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Information about “CPA LEDGER 2 OF 2 (ALSO 466)”
A menu-driven general ledger and financial statement program designed
for non-manufacturing businesses that offer products or services for
sale.
Start your books and maintain them: post transactions; prepare
unadjusted and post-closing trial balances, and income statements; print
a list of all postings for any period; search for previously-entered
transactions; and reconstruct specific GL accounts and add new ones.
CPA-LEDGER has plenty of muscle to record your daily transactions. Any
single general ledger entry can have up to 30 debits and 30 credits,
with total values of up to $999,999,999.99. A very powerful system.
Some knowledge of double-entry bookkeeping is necessary to operate this
package.
CHP1.TXT
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INTRODUCTION
CPA-LEDGER is an automated general ledger system written for IBM PC
and IBM PC compatible microcomputers. The system was written on an
IBM Personal Computer using IBM's Advanced BASIC (BASICA, Version
1.10) and PC-DOS, Version 2.10.
See Appendix B, page 99-3, for information on the various CPA-LEDGER
versions. In this manual, we will refer to three diskettes by name.
They are "PC-DOS disk" (containing PC-DOS), "Program Disk" (containing
CPA-LEDGER), and "Documentation Disk" (containing the User's Manual
AND a practice general ledger that is already set up so that you can
practice using the system.) Remember those names.
PC-DOS DISK.
PC-DOS came with your microcomputer. It contains the IBM Personal
Computer Disk Operating System and the BASICA computer language. As
will be explained later, you will need PC-DOS AND BASICA for
CPA-LEDGER.
"PROGRAM DISK" & "DOCUMENTAION DISK".
The "Program Disk" & the "Documentation Disk" are on three (two if you
have the public domain version of CPA-LEDGER) different physical
diskettes.
. The "Program Disk" contains the CPA-LEDGER computer programs.
You can identify computer programs by the name extension
".BAS" (without the quotes).
---------> . (If you have the public domain version of the system,
the practice general ledger is also on the Program Disk.
The practice general ledger has files with an extension
of ".FIL".)
. The "Documentation Disk" (on two physical diskettes) contains
(1) the User's Manual AND (2) a practice general ledger with
balances that have already been set up for you. You can
identify general ledger files by the name extension ".FIL"
(without the quotes). The User's Manual (also on the
Documentation Disk) has file extensions of .TXT.
. Appendix B contains complete instructions for loading
CPA-LEDGER onto your microcomputer. Appendix B also contains
information about the various versions of CPA-LEDGER and how
to order. See page 99-3.
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PC-DOS, BASICA, DRIVE A:, DRIVE B:, & DRIVE C: AND THE COPY COMMAND.
We assume that you understand how to use PC-DOS, how to get to BASICA
and the meaning of the term "Drive C:", "Drive A:", and "Drive B:". We
also assume that you know how to use the COPY command to copy files
from one disk to another. If you do not, read your IBM Personal
Computer Disk Operating System manual.
USING CPA-LEDGER.
To use CPA-LEDGER, you will need five things. They are (1) a
microcomputer (2) a printer, (3) IBM PC-DOS, which includes PC-DOS
(Version 2.10 or higher) and BASICA (Version 1.10 or higher), and (4)
a knowledge of double-entry bookkeeping. The fifth item you will need
depends on your version of CPA-LEDGER. If you have the "For Hard Disk
Only" version, you will need hard disk. For the "For Hard & Floppy
Disk" version, you will need hard disk and one floppy disk drive. For
the "For Two Floppy Disks Only", version you will need two floppy disk
drives. We will discuss each of these areas. First, let's talk about
equipment needs.
EQUIPMENT NEEDS.
The minimum equipment configuration is:
. An IBM PC or PC compatible microcomputer with hard/floppy disk
drives as mentioned above.
. An 80 or 120 column printer, for printing output from
CPA-LEDGER.
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PC-DOS AND BASICA.
Make sure that you have IBM's PC-DOS (IBM's Personal Computer Disk
Operating System, Version 2.10 or higher) and IBM's BASICA (Version
1.10 or higher) before you use computer programs on your "Program
Disk". Look in the prefaces to your Disk Operating System and BASICA
reference manuals. Version information is shown there.
YOUR KNOWLEDGE OF DOUBLE-ENTRY BOOKKEEPING.
You should have a knowledge of double-entry bookkeeping before you use
CPA-LEDGER. First, let's define, specifically, what you need to know
regarding how CPA-LEDGER functions. You should understand how to:
. Set up a new bookkeeping system and prepare the beginning or
"opening" entries for starting your general ledger. (Once you
prepare the opening entries, CPA-LEDGER asks you to enter them
in the system.) Knowing how to set up a new bookkeeping system
includes a requirement that you know which accounts should be
included in the various income statement and balance sheet
"account classifications", such as Current Assets, Operational
Assets, and Current Liabilities. Appendix D contains a list
of "account classifications" used by CPA-LEDGER. Please read
Appendix B and make sure that you completely understand
"account classifications" and accounts that should be included
in each classification BEFORE you use CPA-LEDGER.
. Review each financial transaction that occurs in your business
and determine the proper accounting entry. (Once you decide on
the accounting entry, CPA-LEDGER asks you to post it to the
general ledger.)
. Prepare a standard bank reconciliation. (CPA-LEDGER will not
automatically reconcile your bank account(s), but it will
separately list all of your bank transactions so that you may
make the reconciliation.)
. Prepare the proper adjusting journal entries each time before
you prepare financial statements. (You decide which accounts
need to be adjusted and enter the adjustments into the
system.)
As you can see, in addition to knowing how CPA-LEDGER functions, you
will also need a thorough knowledge of double-entry bookkeeping.
Appendix D contains some comments about accounting and bookkeeping
systems. Read the Appendix. It contains some observations that may
be helpful to you. However, DO NOT rely on Appendix D to convey the
bookkeeping knowledge that you will need to use CPA-LEDGER! Appendix
D is, BY NO MEANS, intended to be a course in bookkeeping. If you are
not already an experienced bookkeeper, DO NOT USE CPA-LEDGER. Even if
you ARE an experienced bookkeeper, CPA-LEDGER may not be for you.
Read this User's Manual from cover to cover. Practice using the
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system. If everything looks OK and you believe that CPA-LEDGER will
fill your needs, start your general ledger and try CPA-LEDGER for a
reasonable period (at LEAST three to four months). Make sure that you
understand not only how to use CPA-LEDGER but, also, that you fully
understand how to properly maintain a general ledger and how to use
and interpret all of the printouts. Then decide.
In the interim, DO NOT discard you old bookkeeping system. Rather,
keep your old general ledger up-to-date, in the event you decide to
NOT use CPA-LEDGER. In other words, (1) make VERY sure that you
thoroughly understand all of the technical facets of bookkeeping
BEFORE you start using CPA-LEDGER, (2) make VERY sure that you
understand how to interpret and use CPA-LEDGER's printouts, (3) make
VERY sure that CPA-LEDGER will satisfy YOUR needs BEFORE you
permanently convert to it, and (4) keep your old general ledger
up-to-date until you finally decide that CPA-LEDGER will satisfy all
of your needs, now and during the future.
