Case Study - MYOB Account
Business background : DNC Construction Pty Ltd
DNC Construction Pty Ltd was established in 1988. It's a privately owned Project and Construction Management Company with substantial structural, mechanical and piping fabrication expertise with the sole shareholder and director being Daniel Cromhout. Corporate and Manufacturing facilities are based at Sydney, Australia.
There are two wages employees. Greg Hanson & Brett Wallace and one salary stuff Ann Wilson as accounts clerk. Two wages employees are paid at an hourly rate. Tax is deducted from wages (PAYG Withholding tax) and remitted to the ATO on a auarterlv basis.
The business is registered with the ATO for the goods and services tax (GST), AND ITS Australian Business Number (ABN) is 35 052 414 132. It reports and pays amounts owing for GST, PAYG withholding and PAYG installment quarterly yja the business activity statements (BAS). The business has elected to use accrual basis of accounting for both accounting and GST purposes.
The business maintains a perpetual inventory system. Customers are seldom offered a discount for prompt payment, and terms vary from 7 to 30 days. Some suppliers give a prompt payment discount, which is recognized as income in the financial statements. Trade or volume discounts given to customers or received from suppliers reduce the cost of the goods purchased or sold, and are not recognized separately in the financial statements. The direct write-off method is used to account for bad debts as they are rare. Prepayment_ is recorded as asset and at the end of each accounting period, the portion of the prepaid asset that has been rendered is expensed by general journal entry. It is assumed that all payments apart from petty cash are made by cheque and are handwritten. Depreciable assets are written off using ATO rates and the straight line (prime cost) method with no residual value. Leasehold improvements are amortized over the term of the lease (5 years) using the straight line method.
Set up the business details using the New Company File Assistant
Company Details
Company Name: DNC Construction Pty Ltd A.B.N.: 35 052 414 132
Number of Accounting Periods: Twelve
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