fai pull-down menu at the kop the sereen an hen sel e Re ans =m as shown in Figure 4.4 on the next page. cap Transaction item as shown the Recap t should ook the next page window 1. Click on the Record button to record the depos! 47‘Computer accounting using MYOB business softw > 48 Figure 4.5: The journal entry shown by using Recap Transaction Video: A video showing you how to record and deposit a receipt is on the DVD Self-test exercise 4.2 Haye the file dem4 myo open. Enter the following daily cash sales of books and materials for the craft business. Enter e2 deposits direct to the bank, with the ‘Payor” as “Daily Banking”. All amounts shown are GST-inclusive. and the tax code should be GST Note: Before clicking on the Record button, check your entries with the answers to self-test questions supplied at the end of the chapter. You should also use the Balit Recap Transaction facility to verity the e ch of these as singl ntries to the general ledger accounts. 4/7: Total deposit of cash $874.50 for sales of craft material $423.50 and sale of books $451.00 5/7: Total deposit of cash $400.95 for sale of books $361.90 and $39.05 (credit the account “Cartage Charged on Sales this cartage charged) a charge for cartage account number 4-7000 withChapter 4: Cash transactions Using an “Undeposited Funds” account If a business receives a number of payments in a single day and deposits all these receipts together in a single deposit to the bank, it will be necessary to group these receipts first and then make a single deposit for the total amount to the bank, In MYOB AccountRight this is achieved by using a clearance account called “Undeposited Funds”, which is set up as a bank account and linked as such. Each receipt is recorded against this account and then all these receipts are deposited to the actual bank account by using the Prepare Bank Deposit option. This option will transter all these separate receipts to the bank account as a single amount by crediting the “Undeposited Funds” account and debiting the bank account with the total amount, This is very useful when reconciling a bank account with a bank statement (see later in this chapter), In the Receive Money window you need to select the option Group with Undeposited Funds. The use of an “Undeposited Fun account can be set as the default through the Serup pull-down menu and Preferences menu item. For this chapter, all demonstration exercise files will already have “Undeposited Funds” account in the Accounts List and linked as required. ef “ How to set up “Undeposited Funds” as the default Step | Instruction 1 Select the Semp pull-down menu. i 3 Click on the tab for Banking. ' 4 Glick to place a tick in the box for “When T Receive Money, I Prefer to Group It with the Other Undeposited Funds [System-wide] 5 Click on the OK button to close the Preferences window | Example 4.2—Setting “Undeposited Funds” as a default 1. Make sure that you have the file dem myo open. 2, Select the Serup pull-down menu. 3. Select the Preferences menu item: 4. Click on the tab for Banking. 5, Click to place a tiek in the box for “When I Receive Money. | Prefer to Group It with the Other Undeposited Funds [System-wide]’. The Preferences window should look like Figure 4.6 on the next page. 6. Click on the OK button to close the Preferences window. ‘My preference is for areal mouse. +9Compiiter accounting using MYOB business software Desay Ear Rate Tan Her, Fegsen Siem 1 Man fr Dunes Chee umber Systeme) {$2 When Feceim Hoy | Fels oat ot ihe nde Funds Stemi Her | Figure 4.6: Preference setting “Undeposited Funds” as the default Video: A video showing you how change preferences ix on the DVD oe How to record money received using the Undeposited Funds account Step _ Instruction I ct the Banking command centre. 2 Select the Receive Money option 3 If not already selected. the option button for “Group with Undeposited hould be selected a “Tax Inclusive’ box and change if necessary 3 Leave the ID #. This is automatically incremented by one for each new deposit 6 | Type in the date 1. If the month and year are already correct, only type in the day of the month, . (ed | Ha card exists for this payor (see later), type in the first few letters of the payor’s name and .1, If several receipts are being deposited, an entry for ¢ made -. an b nt of the deposit and -| ie selection List button Eel at Select a payment method. Type this in or use | the end of the *Payment Method? field and select from the list J edit cards by clicking on the | Daily Deposit nter the total ame 9 You may also enter details of cheques or | Details button, 10 | Enter a memo for this transaction and 1, This might appear on transaction so it should describe the transaction Tull: listings (continued on the next page) 4-10= Chapter 4° Cash transactions Step Instruction i Enter the account (1 me or number depending on your preference) for the account to be credited for the first receipt being deposited and use the TAB key 12 | Enter the amount of the first cipt = 13 __| TAB to the ‘Job’ colurin and enter a job number If you are using jobs 14 | TAB and enter a memo (optional) to further explain the line entry 15] TAB to the Tax column and enter the three-character cade for the GST tax involved ~ 16 | Continue entering all receipts making up the days deposit 17 Click the Record button. PD Example 4.3—Recording receipts and crediting Undeposited Funds 1. Make sure that you have the file dem41 myo open 2. On 8 July 2011, nwo amounts of money are received: A cheque No 101864 fora cash sale of books amounting to $2,260.30 (including the GST) ane cash of $5,000 additional capital contributed by the owner (tax code “N-T”), The receipts will be banked together as one deposit of $7,260.30. 3. Use Receive Money and record the cheque No 101 864 for $2.260.30 received for cash sales, Follow the instructions on pages 4-5 to 4-8 on recording money received. Click on the Deraits button and enter the cheque details: “BSB 45 bank account number “65432198” and account name “BJ Richards”. Add a note “Driver's Licence #6875MU expires 12/3/10", The Applied Payment Details window should look like Figure 4.7 Sie Payvern Detals tr 220) Banhing B38 [Fare ‘Aecinat Name {1 RICH ‘Account No. [45 Mates [Diver Learce HOOT expees 12/3710 Figure 4.7; Applied Payment Details window showing cheque details 4Computer accounting using MYOB business software __# 4-12 4, Make sure that the Group with Undeposited Funds option is selected at the top ‘of the window and credit the account 4-1200 ‘Sales ~ Books’. Your Receive Money window using account names should look like Figure 4.8: io Make sure this option is selected Bolonce = $000 FF Tax inchasive sate, 1p w [croo0004 Amount Recoves [EIS ——] ote [BTA — Payecn Nett [Choqse [i i | Memo: [Baiy Barking, (Cath sale of books] GST Tolal Alocaled Tax Tats Received | | DuterBalance [ (2) Save a: Recutina| (0) ise Recon Heb FI | Jounal Figure 4.8: Cheque received for cash sales debited to “Undeposited Funds” If you are using aecount numbers to select and list accounts then your Receive Money window for the cheque received will look like Figure 4.9 on the next page Not You only need to use one method Use Receive Money again and record the cash re ceived from the owner. Make ndeposited Funds” account and credit account 3-1100 ire 4.10 on the next page. After recording this receipt, click on the Close button (or the Cancel button) to return to the Banking command centre. sure that the debit is to ‘Capital’ as shown in Fil Did someone mention MONEY?Ea (© Bepost toAccourt (> Gone wth Undapo nied Feri 14100" Uncepoaed Fnde FF Tan incase: amount received [F220 Nemo: [Draiy Barina Tae: BE Total Recetved 26030 | Git we alanee | 00 G1) Saxe 2 Aecinirn| Lie Help E | Jounal Reawrat rave Figure 4.9: Receive Money window using account numbers Ae os © GiowwthLndrporedtund: —— Undeposted Fn : Per 2: [DoE e] 0» [FRR amoint Received [15000 Dale: [OT Paymert Method [Each Memo: [Bay Beating aes 1 co denonalcaptal | NT ae Taaidiccsed [OMS = | Taset Receives | | Bat Baince. | 4 f:9 Wee Recines HebFi | Jounal | Re ural | Rear Figure 4.10: Cash from owner debited to “Undeposited Funds” account Chapter 4: Cash transactions:‘Computer accounting using MYOR business software SF howto prepare a bank deposit Select the Prepare Bank Deposit option. Enter the date of the deposit | IMPORTANT: make sure the date is correct) In the column headed “Deposit”, click (so that a tick mark © appears) against the receipts that are to be deposited together at the bank as at that . Ital] items listed are to be deposited, click on the Hl icon: Step | Instruction 1 Select the Banking command centre. 