Computerized Accounting Exercises


Exercise 1


Dead End Merchants is a retail company that deals in the following commodities.

Product                             Cost           Sale   Supplier                                  Quantity

Borzoi Vodka                 300          450    Bovi Int.                            100
Smirnoff Vodka              250          350    Kwal K. Ltd                        200
Czars Vodka                  300          500    Swiss Co.                          150
KWV Vodka                   150          250    Southern Traders                250
Vat 69 Whisky                450          700    Swiss Co.                          100
100 Pipers Whisky          500          875    Swiss Co.                           100
Banoch Brae Whisky       350          600    Alban wines                        150
Myers Rum                    500          999    Ramafan Distillers                140
Captain Morgan              999          1999  Bovi Int.                            170
KWV Brandy                  500          1000  Southern Traders                 100
Chivas De race brandy     399          670    Southern Traders                 220
Cognac Grape brandy      700          3570  Ramafan Distillers                500

The company has four credit buyers.

1. The Florida casino.
2. Choices Club.
3. Hardrock restaurant.
4. New Visions Nightclub.

Others buy directly in cash.

On 01/01/2004 the company received a fresh consignment of commodities from a donor company in the following specifications.

All Vodkas 400 Bottles
    Whiskies 270 Bottles of each
    Rum 200 Bottles                       
    Brandies 210 Bottles

On 03/01/2004 DED sent an invoice No. 1110 to Choices for the following items.
5 KWV Vodka
2 Borzoi vodka
2 Vat 69
1 captain Morgan

05/01/2004  Invoice no 1111 to Florida for: -
6 Borzoi
4 Vat 69

3 Cognac
2 Mayers
4 KWV brandy
10 Smirnoff

07/01/2004 Invoice no 1112

To New Visions for
6 Kwv vodka
2 Captain Morgan
4 Banoch
4 Borzoi vodka
3 Vat 69
2 Cognac

15/01/2004 Invoice no 1113
To Hardrock for :-
2 cognac
4 Captain
3 banoch
3 Chivas de race

20/01/2004 receipt no 0001
Mr. kamau
2 Kwv vodka
1 100 pipers

22/01/2004 receipt no 0002
JS Shah
1 Cognac
5 Czars
3 Kwv Brandy

27/01/2003
James peters.
2 100 pipers.
4 Czars.
1 Banoch Brae.
2 Chivas de race.

27/01/2004
Choices paid for invoice No.     1110 check no 2322
Florida casino paid for inv. No. 1111 check no 0980

29/01/2004
Hardrock made half payment for inv. no 1113 check no 88754-0

30/01/2004

DED Paid Rent    12000/=
         Elec.   1200/=
         Water   1000/=
         Wages   7000/=
         Transp. 4000/=


exercise 2


Riverside Traders is a company that deals in all sorts of trade and recently they have asked you (Their Accountant) to computerize their accounting system for next year starting 1/1/97. 


Balances in the books at the close of this year stand as follows.

                                                      Trial Balance as at 12/31/1996

Particulars                                                          Dr                                Cr

Motor vehicle                                              50,000
Furniture                                                      40,000
Computers                                                   30,000
Bank                                                            30,000
Cash                                                            20,000
Debtors                                                        10,000
James brown                                       4000
Rana Carriers                                      6000
Creditors                                                                                         20,000
Santana                                               8000
Aldus                                                  4000
Infotech                                              5000
Alaban                                                3000
Loan                                                                                                10,000
Capital                                                                                           150,000

Riverside buys its items for resale from the following companies.

Cornerstone p.o. box 23113 Nrb
Aldus International p.o. box 009870 Nrb
Santana Superchargers p.o. box 343333 Nrb tel 898833
Alaban Millers  p.o. box 768303 Nku Tel 998655 Fax 876900

Riverside on the other hand sells to the following People.

James Brown p.o. box 778766 Atlanta.
Alphonse Master p.o. box 098789 Nrb tel. 909999
Crown paints p.o. box 778232 Ksm Tel. 782522
Rana Carriers p.o. box 90043 Nrb Fax. 09000
Multioptions Ltd p.o. box 662113 Msa. Tel 02-897657
Nairobi distributors p.o. box 1232122 Atlanta.


Riverside Buys and sells the following items.

Item                                                           in stock
Computers                                                        300
Printers                                                             200
Cables                                                               150
Printing Paper                                                   120
Books                                                             1000
Televisions                                                        250

Tax for anything electrical is 18% everything else is 15%.

RS also at the end of the month has to pay for the following items.

