MYOB Project
ACCT11-100 2
The Assignment – MYOB Project
Overview
In this assignment, you are to create a business profile and record day to day transactions using
MYOB Essentials. This assignment is designed to introduce you to using accounting software for a
small business. It covers many of the common business transactions, including those which we
have covered in class. This assignment will also include Goods and Services Tax (GST)
calculations, as this is embedded in the accounting software. At the end of the project, you are
required to submit a number of reports that you generate through MYOB.
Parameters
This is an individual assignment. Always use your own legal name, student ID and university e-
mail account when required.
Weighting: 15%
Due date/time: Sunday March 5, Week 7, 11.59PM
Submission: You are required to submit the electronic files only.
Required
1. You are required to generate and submit the following documents by using MYOB Essentials:
(90% of assignment grade)
1) A Quote generated for a customer on request,
2) Journals – a list of all journal entries,
3) Trial balance – a list of all account balances
4) Financials - Profit and Loss Statement and Balance Sheet for a specific period.
2. Complete the multiple-choice test found in the assessment tab on iLearn.
(10% of assignment grade)
Further information
Background – your business
It is assumed that you own and run your sole trader business, selling one type of specialised
industrial alarm system (Home Defender) and also provide installation, maintenance and repair
services. Your business is based in Robina. You have no employees. Your business is registered
for GST on the accrual (invoice) basis and prepares GST every quarter. You have some regular
suppliers and customers. The financial year of your business runs from 1 January to 31 December.
Since you have learnt accounting as a part of your accounting subject, you have decided to use a
cloud-based accounting software package to account for your own business. Your task is to set up
your business profile, record and process daily transactions of your business using MYOB
Essentials and consider how easy / complex a cloud-based accounting system is to use.
ACCT11-100 3
MYOB Essentials
MYOB Essentials is an easy online accounting software that can assist reporting requirements for
a small business. It is a fast and easy way to manage cash flow and ATO compliance
requirements.
More details about MYOB Essentials can be found at: https://www.myob.com/au/accounting-
software/essentials
You must register for MYOB Essentials for free at: https://www.myob.com/au/campaign/education-
trial
Since MYOB Essentials is a cloud-based software package, you can work on this assignment
anytime and anywhere where internet is available. MYOB Essentials can be accessed via a range
of devices, but it is NOT recommended that you use your mobile phone for completing this
assignment.
‘Chrome’ is the preferred browser.
This assignment is to be completed entirely by your self-instructed learning. Note that this
assignment is an individual assignment. Bond University policies about the conduct of student
assessments apply.
Technical assistance
There will be classes during Week 7 facilitated by academic staff members of the subject. Most of
Week 7 is dedicated to you working on this project, and there will be no new content during this
week. You may want to use these class hours to ask particular questions, or you can make use of
this time slot to complete some tasks of this assignment.
There will be no dedicated lecturing time and tutorials on the specific tasks of this assignment
during the semester. The assignment explores how well you can translate the skills you have
learned about the manual accounting process to learn an accounting software package on your
own.
Certification
In addition to your marks achieved from the successful completion of this assignment, you will
receive a certificate of proficiency jointly issued by MYOB and Bond University.
All the best for your MYOB Project!
ACCT11-100 4
Section 1: Setting up the business account
It is assumed that you own and run a sole-trader’s business in Robina. You are to use MYOB
Essentials to create your business profile.
MYOB Essentials is a cloud-based system. You can log out and log in to continue working on the
project at any time as long as internet is available.
*Make sure you allow screen pop-ups.
Step 1: Registration
Please use your student e-mail address to register for access to MYOB Essentials by following this
link:
https://www.myob.com/au/campaign/education-trial
Step 2: Student to set up file online
Go to www.myob.com/au/accounting-software/essentials – follow steps to set up trial file for MYOB
Essentials.
When you log into MYOB, make sure you choose to log in to the software pack of ‘MYOB
Essentials’.
Create the business name by using your own name (preferably your Surname) and the following
information. For example, if your name is Tim Hasso, your business will be named ‘Hasso
Security Systems and Services’. Choose your industry as ‘Retail’ and select the role of ‘Student
or teacher’. Here are screenshots of these settings:
Then click ‘Get down to business” to continue.
Step 3: Entry of business details
Open the ‘Business settings’ page to update your business information. This can be accessed
via clicking on the business name on the top-right of the screen to open up the account settings.
