Abyssinia College Peachtree project for For 3rd year Accounting degree students

 Group Assignment
 Form a group of five members(more than five members results NG)
 Please read the instruction attached below (soft copies are attached).
 Critically ; perform each project
 Submission Date (May 25-30) ,2012)
 Take a backup of the project including the name of the company
 Soft Copy , using e-mail(tmekonen35@gmail.com) or through telegram
https://t.me/tmoke
 Maximum point = 70%

Introduction

TMA Share Company has planned to Purchase and install Peachtree sage software
package for handling its financial affairs and related data. it will start using the
software to handle all its financial including payroll data in December 2018.

The company’s fiscal year starts on Dec.1 and ends on Dec 31. The following
section provides additional basic information about the firm.

1. Company Background

Name . . . . . . . . . . . . TMA and “Your full name “ share company

Business type . . . . . . . . corporation
Address. . . Ethiopia, addis abeba, bole kefle ketema, kebele17
Telephone . . . . . . . . . . . . . . +251-67345678,fax +251-23456789
Chart of Accounts . . . . . . Build your own charts of Accounts
Accounting method: accrual
Posting method. . . . . . . . . Real time
Accounting period . . . . . 12 months
Yur first fiscal year to starts . . . . . . January, 2020
Your first month to enter data …… December,2019
Required : based on the above data, create and setup your new data
Note that : don’t forgot including your name after TMA….. share company
 Abyssinia College Peachtree project for For 3rd year Accounting degree students

2. Charts of Accounts

Description Account ID Account Balance

Type dec. 31,2019
Cash at Bank 1000 110,000
Cash on hand 1010 55,000
Notes receivable 1020 19,800
Account Receivable 1130 220,000
Allowance for uncollectable 1140 13,200
Merchandise inventory 1150 2,970,000
Prepaid Insurance 1160 22,000
Prepaid Rent 1170
Advances to employees 1190 44,000
Computers 1200 440,000
Accumulated depreciation Computers 1210 16,500
Vehicles 1260 550,000
Accumulated depreciation vehicles 1270 27,500
Other Fixed asset 1300 990,000
Accumulated depreciation other fixed asset 1310 49,500
Account Payable 2000 37,400
Salary payable 2120
Employee income tax Payable 2150
Sales tax (VAT) payable 2180
Common stock (birr 100 par) 3000 4,885,700
Additional paid in capital 3120
Retained earning 3140 391,000
Sales 4000
Sales Discount 4110
Sales returns and allowance 4120
Interest Income 4130
Other income 4190
Purchases 5000
Purchases Discount 5110
Cost of goods sold 5160
Salary Expense 6000
Supplies Expense 6120
Insurance Expense 6220
Transportation expense 6320
Service charge Expense 6420
Utility Expense 6520
 Abyssinia College Peachtree project for For 3rd year Accounting degree students

Income tax Expense 6620

Miscellaneous expense 6720

Editing the chart of account

4.1 Delete the Prepaid rent account
4.2 Change the account Id of Note Receivable to 1019
4.3 Add one new asset, liability, capital, expense, income, cost of goods sold account that you know
Exercise5. Maintaining Vendors

5.1 Maintain vendors Default

The company buys goods and services from different vendors/suppliers both on cash and credit basis.
Majority of its vendors allow the company to buy goods and services up to birr 450,000 on credit and
earn a 2% discount if invoices are paid within 15 days from the date of purchase or else pay within 35
days. The company wants to record information about the office manager of each of its vendors. The
company uses the purchase account No 5000 to record all purchases of goods from vendors. Purchase
discount taken are recorded in the purchase discount account No 5110 while purchases returns and
allowances account No 5120. The company allowed its Vendors to deliver goods and services in the best
ways possible. The company wants to age vendor invoice by due date. The invoice are to be categorized
as follows; 0-35, 36-71, 72-127, and over 127 days overdue in categories, I, II, III and IV respectively.

5.2 Maintain vendor information

Vendor Name Vendor Contract, Address Terms Vendor Beg

ID type officeMgr balance

11EE Ethiopian Electric Service Ato Kibe, Addis Ababa General Dec.4,2019 Birr2400
power corporation Ato Lema W 14, k52 standard Invo#
Tel. 1234567 098
Ethiopia
12ET Ethiopian Service W/ro Addis Ababa Mainly Dec.6,2019 Birr4000
Telecommunication nunu, Ato W 01, k18 prepaid Inv# 22
corporation Abebe Tel. 666666
Ethiopia
13aIE VJ import-Export Goods Mr. jki OklaAama 3/30,n/60 Dec.9,2019 Birr
share company MR. Kilo A2 pun Toad Cerdit limit 1,000
Tel. 6464656 Birr 2 million Inv#36
AIE@iapab,A PO#512
Japan
14EBG GK business group Goods AtoAlemu Addis Ababa 2/10,n/45 Dec.4,22019 Birr
share company W/ro Ali W28, K02 credit limit 13000
Tel. 222222 Birr1.5.million Inv# 92
Ethiopia Po# 022

15FIR Federal Inland Tax Ato Addis Ababa Due on the 9th Dec. 7,2019 Birr 300
 Abyssinia College Peachtree project for For 3rd year Accounting degree students