Rent
Electricity
Water
Telephone
Stationery
or anything else arising.

Riverside received the following documents on the dates shown.

1/1/97 Inv. 100 For purchase of two computers from Cornerstone 40,000/=.
2/1/97 Inv. 202 ,Purchase of a printer from  Aldus 12,000/=.
7,1,97 Inv. 106, Purchase of 2 cables 700/= and Printing paper 500/= from Santana.
8/1/97 Inv. 444,Purchase of 20 books from Alban 4,000/=.
8/1/97 Inv. 445,Purchase of Printing paper from Alban 500/=.
10/1/97 Inv. 446, Purchase of Computer from Cornerstone 27,000/=.
17/1/97 Inv. 767, Purchase of Printer from Aldus 15,000/=
15/1/97 Inv. 747, Purchase of 10 cables from Santana.

RS sent the following.

20/1/97 Inv. 001 Sale of Printer to James 20,000/=.
21/1/97 Inv. 002 Sale of printer to Alphonse 22,000/=.
21/1/97 Inv. 003 Sale of Cables to Crown 6,000/=.
20/1/97 Inv. 004 Sale of TV to Multi 29,000/=.
21/1/97 Inv. 005 Sale of Books to Rana 7,000/=.
21/1/97 Inv. 006 Sale of paper to Nairobi 2,000/=.
21/1/97 Inv. 007 Sale of Cables to Crown 3,000/=.
20/1/97 Inv. 008 Sale of Computer to Multi 59,000/=.
21/1/97 Inv. 009 Sale of Cables to Rana 1,000/=.
21/1/97 Inv. 010 Sale of Books to Nairobi 4,000/=.

23/1/97 RS paid up invoice 202 completely CHQ 001.
23/1/97 RS paid up inv. 106 HALF CHQ 002.
23/1/97 RS  paid inv. 767 Complete CHQ 003.
23/1/97 RS paid inv. 446 Quarter CHQ 004.
22/1/97 RS completed payment for inv. 106 CHQ 005.

24/1/97 RS received payment for inv. 004 CHQ 78789.
24/1/97 RS received payment for inv. 008 CHQ 7865 HALF PYMT.
24/1/97 RS received payment for inv. 010 CHQ 777117 FULL.
25/1/97 RS received pymt. inv. 002 FULL. CASH RCT 6654
25/1/97 RS received pymt. inv 001 FULL.  CASH RCT 090
26/1/97 Cash received for sale of a computer 15,000/= RCT 002
27/1/97 Cash for sale for two books 1,000/= and 3 Cables 2,100/= Rct 3433.
28/1/97 RCT 3422 for cash purchase of 10 books 2,500/=
30/1/97 RS paid for the following.
Rent                                                         10,000/=
Elec.                                                           2,000/=
Water.                                                        1,000/=
Casual Labour                                            2,000/=
Stationery                                                   4,000/=
Telephone                                2,000/= CHQ 0011
Donation to red cross                                    500/=

RS has also bought a new pickup NISSAN KAE 556T @30,000/=

Exercise 3


1) National Electronics co LTD deals in Radios, TV's Videos and other miscellaneous electronic goods.  NEC obtains its supplies from authorized dealers in Nairobi and sells them to local distributors in provincial capitals.

NEC computerized its accounts starting in Jan 2003
 .
You are required to install a COMPUTERIZED ACCOUNTS PROGRAM bearing in mind

 Create the following Nominal Sales Accounts:-

Radio Sales
TV Sales
Video Sales
Miscellaneous Sales

and the corresponding Nominal Purchase Accounts:-

Radio Purchases
TV Purchases
Video Purchases
Miscellaneous Purchases

and also note that NEC incurs overhead costs in the following ;

Rents
Stationery
Petrol
Car Repairs

NEC has 4 main authorized dealers in the provinces to which it sells electronics.  These are;

 Name and Address

Central Electronics, P.O.Box 489 Nakuru
Electronic Distributors  P.O.Box 409 Kisumu
Hi-Fi Technology , P.O.Box 16 Nyeri
Advanced Sound Systems, P.O.Box 1181 Mombasa

and the following 4 suppliers all based in Nairobi.

  Great Wall Ltd, P.O.Box 6170, Nairobi
  Sanyo Co.P.O.Box 2678, Nairobi
  JVC - Kenya , p.o.box 2122 Nairobi
  Phillips Kenya Ltd. P.O. Box 98485, Nairobi

The following figures relate to the opening balances as per the time of computerization.

