Assignment 1 Steps 7-11

Anuj Shukla

12098542

Step 8

Below is the screenshot for the registration and installation of the MYOB software.

Below are the screenshots of the training of the two modules of the tutorials.

Below is the screenshot of the last screen for practice on the sample company.

Below are the screenshots for Ezylearn Quiz. It was completed in the due time and I passed the quiz by scoring 76.92 %.

Step 9

I have chosen the company I was allotted, GR Engineering Services Ltd. to complete my step 9. The opening balances, customers, suppliers and the transactions shown in the following journal entries, reports, and screenshots, are purely hypothetical and solely created for testing the knowledge in MYOB. This does not have any relevance in the real world.

Below are the figures for what I entered in as the opening balance:

Assets

Current Assets:

Business Bank Accounts#1 = $ 21,751,300

Trade Debtors = $ 45,648,672

Inventory = $ 6,884,447

Deposits to Suppliers = $ 614,173

Non-Current Assets:

Plant & Equipment = $ 3,878,743

Total Assets = $ 78,777,335 Liabilities

Current Liabilities:

Mastercard #1 = $ 11,651,145

Trade Creditors = $ 15,235,581

Non-Current Liabilities:

Business Loan#1 = $ 400,000

Total Liabilities = $ 27,286,726

Equity Equity = Total Assets – Total Liabilities = $ 78,777,335 - $ 27,286,726 = $ 51,490,609

Shareholder’s Capital = $ 30,445,356Retained Earnings = $ 21,045,253

Following is the screenshot of the suppliers' list:

Following is the screenshot of the customers' list:

Below are the 10 transactions in the form of journal entries, which were carried out in the MYOB.

GR Engineering Services Ltd

Journal Entries

Date Particulars Debit ($) Credit ($)10/08/2019

Trade Debtors (Accounts Receivable) DR

Sales Income CR

GST Paid CR

(Sale of Engineering, Procurement, Construction and Commissioning (EPCC) services to Aditya Birla Minerals for Nifty Copper plant, East Pilbara.)

13,000,000

11,818,182

1,181,818

12/08/2019

Trade Debtors (Accounts Receivable) DR

Sales Income CR

GST Paid CR

(Sale of Engineering, Procurement, Construction and Commissioning (EPCC) services to Rio Tinto for Moisture Reduction plant, Paraburdoo and payment duly received.)

21,000,000

19,090,909

1,909,091

13/08/2019

Cash at Bank DR

Trade Debtors CR

(Payment received from Aditya Birla Minerals for the invoice generated on 10/08/2019.)

13,000,000

13,000,000

14/08/2019

Cash at Bank DR

Trade Debtors CR

(Payment received from Rio Tinto for the invoice generated on 12/08/2019.)

21,000,000

21,000,000

27/08/2019

Warehouse Lease Expense DRGST Paid DR

Trade Creditors CR

90,9099,091

100,000

(Yearly Lease Expense for Warehouse at Penrith.)

1/09/2019 Equipment Expense DRGST Paid DR

Trade Creditors CR

(Purchase of Construction Equipment: Excavator: 20 * 50,000 Truck Crane: 14 * 64,000Mining Dump Truck: 1 * 4,000,000, from Downtown Earth Movers)

5,896,000589,600

6,485,600

10/09/2019

Trade Creditors DR

Business Bank Account CR

(The Warehouse Yearly Lease paid to Blackstone Properties in respect to the Bill generated on 27/08/2019 by Cheque from Business Bank Account.)

100,000

100,000

10/09/2019

Trade Creditors DR

Business Bank Account CR

(The Multiple Equipment Purchase bill paid to Downtown Earth Movers in respect to the Bill generated on 01/09/2019 by Cheque from Business Bank Account.)