Select ‘Business details’.
ACCT11-100 5
Use the following information to complete the required sections.
Business name Hasso Security Systems and Services
(the name you have created previously)
Trading Name As Above
ABN Number 12 345 567 789
GST Branch 001
ACN Number 123 456 789
Client code NSS 001
Specific industry code Leave blank
Contact Details Your choices
Financial Year 2022
Last month in financial year December
Opening balance date January 2022 - Do not lock the date
ACCT11-100 6
Step 4: GST settings
Stay on this page and click on the ‘GST settings’ Tab. Ensure your settings are the same as
below:
Step 5: Report settings
This is where you can select your Business settings and User preferences for reporting and pre-set
them. Note while generating reports, you can at any time change these options within the report.
Set the setting to appear as below. Any others should be left as the default.
ACCT11-100 7
Press ‘Save’ and move to User preferences.
ACCT11-100 8
Section 2: Chart of Accounts and Tax codes
MYOB Essentials has a customised chart of accounts depending on the industry your business
operates in. In this section, you will view and edit the chart of accounts and enter the opening
balance for your business.
Step 6: View the chart of accounts
You can always view and edit the chart of accounts for your business. Click on the Accounting Tab
and down to click on Chart of accounts.
Now, take a quick look at this default chart of accounts. Pay attention to the Account numbers,
Account names and Account types. Although it is not regulated by an accounting standard, a chart
of accounts is usually set up by following the convention: Assets start with ‘1’; liability accounts
start with ‘2’ and so on.
Since your business is registered for GST, further to Step 4 above, the function of recording the
input and output GST is controlled via the Chart of accounts, so you need to be sure here you have
the correct Tax code associated to each account. We will keep the tax codes in the standard chart,
and when creating a new account the easiest approach is to see what tax code a similar account
has.
If you want to view all the types and corresponding rates, go back to the Accounting Tab and down
to Tax codes. Here you can view all Tax codes available, linked accounts for tax collected and tax
paid and the relevant rate. You can click into the purple Tax code and edit as required.
Step 7: Customise the chart of accounts
Sometimes you may want to import a chart of accounts as that allows you do add multiple
accounts at once without having to go through the manual account creation process. Let’s try this
out, click on the Accounting Tab and select Chart of accounts, click on the Import chart of accounts
button. Now upload the file called “ChartOfAccountsImport” that is available on iLearn in the
assessment page where you found these instructions.
Now let’s try to edit account names and adding new ones. Use the ‘Edit accounts’ button to
customise the chart of accounts by editing and adding.
ACCT11-100 9
Modify the following existing accounts
Old account name New account name
Business Bank Account #1 ANZ Cheque Account
Business Loan #1 ANZ Business Loan
Credit Card #1 ANZ Visa Credit Card
Inventory Inventory – Home Defender Systems
Stock on hand Other supplies
When you finish, click save. Create the following new accounts (‘Create account’).
You can choose your own account numbers but remember to stay consistent with the numbering
across the account categories.
Account
number
Account name
Account
type
Parent header
Tax
code
4-1500 Sales – Home Defender Systems Income Income GST
4-1550 Sales – Installation Income Income GST
4-1600 Service and repair income Income Income GST
5-3000
Cost of Sales – Home Defender
Systems
Cost of Sales Cost of Sales GST
1-1120 ANZ Savings Account Bank Bank Accounts N-T
1-2600 Office equipment & computers Fixed Assets
Property, Plant &
Equipment
CAP
1-2610
Acc. Depr – Office equipment &
computers
Fixed Assets
Property, Plant &
Equipment
N-T
1-2650 Furniture and Fittings Fixed Assets
Property, Plant &
Equipment
CAP
1-2660 Acc. Depr – Furniture & Fittings Fixed Assets
Property, Plant &
Equipment
N-T
ACCT11-100 10
When you finish adding accounts, remember to save!
Section 2a: Linked Accounts Subsidiary Systems and Opening
Balances
Refer to MYOB help feature located on top right of screen:
Step 8: Read about linked accounts
Click the help icon, and type ‘linked accounts’ in the search box that now appears on the left hand
of the screen. Read how accounting systems link control accounts such as accounts receivable,
accounts payable, banking and payroll.
All software systems work slightly differently in the way existing information of a business is set up
in their software. Most require you to key in data from existing ‘open’ business transactions.