Capital                                     50,000
Tax                                          2,000
loan                                         2,000
land                                         6,000
Machinery                               5,000
Funiture & Fittings                 2,000
Motor Vehicle                            3,000
Bank                                        20,000
Cash                                        11,000

Central Electronics owed us    12,000

We owed Great Wall                 8,000
We owed Sanyo                         2,000

4.  Process the following sales invoices in batches of 12 or less.  Note that Kenya Government has set VAT at 18% and that the tax amount should be calculated via the Accounts Software.

NB: Enter the correct A/C Ref and N/C for each invoice detail.  Incase of insufficient stock you may purchase more stock.

           
                                                        PURCHASE INVOICES
FROM: Great Wall
INV NO: 100 DATE: 13/1/94
QTY               DETAILS                  EACH                        NET
10                    Radios                         1000                10000
20                    Videos                         5000                100000

FROM: JVC-KENYA
INV NO:760 DATE: 15/1/94
QTY               DETAILS                  EACH                        NET
5                      TVs                             4000                20000
10                    Power cables               100                  1000
20                    Radios                         700                  14000



FROM: Philips Electronics
INV NO: 819 DATE: 21/1/94
QTY               DETAILS                  EACH                        NET
2                      Videos                         7,500               15000
5                      Radios                         500                  2500

FROM: JVC -KENYA
INV NO: 583 DATE: 1/2/94
1                      TV                               10000              10000




SALES INVOICES

INV NO :600 DATE: 12/1/94
CUSTOMER: Central Electronics

QTY               DETAILS                              EACH                        NET
2                      Radios-sanyo              1600                3200
10                    Videos-JVC                17000  170000

INV NO: 601 DATE: 16/1/94
CUSTOMER: Hi-Fi
QTY               DETAILS                              EACH                        NET
10                    Radios-JVC                            1500                15000
2                      Tvs-G.Wall                              10000              20000
3                      Power Cables                          100                  300

INV NO: 602 DATE: 17/1/94
CUSTOMER: Electronic distributors
QTY               DETAILS                              EACH                        NET
5                      TVs                                         10000              50000
3                      Radios                                     1000                3000
10                    Speaker stands                                    250                  2500

INV NO: 603 DATE: 2/2/94
CUSTOMER: Advanced Sound Systems.

QTY               DETAILS      EACH                        NET
2                      Videos             30000              60000




6. NEC made the following payments to their suppliers on 14/2/94;

Cheque NO:               Company                   Inv NO:                      Amount
1681                            Great Wall                   100                              Full Payment
1728                            JVC-Kenya                 760                              Half Payment

NEC also received the following cheque payments on 12/2/94

Cheque NO:               Company                   Inv. NO:                     Amount
221                                          HI-FI               601                              Full Pwayment
231                                          Electronic
                                                Distributors     602                              Full payment
368                                          Advanced
                                                Sound systems            603                              Half Payment

7. On 13/2/94 NEC received cash payment from HIFI of 2000 for the sale of one radio ar a cost of 1640 and tax 360.
On 14/2/94 , NEC paid 6000 in cash to Philips Electronics for the purchase of 3 radios, made up of goods worth 4920 and tax 1080.

8. NEC sent a credit note (NO: 215) on 15/2/94 to HI-FI for an overcharge on invoice NO: 601 in respect of power cables. The nett cost was 50. Update your accounts and match off this credit note to the relevant invoice.
NEC also received the following credit note
CREDIT NOTE

CREDIT NOTE NO: 351 DATE: 25/2/94
INVOICE NO: 760    DATE: 15/1/94
QTY                           DETAILS      EACH                        NET

5                                  TVs                 4000                20000

9. On 1/3/94 NEC paid for the following expenses;

CHEQ NO:     ACCOUNT                NET
16801              Rent for JAN              15000
16802              Stationery                    2500
16807              Petrol                           250
16809              Car repairs                   1250
Process the above bank transactions.

Exercise 4


1. Computer Setup Ltd. (COMP) is a leading computer company. It gets its supplies from its principals in Europe, America and Asia. These are sold at a profit through its assigned distributors.

Recently the company decided to computerize its accounts using Pastel Accountant.

You are required to install the software with the following features.

. Sales and Purchase accounts.
. Relevant Chart of accounts.

The lines of business are.

. Computer Purchases/Sales.
. Printer Purchases/Sales.
. Stationery Purchase/Sales.
. Diskette Purchase/Sales.