Also, before you decide to use CPA-LEDGER, please remember this -
CPA-LEDGER has no knowledge of bookkeeping! It simply accumulates
data that YOU enter and reports the information back to you in the
form of financial statements. For example, it will not tell you if
you debit or credit an inappropriate account; it will not tell you if
your debits and credits agree, but they are in the incorrect amounts;
it will not tell you if you include a current asset account under the
incorrect "account classification"; it will not tell you how to
interpret the values on your financial statements - it merely prints
some "ratios" that can be used as inconclusive guidelines - you must
apply YOUR judgement in making the final interpretation, including a
judgement on whether or not to consider the ratio(s) in arriving at
the final interpretation. We are not attempting to convience you not
to use CPA-LEDGER, but, rather to caution you on expecting too much
from the system. If you have ANY questions on what CPA-LEDGER (1) can
and cannot do or (2) does and does not do, please contact Jim Foster.
AUTOMATIC FEATURES.
CPA-LEDGER has many automatic features - all you do is select and
execute any one of the options that appear in menu form on the
computer's screen.
Here are just a few of CPA-LEDGER's automatic capabilities. It will:
. List your chart of general ledger accounts, anytime that you
wish.
. Add new general ledger accounts, anytime that you wish.
. Monitor your input into the system and report, in easy to
understand English, errors that you make.
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. Find and print any entry that you previously entered into the
general ledger.
. Show you the status of any account, at any time.
. Reconstruct any account, for any period that you wish.
. Prepare a check register, on demand, to provide information
for reconciling bank accounts or for researching your bank
transactions.
. Summarize each general ledger account and report the results
to you.
. Prepare a trial balance, on demand, so that you may review the
status of the accounts.
. Prepare, footnote, and analyze your financial statements,
anytime that you wish.
HOW THIS MANUAL IS ORGANIZED.
This manual is subdivided into progressive chapters. Chapter 1
introduces you to CPA-LEDGER and gives you an overview of the system.
Chapters 3 - 16 discuss each CPA-LEDGER option. You will be walked
through the entire system - from starting your electronic books to
preparing financial statements. Chapter 18 discusses the partnership
version of CPA-LEDGER and Chapter 19 discusses sole proprietorships.
Appendix D discusses some of the planning that you should complete
before you start your bookkeeping system. Appendix E suggests forms
and procedures for providing complete supporting documentation of
everything that you enter into CPA-LEDGER and for providing an orderly
and systematic method for recording information in your electronic
books.
Read Appendix D and Appendix E very carefully. Even though they are
not a complete course in accounting procedure, you should find enough
there to provide a starting point for planning your accounting system.
Do not make the mistake of glossing over the planning process. Plan,
precisely, the accounts that you will need, when your entries will be
recorded, who will record them, what supporting documentation will be
required, and when financial statements will be prepared. Decide on
all forms that you will need and train your employees in how to use
them. These are only a few considerations. Appendix D and Appendix E
go into some additional detail but ARE NOT intended to cover all of
the planning that you may need to do. If you do not feel comfortable
in planning your accounting system, consult with your local CPA or
other qualified individual. He or she can assist you.
5-1
Appendix A contains some suggestions regarding planning your accounts,
depending on whether or not you wish to include a "Cost of Goods Sold"
section in your Income Statement. Read the Appendix carefully. For
example, if you do not have inventory for resale (no beginning
inventory, and no purchases of resale items), CPA-LEDGER will tailor
your Income Statement to your needs and will omit the Cost of Goods
Sold section of the Income Statement. But, you must follow certain
rules. You must follow other rules if a Cost of Goods Sold section is
to be included in the Income Statement. These rules are covered in
Appendix A. They are not difficult, but you should keep them firmly
in mind.
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CHAPTER 1
CPA-LEDGER OVERVIEW
MENUS - THE WAY YOU ACCESS CPA-LEDGER's DATA PROCESSING OPTIONS.
CPA-LEDGER uses "menus" to list each of the data processing options at
your disposal.
CPA-LEDGER follows a menu numbering scheme. 1, 2, 3 ... one under the
other. To the right of each number are a few words describing a data
processing option that is assigned that particular number. You select
an option by entering a number at your keyboard.
HOW TO BEGIN USING CPA-LEDGER.
As already mentioned, CPA-LEDGER is written in IBM's Advanced BASIC
programming language. So, to use the system you will need access to
BASICA. Follow the procedure outlined in Appendix B to gain access to
BASICA.
CPA-LEDGER is activated by typing either of two commands, described in
the next two sub-sections, to display the menu named "SETUP" or the
menu named "DAILY".
AN OVERVIEW OF THE "SETUP" MENU.
At the beginning of each accounting year, use the SETUP menu to
establish a new general ledger for recording the coming year's
transactions.
To use SETUP, go to BASICA and type the following command, as you see
it below, at your keyboard.
RUN "SETUP" (if you have either the "For Hard Disk Only" or "For
Hard & Floppy Disk versions)
RUN "B:SETUP" (if you have the "For Two Floppy Disks Only" version.)
In a few seconds, the SETUP menu will be displayed on your computer
screen. The menu will look like this:
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ASSISTANCE? THIS VERSION OF IS FOR _________. ASSISTANCE?
WRITE CALL
JIM FOSTER CPA-LEDGER JIM FOSTER
8529 GREELEY BLVD. (Business Type) (703) 569-2254
SPRINGFIELD, VA 22152 SETUP MENU AFTER 7:30 PM
OR ANYTIME
WEEKENDS
SELECT ONE OF THE OPTION NUMBERS BELOW.
1. MAKE A NEW GENERAL LEDGER AND ASSIGN ACCOUNT TITLES.
2. IDENTIFY SELECTED ACCOUNT NUMBERS THAT ARE IN THE NEW GENERAL
LEDGER AND IDENTIFY YOUR BUSINESS NAME.
3. ASSIGN BEGINNING DOLLAR AMOUNTS TO NEW GENERAL LEDGER ACCOUNTS.
4. START THIS YEAR'S GENERAL LEDGER FROM LAST YEAR'S GENERAL LEDGER.
5. GO TO THE DAILY MENU.
6. STOP ALL CPA-LEDGER PROCESSING AND RETURN CONTROL TO PC-DOS.
WHICH OPTION NUMBER DO YOU SELECT? _
(C) COPYRIGHT 1986, 1988, 1989 TRONOLONE & FOSTER, PC
Note: At the top of the screen, the "version" will be for "Hard
Disk Only", "2 Floppy Disk Drives" or "Hard and Floppy
Disk". The Business Type will be "Corporations",
"Partnerships", or "Proprietorships". For the remainder of
this manual, the assistance information, version, and
business type will not be shown, even thought they do appear
on the screen. Also, see Chapters 18 and 19 for partnership
and sole proprietorship processing.
To start a COMPLETELY new general ledger, You MUST use Options 1 & 2
in consecutive order. (It is not REQUIRED that you use Option 3 - use
it if you wish to start your general ledger with beginning values.)
To start a general ledger from the one used last year, use Option 4
ONLY and DO NOT use Options 1, 2, or 3. (If you have the public domain
version, you do not have Option 4.)
If you use Option 1, CPA-LEDGER prints a complete list of general
ledger accounts, with account numbers. Refer to the account numbers
are the input for Options 2 and 3. It is not necessary to use Options
1, 2, and 3 during one continuous session. You may use Option 1 today,
Option 2 tomorrow, and Option 3 the following day. But remember, use
Option 1 first, Option 2 second, and (if you use it) Option 3 last.