Following this step is key to future accurate accounting reports in the system.
Step 13 contains the Trial Balance for the business at the end of last month before using the
MYOB system. You note there are values against linked accounts. You must enter the sales and
purchase invoices that make up the Trial Balance values in Step 13. This process is setting up
subsidiary ledgers and is required to be completed BEFORE the Trial Balance opening balances
are confirmed or keyed in.
To set up linked accounts (subsidiary ledgers) other information is first required. Contacts and
Inventory will need to be set up first.
Section 3: Regular contacts
Like the frequent contacts in your mobile phone, regular customers and suppliers can be saved in
MYOB Essentials for the convenience of frequent use. From the Dashboard of MYOB Essentials,
you can access the ‘Contacts’ function to enter and save regular customers and suppliers.
Step 9: Set up Contacts
Create your customer and supplier contacts using the basic information below. After entering the
details of a contact, click ‘save and add another’ and then add the next contact. When you finish
each one do not forget to save down bottom. (NB you only have to key in the below data for this
exercise.)
ACCT11-100 11
Customers
Field Details
Contact type Customer
Designation Company
Company Name Varsity Towers
Field Details
Contact type Customer
Designation Company
Company Name Varsity Shores
Field Details
Contact type Customer
Designation Company
Company Name The Reserve Apartments
Suppliers (Note all ABN will say Invalid)
Field Details
Contact type Supplier
Designation Company
Company Name Kingston Importers Ltd
Field Details
Contact type Supplier
Designation Company
Business Name The Warehouse Stationery
Field Details
Contact type Supplier
Designation Company
Business Name Jones Electricals
Use the ‘All contacts’ function to double check all the details. Pay attention to the type of the
contacts. You can edit any Contact by clicking on the business name.
Section 4: Recording Existing Sales
Using an accounting software package to record transactions and events is different from manual
bookkeeping we learned in class. Transactions are usually recorded by entering the information on
source documents, for example invoices, receipts or timesheets. Journal entries are then created
in the system automatically in the background by linking the input data to the ledger accounts.
Your knowledge of bookkeeping and accounting practice will enable you to set up the system
appropriately and enhance the accuracy and speed of recording. In this section, you will explore
the sales function of MYOB by processing several sales transactions.
ACCT11-100 12
You can find the tab of the ‘Sales’ function right next to the Dashboard.
Step 10: Set up items for sale
Your business buys and sells industrial security systems and provides related installation and
maintenance services. The first step is to set up the inventory and service items for sale.
Click on ‘Sales’ to open up the drop-down list. Select ‘Items’ and then ‘Create Item’
Use the information below to set up three (3) items. When you finish, do not forget to save. Items
for sale can always be added, updated and held as ‘inactive’ to suit your business operation.
1) Inventory – Industrial security systems
Item ID HD001
Item name Industrial Security System
Description Home Defender
Selling details I sell this item
Selling price $28,500 (GST inclusive)
Allocated to Sales – Home Defender Systems
Tax code GST
Buying details I buy this item
Unit of measure Qty
Buying Price $18,000 (GST exclusive)
Allocated to Cost of Sales – Home Defender Systems
Tax type GST
This is the only inventory item you purchase and sell. You can purchase this item from
Winterthur Security Systems for $18,000 per set. At the beginning of the period. You have one (1)
set of equipment for sale. See opening balance of inventory in Section 6.
ACCT11-100 13
2) Installation Services
Item ID INS001
Item name Installation
Description Standard installation including programming, electrical services and
testing.
Selling price $1,418.18 (GST exclusive)
Allocated to: Sales - Installation
Tax code GST
Unit of measure Hr (This is a service item)
Leave the buying details blank for this item. $1,560 is the GST inclusive price.
3) Service – Software and Data
Item ID SD001
Item name Service – Software and Data
Description Scheduled software update and data backup services
Selling price 0.00 (GST exclusive)
Allocated to: Service and repair income
Tax code GST
Unit of measure Hr (This is a service item)
There is no standard rate for this item. Leave the buying details blank for this item.
Use the sales function, select ‘items’ to view all the items you have entered. You can always edit
these items by clicking on the item number or item name.
Step 11: Enter historical sales
Your business has an opening balance of accounts receivable in the amount of $10,970. Enter the
following historical invoices by using the ‘Create invoice’ function.