3 q dat 3] Check that the total of the deposit ts correct © | Glick on the Record button then on the Cancel button to close the window Note: It will be necessary to delete this deposit if you need to edit any of the receipts that are melueled in step 4 above. After the necessary corrections haye been rade, you can then yeat the above steps to prepare the deposit again, See also the box on page 4-18. Refer to the “How to...” in Chapter 1 on how to delete a transaction Example 4.4—Depositing the balance of “Undeposited Funds” account 1, Make sure that you have the file dem41.myo open. 2. Select the Banking command centre. 3, Select the Prepare Bank Deposit option 4. Enter the date of the deposit as 8/7/2011 and - 5. Inthe column headed “Deposit”, click against the two receipts that were recorded inst them. (You could also above in Example 4.3 so that each has a tick “a click on the [I jeon at the top of the column as all items are to be deposited.) 6. Cheek that the total deposit equals $7,260.30 and that your Prepare Bank Deposit re dd foo Cos) window looks like Fig Deke Figure 4.11; Undeposited funds now deposited at the bankChapter 4: Gash transactions: 7. Before recording the deposit, select the Hdit pull-down menu and Recap Transaction menu item and examine the entries that will be posted in the general ledger. The recap transaction should look like Figure 4.12 [ses temointonteti a Taco Bare Coe anda Bon 172800 -deposted Fut ssn on ta Fare 32800 Figure 4.12: The Recap Transaction window for banking undeposited funds 8. Close the Recap Transaction window 9. Click on the Record button. 10, Click the Cancel button to exit the Prepare Bank Deposit window Video: A video on using undeposited fundy iy on the DVD Self-test exercise 4.3 OF Have the file dem4l myo open. Enter the following receipts using Receive: Money and group with “Undeposited Funds I amounts include the GST. For cach day’s receipts, deposit the amount that is in the Undeposited Funds” account at the bank (Standard Bank) 11 July: Cheque received trom Black"s Auction House $8,937.50 for sale of books. Credit “Sales - Books” account. The cheque details are: BSB 456-789, account name BLACKS AUCTIONS, account No 63018420 and cheque No 333128. Cash sales totalling $2964.50 for sale of craft material $1,892.00 and sale of books $1,072.50. Prepare a single deposit of $ 11,902.00 to Standard Bank for these receipts, 18 July: Received $: Edi Poe drawn on Varsity Bank BSB 551-111, account No 43212: $2,340.50 cash for the sale of books. Prepare a single deposit of $4,995.35 654.85 for the sale of materials (cheque number 100359 from 5) and Obsolete stationery sold to staff member for $198.00 (cheque number 214127, BSB 441-556 drawn on Dave Robinson's account number 84201234). Credit the Stationery (account number 6-0450), ‘Cash sales totalling $3,201.80 for sale of eraft material 81.595, books $1,606.25 Prepare a single deposit of $3.399.80. Received $1,744.60 for the sale of materials (cheque number 100380 from dwar Poe drawn on Varsity Bank BSB 551-11), account number 43212345) and $1,078.00 cash tor the sale of books. Prepare a single deposit of $2,822.60. and sale of 3 a15rr, P Example 4-16 Printing reports from the Banking command centre i s is chapter, Several reports will need to be printed when going through the rest of this chapter, How to print a banking report Step | Instruction 1 If you are in the Banking command centre, Glick on the Reports button (see bottom of the comman ndow). Click —s Reports a | OR _| if youare NOT in the Banking command centre, click on the drop-down List button at the end of the Reports button and select Banking, epart|-~ }— Click drop-down arrow Accounis <— Banking reports selected Sales Time Bling Putcheses Payroll Ineventany Card Fle | Click on the report you want to select ‘Click on the Customise button at the foot oF the window. | Click —>aeERE 4 Make selections from the resulting Report Customisation window Under the Report Fields tab. select or deselect report fields to be printed. Under the Finishing tab select or de-select other items that may appear on the report, 5 Preview the report on the sereen by selecting the Display button. 6 ‘Click on the Print button at the bottom left of the sereen to. obtain a | printout pene —Print the bank deposits for July Start MYOB AccourtRight and open the file Select the Banking command centre. Click on the Reports button at the bottom of the comm: Click on the “Bank Depo next page. Click on the Customise button and enter the ‘Dated From:* and TAB to enter the “To’ date as “31/7/2011”. Leav Finishing as they are, The Advanced Filter: the next page. dem4 Lmyo and centre window. Slip” report as shown in Figure 4.13 on the date as 1/7/2011" the Report Fields and rs window is shown in Figure 4.14 0nSS ee ont deposited no bark/eredt card] ed Fun ceva or selected jeagned 10 reflect MYOE M Powered bank statements Help? Bit Sena Te Figure 4.13: “Bank Deposit Slip” report selected from Index to Reports window Eee Souce Jounst | 2. ay | S| pes lees Hep Bint | Send To isation window Figure 4.14: Advanced Filters in the Report Custor 6. Click on the Display button to view the report on the screen, Change the “View to “Print Preview”. You can maximise the report window and use the seroll bars to see the whole report. lick on the Pring button at the foot of the window to 7. Ifyou want a hard copy, © Clove button. print the report. Otherwise, click on & Video: A video about printing reports ison the DVD418 @ Self-test exercise 4.4 Have the file dem41myo open. , an Print the Cash Receipts transaction journal forall of the July 2011 ey check it with the answer provided at the end of the chapter. Using the enor! | i'd section in the Report Customisation window, de-select the Allocation Memo in the report (see Figure 4 ‘Job’ field and include the HF Baek Sead Fat Figure 4.15: Example of Report Fields in the Report Customisation window Memo If you look at the Receipts transaction journal you will notice that the ‘zoom’ arrows for receipts that have been entered into “Undeposited Funds" and subsequently deposited are filled in (greyed). Once you have deposited the receipts entered into “Undeposited Funds" account, you cannot (and should not) edit or delete the entries for receiving the money unless you first delete the deposit. The zoom arrows will clear once the deposit is deleted indicating that you can now perform any editing or deletion to these receipts. Re-deposit these receipts after the corrections are made Lam “greyed out” but the cat still likes met| Payments } “All payments (disbursements) are made by “writing a cheque’ using the Spend Money ‘option. This option is used even in a situation where there is no physical cheque involved ~ such as recording a bank charge from a bank statement or paying cash for “an expense, How to record a payment using Spend Money Instruction Select the Banking command centre Select the Spend Money option Change the bank account if necessary by clicking on the List button lil at the end of the ‘Pay from Account’ field for the bank and sclecting trom the list. Check that the “Tax Inclusive checkbox is correct for the particular transaction, A tick in this checkbox means that any dollar amounts entered in the ‘Amount’ column will be considered as GST-inelusive (includes the GST), Click this checkbox on if amounts are tax-inclusive. Clear