COMPUTERIZED

BOOKKEEPING
LECTURE # 1
LECTURE’S SUMMERY
 Course Pre-Requisites
 Course Overview
 Learning Outcomes
 Tips while using Computer
 Knowledge Review
Prerequisites
Our Assumptions about You…
Prerequisites
 Theoretical Knowledge of
 Manual Bookkeeping
 Business and Financial
 Non Profit

 Technical Knowledge
 Computer Operation
 Applications Installation and Operation
Course Overview
Course Division and Modules
COURSE OVERVIEW
 This course is all about Bookkeeping using
“Computerized Accounting Systems”
 2 Modules
 Setup (Setting up Business & Accounts)
 Processing (Recording Business Operations)
Course Overview
Modules Summery…
Module 1
Setup…
1.1:Get Familiar with Peachtree
 Get Familiar with Peachtree 2008
 Sample Company
 Graphics Symbols
 Basic Features and Terms
 Starting Peachtree
 Menu Options
 Toolbar Buttons
1.2: Company Setup
 Entering Company Information
 Selecting a Chart of Accounts
 Choosing an Accounting Method
 Choosing a Posting Method
 Setting Up Accounting Periods
 Verifying Defaults
 Finishing New Company Setup
 Using the Setup Checklist
1.3: Setup General Ledger
 Entering General Ledger Defaults
 Modifying Chart of Accounts
 Accounts Coding techniques
 Entering Account Beginning Balances
 Entering Account Budgets
1.4: Setup Accounts Payable
 Entering Vendor Defaults
 Adding Vendors
 Entering Vendor Beginning Balances
1.5: Setup Inventory
 Entering Inventory Defaults
 Adding Inventory Items
 Entering Inventory Beginning Balances
1.6: Setup Accounts Receivable
 Entering Customer Defaults
 Setting Up Sales Taxes
 Adding Customers
 Entering Customer Beginning Balances
 Entering Statement and Invoice Defaults
1.7: Setup Payroll
 Setting Up Payroll
 Entering Employee Defaults
 Adding Employees
 Entering Employees Beginning Balances
1.8: Setup Job Cost
 About Jobs
 Entering Job Defaults
 Adding Jobs
 Adding Phases
 Adding Cost Codes
 Entering Job Beginning Balances
 Entering Job Estimates
Module 2
Processing…
2.1: Using General Ledger
 Entering General Journal Entries
 General Ledger Reports
 Financial Statements
 Previewing Reports
 Report Groups
2.2: Using Accounts Payable
 Entering Purchase Orders
 Purchasing and Receiving Inventory
 About Making Payments
 Entering Payments
 Writing Checks
 Selecting For Payment
 Other Purchases Tasks
 Accounts Payable Reports
2.3: Using Inventory
 Entering Inventory Adjustments
 Building and Un-building Assemblies
 Adjusting the Bill of Materials for an Assembly
 Changing Item Prices
 Inventory Reports
2.4: Using Accounts Receivable
 Entering Quotes
 Entering Sales Orders
 Entering Sales Invoices
 Entering Receipts
 Applying Finance Charges
 Selecting Receipts for Deposit
 Accounts Receivable Reports
2.5: Using Payroll
 Paying an Employee
 Paying a Group of Employees
 Entering Flat Rate Payroll Fields
 Entering Calculated Payroll Fields
 Payroll Reports
2.6: Using Job Cost
 Selecting a Job
 Using Jobs with Accounts Payable
 Using Jobs with Time Tickets
 Using Jobs with Payroll
 Using Jobs with Inventory Items
 Using Jobs with General Journal Entries
 Using Jobs with Accounts Receivable
 Job Cost Reports
Recommended Text
 Accounting for Non-Accountants
 By DR. WAYNE A. LABEL, CP

 Peachtree for Dummies (3rd Ed.)

 By Elaine Marmel
Learning Outcomes
At the End You’ll be able to…
Learning Outcomes
 Access the software
 Set up the details of
 The new business
 Customers' and Suppliers' Accounts in the sales and
purchases ledger, with details of:
 name, address, credit limit and opening balances (where
appropriate)
Learning Outcomes
 Set up appropriate accounts to record
 Income and Expenditure Items
 Set a pro-forma for the production of:
 Invoices, Credit notes and other required documents
 Obtain a print out of all details in an appropriate
and readable format
Learning Outcomes
 LEDGER ACCOUNTS
 MAKING CORRECT ENTRIES IN APPROPRIATE
ACCOUNTS FOR
 credit sales and purchases
 credit notes sent to customers and received from suppliers
 invoices received from suppliers for goods and services
other than those for re-sale
 cash sales and cash purchases
 payments made on invoices received
Learning Outcomes
 LEDGER ACCOUNTS
 MAKING CORRECT ENTRIES IN APPROPRIATE
ACCOUNTS FOR
 receipts from invoices sent
 payment of expenses and income other than from the sale of
goods
 transactions via the journal
 Writing off of bad debts
Learning Outcomes
 CORRECTION OF ERRORS
 Correct any errors made in the posting of transactions to the
accounts
 BANK RECONCILATION STATEMENT
 Carry out a bank reconciliation exercise using a
computerized accounts package
 HEALTH AND SAFETY
 Display an awareness of health and safety issues when
using a computer system
Learning Outcomes
 TRIAL BALANCES
 Explain why they are needed
 Explain the types of error that they will/will not
disclose
 Prepare such balances
 Explain the action to be taken in the case of non-
agreement
Learning Outcomes
 REPORTS
 audit trail
 nominal account transactions
 sales and purchases ledger transactions
 VAT returns
Learning Outcomes
 FINAL ACCOUNTS OF SOLE TRADERS
 Trading, profit and loss account
 Balance sheet
 Making allowances for year end adjustments
 Prepayments and accruals
Learning Outcomes
 Non-Profit Making Organizations
 statement of affairs
 receipts and payments account
 Adjustments By accruals and prepayments of income
and expenditure items
 Income and expenditure account
 Balance sheet
Tips While Using Computer
Does and Don’ts
Knowledge Review
Common Terms
BOOKKEEPING
 BOOKKEEPING
 Technique of Recording “Financial Transaction” to
maintain the “Financial Details” of a Business.
 BOOKKEEPER
 An individual who earns a living by recording the
financial activities of a business
BOOKKEEPING SYSTEMS
 SINGLE ENTRY
 Only Cash Transactions are recorded
 Each Transactions has only 1 effect
 DOUBLE ENTRY
 Each Transactions has two Effects
 Effects must Satisfy the Accounting Equation
ACCOUNTING
 ACCOUNTING
 The process of classifying and summarizing business
transactions and interpreting their effects
 ACCOUNTANT
 An individual who generates the Financial Summery
of a Business using it’s Financial transactions recorded
by bookkeeping.
Bookkeeping .Vs. Accounting

