08-05-2011 02:01 AM
Hi guys Im Mark and im currenly studying accounting and i've got a assignment which is how to use myob. I have i little problem I'm not so sure how to record the following:
-transfer $435 of the prepaid insurance to expense account.
-superannuation payable for the month - $620
-record depreciation expense for the month;
*store equipment - $221
*motor vehicles - $440
I'm using version 19 of myob..
Thanks so much guys if can help me with those transactions.
08-05-2011 09:48 AM - edited 08-05-2011 09:57 AM
What year are you in? These are pretty simple entries. Two are general journal entries and the other is either done by spend money or pay liabilities in the payroll module.
Without knowing how your Lecturer has explained to do these entries (especially the super one) and how they want them coded, it is a bit hard to give you the exact answer.
I would look back through your notes and your text book.
08-05-2011 09:50 AM
When I am teaching students my main advice to them is to think = "what do you want to do" - also you can look at the Sample Company and that will also help you to decide. Read the Chart of Accounts eg Assets, Liabilities. Expesnes
1. Transfer from prepaid Insurance - where was it placed - is it an asset or liability to your Company. Its an Asset as you have prepaid it The second part of the same question tells you where you have to debit the insurance pre paid to - expenses account
2. Superannuation paid for the monthy. - How was your payroll set up - Go and look there. When processing payroll you debit the expense account and credit the liability account ready for payment to the super funds. So when you pay the super funds where would you take the money from - "Debit the libility account - super when using Spend Money
3. Depreciation - debit the expense account - they are telling you - An expense account - so the other side of the entry would be an Asset account eg M.V - office equipment - etc etc (usually 2 accounts - when the assest was purchased and where you put the depreciation amount)
4. Store equipment - for that amount of money I would put to an expense account BUT you need to work with your clients accountant who may wish to see that small amount put to an Asset account
5. Motor Vehicles - tough one - what was it for??? My guess petrol for the month - which would be an expense to your business therefore an expense account
I hope this helps you a little - didn't want to give too much away - believe me its all a learning curve and you will get there
08-05-2011 10:02 AM
I think Mark is saying that the depreciation for the month is $221 store equip and $440 M/V, these are not extra expenses.
08-05-2011 10:47 AM
Yes you are right, that is what happens when you want to help someone before 22 people arrive for lunch. Silly me, I usually repeat the question but today wellllll its a busy day.
Enjoy your day Julie
08-05-2011 11:19 AM
You too Marilyn, Happy Mother's Day to all Mums, we deserve a day off (though it doesn't seem to happen that way!)
08-05-2011 02:07 PM
Thanks for the help guys. It is just a bit hard for me to figure everything out coz im only first year and first time user of myob, so im not fully sure where to put transactions are etc. I just wanna know where to put the transaction wheter in 'account' under general journal entry etc. I really appreciate if you guys can help me coz i know u guys are proffesional and know these things.
08-05-2011 04:19 PM
For all of these enteries you could use the General Journal section of MYOB,
You would debit the expense and credit the other side of the entry.
08-05-2011 08:43 PM
Thanks for help it was really helpful I was just wanna double check if wat i did was correct. For the depreciation ones for example for the
Dr Office Expense
Cr Store equipment accum dep.
Is that correct?? or they completely different? Also where do i put this transaction: Interest charged on the bank loan for the month was $79.25 (GST Free)
Sorry to bother you im just not sure where to put things and plus im in the point of just learning accounting stuff.
HAPPY MOTHERS DAY ANYWAY!!!
08-05-2011 08:57 PM
The expense account for depreciation is just that, depreciation. The office expense account would be for either things like stationery, printing, postage or for electricty etc. All depends what expense accounts you have set up and the particular preference of the bookkeeper/accountant and/or owner of the business.
Interest charged on the bank loan would be going to the Interest expense account with the other side to the loan account. Can be done via spend money (if the loan account is set to credit card account type) or a journal entry.
If you are trying to get a good mark on your assignment then you should be doing the entries as you have been taught. An interest expense, in the Accounting world is done via a general journal entry and not through the cash payments register (which is where spend money transactions are going).
This is why I suggested you look through your notes done at your lectures/tutorials and your text book.
You are definately going to have to go back over your notes to see how your lecturer (and I assume your marker) wants the entries coded. GST free is NOT what should be used on bank entries or interest as they are not on the GST free list, but they do not have any GST component and I personally would be making a new tax code of No tax for these entries, but like I said this is debated amongst bookkeepers and it ALL gets down to what the person marking your assignment believes and has taught you, as this is how you will be marked.
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