Monday, January 29, 2018

Practicale Assignment for Sage 50




Create a Chart of Accounts for North Traders (pvt) Ltd.
And apply the suitable number system with last digit.
Keep account balance zero and generate a account report for this COA.
2 Hr
Asset Accounts
No.
Account Title
To
Increase
Description/Explanation of Account
101
Cash
Debit
Checking account balance (as shown in company records), currency, coins, checks received from customers but not yet deposited.
120
Accounts Receivable
Debit
Amounts owed to the company for services performed or products sold but not yet paid for.
140
Merchandise Inventory
Debit
Cost of merchandise purchased but has not yet been sold.
150
Supplies
Debit
Cost of supplies that have not yet been used. Supplies that have been used are recorded in Supplies Expense.
160
Prepaid Insurance
Debit
Cost of insurance that is paid in advance and includes a future accounting period.
170
Land
Debit
Cost to acquire and prepare land for use by the company.
175
Buildings
Debit
Cost to purchase or construct buildings for use by the company.
178
Accumulated
Depreciation - Buildings
Credit
Amount of the buildings' cost that has been allocated to Depreciation Expense since the time the building was acquired.
180
Equipment
Debit
Cost to acquire and prepare equipment for use by the company.
188
Accumulated
Depreciation - Equipment
Credit
Amount of equipment's cost that has been allocated to Depreciation Expense since the time the equipment was acquired.


Liability Accounts
No.
Account Title
To
Increase
Description/Explanation of Account
210
Notes Payable
Credit
The amount of principal due on a formal written promise to pay. Loans from banks are included in this account.
215
Accounts Payable
Credit
Amount owed to suppliers who provided goods and services to the company but did not require immediate payment in cash.
220
Wages Payable
Credit
Amount owed to employees for hours worked but not yet paid.
230
Interest Payable
Credit
Amount owed for interest on Notes Payable up until the date of the balance sheet. This is computed by multiplying the amount of the note times the effective interest rate times the time period.
240
Unearned Revenues
Credit
Amounts received in advance of delivering goods or providing services. When the goods are delivered or services are provided, this liability amount decreases.
250
Mortgage Loan Payable
Credit
A formal loan that involves a lien on real estate until the loan is repaid.

 Owner's Equity Accounts
No.
Account Title
To
Increase
Description/Explanation of Account
290
Mary Smith, Capital
Credit
Amount the owner invested in the company (through cash or other assets) plus earnings of the company not withdrawn by the owner.
295
Mary Smith, Drawing
Debit
Amount that the owner of the sole proprietorship has withdrawn for personal use during the current accounting year. At the end of the year, the amount in this account will be transferred into Mary Smith, Capital (account 290).


 Operating Revenue Accounts
No.
Account Title
To
Increase
Description/Explanation of Account
310
Service Revenues
Credit
Amounts earned from providing services to clients, either for cash or on credit. When a service is provided on credit, both this account and Accounts Receivable will increase. When a service is provided for immediate cash, both this account and Cash will increase.



 Operating Expense Accounts
No.
Account Title
To
Increase
Description/Explanation of Account
500
Salaries Expense
Debit
Expenses incurred for the work performed by salaried employees during the accounting period. These employees normally receive a fixed amount on a weekly, monthly, or annual basis.
510
Wages Expense
Debit
Expenses incurred for the work performed by non-salaried employees during the accounting period. These employees receive an hourly rate of pay.
540
Supplies Expense
Debit
Cost of supplies used up during the accounting period.
560
Rent Expense
Debit
Cost of occupying rented facilities during the accounting period.
570
Utilities Expense
Debit
Costs for electricity, heat, water, and sewer that were used during the accounting period.
576
Telephone Expense
Debit
Cost of telephone used during the current accounting period.
610
Advertising Expense
Debit
Costs incurred by the company during the accounting period for ads, promotions, and other selling and expenses (other than salaries).
750
Depreciation Expense
Debit
Cost of long-term assets allocated to expense during the current accounting period.

 Non-Operating Revenues and Expenses, Gains, and Losses
No.
Account Title
To
Increase
Description/Explanation of Account
810
Interest Revenues
Credit
Interest and dividends earned on bank accounts, investments or notes receivable. This account is increased when the interest is earned and either Cash or Interest Receivable is also increased.
910
Gain on Sale of Assets
Credit
Occurs when the company sells one of its assets (other than inventory) for more than the asset's book value.
960
Loss on Sale of Assets
Debit
Occurs when the company sells one of its assets (other than inventory) for less than the asset's book value.


Account Balance need to enter to the system and generate balance sheet.
Cash                                                                 10000
Accounts Receivable                                          50000
Merchandise Inventory                                       20000
Supplies                                                             20000
Prepaid Insurance                                              30000
Land                                                                  100000
Buildings                                                             100000
Accumulated Depreciation – Buildings                10000
Equipment                                                          150000
Accumulated Depreciation – Equipment              60000

    Sub Total                                                                      550000



Notes Payable                                   5000
Accounts Payable                              5000
Wages Payable                                 20000
Interest Payable                                5000
Unearned Revenues                         10000
Mortgage Loan Payable                   35000
                            Sub Total                                            80000
Mary Smith, Capital                        500000

Service Revenues                                                            70000                                                                                                                                                                   
Salaries Expense                              100000 
Wages Expense                                50000
Supplies Expense                             5000
Rent Expense                                   5000
Utilities Expense                               5000
Telephone Expense                          5000
Advertising Expense                        10000
Depreciation Expense                      120000
                                    Sub Total                             300000
Interest Revenues
Gain on Sale of Assets                   150000
Loss on Sale of Assets                    50000
                                          Sub Total                         200000

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