ETHIO COMPUTER PEACHTRE COURES OUT LINE

CHAPTER ONE-Installation And Company setup moving around---------------------------03:00 hours

 Peachtree Software installation
 Creating a New Company
 Backup/saving Company
 Restoring/Opening Company
 Delete Company
CHAPTER TWO-Maintaining--------------------------------------------------------------------------10:00 hours
 Chart of Account
 Vendors, Sales Taxes, Customers, Inventory Items
CHAPTER THREE-Transactions and setting up Global Options------------------------------12:00 hours
 Purchase/Expense Related Transaction
 Purchase order
 Purchase Receive inventory (credit purchase/on Account)
 Applying credit purchase bases on purchase order and Direct credit purchase
 Record partial/down payments
 Payments
 Settlement of credit purchase invoices
 Direct cash purchase and other Expenses/withdrawal
 Vendor Credit Memo/record purchase return and allowances
 Sales/Income Related Transactions
 Quotes/Proforma and Converting to sales order or sales/invoicing
 Sales Order
 Sales/Invoicing (credit/on Accountsales)
 Applying credit sale Directly and based on sales order
 Record partial/down payment Receipt
 Receipt
 Applying cash collection based on sale invoice
 Direct cash sale and accepting other Incomes
 Group Deposits using Select for Deposit
 Credit Memo/Record Sales Return and Allowances

CHAPTER FOUR-Monthly/Year Procedures-------------------------------------------------------02:00 hours

 General Journal Entry
 Inventory Adjustments
 Account/Bank Reconciliation
CHAPTER FIVE-Payroll-----------------------------------------------------------------------------------04:00 hours
 Creating User- Maintain Payroll Tax Tables
 Maintain Default Information for Payroll Setup Wizard
 Maintain Default Information for Employee and Employer
 Maintain General Employee information and payment information
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 Applying Payroll Entry
CHAPTER SIX-Report and Closing --------------------------------------------------------------------4:00 hours
 Displaying, Saving, Customizing, Exporting, and Printing Reports
 Import and Export ;
 Closing using Year End wizard Vs Closing using Exceland customizing
Project, Exam and, Exercise----------------------------------------------------------------------5:00 hours

Create a New Company

Part I. Company Information
 Click on Create New Company
 Click on Next
Choose a Peachtree product – Peachtree Quantum 2010 – Next

 Company name:…………………General Trading PLC

 Address 1: YEKA k\k k-08
 Address 2: [Link] 76114
 City : Addis Ababa
 Country: Ethiopia
 Tel : 251-9-11-79-48-97 ^ Fax:251-9-22-85-05-68
 Business Type: Limited Liability Company
 Website: www......general .com
 Email : ....... general@[Link]
 Next
Part II. Chart of Account
 Select Build your own chart of Account...Click on Next
Part III Define Account Segment
 Select No Account Masking
Part IV. Accounting Method
 Select Accrual... ...............................Click on Next
Part V. Posting Method
 Select Real time...... ...........................Click on Next
PART VI: ACCOUNTING PERIOD
 12 month of accounting period
 Select Next
 From January 1 \2019 - December 31\2019
 Select Next
 Select Finish
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Task 1. Company information to create new company

AddisAbabaGeneralTradingPLC is a merchandising business organization

with a fiscal year running from January 1 to December 31 of this year. Its fiscal
year consists of12 monthly accounting periods. The organization uses the
accrual basic of accounting, posts transaction on a real time basis, and costs its
inventory using the average method, and records case collection and
payments using cash at Abyssinia Bank. Addis Ababa is required to collect a
15% value added tax (vat) on all items it sales. The tax is payable to “ERCA
WESTERN Addis Ababa branch”.

Habesha wants to computerize its existing accounting system starting from

January 1, 2019 using Peachtree premium Accounting 2010. The following
data relating to chart of account, Balance sheet, customers, vendors and
inventory items were compiled as of December 31, 2019 from the existing
manual system in order to be used as a basic setup data for establishing the
new accounting system.