SETUP OPTION 1.
This option asks for the (1) number of, and (2) titles of new accounts
to be included in the general ledger. Give the number of accounts
that you need, but do not include extras. CPA-LEDGER will request
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account titles for the number of accounts that you indicate. For
example, if you indicate that you want five accounts under the Balance
Sheet classification Current Assets, CPA-LEDGER will request five
account titles. (Don't worry, CPA-LEDGER automatically adds extra
accounts for future expansion.)
Be very careful while entering account titles and other information.
Your input is displayed for your final review and approval before it
is added to the general ledger. However, once your input is added to
the general ledger, you cannot use CPA-LEDGER for correcting mistakes
- such as a misspelled account title. (If we gave you that capability,
someone else could make changes that you might not want made. Think
about it!)
After you have given all of your input, Option 1 prints a complete
list of general ledger accounts that you entered. Review the list
very carefully and note any input errors. As mentioned above, you
cannot use CPA-LEDGER to correct any mistakes. But, you can correct
them with the following procedure:
. Completely erase your data files. (Do this by returning to the
SETUP menu and selecting Option 1 again. Before setting up
your new general ledger, Option 1 erases any old general
ledger files. Remember this at the beginning of each year -
if your use SETUP Option 1 without backing up your old general
ledger, you will not be able to recover your previous year's
general ledger files.)
. Correctly answer all questions asked by Option 1.
The correct listing from SETUP Option 1 is to be used while running
SETUP Option 2, described below.
SETUP OPTION 2.
Several of the CPA-LEDGER computer programs need information that does
not change from month to month. An example is your business name.
Every time a financial statement is prepared, CPA-LEDGER needs to know
your business name so it can be printed at the top of the page.
One way to handle this type of problem is to ask you to enter the name
every time CPA-LEDGER needs it. But there is a better and easier way.
And, that is the purpose of Option 2.
Option 2 asks you to enter several account numbers and your business
name. (If you have the partnership version of CPA-LEDGER, you will
also be asked to identify how profits/losses are to be allocated to
the partners. See Chapter 18.) CPA-LEDGER permanently stores your
input in its memory and automatically fetches it, at a later time,
when needed.
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Information needed for this option is shown in the printed output from
SETUP Option 1. REMEMBER THIS - IF YOU MAKE A MISTAKE IN USING OPTION
2, YOU MAY USE IT AGAIN AND AGAIN UNTIL YOUR INPUT IS WHAT IT SHOULD
BE. CPA-LEDGER will ask you about your intentions if you start to use
Option 2 for the second, third, etc., time. Then, it processes
according to your instructions.
SETUP OPTION 3.
Option 3 assigns dollar values to accounts that you identified in
Option 1. Don't worry. CPA-LEDGER makes sure that your debits equal
your credits. It will not let you start your electronic books unless
dollar debits equal dollar credits. Information needed for this
option is in the printed output from SETUP Option 1.
SETUP OPTION 4.
This Option is used in LIEU of Options 1, 2 and 3. NEVER, NEVER use
Options 1, 2, 3, AND 4. Either use Options 1, 2, and 3 OR Option 4.
Option 4 uses last year's general ledger balances to start a new
general ledger for the current year. SO, BEFORE IT CAN BE USED, YOU
M-U-S-T HAVE A GENERAL LEDGER ALREADY ESTABLISHED. Option 4 merely
uses the account titles and values to (1) close your books and to (2)
start the new general ledger for the coming year.
AN OVERVIEW OF THE "DAILY" MENU.
The DAILY menu is for your daily work. Use it AFTER you have selected
and executed Options 1, 2, and 3 of the SETUP menu. "DAILY" provides
functions such as adding daily transactions to your electronic books,
listing the bank deposits and checks written, printing a trial balance
and the financial statements, and analyzing the financial statements.
To start the DAILY menu type this at your keyboard - RUN "DAILY" (RUN
"B:DAILY" if you have the two floppy disk version). In a few seconds,
the DAILY menu will appear on your computer screen:
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CPA-LEDGER
DAILY MENU
SELECT ONE OF THE OPTION NUMBERS BELOW.
1. ENTER NEW TRANSACTIONS IN THE GENERAL LEDGER - NOT AUTOMATIC.
SEE NBR. 10.
2. PRINT AN UNADJUSTED TRIAL BALANCE.
3. PRINT FINANCIAL STATEMENT(S)
4. PRINT TRANSACTIONS THAT HAVE BEEN POSTED TO THE GENERAL LEDGER.
5. PRINT GENERAL LEDGER ACCOUNTS WITH DETAILS OF ALL DEBITS AND ALL
CREDITS.
6. PRINT BANK DEPOSITS AND CHECKS WRITTEN (CHECK REGISTER).
7. PRINT GENERAL LEDGER ACCOUNTS AND THEIR BALANCES.
8. ADD NEW ACCOUNTS TO THE GENERAL LEDGER.
9. PRINT A POST-CLOSING TRIAL BALANCE.
10 ENTER NEW TRANSACTIONS IN THE GENERAL LEDGER - AUTOMATIC.
11. STOP ALL CPA-LEDGER PROCESSING AND RETURN CONTROL TO PC-DOS.
WHICH OPTION NUMBER DO YOU SELECT? _
(C) COPYRIGHT 1986, 1988, 1989 TRONOLONE & FOSTER, PC
You may select any of the above options, in any order desired. A
brief summary of each option follows.
DAILY OPTION 1.
Option 1 is used to enter daily transactions in the general ledger.
It is also used to enter adjusting entries in the general ledger prior
to preparing financial statements. CPA-LEDGER uses these transactions
and adjustments to prepare all printed reports, such as a trial
balance, a balance sheet, and a check register.
Here is a point that you should remember. As mentioned above, Option
1 is used to enter adjusting entries in the general ledger. DO NOT
USE OPTION 1 TO ENTER CLOSING ENTRIES! CPA-LEDGER DOES THAT FOR YOU,
AUTOMATICALLY. REMEMBER, USE CPA-LEDGER FOR RECORDING DAILY
TRANSACTIONS AND ADJUSTING ENTRIES ONLY. CPA-LEDGER AUTOMATICALLY
PREPARES THE CLOSING ENTRIES. Appendix D discusses adjusting and
closing entries.
Our experience has proved the wisdom of entering transactions (some
call it "posting") in the accounting records as soon as possible after
they occur. They are fresh, details are still clear, and it is easier
to decide which accounts are involved.
Develop a habit of using Option 1 on a regular basis, daily if
possible.
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DAILY OPTION 2.
Option 2 prints a general ledger unadjusted trial balance. Do not
confuse 2 with Option 9. An Option 2 trial balance is one that shows
the status of all accounts BEFORE adjusting and closing entries are
posted to the general ledger. An Option 9 trial balance, on the other
hand, is one that is prepared after posting all adjusting and closing
entries.
Use Option 2 anytime you want to review your general ledger accounts
and to determine their current balances. Likely, you will want to do
this at the end of each month.
DAILY OPTION 3.