it if the amounts are plus the GST. You need to enter the first cheque number of each cheque book. After that the cheque numbers automatically increment by one for each new cheque. If no cheque is issued, change this (for example — “BV for bank statement) «1 ‘Type in the date 4. If the month and year are already correct, only type in the day of the month Enter the amount of the chequ: At the ‘Card’ field, enter the first few letters of the payee and TAB twice. Only do this if a card exists for the payee. or you want to add a eard to the card file, Otherwise, skip this field by using TAB three times. Tf you have not used a card, type in the payee name and TAB [Type in a memo or leave the payee's name in the “Memo” field -1 Enter the account name or the account number for the account to be debited or credited. You may enter the first few letters (or numbers) and click the List button Mand select the correct account from the list. Using the Enter key will list all accounts for selection. TAB to the ‘Amount’ column. Enter the amount. If the “Tax Inclusive” checkbox is on (ticked), enter the amount including any tax, otherwise enter the amount excluding the tax and the tax (if any) will be automatically calculated and added to the total transaction. The amounts, excluding tax, will be debited to the nominated account for each line. Enter the amount as negative to credit the accounts instead. TAB to the “Job” column and enter any job number, if required, "TAB to the “Memo” column and enter any additional allocation for this line (this is optional and may appear on reports). TAB to the “Tax” ‘column and edit, if necessary, the tax code for’ the G involved and zEntering and recording a cheque in Spend Money will automatically credit the bank account nominated as a Bank account with the amount of the cheque. You must therefore nominate the accounts to be debited (or credited if entered as negative) making up the cheque total. If the amounts in the details section do not match the cheque amount You will not be able to post (record) the transaction. Example 4.6—Recording a payment using Spend Money ‘The following instructions are for the payment of $2,882.00. including the GST, to Castle Hill Art Galleries for craft materials purchased on | July 2011. This business does not keep perpetual inventory accounts and purchases of craft materials and craft books are debited to purchases accounts in the Cost of Sales section in the general ledger. If you are using account numbers rather than account names, tl ‘counts have 4 prefix of “5” (for example, purchases of craft materials will be debited to account “5- 1110 Purchases — Materials”), 1. The file dem41.myo should be used in this example. 2. Select the Banking command centre. 3. Select the Spend Money option. 4. ‘The amount for this purchase includes the GST. Check that the checkbox for “Tax Inclusive at the top of the Spend Money window is on (there is a tick in the box). 5. The cheque number should be “145663”. The cheque number will automatically increment by 1 for the next cheque. 6 Set the date to "1/7/2011" «4, Enter the GST-inclusive amount as 2882 (this is $2,620.00 plus $262.00 GST). At the ‘Card’ field, type in “e” 1, This should select the payee as Castle Hill Art Galleries as per a card that has already been set up. Note: If'a card does not exist and you do not want to set one up, leave the “Card” field blank and TAB through to the “Payee field and enter in the details. 9. TAB through to the ‘Memo’ field and in this exercise leave this as “Castle Hill Art Galleries". 10, Enter the account. The preference set up in this file is to list and select accounts by name. In the column headed “Account Name” type in the account name “Purchases ~ Materials” (you may type in the first. few letters “pu” and use the List button [Bl to select the correct account from the list), If'you have changed the preference to use account numbers instead of account names, enter “5-1 120" as the account number, TAB through to the “Amount’ column, Note: If you hit Enter instead of TAB you will be on the second line — use the “up” arrow key or point and click the mouse to go back to the first line.Chapter 4: Cash transactions 2 ; i tS 82.882 no should be highlighted in the ‘Amount’ column, TAR through to the olumn headed ‘Memo’ (this chapter does not use Jobs — see Chapter 9 about using Jobs), 2 eins 5 12. Type in an allocation memo (an additional explanation of this line in the account allocation section) as “Payment for craft material purchased!” and ~! (the tax code should be SGST") 3 ¢ Sure your ser ; 1 eh Sure your sen igure 4.16 and edit any fields that have errors Note: At the foot of the Spend Money window the total amount of the GST is shown in grey indicating that it is already included in the “Total Allocated SS I | = © Group wth Electronic Payments FF Taetnchisve Cad [Eaate Ban Galenes Shes Ho: FARES Date [7 TAR Gate Purchases. Maen TotatAlbeatad [$2820 Tae | 0 I Cheque esd Pinted TolstPaid Ha Ranitance Advice Dolan Stats Out Bsince. | «OD Ficsemces aa (A) Save ar Recurina| Die Hocunne \g the Spend Money option Figure 4.16: Payment for purchases u 14, Before recording the cheque, you can examine hew the amounts will be recorded in the general ledger. Select the Edit pull-down menu at the top of the sereen and then select the Recap Transaction menu item. The resulting window will look like Figure 4.17 on the next pi $, Click on the OK button to close the Recap Transaction window 16, Click the Record button. 17. Click the Cancel button to close Sperid Money FR iceos 4 video on making payments using Spend Money is on the DVD 42)4-22 TINO. Standort ark 51120 Puchaier Mata Figure 4.17: Recap Transaction for payment using Spend Money Using MYOB AccountRight cards A card called “Daily Banking” has alrea ly been used for deposits, and a card for Castle Hill Art Galleties was used in the last example. MYOB AccountRight uses a set of records called “cards” for keeping relatively permanent information about customers, suppliers, employees and personal contacts. A card should be set up whenever there will be regular 1 jons with people and org hould be taken not to overdo the use of cards as they take up space in the data file — and the bigger the file gets the slower the performance! In the Sales, Purchases and Payroil command centres, cards are essential. For example, you cannot issue an invoice for a customer unless there is a card for that customer. Similarly you need cards for suppliers and employees to issue purchase orders oF pay wages. The use of cards in the Banking command centre, however, is optional, Cards can be created or viewed using the Card File command centre. The creation of cards will be covered in the following chapters for accounts receivable, accounts payable and payroll (Chapters 5, 6 and 8). You can refer to the ‘How to boxes in these chapters if you wish to create any cards. However. in this chapter the necessary cards are already included on the files provided and you will not he required to create any cards. nisations. Car A diversion! Not those cards {————— Chapter 4: Cash transactions reise 4.5 Have the file dem41.myo open. Enter in the following payments 4 ‘Self-test exe ae 5 Spend Money. The first ch iber should ie fpyments using Spend Money st cheque number s\ be “145664”, and the ‘Tax Inclusive checkbox should be ticked, The GST-inclusive amount for each cheque is in the «C] S in the “Cheque Amount’ column below. This is also the amount to be entered in the “Amount” columee ; Enter the “details” in the allocation ‘Memo’ column, y Cha Cheque GST Tay Jul No Amount Amount Ci i mn ‘ode Payee/Details Account 4 664 $984.50 $89.50 GST 1.G.0. Pty Lid Insurance — for general insurance Account 6-020 7 eee premiums 4 665 $2,079.55 $189.05 GST Homsby Antico Pty Lid Purchases — Books for books purchased _— Account 5-2120 Using a petty cash “bank” account A separate “bank” type account (Detail ~ Bank) can be used to record small payments of cash, Instead of paying these