Revenue Authority Benyam, W13K22 day-next Inv# 95

W/ro Tel. 1111111 month no
Hiwot Ethiopia credit limit

Note: all vendors are active and all vendors beginning balance are as of January 1, 2019
Exercise6. Maintain Sales Tax authority
The company collects 15%Vat (description: Federal value Add Tax) and submit the sum collected to the
Federal Inland Revenue Authority (ID: 15FIRA). Thus, it has one sales tax code: FVAT (Federal value
Added Tax) Taxes collected from customers are recorded in the sales Tax (VAT) payable account No.
2180. VAT is not payable on freight changes.
Required: Based on the above data setup sales tax authority and code.
Exercise7.Maintain Inventory information
The firm buys and sells 3 inventory items which are all stock items and LIFO is considered to be the
default inventory costing method. All inventory items are subject to VAT. The company uses the
Merchandise inventory (1150), sales (4000) and cost of Goods Sold (5160) accounts to record
transactions related inventory item. The miscellaneous expense account No. 6200 is used to record
delivery costs. Inventory items are received from vendors’ through the appropriate and best methods of
delivery. At present the company uses two price levels and wholesale (W) and retail (R) but has plan to
use additional three price levels at which is inventory items are offered for sell. The current price levels
need no calculation.
Item ID Description Preferred Item Type Unit cost Sale Quantity on
Vendor price hand
21DC Computer GKIB business Acer 9900 10300 150
group
22TV Television VJ Import export Sharp 5500 5700 180
Share co.
23TR Tape Sony 2200 2600 225
recorder

All inventory items are measured in pieces and stored in warehouse 10, Beginning balance are as of
December 31, 2018
Required: Based on the above data maintain inventory default information and inventory records
Exercise8. Customers’ information
8.1 Maintain Customer default
The company sells goods to its customers both on cash and credit basis. Sales and related discounts are
recorded in the sales account. No 4000 and sales discounts account No. 4110 respectively. Finance
charges overdue accounts are recorded in the interest income account No. 4130. All credit customers,
except those having special agreements with the company are required to settle their obligations for goods
bought on credit within 32 days from the date of each credit sales invoice. They are entitled to 3%
discount for payments within 14 days from the date of each credit invoice. The credit limit is set at
$500,000 per credit customers. All customers failing to pay within the credit period (42days) are subject
to 5% interest on balance up to $15,000 and 8% interest on balance above $25,000. The minimum finance
charge is determined to be $10. The company does not charge interest on finance charges. Finance
 Abyssinia College Peachtree project for For 3rd year Accounting degree students

charges are include and explained in customer invoices and statements and invoices “Let’s keep our
relationship smooth by timely discharging our respective duties!” At present the company accepts only
cash and checks as payment methods. The company wants to record information about the second
contact, office manager and establishment (est) date of each of its customers. Customers involves are age
by due and are to be categorized as follows: 0-45, 46-90, 91-120, and over 120 days overdue in categories
I, II, III and IV respectively. Deposit Ticket ID is assigned to collections form customers at the time of
collection besides; the company has special agreements with customers included in the following table.

8.2 Customers Background

Cutom Name Contac 2nd Address Terms Office Beg. Date Custome
er ID t contac Manager balance r type
t
3IES Snap Ato W/rt W14k15 1/15,n/60 Ato Bekel Birr 20000 Dec.23,2 R5
PVt. Co. Nari Nini HNo123 Credit Inv. 330 019
Tel 1234 limit Birr
Assosa 800000
12MM LLL Ato Ali At0 W01K14 General Ato Mulu Birr 76000 Dec. R1
Music Kuku HN0369 Standard Inv. #36 27,2019
Shop Tel. 111 PO#``
Mekelle
13Ap GKL W/ro Ato W14K45 1/10.n/45 Ato Amro Birr 75999 Dec.20,2 R4
Printers Num Laku HN0236 Inv. #82 019
Tel, 236 PO.#39
Jimmaa
14BP HJP W/rt Ato W20K12 2/15,n/30 W/ro Tiru Birr 49000 Dec.19,2 R-2
Business Lawa Tufa HN0993 Credit Inv.#52 019
Group Tel. 5698 limit Birr Po.#99
Assayta 700000
Exercise9. Transaction and related events
Record the following general journal transaction
July 31. Supply expense during the month birr 200.reference Jv01
Record the following sales transaction for the month of january
Jan 1. Sold 5 computers to snap PVT co. Invoice #0001, including 15% vat
Jan 4, Sold 3 tape recorder on account to LLL music shop by invoice #0002 plus 5%vat.
Jan 6, sold 100 television to LLL music shop on account by invoice #0004, plus 15%vat
Jan 7, Sold 20 computer to snap PVt co by invoice #0005 plus 15% vat.

Record the following cash receipt transaction for the month of January
 Abyssinia College Peachtree project for For 3rd year Accounting degree students

Jan 10. Received on account from Snap PVT Co. for half settlement of invoice# 0001 receipt# 01 deposit
ticket ID 01.
Jan12. Received cash on account from LLL music shop for full settlement of invoice #0002, receipt# 02
and deposit ticket ID 02
Jan 13. Cash sale to the cash customer for 200 computers Deposit ID 03 receipt# 03
Record the following Purchase Transactions for the month of January
Jan16. Purchased on account from VJ import export Co for 150 Tape recorder invoice #003
Jan 17. Purchased on account from GK business group 10 computer invoice # 002
Jan 20. Purchased on account from VJ import export Co for 140 Television invoice #005
Jan 22. Purchased on account from GK business group 2000 computers invoice #006
Record the following Cash payment transactions for the month of January
Jan23. Paid cash on account from VJ import export for invoice # 36 check# 001
July 24. Paid cash on account to GK business group for invoice# 006 check#002
July 25. Paid cash on account to GK business group co for invoice#002 check#003
July 28. Rent is paid for the month of July birr 2000 check# 004
July 29. Salary is paid for the month of July birr 3000 check no 005
Record the following Debit and Credit Memo for the month of July
Jan 7. Returned 50 television from sale of July 6 to LLL music shop because of some defective on it
credit mem#001
Jan 23. Returned 500 Computers to GK business group because it has some defective when the co.
purchase on July 22 debit memo#002