Use Option 3 whenever you want an financial statement(s). If you
order Balance Sheet capability from Tronolone & Foster, you will
have two options for financial statements:
1. Print an Income Statement, a Balance Sheet & a ratio analysis of
the statements. The Income Statement is printed first, followed
by footnotes to the Income Statement, followed by the Balance
Sheet, followed by footnotes to the Balance Sheet, and, finally,
followed by a ratio analysis of the Income Statement and the
Balance Sheet. Also, statement(s) of partners'/owner's capital
are printed if you have the partnership or proprietorship
versions of CPA-LEDGER.
2. Print an Income Statement for any month or consecutive series of
months. The statement is followed by footnotes to the Income
Statement.
In almost all cases, adjusting entries are needed before preparing
financial statements. Unless you have advanced bookkeeping knowledge,
you may wish to follow this procedure in preparing financial
statements IF, AND ONLY IF, ADJUSTING ENTRIES ARE TO BE POSTED TO THE
GENERAL LEDGER.
. Return to PC-DOS and copy of your data files onto a blank
diskette or a different area (another directory\subdirectory)
of your hard disk. All data files have an extension of
".FIL".
. Return to BASICA and then to CPA-LEDGER, as previously
explained in Chapter 1, to post the adjusting entries.
. Then, (1) prepare your financial statement(s) and (2) copy the
unaltered files (the ones you copied) back to the disk used
for your general ledger files.
By saving your data files and copying them back to the disk used for
your general ledger files, the general ledger data that you use from
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day-to-day will be unaltered by the adjusting entries. If you DO NOT
post adjusting entries, there is no need to follow this procedure. If
you have advanced bookkeeping knowledge, there is a way to record,
say, monthly adjustments, but this procedure is beyond the scope of
this User's Manual. See your local CPA.
DAILY OPTION 4.
Option 4 is for selecting and printing transactions that you
previously added (posted) to the accounts. You can select
transactions based on dates, account numbers, dollar amounts, check
numbers, or document numbers. Or, you can print all transactions.
The choice is yours.
This capability comes in handy if you want to review a previously
entered transaction. An example might be to determine which entries
were made on a particular date. Or, you might want to know if a check
has been posted to the records. The list is endless. Whatever your
reason, CPA-LEDGER will scan the entire general ledger and search for
the transaction. If found, it will be printed, exactly as you entered
it, with account titles.
DAILY OPTION 5.
Use this option whenever you want to review a particular general
ledger account. The printout shows every transaction that either
increased or decreased the account balance.
You can limit the printout to any period you wish - a month or a range
of months. Or, if you wish, the printout will be for all transactions
regardless of when they were entered in the system.
DAILY OPTION 6.
Option 6 prints a complete list of all transactions that have either
increased or decreased your bank account(s). Each bank account is
treated separately, with a separate printout.
Like Option 5, you can limit the printout to any period you wish - a
month, a range of months, or the entire accounting period.
This option may be used for several purposes. For example, you may
use it to assist in preparing your bank reconciliation. Or, perhaps
you will need to determine if a particular check or deposit has been
entered in the system.
DAILY OPTION 7.
Option 7 prints a complete listing of general ledger accounts. The
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listing includes ALL accounts - including those that are not currently
in use (inactive accounts).
If you want to add another account to the general ledger, get the
account number from an Option 7 printout. Then use that account
number in Option 8. As you will see from the printout, CPA-LEDGER
automatically adds account numbers for your future use.
DAILY OPTION 8.
Use this option whenever you want to add an account to the general
ledger. Get the account number from Option 7.
CPA-LEDGER will ask you for the new account title and will inquire
whether the account normally has a debit or a credit balance. Be
careful in entering this information. Your input is displayed for
your review and approval. However, once you approve your input, there
is no CPA-LEDGER provision for subsequent corrections. So, be
careful. Make sure that your input is absolutely correct before you
tell CPA-LEDGER to use it in setting up a new account.
There is only one possible way to correct a mistake that is introduced
through using Option 8. It is painful, but here it is:
. Go to PC-DOS and erase your data disk. These data files are
of no further value and will not be used again.
. Get the latest backup of your data files. The backup will be
updated (below) and be used as the original data files.
. Copy the backup data files onto your regular data disk.
. Return to BASICA (by typing BASICA at your keyboard) and then
use to CPA-LEDGER (by typing RUN "DAILY" at your keyboard).
Use Option 1 and the backup data files to reenter all
transactions that were on the erased data files but not on the
backup copy.
. Use Option 8 again - this time being careful not to make a
mistake.
. Do not forget to backup your new data files. The more that
you use microcomputers, the more you will come to understand
the IMPORTANCE of FREQUENT (repeat, FREQUENT) BACKUPS.
We could have provided an option in CPA-LEDGER for correcting previous
input. However, that opens the door to potential problems and it
destroys the audit trail built into the system. We decided that it
would be much better to tell you to be careful while using Option 8.
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Consult with your local CPA. He or she will inform you about the
importance of a clear and uninterrupted audit trail.
DAILY OPTION 9.
Use Option 9 at the end of the year, AFTER Option 1 has been used to
enter the adjusting entries and AFTER all formal financial statements
have been prepared. The information shown in the Option 9 printout is
used as a basis for starting a new general ledger for the coming year
IF you do not wish to use Option 4 of the SETUP menu. (Appendix D
contains more details about accounts to be included in your new
general ledger.)
DAILY OPTION 10.
Use Option 10 to automatically post transactions to your general
ledger. Automatic posting falls into two categories.
. Those transactions that you save and that do not change from
month to month.
. The final debit or credit of a long transaction. For example,
assume that you frequently have a long list of debits, with one
credit to your bank account. Enter your debits and tell
CPA-LEDGER to sum the amounts already entered and credit the
bank. The credit to the bank is automatic. All you do is to
tell CPA-LEDGER to "Quit". Option 1 has a similar capability,
but you must enter the bank account number. In Option 10,
everything is automatic. This gives you flexibility. Want to
enter the bank account yourself, with the rest being automatic?
OK. Use Option 1. Want CPA-LEDGER to do that for you? OK again.
Use Option 10.
DAILY OPTION 11.
Option 11 returns control to PC-DOS. This is the ONLY way that you
should discontinue CPA-LEDGER's processing. NEVER, NEVER, UNDER ANY
CIRCUMSTANCES, STOP CPA-LEDGER BY PRESSING THE "Ctrl-Break" KEYS!
Always allow CPA-LEDGER to process completely and to return you to the
DAILY menu.
BACKING UP YOUR DATA FILES.
Each time you use Options 1, 8 or 10 BE SURE to make a duplicate copy
of your data files. Frequent backups are very important. Your PC-DOS
manual contains details on how to make the backups. The data files
have an extension of ".FIL" (without the quotes).
CHP15.TXT
96-1
CHAPTER 15
DAILY MENU - OPTION 10
A NOTE ON PAGE NUMBERING.
Information in this chapter replaces Chapter 15 in the old version of
the User's Manual. Because the previous Chapter 15 was on one page, a
revision is necessary in the page numbering scheme. The procedure
followed is to use page numbers 96-1, 96-2, 96-3 ... This eliminates
the necessity for you to reprint Appendices D and E, which are quite
long. If these two appendices are in your old documentation, attach
them to this User's Manual, without changing the page numbers. The
page numbering scheme may be cumbersome, but it will save you
extensive printing.
WHAT OPTION 10 IS USED FOR.