small amounts with individual cheques, an amount called a “float” is drawn and kept by one person usually in a “petty cash tin”, Small payments for expenses like taxi fares, staff amenities, postage etc. are made from this float. When the float is nearly all spent, a cheque called a “re-imbursement cheque” is drawn for all the expenses paid out of the petty cash tin and this brings the float back to the original amount. In a hand-written bookkeeping system, a separate book called the “Petty Cash Book” is usually kept to record all expenses and re-imbursements With a computerised system, a “bank” type account called “Petty Cash” or *Petty Cash Float’ can be used to record the payments made from petty cash and there is no need for a separate petty cash book. Payments are recorded using the Spend Money option from the Banking command centre and is exactly the same as shown in the instructions on pages 4-19 and 4-20 earlier in this chapter. Note however. that this js NOT an account at a bank, and payments are not really by way of a cheque (even though a cheque form is used to record the petty cash payments). Example 4.7—Making petty cash payments 1. Make sure that you have the file dem41 myo open. This file already has a “Petty Cash” account (account number I-1 150) with $300 as the “float” 2. Select the Banking command centre. 3. Select the Spend Money option. 4. Inthe “Pay from Account:’ field at the top, select the “Petty Cash” account. 5S. Check that the checkbox for “Tax Inclusive’ is on (there is a tick in the box), 6. The cheque No should be “I”. (This is a reference number rather than a cheque #,) J. Set the date to “1/7/2011”. 8. Enter the amount as “66.8 9. Atthe “Card” field, type in “pe” 4. This should select a card valled “Petty Cash”. 10. TAB through to the “Memo” ficld and in this exercise leave this as “Petty Cash", 4-234.24 celeot “Travel” Ifyou are using st to the “Amount” column, *Memo’ column, 11. Inthe *Account Name” column type “Tr” and account numbers, enter “6-0510". TAB throug! hte tie Type in “$39.60” in the “Amount” column. TAB trove Type in an allocation memo as “Taxi fares for sales Mar should be "GST" 14. On the next line, “Urgent taxi truck dh number *6-0030") and — (the tax code should be 15. Make sure your screen looks like Figure 4.18 ae i $27.28" (including GST) for sity cash payment of“ a a eee: - J eee “parcel Delivery” (account very”, ST”). and edit any fields that have errors: Note the account used for payment! Palowsccun [rowcah © Grows with Elector Paynes 12 [Foye i ina | Taito [a 7 creque read Pnted Taare: [3608 Femitance Advice Delivery Stat Oia tare Pre a Save de Reciring| Ce) Use hoon Self-test exercise 4.6 Have the file dem4 Lmyo open On 4 July 2011, use the “Petty Cash” hank account to record son expenses: Pely cash Giegue Ninnbér2 i for $138.33 anc tic expense paid Wen $46.20 (including GST) for taxi fares to the ai i ie airport for the ace account “Travel” (account number 6-0510), le accountant, Debit the me petty cash $59.52 (including GST) for diesel fuel for sates re sales representative's vehicle. Det account “Motor Vehicle Running Costs’ Gscoutmumbar east OO $32.60 (GST-tree) For staff tea, coflee and sugar pure ae Amenities Expense” (account number 6-01 10) anct ieee ou “Saft code is "FRE", ______—_< = and -1 (the tax codeChapter 4: Gash transactions Petty cash re-imbursement A cash cheque is drawn to put back it hysically into the accouni to the original float, In the example and exercise above, the total petty cash expenses paid out amount to $205.29 and the balance of the “Petty Cash” peooentviche Bee ledger is $94.80 (original float of $300.00 less the total ‘expenses paid of $205.20). You should verify the balance by selecting Accounts List in the Accounts command centre. A cheque is cashed at the bank for $205.20 to return the balance back to $300.00. Example 4.8—Petty cash re-imbursement cheque 1, Make sure that you have the file dem41.myo open. 2. Select the Banking command centre. 3. Select the Sper Money option 4. The bank account for this cheque is “Standard Ban! As this entry is an intemal transfer of cash, no GST is involved and it does not matter whether you haye the “Tax Inclusive” checkbox selected or not 6. The cheque number should be “145666”. 7. Enter the date as 8 9. . Enter the amount as “205.20” . No card is required so TAB to the ‘Payee’ field and type in “Cash” 10. TAB to the ‘Memo’ field and type in “Petty cash re-imbursement™~ 11. Inthe column headed *Account Name” type in the account name “Petty Cash” (you may type in the first few letters “pe” and this should select this account). If you have changed the preference to use account numbers instead of account names, enter “1-1 150” as the account number. 12. TAB twice and the amount of $205.20 should be in the “Amount” column. The TAX code should be “N-T™. There is no need fora line memo. If your Spend. Money window looks like Figure 4.19 on the next page, click on the Record button. Memo: The big danger with using the “Petty Cash" account as a “bank” type account is to forget to change the ‘Pay from Account’ field at the top of the || Spend Money window. The same problem will also arise if the business has | (and uses) more than one bank account to record receipts and payments | Therefore. it is always a good idea when recording payments to check your first entry for the accuracy of the following: the bank account, the first cheque number and the starting date.ToaPas [820 cuatnece | a) base Recta) (es Figure 4.19: A petty cash re-imbursement cheque Recurring cheques There are payments that must be made at regular intervals. Some examples are rent, leases, superannuation. payroll deductions, GST and Pay-As-You-Go (PAYG), A cheque can be set up as a “Recurring Entry” that can be recalled, adjusted necessary) and recorded as a new payment at regular intervals or as needed. Using @ recurring entry is similar to using a template in Microsoft products — the basic entry is already set up and only requires minimum editing such as the date and occasionally the amounts. 0 How to create a recurring payment Step | Instruction -_ | Prepare a payment using the Spend Money option in the Banking command centre (see “How to record a payn on page 4-19) but do not record it stuligh ay nae ght away ~ until step 6. | 2 [Click on the Save as Recurring button, ina unique name forthe recurring en Click the drop-down arrows to cha hedule, Alerts and Transacti ange the frequen : ae 1 options 5 Click on the Save button to say emplate c o ‘the ter note that this does ot record the entyy ete OF He Ie entry asa tr; isk oe Record buon tosavethe pe = 'y and set up the recurring entry — ion in the journal.‘Chapter 4: Cash transactions Example 4.9—Creating a recurring payment Have the file dem4.myo open. The payment transactions that follow later in Self-Test Exercises 4.7 and 4.8 include cheques for the weekly salary of an employee called “Sally Hubble’, As this transaction takes place every week. the cheque for 7 July: should be saved as a recurring payment before being recorded. You will also know that while the Payment is mace out for the net pay, $5444.50, it is the Gross pay that is recorded as the expense, Deductions from the gross pay, such as PAYG withholding. superannuation ste, must be credited to current liability accounts for payment in the next month. There isno GST involved with salary transactions, To record the pay cheque on 7 July: 1. Select the Spend Money option from the Banking command centre. 2. The cheque number should be “145667”. Enter the date as “7/7/2011” J. 3. Enter the amount as “544.50 J. 4. In the ‘Card’ field type “hu” and select “Hubble. Sally” 5. TAB through to the ‘Memo’ field and edit to “Weekly salary — Sally Hubble 6. The account to be debited with the gross salary is “Wages & Salaries” — account number 6-0130. ‘Type in the account name (or number if you are using account numbers) and TAB to the ‘Amount’ field. 