AccountID Description Account Type

1. Asset
11000 Cash At Abyssinia Bank Cash
11010 Petty Cash Cash
11500 Account Receivable Account Receivable
11510 Allowance For Uncollectible Account Receivable
11600 Note Receivable Account Receivable
11700 Vat Receivable Other Current Asset
11800 Advance Profit Tax (WTR) Other Current Asset
11900 Employee Advance Other Current Asset
11950 Suspense Account Other Current Asset
12000-010 Inventory Of Computer Inventory
12000-020 Inventory Of Printer Inventory
12000-030 Inventory Of Scanner Inventory
12000-040 Inventory of Photo copy Inventory
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13010 Office Supplies Other Current Asset

13020 Store Supplies Other Current Asset
13030 Prepaid Insurance Other Current Asset
14000 Office Equipment Fixed Asset
14000-010 [Link] .Office Equip [Link]
15000 Computer Fixed Asset
15000-010 Accumulated Dep-Comp [Link].
2. Liability
21000 Account Payable Account Payable
22000 Mortgage Payable Long Term Liability
23000 Vat Payable Other Current Liability
24000 Income Tax Payable Other Current Liability
25000 Pension Fund Payable Other Current Liability
26000 Credit Union Payable Other Current Liability
27000 Withholding Tax Payable Other Current Liability
28000 Profit Tax Payable Other Current Liability
3. Capital
31000 Capital Equity Does Not Closed
32000 Retained Earning Equity Retained Earning
33000 Divided Equity Gets Closed
4. Income
41000-010 Sales Of Computer Income
41000-020 Sales Of Printer Income
41000-030 Sales Of Scanner Income
41000-040 Sales Of Photocopier Income
42000 Interest Income Income
43000 Sales Discount Income
44000 Other Income Income
45000 Gain On Disposal Income
5. Cost Of Sales
51000-010 Cost Of Computer Cost Of Sales
51000-020 Cost Of Printer Cost Of Sales
51000-030 Cost Of Scanner Cost Of Sales
51000-040 Cost Of Photocopier Cost Of Sales
52000 Purchase Discount Cost Of Sales
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53000 Freight Account Cost Of Sales
[Link]
61000 Advertising Expense Expense
62000 Pension Fund Expense Expense
63000 Office Supplies Expense Expense
64000 Store Supplies Expense Expense
65000 Salary Expense Expense
66000 Insurance Expense Expense
67000 [Link] Office Computer Expense
68000 [Link] Office Equipment Expense
69000 Transportation Expense Expense
69000-010 OT Expense Expense
69000-020 Rent Expense Expense
69000-030 Loss On Disposal Expense
69000-040 Bank Service Charge Expense
69010 Telephone Expense Expense
69020 Miscellaneous Expense Expense
69030 Loading and Unloading Expense Expense
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Taske 3. Maintaining Balance

Addis Ababa General Trading P.L.C
Balance Sheet
As of December 31, 2018
Maintain ……………………….Chart of Account …………………………Account Beginning Balance

Asset Liability
218,930.0
Cash At Abyssinia Bank 242,000.00 Account Payable 0
Account Receivable 203,030.00 Mortgage Payable 84,200.00
Note Receivable 15,000.00 Vat Payable 35,000.00
338,130.0
Inventory Of Computer 136,000.00 Total Liability 0
Inventory Of Printer 47,200.00
Inventory Of Scanner 21,120.00
Inventory Of
Photocopiers 128,400.00
Office Supplies 14,000.00
Store Supplies 13,200.00
Prepaid Insurance 16,660.00 Capital
500,000.0
Office Equipment 100,800.00 Capital 0
Acc .[Link] Office
Equipment (20,160.00) Retained Earning 79,120.00
579,120.0
Total Capital 0
Total Liability & capital 917,250.0
Total Asset 917,250.00 0
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Task 4. Maintaining of credit customer Credit Term

Maintain…………………………….Default information …………………………..Customer

Credit customer Default: the standard credit term select Due in number of days, enter Net due 30 days,
enter discount 0 days, discount percent 0 and credit Br. 500,000 respectively.
In the G/L sales account box selected 41000-010(Sales of computer) and in G/L
Discount Account box 43000(Sales Discount). The following table gives
information about credit customers' balance as of Dec 31, 2018

Task 5 Maintaining of Credit Customer Subsidiary Ledgers

Maintain ……………………………………Customer/Prospect

Account type
Customer Account
no Customer Name Invoice No Invoice Date Amount Receivable
ID
(11500)
1 EC-01 Ethio Computer plc CRSI-01517 12/24/2018 64,450.00 11500
2 KT-02 KidTech plc CRSI-01502 12/11/2018 12380.00 11500
3 LT-03 Lucy Technology plc CRSI-01509 12/15/2018 49450.00 11500
4 MC-04 Max Computer plc CRSI-01520 12/30/2018 58,250.00 11500
5 SG-05 Sheger G/Trading plc CRSI-01501 12/5/2018 18,500.00 11500
Total 203,030.00
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Task 6. Maintaining of Credit Vendors Credit Term

