GOROKA TECHNICAL COLLEGE

Computerised Accounting Systems

Lesson Four

Learning Outcomes
At the end of this lesson the student will:
1. Understand editing and deleting accounts
2. Create ledger accounts
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MYOB CHART OF ACCOUNTS

In this section you will learn how to align chart of accounts to suit your reporting needs.
When you create a new data file, you are required to choose adopting an account list from the
template provided by the MYOB accounting software or import from the existing files in
your current accounting system. Whichever you select, you may still need to align to the
MYOB reporting format.

In the proceeding section of this unit we will be discussing these activities. For our exercise
assume that Henrys is very happy with the chart of accounts that he has created with the help
of MYOB assistant. However he still feels that he needs to customize the accounts list to
make it more easy to track different types of income from different paint and accessories
sales. To do this Henry will need to customize the chart of accounts.

Follow these steps:

1. Select the accounts commend centre.
2. Click the accounts list button. See figure 3.7, the accounts list icon is in the
middle.

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 Accounts
commend
centre

Accounting
list icon

Fig: 3.7 Accounts commend center window.

The account list will appear (see figure 3.8). Note the tabs for assets, liabilities and all
the other accounting elements.

up and
down
arrows.

Fig: 3.8 Accounts list window.

1. Click each tab and scroll through the ledger items under each one. Every account must
have a number. All account numbers have a one digit prefix to identify the account type,
four more digits for identification within each type. For example:

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 Income is coded as follows; 4 to identify group type, of accounts and four digit numbers
1000 to identify type of income account.

This is how the coding works:

Asset accounts 1.0000
Liability accounts 2.0000
Equity accounts 3.0000
Income accounts 4.0000
Cost of Sales accounts 5.0000
Expense accounts 6.0000
Other income accounts 8.0000
Other expense accounts 9.0000

CUSTOMISING CHART OF ACCOUNTS (use your own company data file)

Header Account
The header account is total account, that is, the account used to sum up all the detailed
accounts of a class (or group) of accounts.

Example:
Paints Sales is the header account and all other different types of paint are stored
under their specific categories or type of paint, like indoor paint, outdoor paint, etc.

Up or Down Arrows
Refer to figure 3.8 these arrows are used to align accounts to different classes or
groups of accounts for reporting purposes in the financial statements. You highlight
the account you wish to change and click up or down arrow.

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Header
account is the
totaling
account of
several
transaction

Detail account
is for
recording
transactions.

Click new
icon to create
a new
account.

Fig: 3.9 1000 Sales Account Information window.

CREATING ACCOUNTS AND SUB ACCOUNTS

New Icon
A new icon in the MYOB accounting software is useful for adding new files or records. The
following files or records can be created by clicking new in the relevant windows:

1. General ledger accounts.

2. Department or Job codes.
3. Trade Creditor (Supplier) records or sub ledger accounts.
4. Trade Debtor (Customer) records or sub ledger accounts.
5. Stock (Inventory) records or cards.

New Accounts
You will now enter new income detail accounts to record income from sales of paint and
accessories. It is also possible that Henry will do consultancy work for local clients.

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 Follow these steps:
1. With the Income account list active, click the new icon. The Edit Accounts
window will appear.
2. Enter account number 1001 and press enter or press tab.
3. Enter the account name Ceiling Paint, in the name window and click OK.
The new account is indented under its Paint Sales Header.

Activity 3.3

Add the following detail accounts:

(Hint: Click the new button when you have finished each account and then click OK
when you have finished adding accounts.)

4.1002 Outdoor Paint.

4.1003 Indoor Paint.
4.1004 Furniture Paint.
4.1005 Ceiling Paint (Note: This account will be deleted later)
4.1500 Accessories (make this a header account that provides a sub-total, then
move it to the same level as the Paint Sales header by using the Up and
Down icon as needed.)
4.1501 Brushes and Rollers
4.1502 Drop Sheets and Fillers
4.1503 Ladders

EDITING AND DELETING ACCOUNTS

Editing Accounts
MYOB has four levels of accounts that allows for account grouping and sub totaling. The
headers are non-postable accounts such 1.0000 Current Assets. They group the accounts to
which the transactions are posted. The Up and Down icons under the account list allow you
to alter the account level.

You will now edit the income accounts, customizing the ledger names to suit Henry’s income
producing activities. You will make a paint sales header by changing the name of the existing
sales account.

Follow these steps:

1. Select the Income tab.
2. Highlight 4-1000 Sales.
3. Click the Edit button. (Hint: You can also click the zoom arrow or double click
the account number to reach the account information window.)
Your screen should look like figure 3.9

4. Click the Header Account option to designate the account as a header account.
Notice that a reporting option appears once the Header Account is selected.
5. Click the Account Name box.
6. Enter, Paint Sales.
7. Click OK. The Paint Sales heading has now replaced the Sales heading in the
account lists.

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Your screen should look like figure 3.9

Deleting an account
Henry will not use Dinners club or Master Card. Follow the steps below to delete these
accounts.

Follow these steps:

1. Click the liability tab.

2. Locate and double click the Master Card account from the account list
window. The account information will appear.
3. Select Edit from the menu bar.
4. Select the Delete Account command.
5. Delete the Dinners club account using steps 1 to 4 above.

Re-Numbering the accounts.

Renumber these accounts, Bankcard account to 2.1120 and the Visa account to 2.1110 using
the Edit button.

Follow these steps:

1. From the liability accounts list, select the account to be edited.
2. Click edit. (edit window will appear)
3. Change the account number.
4. Click ok.

Activity 3.4
Because Henry is in partnership with his sister Molly you will need to change the
equity accounts. Do this by editing and adding accounts to the equity section of the
chart of accounts until it matches figure 3.10. Henry’s and Molly’s equity accounts
should both be header accounts that generate cub-totals.
___________________________________________________________________________

Your solution should look like figure: 3.10

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 Note ticked
accounts are
linked accounts so
do not use these.

Fig: 3.10 Equity Accounts.

Note: the three equity accounts at the bottom of the account list are linked accounts, do
not use these accounts. You will note the linked column of these accounts are ticked.

When complete, return to the command centre.

Reference:
Keeping Account with MYOB by Cathy Grundy & Doug Lyte.