7. Enter the gross salary as “835” and TAB to the allocation line *Memo* column, 8. Type in “Gross pay for a week” as the allocation line memo and ~ (the ‘Tax’ field should have “N-T” as the code). 9. Type in the account “PAYG Withholding” number “2-1420" and TAB. 10. As “PAYG Withholding” is to be credited, enter the amount as a negative — type the minus sign followed by the amount * — 250.50" 11. TAB to the allocation line “Memo” column and enter “PAYG tax withheld” and ~J (the *Tax’ field should have “N-T" as the code) 12. Type in the account “Payroll Deductions” number 2-1410 and TAB *— 40.00" (amount should appear as the default ba nce). 13. Enter the amount 14, ‘TAB to the allocation line memo column and enter “Medical and union fees deducted” and + (the Tax field should have “N-T” as the code). 15. The Spend Money window should be as per Figure 4.20 on the next page DO NOT record this yet 16. Click on the Save as Recurring button. 17, Leave the name of the recurring entry “Weekly salary ~ Sally Hubble”. Use the drop-down arrow at the end of the ‘Frequency’ field and select “weekly”. 18. The ‘Starting on’ field is used by MYOR Accounting to issue *To Do List” reminders. As we are not using this feature enter any future date. Note: You cannot enter a starting date prior to the current financial year. 19. The Edit Recurring Scheclule window should look like Figure 4.21 on the next page. Click on the Save button to save the recurring transaction template. 21. In the Spend Money window click on the Record button to now record cheque * umber 145667 on 7 July 2011 4.27Computer accounting using MYOB busines: fiware: = © Pahonicot [Sade © Bro uth Fectorsc Paymnte Fetal Atocaied | $544.50 Toes Fi Cheque Already Printed | Toul Pens [70 scaitance Adee Dshvey Sti Oust Balance: | “000 be Pred = SS | Click on the Save as Recurring button before -~~sassy 7 a & Help rt recording Canoe! Jounal | Feat Figure 4.20: Wages cheque for Sally Hubble — to be saved as a recurring entry Fescumna Transaction Name [Weck sala Sah Hubbie Schedule SS NewDue [iavoran Frequency © Continue dette © Continue ut the date © Pesto thie # of ines Alerts a © Revnd| Sl torecodtetiarnacton [reve Fades thee ce bs iptecton wer dan arcing. Transaction —— © se te nes secre umber atthe Checpue 7 Use the lolowrg 3 the Cheque ina vamning fr duphcate is) Figure 4.21: The Edit Recurring Schedule window ERE i ite0: 4 video on creating and using recurring entries is on the DL D 4-28@ Chapter 4: Cash transactions Self-test exercise 4.7 Have the file dem41.myo open. This exercise follows on from previous exercises and the examples above. The total amount for each cheque is in the Cheque Amount column, and it includes the GST (tax-inclusive) where applicable. Enter in the following payments using Spend Money. Pay amounts from the Standard Bank (first cheque number 145668) and for petty cash expenses, pay the amounts from the Petty Cash bank account (first cheque number 3) Make sure that you use the correct bank account and cheque number! gar Cha Cheque GST Tay No Gumanncoee Payee/Detaily Account 7 668 $0.00 -N-T— Australian Taxation PAYG Withholding Office — PAYG (account number withholding for June 1420) 8 669 $400.00 $0.00 = N-T_ Cash —Cash taken by Drawings (account the proprietor number 3-1300) Petty $136.95 $1245 GST Petty cash —repairs to. Maintenance & Cash 3 door Repairs (account number 6-0220) 11 670 $251 GST — Mobil Castle Hill Motor Vehicle Petrol and oil tor June Running Costs (6- 0250) 12 671 $250.00 $0.00 N-T__ PMA Society Payroll Deduetions ~ superannuation Q-1410) deduetions for June 12 672 $100.00 $0.00 N-T_St. George Savings—__ Payroll Deductions employee voluntary (2-1410) savings deducted 13. Pety $61.16 $5.56 GST Petty cash Shop Expenses (6- Cash $31.46 forcleaning 0400) 4 materials, GST __ $20.70 for taxi fares __ Travel (6 0) Print the Cash Disbursements Transaction Journal for the period 7/7/2011 to 13/7/2011 and check the printout with the answer provided at the end of the chapter. Show the allocation line details in the report, and do not print the “Job” column (refer to pages 4-16 and 4-18 for instructions on printing Banking command centre reports). How to use a recurring payment Step Instruction Select the Spend Money option from the Banking command centre, Click on the Use Recurring CS ESaRBEE| button. in the Select a Recurring Transaction window (Figure 4.22 on the next page), select the recurring entry required by clicking on i Glick on the Select button to return to the Spene Money window. Tdit the cheque details ifneeessary — for example, change the date. Click on the Record button. 429)rT Biased cm Frequent Last Posted Seana Figure 4.22: Selecting a recurring transac Self-test exercise 4.8 Haye the file dem41.myo. This exercise follows on from Exercise 4.7. Select Spend Money and the cheque number for the Standard Bank should already be 145673. Click on Use Reeurring bution and select “Weekly Salary — Hubble” (see Figure 4.22). Change the date to 14/7/2011 and record. There is no GST on salaries and we Chq Cheque GST Tax an Jul No Amount Amount Code — Paver Details 14 673» $544.50 $0.00 -N-T Sally Wages — Gross $835.00 less Hubble Group tax $250.50 and deductions $40 (Note: These details should already be shown if you have used the recurring entry!) Once a recurring transaction is created, it ean be used (as demonstrated abovel, deleted (if it is no longer required) or modified, The modification ean be either to the transaction details or to its schedule details. Mod changes are of a permanent nature. The recurring transaction can also. be copied as # necessary if the ations are only shortcut solution to creating another similar reeurrir ransaction. oe 4-30 How to use, modify, delete or copy recurring transactions Step | Instruction T | Click on the Lists pu Stl Scie ecire wseeliors enn tie A EAL ave tia recurring transactions created from any command centre will be (eontinued ore the next pagelChapter 4: Cash transactions: Step | Instruction 3 | Touse a recurring transaction, select (highlight) a transaction and click on the ()UseRecutna | button. 4 | To delete a recurring iransaction that is no fonger required, select the transaction and click on the S Pe* button, = To copy a recurring transaction, select the transaction you wish to make a copy of and click on the SB Gt C067 | button, You will need to edit the copy as necessary Note: This is useful in situations where a recurring transaction with similar g transaction is required. 6 — | To modify the transaction details (account names, amounts ete), select the transaction and click on the button. 7 To Modify (change) the transaction name, the frequency, the starting date | button ete, select the transaction and click on the SS Es Sebessle Self-test exercise 4.9 Have the file dem4 1.myo open. This exercise follows on from Exercise 4.8. The amount for each cheque is in the ‘Cheque Amount’ column. and includes the GST where applicable. Pay amounts from the “Standard Bank” account (first eheque number should he 145674) except for those shown for petty cash expenses. For petty cash. expenses, pay the amount from the “Petty Cash” account (“Petty Cash” first cheque number should be 5). Enter in the following payments. New cards are not required. Ifa card does not exist, ce’ field. Recurring salary transaction should be us type in the payee name in the * when paying Sally Hubble. Account names and codes are given in the column headed Account Chg Cheque GST Tax Payee/Details Aceount Jul No Amount Amount Code fan: 16 674 $100.00 $00 © FRE Salyation Army Donations Donation to special agcount number 6-060 appe 16675. «—«-$46830 «$4230 GST Skillettand Sons Maintenance & Repairs repairs to office account number 6= partitions 9220 te 676 ——S1.650.00 $150.00 GST E.G, 0°Brien Pry Lid— Advertising account Yellow Pages number 6-00 10 advertisement js 677 $3619.00 3329.00 GST Wholesale Craft Pry Lid. Purchases — Books Pe purchase of books account number $-2120 19 Pewy 392.40 S840 ST Petty sundry Stationery’ — account is stationery items ‘number 6-0450 to 67s $290.51 S000, NET Cash Penty cash Peity Cash ~aceount bs re-imbursement number 1-1150 (continued on the next pages 431Qe" Computer accounting using MYOB business software Self-test exercise 4.9 (continued) —s : 5 — Tax etatils cd Cheque GST. ax Payee/De . Jul Amount Code e-asper Asperthe $0.00 N-T Sally Hubble recurring entry + ae recurring erty Cieetie Recurring button co Pty Lid Purchases — SI7180 GST Horsey Arico Py Lil Ton fase AEN Se number 5-1120) materials Accounting Fees— Paul and Dainty — tees . 