Option 10 is used to save time. It does the same thing as Option 1,
except faster.
Stated simply, Option 10 is used to automatically post entire
transactions or parts of them. That statement cries for an
explanation. This might help, zeroing in on "post entire
transactions" and "parts of them".
. Post entire transactions.
. Option 10 allows you to enter (and save) standard
transactions that do not change from month to month - except,
perhaps the related bank check numbers and payees shown on
the checks. In a nutshell, here is how this feature works.
. You enter (and CPA-LEDGER saves) your standard trans-
actions.
. At a later time, you use Option 10 again and tell
CPA-LEDGER to post the general ledger with the
transactions that you saved previously. If, while the
transactions are being posted, CPA-LEDGER detects a
credit to a bank account, the system asks you to enter
the check number and check payee.
. To give you maximum flexibility, CPA-LEDGER allows you
to reject or accept any transaction, before it is saved
and then again at execution time - immediately before
posting. (Assume, for example, that a saved transaction
is used for several months before it is no longer
needed. Assume also that you forget to update the saved
transaction file. As Option 10 starts execution, you
96-2
suddenly remember - an unneeded transaction is being
processed. No problem. You can reject the unneeded
transaction, at execution time - thus giving YOU the
control, NOT the computer.)
. That's all there is to it. Simple, as it should be. And
to make it even simpler, if you have ever used Option 1,
you already know how to use Option 10. (Well, almost.)
That's because Option 10 input follows the same
procedure (and screens) as Option 1. The only thing new
is a few more "menus". They are explained in the
remainder of this chapter.
. Post parts of them.
. Do you frequently post a long list of debits to expenses,
with one credit to your bank account? Remember how that`s
done? You must sum the long list of debits, look up the bank
account and credit it. "Post parts of them" means that
CPA-LEDGER sums your debits, looks up your bank account and
credits it, automatically. But this feature is not limited
to expenses. You can do the same thing for sales, with the
resulting debit to the bank account. Here is how this
feature works.
. CPA-LEDGER asks if you wish to post (1) operating
expenses or (2) sales. After that, if you have more
than one bank account in your general ledger, the system
displays each bank account (one at a time) and asks you
to select one of them. If you have only one bank
account, there is no need to ask you to identify it -
CPA-LEDGER already knows all about it, its account
number, its title and its balance.
. Following that, CPA-LEDGER asks you to enter your part
of the transaction (all except the bank account). When
you enter a "Q" (for Quit - using the same format as
Option 1), CPA-LEDGER (1) sums your debits and credits,
(2) determines if the balancing entry to the bank
account is a debit or credit, (2) displays its part of
the entry and (3) continues processing in the exact same
sequence as Option 1 (asking for the check payee - if
required, asking for the purpose of the transaction,
displays the entire entry for your approval or
disapproval, etc., until you are asked if you want to
post another transaction to the general ledger. Then,
the process repeats - unless you tell the system that
there are no more transactions. When there are no more
transactions, you are asked what is to be done next -
save transactions for future posting or switch, say,
96-3
from posting operating expenses to posting sales.
. If you have used Option 1, you have probably noticed
that Option 1 does ALMOST the same thing if you enter a
"?" when the system asks for "D" or "C" for an entry's
debit or credit. ALMOST, but not quite. Here is the
difference. Option 10 restricts your entries to either
operating expenses or sales (as selected by you) and
does not require that you enter the account number for
the final and balancing amount. Option 1 does require
that you enter the final account number but does not
limit you to any specific categories of accounts. Which
feature suits your fancy? Option 1 or Option 10? Take
your pick.
OPTION 10 SEQUENCE OF EXECUTION.
Option 10 starts by displaying this information and question on your
screen:
BEFORE YOU PROCEED, REMEMBER THAT THIS PROGRAM IS TO BE USED TO EITHER:
1. SAVE TRANSACTIONS FOR AUTOMATIC POSTING, UPON YOUR DEMAND, OR,
2. AUTOMATICALLY POST TRANSACTIONS IN 1, ABOVE. OR,
3. AUTOMATICALLY POST A BANK ACCOUNT EACH TIME YOU POST ONE OR MORE
EXPENSE ACCOUNTS OR ONE OR MORE SALES/REVENUE ACCOUNTS.
DO YOU WISH TO CONTINUE?
ENTER `Y' FOR YES OR `N' FOR NO. _
Entering an `N' returns you to the DAILY menu. Press `Y' and the
following appears:
96-4
BELOW, YOU ARE ASKED TO ENTER THE TRANSACTION DATE (ONE DATE) FOR ALL
TRANSACTIONS THAT YOU POST TO YOUR GENERAL LEDGER. IT IS VERY
IMPORTANT THAT YOU ENTER THE PROPER DATE BECAUSE THE DATE THAT YOU
ENTER IS USED TO UPDATE A DATA BASE THAT ACCUMULATES TRANSACTIONS
ACCORDING TO THE DATE THAT THEY OCCURRED. IF YOU ENTER AN INCORRECT
DATE, AND YOU POST TRANSACTIONS, YOUR DATA BASE WILL BE UPDATED FOR
THE IMPROPER PERIOD AND YOUR MONTHLY FINANCIAL STATEMENTS WILL BE
INCORRECT. THE TRANSACTION DATE COULD BE THE POSTING DATE, OR SOME
OTHER DATE IF YOUR LOCAL CIRCUMSTANCES SO DICTATE. IN ENTERING THE
DATE, USE FORMAT MMDDYY - 6/30/88 = 063088.
ENTER YOUR TRANSACTION DATE HERE. ______
Make sure that you use the proper transaction date, as stated in the
message. After entering the date, processing continues with this
menu:
SELECT ONE OF THE FOLLOWING OPTIONS:
1. SAVING TRANSACTIONS FOR AUTOMATIC POSTING, UPON YOUR DEMAND, OR,
2. AUTOMATICALLY POST TRANSACTIONS IN 1, ABOVE. OR,
3. AUTOMATICALLY POST A BANK ACCOUNT EACH TIME YOU POST ONE OR MORE
EXPENSE ACCOUNTS OR ONE OR MORE SALES/REVENUE ACCOUNTS.
4. STOP ALL PROCESSING AND RETURN TO THE DAILY MENU.
ENTER 1, 2, 3 OR 4. _
Processing from this point depends upon your input - 1, 2, 3 or 4.
Each is discussed, in turn, in the remainder of this chapter. For
reference purposes, let's refer to the above menu as the STARTING
MENU. Please remember that name. It will be used frequently in the
remainder of this chapter. Now, for each option in the Starting Menu.
SAVE TRANSACTIONS FOR AUTOMATIC POSTING, LATER, UPON YOUR DEMAND.
After entering "1", the following appears:
96-5
PLEASE CONFIRM. YOU WISH TO SAVE TRANSACTIONS FOR AUTOMATIC POSTING.
WARNING! ANY TRANSACTIONS PREVIOUSLY SAVED USING THIS OPTION WILL BE
COMPLETELY ERASED & YOU MUST REENTER THOSE YOU WISH TO KEEP FROM THE
BEGINNING.
CONFIRM BELOW WHETHER OR NOT YOU WISH TO CONTINUE WITH THIS OPTION.
