Manual Accounting Assignment

Task

Assume you have just been employed as the part-time accountant for Intermaweb Computing. The previous part-time accountant resigned at the end of December 2014.

Intermaweb Computer is a small electronics goods retail store which operates in Canberra. This business is owned and operated by Mr Alonso Lamb. He also employs a sales consultant (Paula Rinaldo) and both of you will be paid on a monthly basis.

The business uses a perpetual inventory system, noting the cost of all inventory sold is 70% of the sales (GST exclusive) price.
Due to the small size of the business Mr Lamb is unable to afford a computerised accounting system thus all accounting is completed manually. Prior to resigning, the previous part-time accountant completed all necessary accounting tasks and produced a trial balance as at 31 December 2014.

It is now the end of January 2015, Mr Lamb requests you to complete all necessary accounting tasks to enable the preparation of a trial balance as at 31 January 2015. Specifically Mr Lamb requests you to use Excel to:

(a) Prepare general journal entries to record the January transactions. Notations/descriptions are required.

(b) Open general ledger accounts (T-Bar or Running Balance format) for each account shown on the 31 December 2014 trail balance, and

- enter the opening balance for each account ie as shown in the 31 December 2014 Trial Balance.

- 'post' your January general journal entries to the appropriate general ledger accounts and enter the posting references in the general journal.

(c) Balance off each general ledger account (as at 31 January 2015) and prepare a trial balance as at 31 January 2015.

NB: When a discount is received or allowed, there is no need to adjust the associated GST Paid or Collected.

Mr Lamb provides a list of the transactions which occurred during the month of January, as well as the business's trial balance as at 31 December, 2015.

The list of January transactions and the Trial Balance as at 31 December 2015, can be found in the Assessment Item 2 file within the Resources folder in the subject's Interact2 site.

Rationale

This assignment is a manual double entry accounting exercise to be completed prior to the online MYOB Practice Set (ie Assessment items 3, 4, and 5). Many of the transactions in this assignment will be similar to those you will come across in the online MYOB Practice Set.
The purpose of the assignment is to assess your understanding of the accounting system and to assess you ability to record accounting transactions using a manual accounting information system, as well as prepare a trial balance from accounting data.