2 550.00 $50.00 te tigation account number 6- oe for special investigation acco pees Motor Vehicle Peity cas : Be ee S686 for petrol and oil Running Costs Cash 6 $636 6st $6886 For pet id account number 6- 538.20 forstaffiea and Gor 30.00 fae Staff Amenities Expense — aecount number 6-010, 5 2 3 32 i astle Hill Art Galleries Purchases 25 682 S3,608.00 32800 © GST C aster ee materials number $-1120 25 683 6 s6. IST Australia Post parcel Parcel Deliv . Soest oi " delivery of books account number 6- x 0030 28 684 $544.50 0.00 N-T Sally Hubble asper As per the = recurring entry recurring entry. ick on the Use Recurring button, 30 Rely 14135 $1285 «GST Petty Cash —sundry Shop Expenses — Cash 7 shop expenses account number 6- 04.00 S068 $2.00 $184.00 CAP. Sarcom Electronics Equipment—at purchase of a laser cost — account printer for office number 1-210 31686 S3905 $3.55 GST Hills Transport urgent Parcel Delivery — pareel delivery account number 6- 0030 HST SASS SDAGR GST Poweiptig —tlecriciyy Electricity — account for the quarter aceount number & Print the Cash Disbursements Transaction Joumal for the period 4/07/2011 to 31 07/2011. C ustomise the report to show the allocation memo, and ‘Not to print the Job" column (refer to page 4-16 for instructions on Printing “Banking” reports), your printout 4.32 th the answer provided at the end of chapter. Modify anyye Chapter 4: Cash transactions: Note: Check that the bank balance of the Standard Bank account is $15,294.96 after recording all these entries. Bank reconciliation A bank statement received from the bank should be checked against the general ledger account for that bank. ‘This is an essential task that should be carried out regularly Errors can be detected and bank charges or interest (paid or earned) recorded into the ledger account. The checking process should be carried out methodically and carefully, and the computer reconciliation follows closely the reconciliation that would be done ina manual system. A file of transactions can be downloaded from the bank and this provides you with an automatic reconciliation of items between your records and the bank's records. How to reconcile the bank account with the bank statement Step Instruction i Select the Banking command centre Select the Reconcile Accounts option, Type in or use the Lisr button Bl and select the “General Ledger™ account for the bank account. 4 TAB to the “New Statement Balance.” field and type in the elosing balance as per the bank statement and J. IMPORTANT: Enter the balance as negative if the closing balance is overdrawn (i.e. debit balance as per bank statement). Enter the ‘Bank Statement Date: 6 | If you have downloaded a statement electroni Statement and iy from the bank, click ind the downloaded file. on the Acfions button, sel 2 hese Select for reconciling ~<— with a downloaded statement Click on the Actions button (continued on the next page) M33,Step 10 Click | appeal bank statement that reconcile. ; matched when using an electronica Instruction 7 Click the bution for your transaction OF be listed (sorted) in either date or ID# zB! oR ~) Glick in the lefi-hand column tom ron the bank statement. At the To enter items that are on ane into the bank account in the general ledger jsaction This ‘the hank and select Bartk Entry | SNe Glick on the: Actions button ~ | Enter any cre of the Recor | Glick on the Record button to record bank charges etc, Click on the see lifyou can undo the last reconeili selecting Undo Reconciliation, See the “How to Use the Print button to print the recon, ts for interest ree ander snes Fecced Jena Ent SecleRat and rads Sete fanars and ble on Ba east Frat tas Secention Report In the (op part of the window called Record Service Charges and Imerest Larned enter details for bank charges (amou number to debit, tax code (FRE for bank charges)) and memo. ved from the bank in the bottom part jee Charges and Ifthe ‘Out of Balance” field is zero, click on the Reconcile button. ‘inal nd an error in the accounts * instructions on nd Reconcile button to clear all items that have bi | matched (ticked) and print the a ation by clicking on the op preference (transactions can n order PI den) Glick against all items that mark the items on the ka tic je time st also apply to any items not ent. will also @ san 1. downloaded state at need to be entered ement th de k on the Aeron button 7 Select to enter <— items from bank statement 1, date, account Interest Earned window. reconciliation statement, alter completing a reconciliation, you {ction button and iciliationChapter 4: Cash transactions Note: Make sure that standard bank account balance in your general ledger is $15,294.96 before Starting the following example. ig “paper” bank statement tement from the Standard Bank to be used in this example is shown on the next Paz. The file is dem |.myo. This business has not obtained the statement electronically and docs not have a file for reconciliation. You will need a pencil to “tick” off items in this bank statement that reconcile (agree) with items in the bank account in the general ledger. 1 Select the Banking command centre. 2. Select Reconcile Accounts option ner the general ledger account number for the Standard Bank. Use the List button BET next to the “Account.” field to select the account “Standard Bank” from the account list (if you are using account numbers this account will be 1 1110) 4. TAB to the *New Statement Balance:” field and enter the bank Statement balance at 31 July 2011 — this is the closing balance on the bank statement “$15 7.34" and «1 5. The date on the bank statement is 31/07/2011. Enter this date in the “Bank Statement Date’ field 1 (Ignore any date warning). (The ‘Out of Balance’ figure should show —$10,422.7. : If you do not have this figure, you may find that the MYOB program has placed a tick against some items in the left-hand column and you will need to click on these to remove the tick mark.) 6. Transactions can be displayed in either ‘date” or “reference number’ order. To show transactions sorted in date order, click on the Date button at the foot of the Reconcile Accounts window or to show transactions sorted in reference number order, click on the /D# button. The latter will group all deposits together and all cheques together and this is especially useful for reconciling cheques — as cheques are not necessarily cleared in date order. Click in the left-hand column to produce a tick ~” for all items that are on the bank statement that agree with the ledger bank account — i.e. the items that reconcile, The Reconcile Accounts window (expanded) is shown in Figure 4.23 on page 4-37. 8. The figure of $28.25 shown in the ‘Out of Balance:’ field in Figure 4.23 represents bank charges on the bank statement not yet recorded in the ledger account for Standard Bank (i.e, not yet entered in MYOB AccountRight), 9. Click on the Aerion button at the bottom of the Reconcile Accounts window and select Bank Entry from the list of actions to record these bank charges. This is shown on Figure 4.24 on page 4-37 10, Enter $28.25 in the “Amount:” field and TAB to the date field (do net press -1) 11. Enter the date as “4/7/11” and TAB. 12. Type in “Bank Charzes™ (account number 6-025) for the “Expense Account’ or click on the List button fl and select the account “Bank Charges”. “a 4-35“Computer accounting using MYOB business software ____— ee 13, TAB through to the “Memo” field and type in the memo the bank statement”. oe Rif es Click on the List button El for “Tax Code” and select the code FRE if it is not already selected. 