Maintain…………………………Default information ……………………….Vendor

Credit Vendor Default: The standard credit term select Due in number of days, Net due in 30 days, and
discount in 0 days, discount percent 0 and credit Br. 500,000 respectively. In the
G/L Expense Account box select 12000-010(Inventory of Computers). And in
the G/L Discount Account box select 52000(Purchase Discount). The following
table gives information about credit Vendors' balance as of Dec 31, 2018

Task 7 Maintaining of Credit Vendor Subsidiary Ledgers

Maintain …………………………………………. Vendor
Account type
Account
No Vendor ID Vendor Name Invoice No Invoice Date Amount Payable
(21000)
1 AC-01 Addis Computer GRN-054 12/25/2018 72,250.00 21000
2 DT-02 Dire Trading plc GRN-060 12/30/2018 8,500.00 21000
3 HT-03 Habesha Trading plc GRN-055 12/25/2018 51,900.00 21000
4 SC-04 Sage Computer GRN-058 12/29/2018 44,280.00 21000
5 SC-05 Shewa Computer GRN-050 12/8/2018 42,000.00 21000
Total 218,930.00

Task 8. Maintain of Inventory Item Default information

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Maintain……………………….Default Information …………………… Inventory

Inventory In the default item class box select Stock Item, click on G/L Accts/Costing in the
Items Default: Stock Item row G/L Sales Account Box select 41000-010 (Sales of Computer), in
the G/L Inventory Account Box select 12000-010 (Inventory of Computer), in the
G/L Cost of Sales Account Box select 51000-010 (Cost of Computer), in the
Costing method Box select Average and in the G/L Freight Account Box select
53000(Freight Charge). The following table gives information about Inventory items'
balance as of Dec 31, 2018

Task 9 Maintaining of Inventory Items Subsidiary Ledgers

Maintain ………………………………………………………Inventory Items

UM/Unit
Selling
no Item ID Description Price/Price Level
Item Type of Quantity Unit Cost Total Cost
Measure
Dell Computer
1 DEL-2512 PIV17LCD 16,800.00 Computer PCS 10 10,450.00 104,500.00
Compaq computer
2 COMPAQ204 PIV17NCR 8,900.00 Computer PCS 5 6,300.00 31,500.00

3 HP LASERJET HP LASERJET 3,200.00 Printer PCS 12 2,800.00 33,600.00

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UM/Unit
Selling
No Item ID Description Price/Price Level
Item Type of Quantity Unit Cost Total Cost
Measure

4 HP INKJET HP INKJET 2100A 2,100.00 Printer PCS 8 1,700.00 13,600.00

SONNY SONNY SCANNER
5 SCANNER 8420/16 1,800.00 Scanner PCS 14 1,200.00 16,800.00
KTCE KTCE SCANNER
6 SCANNER 4400/A2 900.00 Scanner PCS 9 480.00 4,320.00
CANNON CANNON PHOTO
7 7161 COPIER 7161 16,200.00 Photo Co. PCS 2 13,800.00 27,600.00
CANNON CANNON PHOTO
8 6317 COPIER 6317 9,000.00 Photo Co. PCS 16 6,300.00 100,800.00

TOTAL 332,720.00
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Task 10. Setting up of VAT

1. Maintain Sales Tax

2. Select Set up a new sales tax Next
3. Enter the total rate that you will charge e.g. 15%
 Enter 1 to use individual rates Next
4. Enter Sales Tax Agency

Sales Tax Agent ID

e.g. ERCA A.A

 Sales Tax Agent name

e.g. ERCA A.A
 Vendor you send the taxes you have collected to click on this field
Select New
 Vendor ID: ERCA Western A.A
 Vendor Name:-ERCA Western A.A Branch
 Under Expense Account select: VAT Payable Acct
 Save, Close
 Select ERCA Western A.A
 Sales Tax calculations entry by Single rate
 Rate: e.g. 15%
 Select VAT Payable Account from the account to track sales taxes field
e.g. 2300 VAT payable Next

5. Enter Sales Tax ID e.g. VAT

 Enter Tax Name: Value Added Tax
 Don’t use Sales tax on freight no Finish
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Task 11. Purchase and Payment Transaction