ENTER `Y' FOR YES OR `N' FOR NO. _
If you enter `N', the Starting Menu reappears. Entering `Y' causes
the previously saved transactions to be erased. If they contain any
transactions you wish to keep, it will be necessary to reenter them.
Of course, if you wish to discard all saved transaction, you should
NOT reenter any of the one previously saved - enter your new ones
only. A `Y' causes the following to appear:
WARNING! ANY TRANSACTIONS PREVIOUSLY SAVED USING THIS OPTION WILL BE
COMPLETELY ERASED & YOU MUST REENTER THOSE YOU WISH TO KEEP FROM THE
BEGINNING.
DO YOU HAVE READY A LIST OF ALL TRANSACTIONS THAT YOU WISH TO ENTER?
ENTER `Y' FOR YES OR `N' FOR NO. _
Please use a prepared LIST of your transactions and do not rely on
your memory. It is very easy to make a mistake. Remember, you are
saving transactions to be posted - automatically. True, you will be
given a chance to reject each transaction - both upon original input
and at execution time. But, why take chances? Be VERY careful with
your automatic input, please.
Again, an `N' return you to the Starting Menu. `Y' causes this
familiar input screen: (Remember it? It is almost exactly the same as
the one used in Option 1.)
96-6
EACH DEBIT OR CREDIT ENTRY REQUIRES INPUT IN THE COLUMNS BELOW.
1. `POSTING REFERENCE' COLUMN IS FOR FUTURE REFERENCE TO SUPPORTING
DOCUMENTATION. EXAMPLES ARE SALES INVOICE NUMBER AND PURCHASE
INVOICE NUMBER.
2. ENTER `S' (FOR SAME) TO USE THE PREVIOUS POSTING REFERENCE.
3. PRESS RETURN KEY AFTER YOU HAVE COMPLETED YOUR INPUT IN A COLUMN.
4. ENTER `Q' (FOR QUIT) FOR ACCOUNT NUMBER WHEN THE JOURNAL ENTRY IS
COMPLETE.
5. YOUR COMPUTER'S CAPS-LOCK KEY MUST BE `ON'.
*********************************************************************
ACCOUNT D=DEBIT DOLLAR POSTING
NUMBER C=CREDIT AMOUNT REFERENCE
The only significant change from Option 1 is that the DATE column does
not appear. Think about it. At this point, a date is not needed. The
transactions will not posted until a later time. Then, and only then,
do you need a transaction date.
Like Option 1, use a `Q' to quit - see instruction 4 in the screen,
above. After you enter `Q', the processing is exactly the same as
Option 1. Rather than repeat a detailed explanation here, please
refer to the chapter that describes that option.
Each transaction that you accept is saved on disk and is printed on
your printer. The printed transaction has a message explaining that
it was not posted to the general ledger.
After you accept or reject the transaction (see the chapter on Option
1 processing) and all related processing is completed - including
saving and printing the transaction is you so elect, the following
question is asked:
DO YOU DESIRE TO ENTER ADDITIONAL JOURNAL ENTRIES?
ENTER `Y' FOR YES OR `N' FOR NO.
A `Y' causes the processing described above to repeat. `N' causes the
Starting Menu to reappear. Now, let's proceed to the next option in
the Starting Menu.
AUTOMATIC POSTING OF TRANSACTIONS IN 1, ABOVE.
After entering "2" in the Starting Menu, the following appears:
96-7
PLEASE CONFIRM. YOU WISH TO AUTOMATICALLY POST TRANSACTIONS THAT YOU
PREVIOUSLY SAVED FOR POSTING AT THIS TIME.
ENTER `Y' FOR YES OR `N' FOR NO. _
`N' returns you to the Starting Menu. `Y' causes this message to
appear:
TRANSACTIONS THAT YOU PREVIOUSLY SAVED WILL BE DISPLAYED, ONE AT A
TIME, ON THE SCREEN FOR YOU APPROVAL. ACCEPT OR REJECT EACH
TRANSACTION, FOLLOWING INSTRUCTIONS THAT WILL APPEAR. ALSO, IF YOUR
TRANSACTIONS INCLUDE CREDIT(S) TO A BANK ACCOUNT, YOU WILL BE ASKED TO
ENTER THE CHECK NUMBER(S) AND PAYEE(S). PRESS ANY KEY TO CONTINUE.
After you press a key, processing continues by displaying the debits
and credits of each transactions, one at a time, for your approval or
disapproval. This processing is the same as Option 1, with one
exception.
The exception pertains to entering (1) check numbers, (2) check
payees. Following is an example of CPA-LEDGER asking for a check
number.
PLEASE SEE MESSAGE BELOW.
ACCOUNT DOLLAR POSTING CHECK
DATA NUMBER AMOUNT REFERENCE NUMBER
092587 3 CITY BANK 421.87 DCD #876 ______
CHECK NUMBER AND PAYEE NEEDED. ENTER CHECK NUMBER FIRST, ABOVE.
THE PURPOSE OF THE TRANSACTION IS: MONTHLY PAYMENT ON NOTE.
After you enter the check number, the message "CHECK NUMBER AND PAYEE
NEEDED. ENTER CHECK NUMBER FIRST, ABOVE." disappears and the following
message and request for input appears on the same line:
NOW, ENTER THE PAYEE. ______________________________
The last line on the screen (THE PURPOSE OF THE TRANSACTION IS :
MONTHLY PAYMENT ON NOTE.) is to assist you in keeping track of journal
entries as CPA-LEDGER processes them.
96-8
We thought and thought about having you enter the payee upon saving
the transaction and not allowing you to make a change. However, that
was too close to being rigid. Why not give YOU the option of changing
the payee, and thus, giving YOU more flexibility. Good or bad, that
what we decided. For example, what if the bank sells its note and you
are to make payments to someone else? It could happen.
Processing from this point is exactly the same as Option 1. After you
accept or reject each transaction, the system displays the next
journal entry that you saved. This process repeats until all saved
journal entries are processed, at which time the Starting Menu
reappears.
---->There is a process that CPA-LEDGER follows that you should know about.
When CPA-LEDGER posts your general ledger, it posts the transactions
to TWO data bases, (1) the master data base used to prepare cumulative
financial statements and (2) a data base use for accumulating
information for monthly income statements. If the data base for
monthly financial statements become unusable, the following message
will appear:
PROCESSING ERROR. MONTHLY DATA BASE RECORD NOT FOUND. DISCONTINUE
YOUR USE OF CPA-LEDGER UNTIL YOU HAVE CONTACTED JIM FOSTER AT
(703)569-2254. PROCESSING WILL CONTINUE TO UPDATE THE MASTER DATA
BASE FOR THIS TRANSACTION. WHEN YOU ARE ASKED, TELL CPA-LEDGER THAT
YOU DO NOT WISH TO POST ANY ADDITIONAL TRANSACTIONS. THEN, CALL (OR
WRITE IF YOU PREFER) JIM FOSTER AND GIVE HIM THIS MESSAGE:
A message for Jim appears here.
PRESS ANY KEY TO CONTINUE.
As the message states, you should discontinue using CPA-LEDGER and
contact Jim Foster. (You should rarely, if ever, see the message - it
will appear only if CPA-LEDGER notices that notices that the data base
is not usable. The message is listed in this manual so that you will
know what to do - contact Jim Foster. In the meantime, be sure that
you keep frequent backups of your data files (those with an extension
of .FIL).