 Recording  Processing
 Data Collection  Data Processing
 Necessary for  Based on
Accounting Bookkeeping
Knowledge Review
 ASSETS
 Properties that are owned and have money value E.g.
Accounts Receivables, Cash, Inventory, Buildings,
Equipment etc.
Types of Assets
 Current Assets
 Assets reasonably expected to be converted into cash
or used in the current operation of the business
(generally taken as one year); E.g. Cash, Notes
Receivables, accounts receivable, inventory, prepaid
expenses etc.
 Long Term/Fixed Assets
 Long Living Assets used in the producing goods or
services; E.g. Land, Property, plant and equipment etc.
Types of Assets
 Other Assets
 Various assets other than current assets, fixed assets, or
assets to which specific captions are given; E.g. Brand
Names, Patents, Goodwill etc.
Knowledge Review
 LIABILITIES
 Amounts owed (payable) to outsiders; E.g. Notes
payable, Accounts payable, Bonds payable
Types of Liabilities
 Current Liabilities
 Debts that must be satisfied from current assets within
the next operating period, usually one year. E.g.
Accounts payable, notes payable, the current portion of
long-term debt, salaries payable and taxes payable etc.
 Liabilities that are payable beyond the next year; E.g.
Mortgage, Long Term Loan etc.
Knowledge Review
 Capital
 The Interest or Investment of the owners in an
enterprise; also known as “owners’ equity”
 Account
 a record of the increases, decreases, and balances in an
individual item of asset, liability, capital, income
(revenue), or expense
 2 Sides: Left: Debit, Right: Credit
Knowledge Review
 Ledger
 The complete set of accounts for a business entry is
called a ledger; “Reference Book” of Acc System
 Journal
 The journal, or day book, is the book of original entry
for accounting data
 Columns: Date, Description, P.R. (Posting Reference),
Debit, Credit, Explanation
Knowledge Review
 Chart of Accounts
 Listing of the accounts by title and numerical
description(Also Called “Account Code”)
 Trial Balance
 A two column Schedule used to check the equality of
Debit & Credits in accounts
 Columns: A/c Title, Debit, Credit
Knowledge Review
 Revenue
 The increase in capital resulting from the delivery of
goods or rendering of services by the business. E.g.
cash and receivables gained against the goods
delivered or services rendered
 Expenses
 The decrease in capital caused by the business’s
revenue-producing operations. expense is equal to the
value of goods and services used up or consumed in
obtaining revenue
Knowledge Review
 Net Income
 The increase in capital resulting from profitable
operation of a business. It is the excess of revenue over
expenses for the accounting period.
Knowledge Review
 Fiscal Year
 Company’s accounting year, defined by when you
open and close the books. This may or may not
coincide with the calendar year.
 Accounting Period
 A unit of time that divides the fiscal year E.g.
2 Accounting Periods (6 Months each)
4 Accounting Periods (3 Months each)
Knowledge Review
 BUSINESS ENTITY
 A business entity is an economic unit which enters into
business transactions that must be recorded,
summarized and reported.
Types of Business Entities
 Sole Proprietorship
 Most Simplest form
 Single Ownership
 Operates under Single Owner
 Partnership
 2nd Simple Form
 Divided Ownership (2 or More)
 Profit Sharing between owners
Types of Business Entities
 JOINT STOCK COMPANY
 A joint Stock company formed under the Companies
Ordinance 1984.
 May be owned by Many People
 Shareholders Actual Investors
Knowledge Review
 Accounting Equation

ASSETS = LIABILITIES + CAPITAL

 Base of Double Entry Bookkeeping System

 Both of it’s Sides Always Remain Balance in case of
any transaction
Knowledge Review
 Accounting Methods
 Cash Accounting
 Accounts Receivables are not Treated as Income
 Accounts Payables are not treated Expenses
 Rarely Used
 Accrual Accounting
 Accounts Receivables are Treated as Income
 Accounts Payables are Treated as Expenses
 Commonly Used
COMPUTERIZED
BOOKKEEPING
LECTURE # 1