CREDIT PURCHASE TRANSACTION

Task Purchase/Receive Inventory Use apply to Purchase

Jan. 5, Purchase of 2 pcs of Dell Computer at 10,450.00 each plus 15% which is
3,135.00 each from Shewa Computer. Invoice no GRN 061
Jan. 15, Purchase of 5 pcs of cannon 6317photocopy machine at 6,300.00 each,4 pcs
of HP-Laser Jet printer at 2,800.00 each and2pcs of KTCE Scanner at 480.00
each plus 15% which is 6,549.00 each from Habesha Trading. Invoice no GRN
062.
Jan.20, Purchase of 3pcs of Compaq Computer invoice [Link] 063 at 6,300 each
from Dire Trading plus 15% vat which is 2,835.00 with down payment of
10,000 ref CK no. 14604/CPV0001.
Jan. 30, Purchase of 2pcs HP laser jet at 2,800 each from new supplier Hi-Per Tech
“vendor ID HP-06, vendor name Hi-PerTech PLC Tell 0112798067 plus
15%vat which is 840.00 Invoice no. GRN 064.
Purchase order Transaction

Task ………………………………………………..Purchase Order

Jan. 20, Send purchase order to Habesha Trading for the purchase 1pcs of
cannon6317 photocopy machine at Br. 6,300 plus vat which is Br.945.00
purchase order# 001 Good Thru. By January.31/2019

Task….…Purchase/Receive inventory..Apply to Purchase Order tab

Jan. 31, Received 1pcs of cannon 6317 photocopy machine at Br. 6,300 plus vat which
is Br. 945.00 from Habesha Trading invoice no. GRN [Link] 001

PURCHASE RETURN TRANSACTION

Task……………….Vendor Credit Memo……… use Apply to Invoice

Jan.31Received credit from Habesha Trading as an allowance on damage of cannon
6317 photocopy machine at Br.6,300 GRN 065 and vat Br 945. credit Memo
0001
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Settlement For Credit Purchase Payment

Task...............Payment ………….use Apply to Invoice

Jan.10 Payment made after deducting withholding tax 1,256.52 birr for
Addis Computer for settlement of GRN 054 fully ref [Link]
14605/CPV0002.

Jan.15 Settlement made for outstanding balance after deducting

withholding tax 2% which is 1,148.43 birr to Shewa Computer for
settlement of GRN 050 & GRN 061 fully ref [Link] 14606/CPV0003.

Jan.20 Payment made for Sage computer br. 30,000.00 for partial
settlement of GRN 058 [Link].14607/CPV0004.

Direct cash purchase

Task. . .. ...........Payment...........Use Apply to Expense

Jan. 05 Purchase of 2 pcs of HP Laser jet printer at 3,000.00 each plus

15% vat which is 900.00 each from cash supplier Hayat
Computer on cash [Link].'14608/CPV0005 and MemoGRN-066.

Jan. 10 Purchase of 5 pcs of Dell computer at 11,[Link], 2pcs of KTC

Scanner at 500.00each and 6 pcs of Cannon photocopier 6317 at
12,[Link] from Helen Computer plus 15% vat which is
19,[Link] made after deducting withholding tax 2%
which is 2,560.00 reference [Link] 14609/CPV0006 and Memo
GRN-067

Payment Transaction

Task. .......................................Payment Use Apply to

Expense

[Link] Br.2,000.00 to Aster Kebede for Establishment of Petty

[Link] 14610/CPV0007.

Jan.15. Paid Br. 300.00 Employee advance for Aster Kebede [Link].
14611/CPV0008

Jan. 20 15,000.00 plus 15% vat which 2,250.00 birr payment is made
after deducting withholding tax 2% which is 300.00 birr for
advertisement to NechsarAdvertising PLC ref. [Link]
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14612/CPV0009.
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Jan.25 20,000.00 birr payment made for Mortgage Payable to Buna
International Bank [Link].no14613/CPV00IO.

Jan. 31 35,000.00 birr VAT Payable, paid to ERCA by [Link] 14614/CPVC01

1.

Task [Link] of Petty Cash

Task. . ....... .....................…Write Check.

[Link] Company casher Aster Kebede asks Br. 1.500.00 for
replenishment of petty cash Memo PCPV-001-004. The followings
are the expense:- Telephone expense Br.400.00 office supplies
expense Br.350.00, Miscellaneous expense Br.300,Loading and
unloading expense Br.450. Reference CK14615/CPV0012.