ACCT11-100 14
Select ‘Services and items’ from the settings menu on the invoice.
Historical invoices (most of the information will autofill if you have done the previous steps
correctly):
Customer Invoice # Date of
issue
Item Unit Balance (GST inclusive)
Varsity Towers INV00001 15/11/2022 INS001 4 Hr $6,240 (invoice total)
Varsity Shores INV00002 26/11/2022 SD001 2 Hr $1,980
The Reserve
Apartments
INV00003 28/11/2022 SD001 3 Hr $2,750
Total accounts receivable balance as at 30/11/2022 $10,970
Important: It is assumed that you have standard terms of trade: all invoices are due 15 days from
the end of this month. This term of trade is applicable to all your customers.
As a user you can always view your invoices, print them out or e-mail an invoice to the customer.
After you have entered and saved the three historical invoices, your system shows. You can also
use the invoice function under ‘Sales’ tab to view the invoices you have entered.
You can edit and/or delete an invoice by clicking on the invoice number.
Section 5: Recording existing purchases
In this section, you will explore the purchases function of MYOB by processing a number of
purchases transactions. You can find the tab of Purchases function right next to the Sales tab
ACCT11-100 15
Step 12: Enter historical purchases
Your business has an opening balance of accounts payable of the amount of $6,570 (see Section
2, opening balances). Enter the following historical invoices by using the Create bill function. (Use
the same Bill number as invoice number)
Supplier
Supplier
Invoice
Number
Date of
issue
Due Date Item Unit
Balance (GST
inclusive)
Kingston
Importers
Ltd
1237 13/11/2022 14/12/2022 (blank)
Description:
other
supplies
1Qty $6,000 (invoice total)
Allocate to ‘Other
Supplies’, make sure
the tax code is GST.
The
Warehouse
Stationery
0010068 19/11/2022 20/12/2022 Description:
office
stationery
1Qty $570 (Invoice total)
Allocate to ‘Printing &
Stationery’, make sure
the tax code is GST.
Total accounts payable balance as at 30/11/2022 $6,570
Section 6: Completing Opening Balances
Step 13: Enter the opening balances for your business
Make sure you only do this, after you have completed previous steps 1 - 12
Repeat Step 1: View the chart of accounts and use the Edit Accounts function to enter the opening
balances according to the Trial Balance provided below. The linked accounts should already be
displaying the correct values (Accounts receivable, Other supples, Accounts payable, GST balance
and Current year earnings). Do not enter or adjust these items. They are displayed in strikethrough
text in the table below.
If the below accounts do NOT already have the below values, please enter the following opening
balances:
ACCT11-100 16
Account number Account name Debit ($) Credit ($)
Assets
ANZ Cheque Account 20,000
ANZ Savings Account 15,000
Accounts receivable 10,970
Other Supplies 5,454.55
Inventory – Home Defender Systems 18,000
Motor Vehicles 30,000
Acc. Depr - Motor Vehicle (6,000)*
Furniture & fittings 45,000
Acc. Depr - Furniture & fittings (18,000)*
Liabilities
Accounts payable
6,570
GST Balance (account 2-1212)
400
ANZ Business Loan

30,000
Equity
Owner's Funds Introduced
45,000
Retained earnings
29,000
Current Year Earnings 9,454.55
Notes:
* enter these amounts as negative.
The amounts written with strikethrough should already be entered and you should not enter any
amounts for these accounts.
Leave the other accounts’ opening balances empty. When you finish, do not forget to save.
MYOB Essentials enable users to produce financial statements at any time. Once you have
completed Section 2 and saved all the changes you have made, it is time to make sure that
everything has been recorded appropriately so far. There are many ways of checking your work.
One of the quickest ways is to produce a balance sheet as at 30/11/2022.
Go back to the Dashboard. Click on the Reporting tab to open the drop-down list. Select 1, then
look for your Balance Sheet. You can make it a favourite report by just clicking on the star to the
right as well.
ACCT11-100 17
Open up the Balance Sheet reporting page and set the balance date as 30/11/2022.
You may want to view it in the webpage or export the balance sheet into an Excel or PDF file.
You can explore the function of Report Options to hide the zero balance and the account numbers.
But this is not essential.
What if I made a mistake?
