General Ledger using MYOB

I basically took the defaults and chose plant center as the kind of company I wanted to create books for. I created Southworth Nursery. When the Command Center came up, I selected General Journal Entry to start. Note that at any time F1 for HELP will bring up information on the current screen.

To start my entries, I needed to look at the Chart of Accounts to find the acct # - once I enter the account number the account name will be automatically filled in. On this form, I need to enter both a debit and a credit to balance. I am going to use the checking account (1-1110) to debit my initial capitalization of $10,000 and then the Owners/Shareholder Investment (3-1100) to credit.

 

I can now record the transaction and move on to the second transaction. The second transaction is a bank loan taken for $1000,000. I again used the Checking Account (1-1110) to debit and I used Bank Loans under liability (2-2100) to credit. The third transaction involves renting a building for $1000. I put a credit in the Checking Account (1-1110) to cover the rent and I put a debit under Rent (6-4400).

The screen above shows the account list which gave me the account number for rent, the third transaction which dealt with the rent and the transaction journal which showed the previous transactions. Note: I accessed the journal from the icon at the bottom left of the General Journal Entry screen that said journal.

In the fourth entry, I purchased inventory for $80,000. To do this, I entered the amount as a debit against Inventory(1-1300) and a a credit for Accounts Payable (2-2100).

The fifth entry involved selling goods to J. Smith for $90,000. I decided this was Tree and Shrub Sales (4-1200), so I credited the $90,000. To balance that, I entered a debit under Accounts Receivable (1-1200). To account for the COGS (Cost of Goods Sold), I made a debit entry in Tree and Shrub Purchases (5-1200) and a balancing credit in Inventory (1-1300).

The sixth entry involved paying salaries of $3000. I put a credit in the Checking Account (1-1110) and a debit in Wages (6-5110).

The seventh entry was paying for the inventory of $80,000. I entered a credit for the Checking Account (1-1110) and a debit in Accounts Payable (2-1200).

Finally - I messed up in making the entries and only put in receiving $60,000 from J.Smith when I did this example, so I then entered another transaction with the $30,000 (I guess J. Smith must have sent me two checks). In the notes that summarize this, I did it in one entry. Be flexible!!! The eighth transaction was a payment of $60,000 from J. Smith for the goods. This was entered as a debit entry in the Checking Account (1-1110) and a credit entry in the Accounts Receivable Account (1-1200). The ninth transaction was a payment of $30,000 from J. Smith (clearly the second check) entered a debit entry in the Checking Account (1-1110) and a credit entry in the Accounts Receivable account (1-1200).

Finally, I need to look at my general ledger and see the postings.

 

The pictures on this page show the asset and liabilities accounts.

The screen above shows the account list for equity and the screen below for income.

The screen below is for Cost of Sales and the screen below that is for Expense.

The screens below show the Balance Sheet Ledger. Fixed assets are not shown in detail since there were none in this exercise.

General Ledger using MYOB

When you start this system, you can choose the kind of company you want to create the books for - I selected a nursery. NOTE: This is a summary of what I intended to do - note that transaction eight turned into transaction eight and transaction nine.

I then closed and printed the reports.