6,485,600

6,485,600

12/09/2019

Retained Earnings DR

Dividends Payable CR

(Dividends Payout)

21,045,253

21,045,253

12/09/2019

Dividends Payable DR

Bank Account CR

(Dividends Payout)

21,045,253

21,045,253

ALL Journals

GR Eng Services

All Journals1/08/2019 To 19/09/2019

ID No. Account No. Account Name Debit CreditSJ 10/08/2019 Sale; Aditya Birla Minerals

00000001 1-1310 Trade Debtors $13,000,000.0000000001 4-2000 EPCC Service Income $11,818,181.8200000001 2-1210 GST Collected $1,181,818.18

SJ 12/08/2019 Sale; Rio Tinto00000002 1-1310 Trade Debtors $21,000,000.0000000002 4-2000 EPCC Service Income $19,090,909.0900000002 2-1210 GST Collected $1,909,090.91

CR 13/08/2019 Payment; Aditya Birla MineralsCR000002 1-1110 Business Bank Account #1 $13,000,000.00CR000002 1-1310 Trade Debtors $13,000,000.00

CR 14/08/2019 Payment; Rio TintoCR000003 1-1110 Business Bank Account #1 $21,000,000.00CR000003 1-1310 Trade Debtors $21,000,000.00

PJ 27/08/2019 Purchase; Blackstone Properties00000001 2-1610 Trade Creditors $100,000.0000000001 6-2100 Warehouse Lease Expense $90,909.0900000001 2-1220 GST Paid $9,090.91

PJ 1/09/2019 Purchase; Downtown Earthmovers00000002 2-1610 Trade Creditors $6,485,600.0000000002 6-1700 Equipment Expenses $5,896,000.0000000002 2-1220 GST Paid $589,600.00

CD 10/09/2019 Blackstone Properties Penrith NSW Australia1 1-1110 Business Bank Account #1 $100,000.001 2-1610 Trade Creditors $100,000.00

CD 10/09/2019 Downtown Earthmovers Strathfield NSW Australia2 1-1110 Business Bank Account #1 $6,485,600.002 2-1610 Trade Creditors $6,485,600.00

GJ 19/09/2019GJ000001 1-1110 Business Bank Account #1 $21,045,253.00GJ000001 2-2500 Dividends Payable $21,045,253.00

GJ 19/09/2019GJ000002 3-8000 Retained Earnings $21,045,253.00GJ000002 2-2500 Dividends Payable $21,045,253.00

While creating 10 hypothetical transactions in the journal form, I was worried if I could write the transactions properly. So, I started entering the transactions in MYOB along with writing the journal entries of the transactions, and to my surprise, I found that all of my concepts from the high school resulted to be right, as all journals report showed quite similar

transactions in the report. Exporting the All Journals report was a bit tedious task as particularly for All Journals report, there was no direct way to export to the excel sheet.

Balance Sheet

Generating and exporting the Balance Sheet was an easy task. The Balance Sheet for GR Engineering Services Ltd. saw only some changes in the Balance sheet from the opening Balance, as only 10 transactions occurred during the short period. Firstly, in the assets, only the Business Bank Account# 1 saw a change in the amount as the Income and expense took place during the period. Secondly, there was an increase in the Liabilities as the GST liability was incurred during the period and lastly, the dividend was paid during the period. So, the retained earnings were used for giving the dividends.

Total Equity = Total Assets – Total Liabilities

$ 55,367,537.82 = $ 85,146,482 - $ 29,778,944

Profit and Loss Statement

As the 10 transactions that took place in the period included full payments of the two EPCC services customers, the income was huge in comparison with the expenses. The expenses only included a yearly lease payment and the purchase of multiple construction equipment. Although, if we just consider this period, the Net Profit is outstandingly good for the company and If we look from a yearly perspective, the company has to expect several more expenses in the year ahead.

Statement of Cash Flow

The Statement of Cash Flow shows the exchange of cash that took place in the period. Here, the MYOB generated Cash Flow Statement has taken into account all the monetary transactions including the Operational and the Financial activities. The closing balance of cash also seems to be perfect.

Overall, it was a really good experience learning one of the most popular accounting software, MYOB. At first, after reading the assignment details, I was worried that how I would execute these steps as the software seemed to be very complex but after spending a good amount of time on the tutorials video and practicing it myself, I gained enough confidence to complete step 9. One of the best features of the MYOB was the Help feature, it really helped me.

Some of the best tools that could be used to analyse the financial statement of the company are as follows:

Debt Ratio: Total Liabilities/Total Assets = $29,778,944.18/$85,146,482 = 34.97%

Equity Ratio: Total Equity/Total Assets = $55,367,537.82/$85,146,482 = 65.02%

Debt/ Equity Ratio: Total Liabilities/Total Equity = $29,778,944.18/$55,367,537.82 = 53.78%

Liquidity Ratio: Total Assets/Total Liabilities = $85,146,482/$29,778,944.18= 2.85