Does your balance sheet balance? Are the line items properly classified and displayed? If not
displayed correctly you may need to explore the Header Accounts and moving Detail accounts
under the related header account. Do you have any orphan accounts which are not reported under
any Headers? This means that when you set up the new accounts, you did not specify the parent
account so use the ‘Edit’ and ‘Move to’ functions in the Chart setup
If you have completed Section 1 and Section 2 according to the instructions your balance sheet
should balance and show all the information. If a wrong amount is entered for any of the opening
balances, the account ‘3-9999 Historical balancing’ in the equity section will now show an amount
to signal this mistake having forced the financial statement to balance. Thus, any discrepancies are
usually shown up in here.
Do not proceed to the next section unless you are satisfied that the accounts and opening
balances are all correct.
Section 7: Recording Sales
Step 14: Record sales transactions
You are now ready to process the following transactions which took place in December 2022. In
addition to creating invoices, you will explore other sales functions of taking payments, creating
and processing customer returns.

Important: It is assumed that you have standard terms of trade: all invoices are due 15 days from
the end of this month. This term of trade is applicable to all your customers.
ACCT11-100 18
Record the following sales related transactions in December 2022:
Sales related transactions in December 2022
Date of
issue
Business Transaction Your bookkeeping task
03 Dec 2022 Delivered a new set of Home Defender
Industrial Security System to Varsity
Shores. Installation has not been
scheduled. As they wanted these
delivered quickly you were able to charge
them more than the normal item price.
Create a new invoice INV00004 for the
amount of $32,775.00 (GST inclusive).
10 Dec 2022 Delivered and installed (standard
installation) a new set of Home Defender
Industrial Security System to Castle
Industry Park. This new customer has not
been entered into the system. This is a
business owned and operated by Ed
Castle.
Add the new customer Castle Industry
Park.
Create a new invoice INV00005 for the
amount of $34,740.00 (GST inclusive).
Installation time: 4 hours
11 Dec 2022 Received a cheque (No.208478) of $2,090
from The Reserve Apartments. The
cheque was accompanied by a note
saying ‘Partial Payment INV00003’. You
banked the cheque into the “ANZ Cheque
Account”.
Create Invoice Payment of $2,090 from
The Reserve Apartments. Bank it into
“ANZ Cheque Account”. Apply the
amount $2,090 to INV00003. Enter in the
‘Description of transaction’ that this is a
partial payment. Use the Cheque number
as the ‘Reference number’.
15 Dec 2022 Installed the Industrial Security System
delivered to Varsity Shores on 3rd
December.
Create a new invoice INV00006 for the
standard installation carried out for 2
hours: $3,120 (GST inclusive).
20 Dec 2022 Received and banked a cheque from
Castle Industry Park (No.336203) in the
amount of $34,740.00.
Take a payment of $34,740.00 from
Castle Industry Park. Bank it into “ANZ
Cheque Account”. Apply the full amount
to INV0005. Use the Cheque number as
the ‘Reference number’.
20 Dec 2022 Rang Michaela of The Reserve
Apartments to follow up the partially paid
INV00003. It was agreed that The Reserve
Apartments was overcharged for $660 of
the installation services.
Create a customer return for The
Reserve Apartments No. CN00001. GST
inclusive amount: $660. Process the
customer return against INV00003. Hint:
Read the information on this page.
Step 15: Create a quote
There is an exciting new opportunity for your business! Ed Castle from Castle Industry Park rang
you on 23 December 2022. His business is expanding. He has been planning to fit out five (5) new
factory and retail premises within the industry park. As a result, he has requested for you to
prepare a quote for five (5) sets of Home Defender industrial security systems, five (5) standard
ACCT11-100 19
installations. Each of the industrial security systems will also require scheduled software update
and data backup services. You have agreed to offer the scheduled maintenances at a price of
$500 each for the first year (GST Inclusive).
This offer (quote) will be valid for 120 days from the date of issue. I.e. the expiry date of this quote
is 22 April 2023.
Now use the Create quote function to generate a quote (QUO0001) for Castle Industry Park as a
basis for further negotiation.
Make sure you save it after you finish.
Click print to generate a PDF copy of the quote. Save a copy of this quote (PDF format) in a
folder. You will be required to submit this quote as a part of the assessment when the assignment
is due. Remember you can always access this Quote.
Section 8: Recording purchases
In this section, you will explore the purchases function of MYOB by processing a number of
purchases transactions. You can find the tab of Purchases function right next to the Sales tab
Step 16: Record purchases transactions
You are now ready to process the following transactions which took place in December 2022. In
addition to creating bills, you will explore other purchases related functions.