Task [Link] and Collection Transaction

Credit sales transaction

Task……..Sales/Invoice…Use Apply to Sales

Invoice

Jan 5. Sold 2pcs of Dell Computer at 16,800.00 each to Sheger G/Trading

plc

Invoice no. CRSI 01521 plus 15% VAT.

Jan 10. Sold 4pcs of Sonny scanner at 1,800.00 each& 2pcs of cannon 7161
Photocopy machine at 16,200.00 each to Ethio Computer Invoice
no. CRSI 01522 plus 15% VAT.

Jan 13. Sold 2pcs of Dell computer at 16,800.00 each,3pcs of HP laser jet at
3,200/ each , 4pcs of KTC scanner at 900.00 each& l pcs of Cannon
6317 photocopier at 9,000.00 each to KID TECH PLC Invoice no.
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CRSI 01523 plus 15% VAT.

Jan [Link] 2pcs of Compaq computer at 8,900.00 each to Lucy

Technology plc plus 15% VAT by Invoice no. CRSI 01524 and
received cash 3,000.00 birr down payment reference CRV
[Link] ticket id 1/25.

Jan 31. Sold on account 2pcs of HpInkJet at 2,100.00 each to new credit
[Link] customer ID WT-06,Customer name World Tech Plc
address Arada k/k kebele08 HN 869 Tell 0111-57-64-77 by Invoice
no. CRSI 01525 plus 15%VAT

Sales- Order Transaction

Task...................Quotes/ Sales Order……………………Sales Order

Jan.5 Received sales order SO 001 from Ethio Computer 1pcs of Dell

Computer @16800.Plus15% vat shipped by january31/2019.

Shipping Sales Order Transaction

Task......……Sales/Invoice….............Use Apply to Sales Order

tab

Jan.31 Shipped Sales order SO 001 from Ethio Computer Ipcs of Dell
Computer
16.800.0 Plus 15% vat Invoice [Link] 01530.

Sales return transaction

Task. .......... .............Credit Memo....Use Apply to Invoice
Jan. 31/2017 Grant credit to Ethio Computers an allowance on damage of 1
units of Dell Computer Br 16,800.00 plus vat CRSI 01530
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Credit memo 0001.

Collectionof Credit Sales from Credit

Customer

Task.... . .Receipt...........Use Apply to

Invoice

Jan. 22 Received 18,178.26 cash from Sheger G/Trading plc for fully
settlement of CRSI 01501 reference and receipt no. CRV0848.
Sheger G/Trading plc withheld withholding tax 2% which is
321.74 birr. Deposit ticket id 1/22
Jan. 25 Received 12,164.70 cash for fully settlement of CRSI 01502 &
received 63,054.00 cash for fully settlement of CRSI 01523 from
Kid tech PLC reference and receipt no. CRV0849. Kid Tech Plc
withheld withholding tax 2% which is 1,331.30 birr. Deposit
ticket id 1/25A
Jan. 26 Received 10,000.00 birr from Lucy Technology plc for partial
settlements of CRSI 01524 reference and receipt no. CRV 0850
Deposit ticket id 1/26.
Jan.31 Received 4,830.00 cash from World tech PLC for fully settlements
of CRSI 01525 reference and receipt [Link] 0851. Deposit
ticket id 1/31
Cash Sales Transaction
Task……………………Receipt……………………….use Apply to Revenue

Jan. 15 Sold by cash 2pcs of sonny scanner at 1800 each to cash customer Ato
Kassahun Belay reference CSL 0446 and RECEIPT [Link] 001 plus 15%
vat Deposit ticket id 1/15.
Jan.20 Sold 2pcs of Dell computer at 16,800.00 each & 4pcs of cannon photocopy
6317 at 9,000.00 birr each reference CSI 0447 and [Link].0002 on each to
Ministry of Health plus 15% vat. Ministry of Health with held 1,392.00 birr
withholding tax& deduced 10,440.00 birr VAT. Deposit ticket id 1/20.
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Jan. 29, Sold 3pcs of Hp laser jet at 3,200.00 each and 2pcs of KTCE Scanner at 900
at each to Kid Tech Plc on cash plus 15% vat reference CSI 0448 and
[Link].000 Kid Tech PLC Withheld tax 2%which is 228.00 birr. Deposit tick
id 1/29.

