Record all of the transactions

Reference no: EM131332301

PART ONE - SAGE TRANSACTIONS

You will be given a fictitious company which you will need to set up, record two months of transactions and produce financial statements for. You will need to use your professional judgement and accounting knowledge to complete some of the transactions and decide where and how you will record them. You will be required to defend and justify your choices in the report in the final submission.

PART TWO - REPORT - CRITICAL REVIEW

Using your experience from part one and your time using SAGE in the workshops, you are required to CRITICALLY review the SAGE accounting software package. This will include identifying features, controls and making suggestions on how the software could be improved. It is advised that you make notes as you complete part one to facilitate you with this report.

Part One - Fraser Computer Solutions

Introduction

In late 2015 Arnold Fraser set up his own computer supplies company. Arnold has been fixing and suppling computer parts for over 20 years as an employee of another company and decided to branch out on his own. The business runs from a small office located in a large commercial building with all of the products kept there and re-stocked when needed. Fraser Computer Solutions (FCS) deals mainly with trade sales however there are a small number of public retail customers that Arnold has worked with previously.

Arnolds husband Jay has given up his job as a dog trainer to help Arnold with the business, he will be preparing all of the accounts and administration duties. You have been asked to assist Jay with the setting up of the company accounts on SAGE and preparing the financial statements.

Arnold lost his grandmother who left him £75,000 in her will, he used two thirds of this to set up the business as capital. Jay also put £25,000 of savings into the business to help Arnold stock up on goods to get the business up and running.

In addition to the money, Jay brought his van from his dog training job into the business which was valued at £12,000 at the time.

FCS has a business bank account set up with the Ystrad Royal Bank (YRB) local branch and overdraft facilities have been arranged.

Information

You have a meeting with both Arnold and Jay and discover the following;

Sales are classified in one of the following ways
- Desktop computers
- Laptop computers
- Computer repairs

Both sales and purchases are on both cash and credit terms

The business is registered for VAT with a rate of 20% on all goods and services

All of the suppliers and customers have payment terms of 30 days

Required

1. You are required to set up the company above with the given information, you can make up names and addresses for the suppliers and customers. The first customer ‘'Customer 1'' must be a combination of your group e.g. EliasTaylorOliver Limited.

2. Record all of the transactions mentioned above to set up the company (capital and the vehicle) and make sure you have correctly set the date up to reflect the timeline.

3. Record all of the following transactions in the accounts, there are some ‘tricky' transactions that will require judgement and accounting knowledge, it is up to you to decide how you want to deal with these, there is no right or wrong answer as long as you can justify and defend it.

4. When you submit your final report you will be required to give a list of these justifications along with any assumptions that you have made about the business where the information is unavailable.

5. At the end of the first month you will need to balance off the accounts and produce a trial balance, please ensure that this is saved as it will form part of your final report. Once the first month is complete and your tutor has received it, the second month of transactions will be released to you (otherwise the second month of transactions will be released on 09/01/2017 - this will only give you a very short amount of time to complete them before submission so it is strongly advised that you make good progress and get the transactions entered early).

Required:

1. Record the above transaction in SAGE.

2. Balance off the accounts and draw up a trial balance.

3. Draft a Trial Balance, Profit and Loss account and Balance Sheet

Note: you can make any further adjustments you deem necessary other than simply recording the transactions above. Credit will be given for any appropriate adjustments. Please state your assumptions and any adjustments/workings clearly on a separate sheet.
You need to submit HARD COPIES of
• Month end 31 October Profit and Loss account
• Month end 30 November Profit and Loss account
• 1 October → 30 November Profit and Loss account
• 31 October Balance Sheet
• 30 November Balance Sheet
• 31 October Trial Balance
• 30 November Trial Balance
• "Assumptions and Estimates" notes
Please submit by email the SAGE file - you must call the file by your GROUP NUMBER.

Part two - Report - Critical review

During the workshops you have gained knowledge about the SAGE software and its features. Through the completion of part one, entering transactions into the software etc. you will be able to critically analyse it and comment on its strengths and weaknesses. In order to illustrate your points you will need to provide screenshots and examples of how the software improves/hinders the recording of day-to-day accounting transactions. There are a number of resources both on the Blackboard site and through the SAGE software itself that will assist you with this analysis. Make sure that you provide suggestions of possible solutions for any weaknesses you find with the software to demonstrate your understanding.

Attachment:- MAS.rar

Reference no: EM131332301

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