When making a payment, untick the box that creates a remittance advice at the bottom of the
screen.
ACCT11-100 20
Purchases related transactions in December 2022
Date Transaction Your task
02 Dec 2022 Received supplies for $3,105.00
including GST for supplies from Jones
Electricals. Supplier’s invoice number
#00129. Due: 3rd January 2023.
Create a new bill. Allocate the amount to ‘Other
supplies’. Description: General electrical
supplies. No ‘item’ specified.
2 Dec 2022 $43,560 (Invoice total)
Received 2 x new defender systems
from Winterthur Ltd inv 258.
The cost has increased. Please adjust
the ‘Item” HD001 for the new cost.
Create a new bill. Allocate to ‘Inventory – Home
Defender Systems’.
Make sure the tax code is GST. Description:
Purchase of home defender system.
05 Dec 2022 Received goods and invoice from
Kingston Importers Ltd for $4,650.00
plus GST for purchase of Supplies.
Invoice Number 1695. Due: 6 January
2023.
Create a new bill. Allocate the amount to ‘Other
supplies’. Do not specify the item.
The goods are spare parts and electrical
supplies.
06 Dec 2022 Charged $6,900 including GST for
labour (installation and electrical in
November) from M Tunncliffe & Sons.
Invoice Number 0978. Due:7 January
2023.
Create a new account ‘Labour’ (Cost of Sales
for both type and parent, Standard 10% GST,
See section 2, step 7)
Create a new bill for a new supplier (Contact:
Maurice Tunncliffe). No item specified. Create
your own description. And allocate the full
amount to this new cost account.
10 Dec 2022 Received telecom (internet and data)
bill from Vodacom for $720.00 (Invoice
No.159840006598) including GST. Due
10 January 2023
Create a bill. Add the supplier and allocate the
amount to ‘Telephone & Internet’. Create your
own description.
ACCT11-100 21
Review – where are the journal entries?
You may have realised that using an accounting software package to record transactions and
events is indeed different from manual bookkeeping we learned in class. If the system has been
set up appropriately and the transactions have been entered accurately, journal entries will have
been created in the system automatically in the background.
Now you will examine the journal entries of all sales and purchases you have entered so far in
Section 4 and Section 5 by using the Report function of MYOB Essentials.
Return to the Dashboard, click on the Reporting Tab. Open up the drop-down list and select
Reports. Under the Business tab, you will find the Journal entries report. You can select to
favourite this report by clicking on Star as favourite reports move to the top of the list.
Set the dates of the report from 01/12/2022 to 31/12/2022.
The full journal history showing the GST component can be exported to pdf or excel for your
review, note the Transaction type heading as the report is in date order.
See the journal entries next. Do a quick double check, are your journal entries all correct? You can
ignore a couple of cents difference due to rounding policy.
Date Transaction Your task
13 Dec 2022 Sent a cheque of $6,000 to Kingston
Importers Ltd. Cheque Number:
100151
Pay a bill (use the function: ‘Create supplier
payment’) – allocate (pay) the amount to the
invoice issued 13/11/2022. Payment is made
from ‘ANZ Cheque Account’. Use cheque
number as the reference.
19 Dec 2022 Sent a cheque of $570 to The
Warehouse Stationery. Cheque
Number: 100152
Pay a bill – allocate the amount to the current
outstanding bill. Payment is made from ‘ANZ
Cheque Account’.
20 Dec 2022 Returned $1,035 including GST spare
parts with incorrect specification to
Kingston Importers Ltd. The returned
goods will be credited against
Invoice1695.
Create and process a ‘Supplier return’ to
supplier (remember it is to be a negative Bill to
create the return before you process it).
Allocate the amount to ‘Other supplies’.
Process the return by applying the full amount
$1,035.00 to a bill - Invoice No.1695. Make sure
the dates are correct.
30 Dec 2022 Sent a cheque of $3,105.00 to Jones
Electricals. Cheque Number: 100153
Pay a bill – allocate the amount to the current
outstanding bill. Payment is made from ‘ANZ
Cheque Account’. Use cheque number as the
reference.
