Reference no: EM132908830 , Length: word count:2000

GAC4019 Digital Accounting - Gulf College

Assessment - Scenario-based project

Assessment Task

A new Oman Cables Industry company is located in Muscat and is part of the Electrical Products Manufacturing Industry. The company manufactures electrical equipment, appliances and electrical components. The company wants to complete the installation and maintenance of its computerised accounting system. The business will be registered for Standard VAT Accounting and will be trading on both a credit and cash basis. The company supplies Power Cables and Control Cables, Power Cables are standard rated, and Control Cables are zero-rated. The Accounting Manager of the company assigned you a task to complete the business activities with customers, suppliers, assets, liabilities, incomes, and expenses account by using Sage Line 50 accounts. You are required to prepare a report of 2,000 words addressed to the company. The structure of the report should be as follows:
I. Introduction (300 words)
a. A Sage Line 50 account has multiple benefits to work efficiently. Discuss the advantages of a Sage Line 50 accounts.
b. Explain the benefits of customer record defaults, supplier record defaults and bank account defaults.

II. Discussion (1400 words)
a. Discuss the process of how to add a new company in Sage Line 50 accounts. (Student needs to provide an example to create a company using Sage Line 50)
b. Explain the Nominal Accounts for Profit & Loss account and Balance Sheet with code ranges.
c. Discuss the process of addition and deletion of Nominal records in Sage Line 50 accounts. (Student needs to provide three examples for Nominal records)
d. Describe the process of how to set up Customers account and explain how to generate a report of a Customers address list. (Student needs to provide a list of five Customers with relevant Account reference and Nominal Codes)
e. Describe the process of how to set up Suppliers account and explain how to generate a report of a Suppliers address list. (Student needs to provide a list of five Suppliers with relevant Account reference and Nominal Codes)
f. Discuss the process of entering opening balances with the suppliers and customers accounts. (Student needs to provide five examples for opening balances with appropriate Supplier and Customer Account reference and Names)
g. Discuss the process of entering opening balances in the nominal accounts. (Student needs to provide ten examples for opening balances with appropriate Nominal Codes and Names)
h. Discuss the process of entering opening balances in the stock file (updating stock file) in sage 50 accounts. (Student needs to provide five examples for opening balances with appropriate stock level, quantity and price)
i. Discuss how to record a customer invoice and explain how to correct an error in the invoice. (Student needs to provide three transactions for Customer Invoices with appropriate Nominal Codes and VAT rates)
j. Discuss how to record a supplier invoice and its effect on financial statements. (Student needs to provide three transactions for Supplier Invoices with appropriate Nominal Codes and VAT rates)
k. Discuss how to record Supplier payments in Sage Line 50 accounts. (Student needs to provide two transactions for Supplier payments)
l. Discuss the process of how to generate a trial balance of the records entering in sage 50 accounts.

III. Recommendation (300 words)
a. Discuss a suggested back-up policy for an office which runs a computer accounting system.
c. Discuss the process of printing nominal list records and the steps involved in generating financial statement reports in Sage Line 50.

Guidelines to Students:

• To add a new company in Sage 50, include Company name, address, business type, VAT registration number, VAT scheme, VAT rate, Financial year and currency.
• To add and edit Nominal record in Sage 50, include appropriate Nominal code and Nominal name, type of account and category of account.
• To set up a Customer account, include Customer name, appropriate Account reference, Details, Default settings, Credit control and Bank settings.
• To set up a Supplier account, include Supplier name, appropriate Account reference, Details, Default settings, Credit control and Bank settings.
• To enter opening balances with the Suppliers and Customers accounts, include appropriate Account reference, Names and Balances.
• To enter opening balances in the Nominal accounts, include appropriate Nominal codes, Names and debit & credit Balances.
• To enter opening balances in the stock file, include appropriate Stock levels, Quantity and Cost price.
• To record Customer Invoices, include Invoice number, Date, Details, Net amount, and VAT amount.
• To record Supplier Invoices, include Invoice number, Date, Details, Net amount, and VAT amount.
• To record Supplier payments, include the Date, Supplier name, Cheque number and payment amount.
• Check that all the data has been entered accurately and use correct capitalisation.

References.
• There should be a minimum of five (5) references. Use the Harvard Referencing style.

Attachment:- Digital Accounting.rar