Collection of Other Income

Task ……………………Receipt………………………use Apply to Revenue

Jan. 31 Collection of interest income 2,500.00 from CBE Addis Ababa Branch reference
no.CRV0852. Deposit ticket id 1/31B.
Jan.31, 1,000.00 cash collected from Cash Customer for repair & maintenance of
photocopy machine (repair & maintenance considered as other income)
reference and receipt [Link] 0853 deposit ticket id 1/31c.

Task 14. Maintaining of Employees

Maintain ………………………………………………..Employees/ sales Rep.

Employee Employee Name Basic Transportation Transportation Employee OT
ID Salary Non-Taxable Taxable Advance
Aster Aster Kebede 4,500 500 100 300 400

Getachew GetachewTemesgen 3,000 700 - -

Aman Aman Elias 4,000 1000 - -

Apply income tax to all Employee and pension from employee 7% and pension
from employer 11%

Task15. Payroll Entry

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Task ……………………………………………………………………………payroll Entry

Jan. 31, Paid salary for employees Reference cheek no. 14616 & CPV 0013.

Task [Link] reconciliation

Monthly Bank statement
Bank of Abyssinia Bank
As of Jan. 31,20190
Task ………………………………………………………..Account Reconciliation
Date CK & Dep. No Dr . Amount Cr. Amount Balance

Balance 242,000.00
1/5/2017 [Link].14608 6,900.00 235,1000.00

1/10/2017 [Link].14605 70,993.48 164,106.52

1/10/2017 [Link].14610 2,000.00 162,106.52

1/20/2017 Cash deposit 1/20 68,208.00 230,314.52

1/20/2017 [Link].14604 10,000.00 220,314.52

1/20/2017 [Link].14612 16,950.00 203,364.52

1/20/2017 Collection on NR 15,000.00 218,364.43

1/25/2017 Cash deposit 1/25 3,000.00 221,364.52

1/25/2017 Cash deposit 1/25A 75,218.70 296,583.22

1/25/2017 [Link].14613 20,000.00 276,583.22

1/25/2017 Bank service charge 50.00 276,533.22

1/25/2017 Cost of check 30.00 276,503.22

1/26/2017 Cost deposit 1/26 10,000.00 286,503.22

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1/29/2017 Cash deposit 1/29 12,882.00 299,385.22

1/31/2017 [Link].1414 35,000.00 264,385.22

Ending balance 264,385.22
 On Account reconciliation window …………………………..click on Adjust

The following Bank Reconciliation adjustment incurred for the mouth if January
31 /2019. Reference JV01/19
Debit Credit

Bank service charge ………………………………………………80.00

Cash at Abyssinia Bank……………………………………………………80.00

The following Bank reconciliation adjustment for the month of January 31

/[Link] JV02/19

Debit Credit
Cash at Abyssinia Bank……………………………………………….15,000.00
Note Receivable………………………………………………………………….15,000.00

Task 17. Inventory adjustment

Task Inventory Adjustment

The following inventory adjustment occurred during for the month of January
31 2019 reference Jv03/19 2pcs of HP ink jet failed to use.
Debit Credit

Cost of printer …………………………………………………3,400.00

Inventory of printer……….…………………………………………………3,400.00
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Task 18. Adjusting Entries

The following expense incurred for the month of January 31 2019assuming that
all assets are initially recorded as an assets reference JV04/19
Debit Credit
Office supplies expense……………………………………………….4, 200.00
Office supplies …………………………………………………………………..…4,200.00

Store supplies expense………………………………………………3,200.00

Store supplies …………………………………………………………………………..3,200.00

Insurance expense ………………………………………………………1,200.00

Prepaid insurance ……………………………………………………………………1,200.00

The following adjustment incurred for the month of January 31/2019 reference
JV05/17. Book value office equipment is equal to cost minus accumulated
depreciation (100,800.00-20,160.00=80,640). Depreciation expense is equal to
book value times 80,640.00*20%= 16,128.00

Task …………………………………………………..General Journal Entry

Debit Credit
Depreciation expense office Equipment ………………….16, 128.00
Acc. Dep. Office Equipment ………………………………………………16,128.00

The following adjustment incurred to offset vat receivable for the month of
January 31/2019. Reference JV06 /19.

Task …………………………………………………………………. General Journal Entry

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Debit Credit
VAT Payable ……………………………………………………………..24,900.00
VAT Receivable …………………………………..……………………………….24,900.00