Now, let's turn to Option 3 of the Starting Menu, which if for:
AUTOMATIC POSTING A BANK ACCOUNT EACH TIME YOU POST ONE OR MORE
OPERATING EXPENSE ACCOUNTS OR ONE OR MORE SALES/REVENUE ACCOUNTS.
After entering "3" you will see this:
96-9
PLEASE CONFIRM. YOU WISH TO POST EXPENSES OR SALES/REVENUE WITH
AUTOMATIC POSTING OF THE BANK ACCOUNT. THIS MEANS THAT YOU NEVER
ENTER THE F-I-N-A-L DEBIT OR CREDIT FOR THE BANK - CPA-LEDGER
DOES THAT FOR YOU. FOR EXAMPLE, ASSUME THAT YOU PAY FIVE OPERATING
EXPENSE INVOICES WITH ONE CHECK. YOU ENTER THE FIVE OPERATING EXPENSE
ACCOUNT NUMBERS, DEBITING EACH WITH A DOLLAR AMOUNT. THEN YOU ENTER
ONE `Q' (WHEN CPA-LEDGER ASKS FOR THE SIXTH ACCOUNT NUMBER) TO SIGNAL
THAT YOUR INPUT IS COMPLETE. CPA-LEDGER WILL RECOGNIZE YOU SIGNAL
(THE `Q'), WILL SUM YOUR FIVE ENTRIES AND WILL CREDIT THE BANK ACCOUNT
WITH THAT SUM, AFTER THE ENTRY IS DISPLAYED FOR YOUR APPROVAL. YOU
MAY ENTER AS MANY SEPARATE TRANSACTIONS AS YOU WISH.
THE NEXT MENU WILL ASK IF YOU WISH TO USE OPERATING EXPENSES OR
SALES/REVENUE. YOUR SALES/REVENUE ACCOUNT NUMBERS ARE IN THE RANGE w
TO x. YOUR OPERATING EXPENSE ACCOUNT NUMBERS ARE IN THE RANGE y TO z.
DEPENDING ON THE OPTION YOU SELECT (EXPENSES OR SALES/REVENUE), YOUR
ENTRIES WILL BE CONFINED TO THE APPROPRIATE RANGE OF ACCOUNT NUMBERS.
DO YOU WISH TO CONTINUE WITH THIS OPTION? CONFIRM BELOW.
ENTER `Y' FOR YES OR `N' FOR NO. _
(Before continuing, find these words is the paragraph above that
begins with "THE NEXT MENU ..." - "ARE IN THE RANGE w TO x.
..."
CPA-LEDGER prints an account number for the "w", "x", "y" and "z". "w"
and "y" are beginning account numbers and "x" and "z" are ending
account numbers.)
If you select "N", the Starting Menu reappears. "Y" causes this
screen:
DO YOU WISH TO POST:
1. OPERATING EXPENSES, OR
2. SALES/REVENUE? OR, DO YOU WISH TO
3. QUIT, BECAUSE YOU CAME HERE BY MISTAKE.
SALES/REVENUE IS RESTRICTED TO THE PRIMARY INCOME ACCOUNTS AS SHOWN ON
YOUR INCOME STATEMENT (SHOWN BEFORE COST OF SALES AND OPERATING
EXPENSES.)
ENTER 1, 2 OR 3. _
96-10
A "3" causes the Starting Menu to display. If your general ledger has
more than one bank account, each bank account (with titles) appears on
the screen (one at a time). You are asked to select one of the bank
accounts to be debited or credited, with the debit or credit being
determined by the journal entries you are about to enter. If only one
bank account is in your general ledger, this query is unnecessary -
CPA-LEDGER already knows all that is necessary to debit or credit that
account. Once the bank account is know, the standard Option 1 input
screen (with two modifications - see instructions 1 and 4 in the
screen below) appears for you. It looks like this, WITH ASSUMED
INPUT:
EACH DEBIT OR CREDIT ENTRY REQUIRES INPUT IN THE COLUMNS BELOW.
1. `DATE' IS TODAY'S DATE - THE DATE THAT YOU JUST ENTERED.
(Jim's note - not part of this screen: This is the first of the
two changes. Today's date is the first input requested by
Option 10.)
2. `POSTING REFERENCE' COLUMN IS FOR FUTURE REFERENCE TO SUPPORTING
DOCUMENTATION. EXAMPLES ARE SALES INVOICE NUMBER AND PURCHASE
INVOICE NUMBER.
3. ENTER `S' (FOR SAME) TO USE THE PREVIOUS POSTING REFERENCE.
4. PRESS THE RETURN KEY AFTER YOU HAVE COMPLETED YOUR INPUT IN A
COLUMN.
(Jim's note - not part of this screen: This is the second of the
two changes. Old versions of Option 1 have the same instruction
as you see for number 4 above. The new Option 1 version tells
you to enter "?" for debit/credit to automatically complete a
journal entry.)
5. ENTER `Q' (FOR QUIT) FOR ACCOUNT NUMBER WHEN THE JOURNAL ENTRY IS
COMPLETE.
6. YOUR COMPUTER'S CAPS-LOCK KEY MUST BE `ON'.
**********************************************************************
ACCOUNT D=DEBIT DOLLAR POSTING CHECK
DATE NUMBER C=CREDIT AMOUNT REFERENCE NUMBER
092587 161 D 112.98 DCD #857
165 D 387.95
173 D 44.60
188 D 229.74
Q
BANK ACCOUNT 3 C 775.27 ______
Now, let's analyze. Look at the four debits, the posting reference
and the "Q". That is what you enter. CPA-LEDGER enters the
information BELOW the "Q", except for the check number. (On the actual
screen, the "Q" disappears and "BANK ACCOUNT 3 C 775.27" appears
immediately below "188 D 229.74".)
96-11
Look under the CHECK NUMBER column. Notice that CPA-LEDGER is asking
for a check number. After you enter that number, the system continues
with two additional queries, as in normal Option 1 processing. The
two queries ask for (1) a payee for the check and (2) for an
explanation for the transaction.
Now, look under the DATE column. CPA-LEDGER supplies the date,
automatically. That date is the same one that you enter when Option
10 first begins to process.
After you enter the check number and the transaction's explanation,
normal Option 1 processing resumes - displaying the entry for your
approval or disapproval. Once that process is complete, you are asked
if you wish to enter more transactions. If your answer is "N" for NO,
the Starting Menu reappears. If you answer "Y" for YES, the input
menu reappears and the posting process continues.
In case you have not already guessed the answer, here is what to do if
you are posting operating expenses and wish to switch to posting
sales/revenue. When you are asked, tell CPA-LEDGER that there are no
more transactions to post. The Starting Menu will appear. Select
number "3" again, and specify that sales/revenue accounts are to be
processed this time. Then CPA-LEDGER debits your bank account. (In
case you are wondering, CPA-LEDGER always determines the NET balancing
amount - whether your are posting operating expenses or sales/revenue.
For example, if your NET posting to the sales/revenue accounts is a
DEBIT, the bank account will be CREDITED. If your NET posting to
operating expenses is a CREDIT, the bank account will be DEBITED.)
This brings us to the last option of the Starting Menu.
STOP ALL PROCESSING AND RETURN TO THE DAILY MENU.