15. Check that the Barrk anc Deposit Ae page 4-38 and edit any incorrect fields. 16: Click on the Record button. jiustmons window looks like Figure 4.25 o9 Bank statement for example 4.10 Standard Bank Statement for July 2011 31/07/2014 Jeremy Fisher Crafts Debit] Credit Balance: V/7/11 | Brought forward 4,914.60 | CR Deposit 3,212.00] 8,126.60 | CR 4/7/11 | Bank Fees 28.25 asp oe 874.50] 8,972.85 | CR 517 hq 145666 8,767.65 | C! TIAL | Chq 145663 i Chq 145664 Chq 145667 544. a Deposit 2 400.95 5 5 ST/EL poe 400.00 ee RS: eposil ITAL | Chg 145665 7,260.30] 11,617.90 ] CR Chg 145668 Deposit - 47/11 | Chq 143673 saaso] 0200) 209165 ) CR 1577/11. | Chg 145670 mee 20,371.85 | CR Chg 145671 Bean Chg 145672 ance, 18/7/11 | Depo: 19,770.50 | CR Chq 145678 29 4,995.35 | 24.765.85| CR Chg 145679 ron 244 Deposit 544.50, 23,930.84 cR Chg 145 3; 37330, Cha taal igssao| °"780|. 27880064 | CR ue 550.00 25,374.84 | CR Chg 145683 1,650.00 387/11 Chg 145684 66.00, 23,174.84 | CR Chg 145677 344.50 23,108.84 | CR 29/7/11 | Chg 145682 3,619.00 3,608.00 18,945.34 | CR rr 15,337.34 | CR -KChapter 4: Gash transactions balance of the a bank statement Enter the closing io TAQEF2011 Caathe Hil Aut Goallecien, here a ae a 2 Daly Bark 221700 © Actions | Deated 422.044 90. $21.593.51, 2 =e & 3 | Get eaterent Spend Money Fey Oil ‘Recenve Money Hesceive Payments Transtar torey econ Jur Entry “ietle Roturs and Cede Spe Returrs and Geb Frid Transactions ‘Yee bark Resi Brit Lat Recandhstin Repent Cleave s92.048 90) sor59331 Figure 4.24: Selecting Bank Entry from the Actions menu 437Computer accounting using MYOB business software _ EEE Acciuwt StonaadBak Service Chawes Inteteit Exped — Amourt: [90.00 ine festa Pale [2007 Income Account 2. cas Heb FH igure 4.25: Bank charges from the bank statement The *Out of Balances’ field at the top of the Reconcile Accounts window should now show “$0.00”. Click on the Reconcile button. If the accounts are reconciled, click on Reconcife again to-clear all marked items. Your sereen should app. ar as in Figure 4.26 on the next page Note: If the ‘Out of Balance’ is not zero, ticked amounts are not correct or 18. The items that are not yet cleare¢ your bank (Unpresented cheques), and 29 July 2011 (an Outst: Hare cheques that have not yet been presented at a deposit that was not banked on Friday and print the recon uncel button to close: the Rec ‘oncile Ace ant i ‘ouents window. anding Deposit). Click on the Print button 20. Click on the Nciliation Statement 438wee Chapter 4; Cash transactions SSS Reesb [Stand ddank Lat Reconciled Date: 31/07/201¢ Calculmed Statement Balance ‘anh Stalemert Date [31/0779017 x of lanes Figure 4.26: Final reconciliation statement Video: A video on completing a bank reconciliation is om the DVD Reverse (undo) a previous bank reconciliation Ifyou have completed a bank reconciliation and you find that an error has been m you can reverse the last completed reconciliation. How to reverse a completed bank reconciliation [Step | Instruction Select to undo a previous Feconeiliation Glick on the | Actions button Receve Money. mv Paints Iworefer Honey ciel Doral try Set Renin aad Ca Selle Retr int Cabs Fed Tasos ew Bark Pepetar ‘Pont Lst econ Ramet i ‘In the Reconcile decounis window (see Figure 426 above). click on the Action button and select Undo Recone Wiariors. Read the warning message and Click on the Back Up button in the Undo fast Reconelliation window if you wane to complote e backun Cretan the operation has been successful [How to ..." instructions in Chapter 3'on backing up.a data fle fe oe detailed instructions on backups) 3 Click on the Undo Reconciliation button 4 Click the OK button when you teeeive the message WATS undo = 439“Computer accounting ust MYOB business software __ Electronic transactions and reconciliation Many businesses now receive pay or savings cards, Some businesses also oy electronic fund transfers (EFT), A business Tl purchases (for example, petrol station expenses) © Supplicts and employees electronically. MYOB sofware provides an additional el Services Centee™, This is rot covered in this book Ser ee ee Sou eee yaad an intemet connection, If your computer SHOWS a4 authorisations Wich an extension called “pox” which comps: are of this service and look w for using the °M-Powered Services”. You should be aware of this scl p the MYOB website for more details. shout he “hE Powered However, you may’ still record eleettonic transactions TT igs Services Centre” and provide a bank with an ABA file for transa ei Receipts and payments are recorded i oe in this chapter. The main differences are in re credit cards have been accepted, preparing downloaded bank statement file from the reconciliation < ‘edit, debit sinesses using oF it nd BUS jush BPay and other s it cards to pay for make payments to ent from people receive pay, se credit ¢ called “M-Powered ‘sparate application to Jectronie Seryie as it requires 5 ter shows © in exactly the same wi show i vording the deposit of receipts for which an ABA file for payments and using a bank to assist with electronic bank Recording payments received by credit card The cash received transaction is recorded in the normal way using the Receive Money option in the Banking command centre. Some credit card receipts (for example, American Express and Diners Club) will appear on the bank statement after the deduction of merchant fees. When a deposit is created, these merchant fees can be deducted to show the net amount in the general ledger bank account, Credit card receipts are therefore grouped with all other undeposited funds but must be deposited individually to assist with the bank reconciliation, £ Example 4.11 Recording a credit card payment received 1. Anew file called file dem42.myo is used. Open this file and sign on as usual as the Administrator wit Ie is ithout IEW password, This business is a wholesale florist. . NE Use the Company Information item in the Se the company address field where shown, 3. On 18 July 2011, the customer D Brokoff. ly using | or f a5 of Nowers for $980.86 (including GST), Denis sree ee a umber 1234 5645 7893 5562; Expiry Date 12/13: Ng aes The Authorisation code is 876. Sane on Gag Dy Seoeee 4. Use Receive Money and record the eash pages 4-10 104-11 for recording mone Funds, Use a card called “Cush Sales” nds. U les” and sete Method”. Click on the Derails button and ee th Applied Paymert Details window should look like pee nee Aetails. Your {ote thatthe hekbox for “Upalte Customer Caeq ours 4.27 on the next page a d, otherwise all sales using the card with Payment Details" is S these MasterCard detast), Se OHM Glee “Oath Saleor wen ae typ menu and insert your name in sale. Follow the i i le. he instcuctions on Y received that is grouped with Undeposited “MasterCard” as the *PaymentChapter 4: Cash transactions pd Prrmet Metin Reser Cat Nibor [1 = Eni Bae F727 = Name on > Payment Data = Aushiieaitn Code [1 ee Figure 4.27: Applied Payment Details window showing MasterCard details 5. Make sure that the Group with Undeposited Funds option is selected at the top of the window and credit the account “Flower Sales” (account number 4-1000). Your Receve Monev window using account names should look like Figure 4.28 PS Cae | pout te AccoUre: Balance $9.00 || Siew n Undesten pepsi Funds FF Taxtnohaive | SSS Paper (os [ERDOOES_—— Cate: RAO Taakeod [a Tart [ TolatReceived: [ $380, Out ot Balance: | $900 flac |) Save a fiecuina| (DL 7 j Pa eg | Figure 4.28: MasterCard payment received for cash sales 6, Click on the Record button. 