Financial Information Systems
Part A: manual recording
1. Highway Heaven uses the perpetual method for recording inventory. The purchase price
and selling price of all inventory items remains unaltered during the month.
2. Specialist journals are used to record transactions as follows:
Sales journal: credit sales of inventory
Purchases journal: credit purchases of inventory
Cash receipts journal: all cash receipts, including recepts from accounts receivable
Cash payments journal: all payments in cash including payments to account
Hints:
i. Opening balances are recorded in the general journal and then posted to the general
ledger.
ii. If a transaction is recorded in a specialist journal that transaction is not also recorded in
the general journal.
iii. Purchases returns are not recorded in the specialist Purchases journal
iv. Sales returns are not recorded in the specialist Sales journal
3. Subsidiary ledgers are maintained for accounts receivable, accounts payable and
inventory. At the end of the month the control account for accounts receivable, accounts
payable and inventory must equal to totals form the appropriate subsidiary ledger. Note:
this is a common error in assignments.
4. Pro-forma journals, ledgers, worksheets and reports (excel file) are available in the
assessment folder and must be used to submit part A. This file must be submitted into
the assignment submission box.
Part B
1. Transactions are recorded in the various modules as follows:
Sales module: all sales transactions which include cash sales and credit sales, sales
returns and receipts from customers. Hint: Establish a customer named ‘cash sales’.
Purchases module: all purchase transactions which are cash and credit purchases,
purchases returns and payments to accounts payable. Hint: Establish an accounts
payable named ‘cash purchases’
Bank: all other (i.e. excluding any of the above) transactions involving cash e.g.
interest income, and payment of operating (rent etc.) and other cash disbursements.
Inventory: opening balances and inventory adjustments resulting from a stock-take
are the only transactions recorded in this module. The inventory on hand for each
inventory item is updated via the Sales and Purchases module each time an
inventory item is purchased, sold or returned.
Hint: Establish lessons as an inventory item.
2. Do NOT process the ‘end of period’ process
Other matters
1. The Balance Sheet from the manual recording should be the same as the Balance Sheet
from MYOB recording.
2. If the assignment does not satisfy both of the following requirements, it will not be
accepted for marking.
a. When establishing the business name for the assignment, students are
required to insert their own name after the business name (HighwayHeavenYour
name). For example, if the student’s name is John White, the company
name of that student’s assignment would be (HighwayHeaven-John White).
Any assignment with no student name/ names in the company name will not
be accepted.
3. The assignment must be accompanied with an assignment cover sheet.
