Peachtree Accounting Practical Exercise

* Peachtree Accounting
Practical Exercise
*Step1. Create a New Company Set-up
A. Company name and address

Create your company name and address
B. Business type
Click/Select - Sole proprietorship
C. Building Charts of Accounts
Click/Select- Build your own company
D. Accounting method ( cash & Accrual)
Click/Select- Accrual Basis of Accounting
E. Choosing Posting method
Click/Select- Real time Posting
F. Fiscal year/Choosing Accounting Period
Click/Select- Accounting period that does not match the
calendar months then create two fiscal years.
G. Finish
Accounting Period for 12 Months (Convert G.C in to E.C)
No Month Beginning End

1 July 8/7/2019 Aug- 6/8/2019
2 August 7/8/2019 Sep- 11/9/2019
3 September 12/9/2019 Oct- 11/10/2019
4 October 12/10/2019 Nov-10/11/2019
5 November 11/11/2019 Dec- 10/12/2019
6 December 11/12/2019 Jan- 9/1/2020
7 January 10/1/2020 Feb- 8/2/2020
8 February 9/2/2020 Mar- 9/3/2020
9 March 10/3/2020 Apr- 8/4/2020
10 April 9/4/2020 May- 8/5/2020
11 May 9/5/2020 June- 7/6/2020
12 June 8/6/2020 July- 7/7/2020
Step2. Create charts of Accounts
1. Select charts of Accounts option from maintain
menu
2. Enter an account ID and description for the account.
Account ID Account Description Accounts Type
1101 Cash on hand Cash
1201 Prepaid Tax Accounts Receivable
1202 Prepaid Rent Accounts Receivable
1301 Inventory Inventory
1401 Property and Equipment Fixed Assets
1401-1 Acc. Depreciation of Pro & Equ Accumulated Depreciation
1402 Computer & Accessory Fixed Assets
1402-2 Acc. Depreciation of Comp. & Accumulated Depreciation
Accessory
2101 Income Tax Payable Accounts Payable
2102 VAT Payable Accounts Payable
2103 Profit Tax Payable Accounts Payable
3101 Owners’ Capital Equity Doesn’t Close
3102 Profit After Tax Retained Earnings
4101 Income from Sales of Goods & Income
5101 Purchase of Factory Products Cost of Sales
5102 Purchase of Local Products Cost of Sales
6101 Salary Expenses Expenses
6102 Employer Pension contribution Expenses
6212 Stationary expenses Expenses
6218 Miscellaneous Expense Expenses
6220 Professional Fee Expenses
6221 License & Registration Fee Expenses
6223 Maintenance Expenses Expenses
6257 Utility Expenses Expenses
6301 Labor cost Expenses
6302 Transportation cost Expenses
6303 Depreciation Expenses Expenses
Step3. Enter Beginning Balances
I. From the Maintain menu, select Chart of Accounts.
II.Select the Beginning Balances button.
III. Select the period in which you want to enter
beginning balances.
IV. Enter all the beginning balances for the accounts
Insert the balance for year ended June 30, 2011 E.C
Acc. ID Account Description Beginning Balance for the Year

2012 E.C
Assets
1101 Cash on hand 120,000.00
1202 Prepaid Rent 10,000.00
1301 Inventory 30,000.00
1401 Property and Equipment 25,000.00
1401-1 Acc. Depreciation of Pro & Equ (6,250.00)
1402 Computer & Accessory 5,450.00
1402-2 Acc. Depreciation of Comp. & Accessory (1,362.50)
Total Assets 182,837.50
Liability
2102 VAT Payable (5680)
3101 Owners’ Capital 188,517.50
Total Liability & Capital 182,837.50
Step4. Recording the General Journal Entry
Journalize the following Business transaction for the year 2012

E.C
1. On September 30,2012 E.C the business company paid salary

for employees on cash Birr 12,000.00 on PV No 12/001
2. On September 1,2012 E.C the company purchase 12 ku/t
onions on Br 12,000.00 from farmer on PV No 12/002
3. On September 30,2012 E.C the company sale 8 ku/t for Br
9600.00 on RV No 1001
4. On September 30, 2012 E.C the business company receives
cash from sales of Goods and services Birr 85,000.00 before VAT
on RV No 1002
5. On September 30,2012 E.C the business company Purchases
Factory products from suppliers Birr 55,000.00 before VAT PV
No 12/003
6. On September 30, 2012 E.C the business company paid house
rent for the next 12 months Br 48,000 before VAT on PV No 12/004
7. On December 30, 2012 E.C the business company paid salary
for employees on cash Birr 8,000.00 on PV No 12/005.
8. On December 30, 2012 E.C the business company receives cash from sales
of Goods and services Birr 70,000.00 before VAT on RV No 1003
9. On December 30, 2012 E.C the business company Purchases Factory
products from suppliers Birr 30,000.00 before VAT and Purchase local
product for birr 11,000.00 on PV No 12/006.
10. On March 30, 2012 E.C the company paid salary for employee Br
8000.00 and Paid for utility expenses (water, telecom and Electric service) Br
2,350.85 on PV No 12/007
11. On March 30, 2012 E.C the company purchases cash register Machine for
sales purpose from Wondo Kubaniya Br 5,275.00 before VAT on PV No
12/008
12. On March 30, 2012 E.C the business company receives cash
from sales of Goods and services Birr 90,000.00 before VAT on
RV No 1004
13. On March 30, 2012 E.C the business company Purchases
Factory products from supplies Birr 40,000.00 before VAT and
Purchase local product for birr 15,000.00 on PV No 12/009
14. On June 30,2012 E.C the business company paid for the following
expenses on PV No 12/010
 Salary------------------------------Br 9000.00
 Stationary expenses-----------------1512.30
 Miscellaneous Expense------------1425.90
 Professional Fee--------------------5000.00
 License & Registration Fee------- 200.00
 Maintenance Expenses-------------865.00
 Utility Expenses--------------------2436.56
 Labor cost--------------------------- 50.00
 Transportation cost----------------- 120.00
 Depreciation Expenses------------- 8,462.5 (6250 for property & Equ,
2212.5 for computer & Accessory)
15. On June 30, 2012 E.C the business companies receive
cash from customer Br 125,000.00 before VAT on RV No
1005 and purchases factory products from suppliers Br
55,000.00 before VAT and purchases local product from local
market Br 13,000.00 on PV No 12/011

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* Peachtree Accounting

A. Company name and address

No Month Beginning End

Acc. ID Account Description Beginning Balance for the Year

Journalize the following Business transaction for the year 2012

1. On September 30,2012 E.C the business company paid salary

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