7, On the same day (18 July 2011), the customer P May using an American Express card pays $625.60 (including GST) for a cash sale of Nowers. Details of this card 4-41Computer accounting using MYOB business software ate: Card Number 6541 3214 7896 456: May. ‘The Authorisation code is 071 : cash sale Ir 9/13: Name on Card P 2: Expiry Date p May. Use a card called “Cash to P Ma payment Method’. Group this ayme” Money window should 8. Use Receive Money and record the Sales” and select “American Pxpress sited funds. ¥ as the ‘our Receive payment with other und look like Figure 4.29 ree i FF Taninchsive = nanos (a ena) Fealalocstee | Tae Total Recenved: Ou otBalance: | (2) Seve as fecuma | 2) Live Reena Vi& ae = Figure 4.29: American Express payment received for cash sales 9. Click on the Record button 10. Click on the Cancel button to complete BS piteo video an recording credit card payments received ix on the DVD Self-test exercise 4.10 Have the file dem42.myo open. Enter the following receipts on 22 July 2011 using Receive 4, doney and Group with deposit these receipts. (including Gs having Undeposited Funds. Sl amounts inelude the GST. Do NoT Cash sale to D Cheong for sale of plants $798,009 MasterCard Number 3456 7890 1234 9876 authorisation code 192 T). Cheong pays using an expiry date of 12/13 and Cash sale for sale of novelty items to P May $339, using an American Express card Number 654] 3914 ne ing GST), P May pays 08/13 and authorisation code 071 - 2147896 4562 with Expiry Date 4-42Chapter 4: Cash transacti Depositing card payments received The proceeds from some credit cards such as MasterCard and Visa will app bank statement on the following day. The merchant fees on, these receipts are usually charged on the bank statement in one amount at the end of the month. For other eredit cards Tike American Express and Diners Club, the merchant fees are deducted before the net proceeds are deposited! in the bank account. These credit card proceeds often take up to one Week to be shown on the bank statement. As the eredit card teceipts will appear separate from other deposits. they should be recorded as separate deposits, You can also record the net proceeds only (provided you know the net proceeds from the bank statement). ar on the Example 4.12—Depositing credit card payments received Make sure that you have the File dem42.myo open. Select the Banking command centre Select the Prepare Bank Deposit option Enter the date of the deposit as “18/7/11” and ween e The MasterCard payment received is to be deposited, Tick (click) in the column headed “Deposit’, against the MasterCard amount of "$980.86" 6. Check that the total deposit equals $980.86 and that your Prepare Bank Depasit window looks like Figure 4.30: Enon Sance © 58865 te: eee are a number of receipts you can select to display them by their payment method. For example, to display only those receipts where a MasterCard was used, select this as the payment method in the Prepare Bank Deposit window. Select Receipts Bye [PayerSS Computer accounting using MYOB business software Click on the Record button. : ‘the American EXPFess payment 8 Select the Prepare Bank Deposit option again. jted on 18 July 2011. In the e is to be depos 60,3 0 erica Express smountOk 3825.69 secord the transaction Yt Bank Deposit window, received, less merchant fees of $10. column headed “Deposit’. click agaim soatick \ appears against it. Do not record 9. Click on the Deposit Adjustment button in the Prepare B Deposit Adjustment a. A i nt OF “10. 10. Inthe Bank and Deposit Adjustments window, 'YPE in a Bus ie 1 60". 11. TAB through to the ‘Expense Account’ field and enter Merchant fees” (account number 6-1024). 12. TAB to the “Memo” field and type in “Merchant receipt”. 13. If your Bank and Deposit Adjustments window I the Record button fees on American Express looks like Figure 4.31. click on Figure 4.31: Merch: receipt chant fees recorded as deduction from 14. The Prepare Bank Deposit wit Bow show c it shown in Figure 492 on hence ue i: Click on the Record button to- Tecord the de Click the Cancel button to exit ° ‘it the Prepare Bank De 15, 16.mez Chapter 4: Cash transactions Bl bawes c- a2579m Tot eco Arun Corea iat eae Bank deposit after deducting merchant fees from credit card ceip' Self-test exercise 4.11 Have the file dem42.myo open. On 22 July 2011, record a deposit for each of the credit card receipts received on that day, For the American Express receipt, record a deduction of $5.60 for merchant fees. Using a credit card for payments Credit eards are now a popular method of payin small items in addition to the use of petty cash. There are two main ways of accounting for costs incurred using a credit card: record each item as incurred using the credit card receipts, or record the costs direct from the credit card statement received, Where each receipt is recorded, the detailed cheque account set up for credit card transactions ean be reconciled with the credit card statement in exactly the same way as shown earlier for a bank reconciliation, The following instructions, example and exercises show how to enter credit card receipts using a detailed cheque account. You will then be required to reconcile this account with the credit card statement. How to record credit card transactions from receipts [Step Instruction ar 1 A credit card type account will be required under the Liabilities in the tecounts List (see Chapter 3 for editing the ecounss List), Select the Banking command centre. we Select the Spend Money option. (continued on the next page) 4-45ey window Chand cor “he Spend Money win 9 ’ ie fichand comer of the OP 4 | Change the account at the top le a 7 Group with Electronic Payment ven. | Leave the cheque number as rather than cheque numbers ers rathe eference mar rs racording credit card Note: Use these numbers as reference nit as there are in fact no actual cheque receipts, = ihe same way as shown earl Record the payment and lis delails in exactly the same way 6 using the Spend Money option. ST aE 7 | When the credit card statement is received, ree cl 1 detailed credit card ac ; reconcile the statement with the d a 9 record the payment o} 8 __ | Use Spend Money with the normal bank account to record the pays cbiting the detailed credit the amount owing on the credit card statement, debiting the detaile card account BP example 4.13 —Recording a Visa credit card receipt Using the file dem42.myo, a Visa card is used on 12 July 2011 to pay $62.75 to Mobil Castle Hill for motorcar pants. 7. Use the card for “Mobil Castle Hill" (type 9. 10, Select the Banking command centre. Select Spend Money option Change the “bank” account at the top left-hand corner of the Spend Money window to the account “Visa”, account number 2-1140. This account is a ‘Credit Card” liability account type. iis transaction is to be recorded at the GST-inclusive amount. so make sure ‘hat “Tax Inclusive’ checkbox at the top of the window is ticked Leave the cheque number as given (it should be July 2011 “I”) and enter the date as 12 Enter the amount as $62.75 1, MM OF use the Lisp button) TAB to the ‘Memo’ field and enter~“Motor “ar parts purchased using Visa card” Type in “Mo” to enter the account “Motor car Sccount numbers enter “6-1050") and TAB to 4 The amount of “$62.75” should be in the « allocation line *Memo* column and Tax code should be “GST tt ST": If your cheeue Page, click on the Record button," !9ks like Fas @ Chapter 4; Gash transactions © Payton Accourt, [Una © Gious with Eloctortc Paper: piso ee > Ta lnchuwe acd [Mobi Gaile TH Cheave Na fT Caate Ha Datel TLE BILL WoW 2 Area [$62 | Total Pat GF | owt | toma | Rees Figure 4.33: Recording a Visa card receipt (a receipt for a payment made) Video: A video on making credit card payments ix on the DVD Self-test exercise 4.12 Have the file dem42.myo open. Record the following two Visa card payments, The amounts shown for both payments include the GST and the tax code is “GST”; Date | Amount | Payee Details Account 18/7/11 | $74.80 | Sonic Taxi Trucks | Special delivery Freight Paid 6- 28/7/11 | $82.00 | Interflora Flowers sent to stafr | 1700 member in hospital | Staff Amenit (6-5110) Reconciling the Visa card statement Where the individual credit © reconcile the statement reecived with th reconciliation is carried out in exactly the same Way as recone bank d receipts are recorded as above, you will need to details in the detail credit card account. This ng a statement from the 447