ACCT11-100 22
Section 9: Banking
You can check your trial balance to see what you currently have in your bank accounts (cheque
and savings accounts). The banking section gives you an overview of all your banking accounts
and activities that have been recorded with MYOB Essentials. We will now go through the process
of bank reconciliation. Bank reconciliation is the process by which the bank account balance in an
entity’s books of account is reconciled to the balance reported by the financial institution in the
most recent bank statement. Any difference between the two figures needs to be examined and, if
appropriate, rectified.
Step 17: Spend Money
By looking at the bank statement received in the mail, you have noticed that there are several
payments made from your business cheque account which have not been recorded yet.
Use the ‘Spend Money’ function to record the transactions.
• All the transactions are paid from ANZ Cheque Account.
• Use the system generated reference number – i.e. do not change the reference number.
• You need to make a judgement on the inclusion or exclusion of GST – think carefully!
• Add supplier when needed, including yourself, the business owner for the purpose of
recording drawings.
• Repeat the payee’s name in the ‘Description of transaction’ box (important).
• Save and add new.
• All these transactions are shown in the bank statements.
Date To Allocate to Descriptions Amount
GST
Type
01/12/2022 Hire Equipment
Lease of
equipment (you
need to create a
new expense
account)
Equipment lease Dec
2022 – May 2023
$14,200.00 GST
01/12/2022
Business owner -
(your name)
Owner’s drawings Drawings $3,000.00 N-T
01/12/2022
The Warehouse
Stationary
Office supplies Computer - business $2,150.00 GST
12/12/2022
LYNDY'S
Restaurant & Bar
Owner’s drawings
Meal – private xmas
party
$650.00 N-T
15/12/2022
Australian Tax
Office
GST Balance GST November 2022 $400 N-T
22/12/2022 Mercury Energy Electricity & gas
Electricity December
2022
$555.00 GST
24/12/2022
Business owner -
(your name)
Owner’s drawings Drawings $5,000.00 N-T
31/12/2022 ANZ Bank fees
December 2022
Bank fee
$20.00 INP
ACCT11-100 23
Step 18: Receive Money
You may have noticed that there are several receipts of cash made to your business cheque
account which have not been recorded yet.
Use the ‘Receive Money’ function to record the transactions.
Receiving a payment other than collecting a trade receivable, should be recorded as ‘Receive
payment’ from the ‘Banking’ function. Now open up the ‘Banking’ tab. Use ‘Receive money’ to
record $27.00 of interest you have received in the ANZ Savings Account on 31 December 2022.
Allocate it to the account Interest Received.
Important: Receiving a payment from customers for the amount owing (i.e. collect a receivable)
should be always be recorded as ‘Create invoice payment’ from the ‘Sales’ function.
Now return to the Dashboard, open up the Sales tab. Use ‘Take payment’ to record the $3,120
received on 20 December 2022 from Varsity Shores1. The customer directly banked this amount
into your ANZ Cheque Account (see the bank statement). This is a review of what you have learnt
in Section 3.
Step 19: Transfer funds
In reviewing the bank statement you notice that an amount of $15,000 was transferred from the
business cheque account to the savings account to on 30 December 2022. Under the Banking Tab
use the Transfer money function to record this transaction.
1 An earlier version of the assignment had Varsity Towers, not Varsity Shores. Both solutions will be marked correct.
ACCT11-100 24
Section 10: General journals (adjustments)
One of the fundamentals skills of an accountant is that he/she is able to journalise transactions
rather than merely inputting data based on source documents. In this section, you will make crucial
adjustments to ensure the financial information faithfully represents your business operation.
Step 20: Generate an income statement
Select Profit & Loss from the Reports function. Set the dates to be from 01/12/2022 to 31/12/2022.
The system will automatically generate the income statement/profit & loss for the above period.
Step 21: identify the required adjustments and create ‘general journals’ for the required
adjustments
Return to the Dashboard of MYOB Essentials. The General journals functions can be accessed
from the Accounting menu.
Click on Create Journal to enter the adjustments you identify from the below five (5) scenarios.
.
Important:
Note that all the adjustment entries do not affect GST, because the GST is calculated based on the
net transaction price of the goods and services regardless of what accounts you have allocate the
expenditures. The actual GST collected or paid does not change if the transactions are reallocated
into different accounts. For this reason you should make sure to select the tax code “N-T” when
doing the adjustments as otherwise MYOB may think you also want to adjust the GST account
based on each account’s default tax settings.
