CHANDARIA SCHOOL OF BUSINESS

IBA AND BSC-ACCOUNTING

ACT3010A: ACCOUNTING INFORMATION SYSTEMS 1

Instructions: Work out the following exercise using QuickBooks Accounting.

(a) Create the following inventory items and sub-items and record the opening inventories (opening
stocks) indicated on 1 January 2016.

Item Sub-item Sales price Opening stock Cost (Includes Income

mark up 16% VAT) account
Toyo RAV 4 20% 10 840,000 Sales: Toyo
Ipsum 25% 11 920,000
Lpsum 26% 8 1,000,000
Premio 40% 9 810,000
Cameo 35% 6 760,000
Carina 26% 5 650,000
Bishi Galant 42% 14 745,000 Sales: Bishi
Colt 32% 7 985,600
Airtek 33% 9 685,000
Trucks 30% 6 2,850,000
Adventure 28% 10 987,000
Merc E100 56% 7 2,100,000 Sales: Merc
E200 55% 5 2,845,000
A-Class 40% 3 3,560,000
GLS Class 52% 2 5,680,000
SUV
V-Class 48% 3 8,900,000

(b) Create the following supplier accounts and record the opening balances on 1 January 2016. You
may ignore details such as contacts.

Supplier Opening Balance

on 1 January 2016
Japan Car Suppliers 1,100,000
Dubai Toyo Dealers 658,000
Githeche International Car Dealers 1,229,897
Merc Importers Ltd. 2,035,411

(c) Record the following stocks received through the goods received notes (GRNs)

Date - January Supplier Item No. of units

2 Japan Car Suppliers RAV 4 12
Ipsum Ipsum 10
Lpsum 12

1
 Premio 13
Cameo 22
Carina 3
6 Merc Importers Ltd. E100 6
E200 7

(d) Create the following customer accounts and enter the opening balances on 1 January 2016. You
may ignore details such as contacts

Customer Opening Balance

Mache 1,235,000
Ngong Road auto dealers 1,147,800
Limuru car dealers 560,000
USIU 435,600
Daystar University 1,625,000
Al Karim Trucks 1,222,500

(e) Prepare the following invoices. Note: Prices include 16% VAT

Date January Customer Item No. of units

2 Mache RAV 4 2
E100 2
7 USIU E200 3
Lpsum 4
8 Daystar University E100 2
E200 1

(f) Record the following payments received from customers. Ensure that you link the payments to
specific invoices

Date - January Customer Amount Cashbook

4 Mache 805,600 KCB
7 Ngong Road auto dealers 147,800 Equity
8 Limuru car dealers 465,000 NIC
8 USIU 135,600 KCB
9 Daystar University 325,000 NIC
14 Al Karim Trucks 222,500 Equity

Extract the following reports as at 15 January 2016.

a) Trial Balance
b) Customer balance report
c) Supplier balance report
d) Inventory valuation report.