GOROKA TECHNICAL COLLEGE

Computerised Accounting Systems

Lesson Six

Learning Outcomes
At the end of this lesson the student will:
1. Post general journal entries.
2. Post cashbook transaction to the General Ledgers.
3. Reversing General Journal Entries.
4. Viewing the Trial Balance.
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POSTING USING MYOB
Record General Journal Entries.
General journal entries are used to record infrequent transactions that don’t involve cash or
stock. Cash transactions are processed through the cashbook (cheque book). Sales,
Purchases and Returns will be processed through the Sales and Purchases command centers.
Typical general journal entries include the purchase or sale of an asset on credit or the
contribution of a non-current asset by a proprietor.

On the 15th April 1998 Henry and Molly purchased a Holden Barina for K8,290. They
borrowed the full amount from GMAC. The loan term was two years and the interest rate
8.9%. Follow the steps to record the transaction.

Follow these steps:

1. Select the Accounts command from the command centre.
2. Click the Record Journal Entry button.
3. Accept the assigned MYOB transaction number (GJ000001)
4. Key the date 4/15/98 and press TAB or Enter. (remember date format is,
MM/DD/YY for posting to the MYOB accounting software).

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 5. Key the loan conditions(description) in the memo box (Car loan from GMAC at 8.9
% for two years) and click the account # column.
6. Press Tab to see the account list. (in the account column) Scroll down (click the scroll
down arrow) to the Motor Vehicle at cost account and click Use Account.
7. Key 8290 in the debit column and press Enter.
8. Key 2 and press Tab to see the liabilities account list.
9. The loan account is not there so click new to create a new liability account
number 2.2400 Car Loan - GMAC and select ok.
10. Tab to the Credit column or click in the Credit column. The 8290 amount will
appear automatically.
11. Press Tab or Enter.
12. Compare the screen in your notes Fig: 4.6 General Journal entry window with
your entry.
13. Check to see that the ‘out of balance box’ is zero, then click record. Note the
MYOB will not allow you to enter an unbalanced entry.

Fig: 3.13 General Journal entry window.

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Post cashbook transaction to the General Ledgers.
If you were not using the Purchases and Sales command centres of MYOB you would
process all receipts and payments via the banking command centre.

Follow the steps below to make a payment to Telstra. You will then receipt a refund cheque
from The Electricity Company.

Follow these steps:

1. Select the Banking command from the command centre.
2. Click the Spend Money button. The spend money window will appear.
MYOB will automatically advance the cheque number, use this number. (You
may change the cheque number to continue posting from the last cheque
number that you processed in the previous session).
3. Key the date as 04/03/98.
4. Key 147.40 as the amount and press TAB.
5. As you do not have a vendor card for Telstra you need to create one.
6. Key Telstra in the box next to Card and press TAB. A card list window will
appear.
7. Check the list, if vendor name is not on the list, you have to create a new card,
Click New.
8. Vendor profile window appears. Select card type box and select supplier.
(Hint: Click the card type box and drag the highlight down to supplier). Press
TAB to continue.
9. Enter the following card details:
Address : Whitehorse Road
City : Newcastle
State : NSW
Postcode : 2999
Phone : 02 5222 1111
Fax : 02 5222 1112

10. Click OK.

11. Click the memo field and key payment for phone calls made during March.
12. Click the first column of the account allocation (Acct #) and key in 6 and
press TAB.
13. Scroll down until you highlight Telephone (6.4600) and then click use
account. MYOB will complete the rest of the transaction. Your screen should
look like figure 3.14

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Fig: 3.14 Writing Cheques window.

14. Select Edit from menu bar and Recap Transaction to view the effect that this
transaction will have on the cash account.
15. Click OK to return to the cheque.
16. Click Cancel as Henry has decided not to record this transaction until later in
the month.

In some cases there is no need to create a vendor card as you will only use the vendor once.
MYOB will allow you to leave the card field blank. In this instance simply key the payee
name in the Payee field on the cheque.

Last month Henry overpaid his electricity bill. Follow the steps below to record the refund
cheque that Henry has received from The Electricity Company.

Follow these steps:

1. Select the Banking command from the command centre.
2. Click Receive Money, receive money window will appear.
3. Click in the date field, key 04/02/98 and press TAB.
4. As with writing a cheque you do not have to create a customer card. Click the
amount received field.
5. Key 80 and press TAB.
6. Select from the scroll down list, the method of payment (how money was paid
to you), Click use method.
7. Click memo field and key The Electricity Company.
8. Press TAB to the Account Allocation field (Acct #).

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 9. Key 6 and press TAB to see the expense accounts that are available.
10. No electricity expense account is on the list, so create a new one (6.1950),
click new.
11. Account profile window will appear, in the account number box key in 1950
and press TAB.
12. Key Electricity Expense in the account name box and click OK.
13. From scroll down arrow (Acct #) select electricity expense and click use
account. Note the amount will automatically appear in the amount column.
14. Compare your screen with figure 4.8. Once again Henry has decided not to
record this deposit until later in the month. Click cancel to return to the
command centre.

Fig: 3.15 Make a deposit window.

Reversing General Journal Entries

Henry has also realized that he has made a keying error in the general journal for the
purchase of the Holden Barina. The loan was for K8,920. Click the Accounts from the
command centre and then click the Transaction Journal button and locate the journal entry
on 15th of April 1998. Follow these steps to reverse the journal and then re-enter it.

i. Click the Zoom arrow beside the entry.

ii. Select Edit from the menu bar.

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 iii. Select Reverse General Journal Transaction. (if you cannot reverse, read
the instructions in the next page). MYOB will now create a reversing entry
and display it on the screen for you to check.
iv. Study the reversing entry carefully and click Record.

Remember to use the same date as the original journal (15/04/98), assuming the
reversal is done on the same date.

DR Motor Vehicle at Cost

CR Car Loan – GMAC

Hint: Check figure 4.6.And remember to change the amount to K8,920.

The next step is to re-enter the general journal with the correct amount, that is K8,920.
Follow the steps as in recording journals (fig: 3.13) to record the journal. Note all other
details of the journal are the same except the amount.

Your solution should look like figure 4.9 below.

Solution:

If you click
this arrow,
original
journal
entry will
for edit.

Fig: 3.16 General journal entries.

If you are having difficulties completing the reversal entries, refer to steps in activity 4.3 (b)
and follow the steps.

If you cannot find reverse the journal option, you have to configure this by; clicking setup
from the menu bar, select preference and click security. There should be a tick in the first
box, which reads, Transaction cannot be changed; They must be reversed. Then click ok
to return to the journal window.
Solution:

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Fig: 3.12 Inquiry Trial Balance.

To view your solution follow these steps:

i. Select reports from the command centre
ii. Click accounts
iii. Select Trial balance
iv. Click customize
v. Select the period you want to view. (i.e., select April 1998 to view your
solution).
vi. Click display

Hint: From accounts commend centre, select reports, accounts, then trial balance,
click customize to select the reporting period and click display.

e. Save and close your file. While working through the activities in this unit, you
should make frequent backups. This prevents you from losing your data.

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Reference:
Keeping Account with MYOB by Cathy Grundy & Doug Lyte.