Business overheads are:-

. Rent
. Salaries
. Telephone
. Transport

Below are the details of  some of their main customers.

CUSTOMERS

R Turbo limited P.o Box 34527 Nairobi Tel. 456632
R Duke computers ltd P.o Box 637378 Nairobi Tel 363737 Nairobi
R Campus 9 ltd P.o Box 464738 Nairobi
RHugo ltd P.o Box 4678 Nairobi Tel 578437 Nairobi
R Sempha group         P.o Box 637738  Nairobi Tel 9083673 Nairobi


SUPPLIERS

R Sanchez ltd             p.o. Box 478530 Brazil Tel. 0034/7893073
R Icl company            p.o. Box 365739 U.S.A Tel 4563/896753 Detroit.
R Syms Ltd    p.o.      P.O Box 698845  France Tel 003/907856 France.

At the time of the computerization 7th January 1997, the following sums are already outstanding.

The total debtors figure was 202,000.
Its breakdown is as follows.

                        -30,000 /= due from Hugo ltd
                        -35,000 /= due from Duke computers
                        -70,000 /= due from Campus 9 ltd
                        -67,000 /= due from the sempha group
Total     202,000

-40,000 /=  Sundry Debtors
-35,000 /=  Cash at Bank
-40,000 /=  Cash in Hand
-200,000 /= Land

The total creditors figure was 72,000
Its breakdown is as follows
           
                        -45,000/= owed to Sanchez ltd
                        -20,000/= owed to Icl company ltd
                        - 7,000/= owed to Syms ltd
Total    72,000

- Capital                      500,000
- Loan                          200,000
- Retained Profits        70,000


4. Process the attached sales/purchase invoices and sales/purchase credit notes bearing in mind that the government has set a VAT rate of 10%.

1997 Jan...


2.1.      2 computers from Sanchez @ 45000 each inv 002
3.1       2 printers from Sanchez @ 4000 each inv 323
5.1       4 Reams of paper from Campus 2000 inv 909
7.1       2 Printer cables from Icl 900 inv 11564

inv. no 516

date:    21-01-94
4 pieces of printer at 1233/= each from ICL

inv. no 483

date: 01-01-1997
3  pieces of Computer @ 1456/= from Sanchez
4 pieces of Printer @ 1200/= from Sanchez
2 pieces of Stationery @ 1300 from Sanchez

inv. no.290

3 pieces of Diskettes @ 1500 from  Syms. Ltd.
2 pieces of Stationery @ 1250 from Syms. Ltd.

Inv. no. 117

10 piece of Diskettes @ 2000/= to Duke computers
3 pieces of printer @ 1700/= to Duke computers

inv. no. 121

30 pieces of Diskettes @ 1800/= to Campus 9
23 pieces of Stationery @ 2000/= to Campus 9

inv. no. 145
4 pieces of Stationery to Sempha Group @ 1567/=
6 pieces of Computer @ 1678/= to Sempha Group

5. Make the following payments dated 25.04.94
a) Cheque No. 216 to ICL  in respect of full payment of Invoice No. 516

b). Cheque No. 278 to Sanchez for 50% payment of Invoice No.483

6. Process the following receipts received on 27.01.94
a) Cheque No. 4001 from Duke computers for full payment of Invoice No. 117.

b) Cheque No. 217 from Campus 9 for 25% payment of Invoice No. 121.

7. Process the following cash payments and receipts dated 28.01.94 by Garden Care Ltd.

a)
1. Receipt of 4000 for the sale of 4 pieces of Stationery made up of item cost 3280 and tax 720.

2. Sale of 3 pieces of Computer at 850 /= each

b) Payment of 12000 to Syms Ltd of France for the purchase of 120 pieces of Diskettes costing 9840 and tax 2160.

8. Computer Setup received Credit Note No. 5667 on 27.03.94 from Sanchez in respect of Invoice No. 483 for the net cost of 14560 (10 pieces Computer lost in transit). Match this credit note to the invoice.

9. At the end of April (30.01.94), Computer Setup paid for the
following expenses:

a) Cheque No. 685 for Repairs on the premise 1,000
b) Cheque No. 687 for April Office Stationery  2,500
c) Cheque No. 689 for transport at 400
d) A car was bought for 15000 cheque 560989
e) Casual labour cash 650/=
f) Entertainment (Hard Rock) 2000/= Cash


Ø Produce a printout of

1. The trial balance. 
2. The fixed assets valuations report.
3. The profit and loss report and balance sheet.
4. List of the customers and creditors balances.
5. List of all the  transactions.