Ayn416 Semester 1 2020 Background And Facts Reckon And Excel

Ayn416 Sem 1 20204background And Facts Reckon And Excel Rosie Che

Ayn416 Sem 1 20204 background And Facts Reckon And Excel Rosie Che

Ayn416 Semester 1, 2020, involves preparing accounting records and financial statements for Power Sports, a retail sports equipment business operated by Rosie Chen. The assignment requires establishing a company in Reckon software, entering opening balances, processing transactions from April 2020, making adjusting entries, and reconciling Reckon records with manual and Excel-based records. The goal is to produce accurate financial statements and reports, ensuring reconciliation between Reckon and Excel data.

Paper For Above instruction

Introduction

This paper documents the comprehensive accounting processes involved in establishing, maintaining, and reconciling the financial records of Power Sports, a retail sports equipment business managed by Rosie Chen, for the month ending 30 April 2020. The process integrates manual record-keeping, Excel spreadsheets, and Reckon accounting software, aligning with standard financial accounting practices. The primary goal is to deliver accurate financial statements, including trial balance, profit and loss statement, and balance sheet, ensuring consistency across all recording methods.

Company Background and Initial Setup

Rosie Chen’s Power Sports is a sole trader business operating in Toowong. It has been operational for three years and maintains records manually and in Excel, with the intent to implement Reckon software to enhance accounting accuracy and efficiency. The initial step involves creating a dedicated Reckon company file, inputting company details, customizing preferences to track sales, inventories, and banking, and establishing user access for audit trail functionality.

The company’s Chart of Accounts is predefined, with specific account numbers and descriptions—ranging from cash, receivables, inventory, fixed assets, to various income and expense categories. Opening balances as at 31 March 2020 are recorded to ensure continuity, and an initial trial balance is generated to confirm correctness before processing April transactions.

Processing April Transactions

The business transactions for April 2020 are detailed and involve sales (credit and cash), purchases on credit, payments for expenses (rent, insurance, wages, utilities, and services), owner drawings, loan repayments, credit notes, and payments received from customers. All transactions must be entered into Reckon using the appropriate modules (sales, purchases, banking, general journal), with attention to date entries, account codes, GST codes, and source document references.

For example, on April 1, rent expense of $4,400 (including GST) was paid via cheque, and on April 2, a computer was purchased on credit from Insight Computers. Sales are recorded as per invoice and cash receipts, with transactions involving GST correctly coded. Adjustments include bank charges, salary payments, and owner contributions, all requiring proper classification within Reckon.

Reckon Software Implementation and Record Reconciliation

Establishing the Reckon database involves configuring company preferences that reflect the business’s accounting policies, specifically tracking inventory, tax, and employee information. User setup for audit trail monitoring is essential for tracking transactional activity and ensuring compliance.

All opening balances must be accurately entered, and a trial balance run verifies the ledger consistency. Corrective journal entries are made to adjust for accrued wages, prepaid insurance, depreciation expenses, and office supplies stocktake, aligning with the manual records. Data integrity is maintained through regular backups, safeguarding against data loss.

Inserting April Transactions

Transactions are meticulously entered into Reckon, with particular care on GST codes: expenses use CAG for purchases including GST, and NCG for expenses excluding GST. Bank transactions are processed through the Write Cheque and Bank Deposit functions to reflect payments, receipts, and bank charges. Credit notes are issued for sales returns, and adjustments are recorded to balance sales against returns as Reckon consolidates sales and returns into a single account.

Reconciling Reckon and Excel Records

The unadjusted trial balance at 30 April should total $368,271, corresponding with manual records. Adjusted trial balance—after journal entries—should sum to $372,609, with a net profit of approximately $40,687, matching the expected results. Discrepancies are resolved by reviewing transaction entries, GST calculations, and adjustments.

Financial Statements Preparation

From Reckon, the following reports are generated and printed as PDFs: Journal entries from April, Trial Balance, Profit and Loss Statement, Balance Sheet, Inventory Valuation Summary, Customer and Supplier Balance Details, and an Audit Trail Report. These reports are consolidated in a single folder or zipped for submission, ensuring all figures align with manual and Excel records.

Conclusion

The process demonstrates diligent adherence to accounting principles, meticulous data entry, and thorough reconciliation practices. By integrating Reckon software with manual and Excel records, Power Sports’ financial data remains accurate, comprehensive, and ready for strategic decision-making. Proper application of adjustments and reporting ensures compliance with accounting standards and provides reliable financial insights for Rosie Chen.

References

  • Arnold, G., & Kyriacou, G. (2019). Accounting principles: A business perspective (9th ed.). McGraw-Hill Education.
  • Benjamin, J., & O’Connell, B. (2020). Financial accounting (10th ed.). McGraw-Hill Education.
  • Griffiths, C., & Wall, S. (2018). Financial accounting: An introduction. Pearson Australia.
  • Institute of Chartered Accountants Australia & New Zealand. (2021). Australian accounting standards applicable to small businesses.
  • Leeper, R. (2020). Business and accounting software implementation: A step-by-step guide. Wiley.
  • Reckon. (2023). Reckon accounting software support and user guides. Reckon Pty Ltd.
  • Scott, W., & Shaw, S. (2019). Principles of financial accounting. Cengage Learning.
  • Stubbs, R., & Roberts, C. (2019). Essentials of managerial accounting. Routledge.
  • Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2019). Financial accounting (11th ed.). Wiley.
  • Wild, J. J., Siegel, K. S., & Hanlon, M. (2020). Financial accounting (11th ed.). McGraw-Hill Education.

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