Use the references GJ000001, GJ000002, etc. when creating these adjustments.
The income statement you just generated should reveal some concerns and you believe
adjustments are required:
(1) At the beginning of the month, you have one (1) set of Home Defender industrial security
systems in stock for sale – see opening balance section. During December, you have sold two
(2) systems and purchased (2) systems (consisting of INV00004 and INV00005). As the
business uses a periodic inventory system the income statement has not shown any Cost of
Sales – Home Defender Systems – i.e. two sets of security systems being sold.
Adjustment required: Using the FIFO system, transfer the value for two items of inventory
into ‘Cost of Sales – Home Defender Systems’.
(2) The expenditure $2,150.00, GST inclusive (1/12/21 payment made to The Warehouse
Stationary) was for an office computer rather than stationary. It is an item of fixed asset
instead of an expense.
Adjustment required: Transfer the amount from Office Supplies into fixed asset (Office
equipment & computers)
(3) The lease of equipment is for six (6) months from December 2022 to May 2023 (payment
made to Hire Equipment). As at 31 December 2022, only one month of lease should be
expensed, and the rest of the five months should be recorded as a prepayment – an asset.
ACCT11-100 25
Adjustment required: Transfer 5/6 of the total lease of equipment into ‘prepayment’ (a new
current asset account).202
(4) You have manually counted your supplies and estimate that you still have $1,500 of ‘Other
supplies’ on hand.
Adjustment required: Transfer the difference between the desired balance and the current
balance to a new expense account ‘Other Supplies expense’.
(5) There are a number of items that have to be depreciated. Your job is to figure out which items
have to be depreciation and how much that should be. All depreciable assets have a useful life
of 5 years, no residual value, and are being depreciated on a straight line basis.
Adjustment required: Record the depreciation for the month using the ‘Depreciation’ account
and the accumulative depreciation accounts of each depreciable asset.
Once you have created all the adjustment entries, generate a general journal report for
submission. Go to the Reports function, under All and select Journal entries.
Set the reporting date to be from 1/12/2022 to 31/12/2022 to display all journals created during the
month. Make sure to click on expand all to see the full details of the journal entries.
There will be several journal entries displayed in this report. Most importantly, this report has
included the adjusting entries you have completed in this section. Export this to a PDF File. You
are required to submit a copy of this document as a part of your MYOB project.
Once you have created your general journal report please create a trial balance after all the
adjustments. Go to the Reports function, under All and select Trial balance. Export this to a PDF
File. You are required to submit a copy of this document as a part of your MYOB project.
ACCT11-100 26
Section 11: Financial Reporting
In this section, you will generate a profit and loss statement and a balance sheet to report on the
financial performance of your business after a month’s operation. Use the Reports function to
generate Profit & Loss and Balance Sheet.
Step 22: Generate a statement of Profit & Loss
Create and save the statement Profit & Loss for submission. When the profit and loss report page
is open, make sure to set the correct report period as from 01/12/2022 to 31/12/2022.
Export the financial statement to a PDF File. You are required to submit a copy of this
document as a part of your MYOB project.
Step 23: Generate a Balance Sheet
Create and save the balance sheet for submission. When the balance sheet report page is open,
make sure to set the correct balance date as 31/12/2022 and Accrual is selected. Export the
financial statement to a PDF File. You are required to submit a copy of this document as a
part of your MYOB project.
You have now completed all required tasks by using MYOB. These tasks mimic the bookkeeping
and financial reporting process of a business for a month’s operation.
Include pdf copy of your Profit & loss as Report 1 and Balance sheet as Report 2.
Section 12: Multiple-choice test
Step 24: Multiple-choice test
Complete the five (5) question multiple-choice test on iLearn.
ACCT11-100 27
Section 13: Submission
Step 25: Finalise the checklist
This section specifies the instructions for assignment submission.
Checklist
You are required to submit each of the following documents in electronic format via iLearn. Check
if you have had these documents ready:

Documents
1) Quote generated for Castle Industry Park

PDF
2) Journals* – a list of all journal entries from 1/12/2022 to 31/12/2022

PDF
3) Trial balance – a list of all account balances as of 31/12/2022

PDF
4) A statement of profit & loss for the month ended 31/12/2022

PDF
5) A Balance sheet as at 31/12/2022

PDF
Multiple-choice test 
* expand all to view the full journal history