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.

 

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