The caption tells all. If you enter "4" while in the Starting Menu,
all Option 10 processing will stop and the DAILY MENU will appear -
after this summary is printed for you:
NUMBER OF ENTRIES POSTED = w
VALUE OF ALL DEBITS POSTED = x
VALUE OF ALL CREDITS POSTED = y
DIFFERENCE - DEBITS LESS CREDITS POSTED = z
Of course, CPA-LEDGER prints values for w, x, y and z.
96-12
PRACTICE.
Use the DAILY menu to print an unadjusted trial balance. (This trial
balance will be used to compare the results of Option 10 processing.)
Now, use Option 10 of the DAILY menu. When the Starting Menu appears
(after you enter the date), select Option 2. Two transactions have
been placed on the file that holds saved transactions. These
transactions will be posted to the general ledger. Follow
instructions that will appear on the screen and tell CPA-LEDGER that
you DO wish to post the transactions to the general ledger. After
posting, return to the DAILY menu and print another unadjusted trial
balance. Look at the printout of the transactions and see results of
the posting for yourself, as evidenced by balances on the second trial
balance.
Select Option 10 again. This time select Option 1 of the Starting
Menu, following instructions that will appear on the screen. Enter
any transactions that you wish, and save them. Then, from the
Starting Menu, select Option 2. Post the transactions to the general
ledger.
When the Starting Menu reappears, select Option 3. (Your general
ledger has two bank accounts. Select either when Option 1 asks you to
select one of them.) When the appropriate (see example on page 96-9)
menu appears, select OPERATING EXPENSES. On the input screen appears,
debit four (any four) operating expense accounts for any amounts you
wish. After the fourth entry, when you are asked for the next account
number, enter `Q'. You will see that your bank account will be
credited, automatically. Enter the remainder of the transaction
(check payee and purpose of transaction). Follow instructions on the
screen and tell CPA-LEDGER to post the general ledger.
CHP16.TXT
96-13
CHAPTER 16
SETUP OPTION 4
WHAT OPTION 4 IS USED FOR.
Use Option 4 to start a new general ledger from the general ledger
used during the past year. You should remember this about SETUP
Options 1, 2, 3, and 4:
. Use SETUP menu Options 1, 2, and 3 anytime you want to start a
completely new general ledger. Options 1, 2, and 3 allow you to
enter your old accounts, to add new accounts and to provide for
the maximum number of "inactive accounts" that may be needed at a
later time.
. Use SETUP Option 4 if you want to "close" last year's general
ledger and to carry it over for use during the current year.
Remember this - Option 4 DOES NOT add any new "inactive
accounts". It uses the previous year account titles exactly as
they appeared during the previous year.
. If you use Option 4, it is very important that you back-up the
previous year's general ledger BEFORE you use Option 4!!!!! This
is because Option 4 COMPLETELY destroys the previous year's
general ledger while constructing the one for the current year.
WHAT OPTION 4 ASKS FOR.
Option 4 asks you to answer a few questions. The questions pertain to
whether or not you have backed-up last year's general ledger and
whether or not you are SURE you wish to use Option 4. See the section
that follows.
96-14
OPTION 4 SEQUENCE OF EXECUTION.
Option 4 starts with this message and question:
THIS OPTION OF THE SETUP MENU SHOULD BE USED O-N-L-Y WHEN ALL OF THE
FOLLOWING CONDITIONS EXIST:
1. YOU PREVIOUSLY ESTABLISHED A GENERAL LEDGER USING OPTIONS 1, 2 &
3 OF THE SETUP MENU. THAT IS, A GENERAL LEDGER ALREADY EXISTS
FOR CPA-LEDGER.
2. YOUR ARE READY TO START A NEW GENERAL LEDGER FOR A NEW YEAR
A-N-D YOU WISH TO USE THE SAME ACCOUNT NUMBERS AND TITLES THAT
YOU USED LAST YEAR.
3. IMMEDIATELY BEFORE COMING TO THIS OPTION OF THE SETUP MENU, YOU
USED THE DAILY MENU TO PREPARE (A) A BALANCE SHEET AND INCOME
STATEMENT AND (B) A POST-CLOSING TRIAL BALANCE.
4. YOU H-A-V-E MADE A BACKUP OF ALL OF THE GENERAL LEDGER FILES FOR
LAST YEAR. PLEASE REMEMBER THIS!!!!!! IF YOU CONTINUE WITH
THIS PROGRAM, CPA-LEDGER W-I-L-L COMPLETELY ERASE LAST YEAR'S
GENERAL LEDGER FILES AND THEY WILL BE LOST F-O-R-E-V-E-R. YOU
SHOULD ALWAYS COMPLETELY COPY YOUR GENERAL LEDGER FILES
B-E-F-O-R-E YOU USE THIS PROGRAM.
IF YOU DO N-O-T WISH TO CONTINUE, ANSWER `N', WITHOUT THE
QUOTES, TO THE QUESTION THAT FOLLOWS. `N' WILL CAUSE CPA-LEDGER
TO DISCONTINUE PROCESSING YOUR NEW GENERAL LEDGER AND YOU WILL
BE ALLOWED TO COMPLY WITH 1, 2, 3 AND 4 ABOVE. THAT IS, IF YOU
ANSWER `N', NOTHING WILL HAPPEN TO LAST YEAR'S GENERAL LEDGER.
DO YOU WISH CPA-LEDGER TO USE LAST YEAR'S GENERAL LEDGER TO START A
NEW GENERAL LEDGER FOR THIS YEAR? (N=NO, Y=YES) _
96-15
If you answer `N' to the above question, the SETUP menu reappears. If
you answer `Y', the following appears:
LAST CHANCE!! ARE YOU A-B-S-O-L-U-T-E-L-Y C-E-R-T-A-I-N YOU
HAVE A BACK-UP OF ALL OF LAST YEAR'S GENERAL LEDGER FILES? THE FILES
THAT SHOULD BE BACKED-UP ARE THOSE WITH AN EXTENSION OF `.FIL'. REFER
TO YOUR DOS MANUAL FOR THE PROPER BACK-UP PROCEDURE. PLEASE DO NOT
GUESS. BE CERTAIN!!!!
IF YOU ANSWER `N' (WITHOUT THE QUOTES) TO THE FOLLOWING QUESTION,
CPA-LEDGER WILL NOT DESTROY LAST YEAR'S GENERAL LEDGER FILES AND YOU
WILL BE RETURNED TO THE SETUP MENU. IF YOU ANSWER `Y' (WITHOUT THE
QUOTES) CPA-LEDGER WILL USE LAST YEAR'S GENERAL LEDGER TO START A NEW
GENERAL LEDGER FOR THIS YEAR. THEN, ALL OF LAST YEAR'S GENERAL LEDGER
FILES WILL BE COMPLETELY ERASED.
ALSO, REMEMBER THIS - IS YOU ANSWER `Y' TO THE FOLLOWING QUESTION,
CPA-LEDGER WILL USE THE EXACT SAME ACCOUNT NUMBERS AND ACCOUNT TITLES
THAT YOU USED LAST YEAR. THIS MEANS THAT ALL ACTIVE ACCOUNTS FROM
LAST YEAR WILL BE ACTIVE FOR THIS YEAR. ALL ACCOUNTS THAT REMAINED
INACTIVE AT THE END OF LAST YEAR WILL BE INACTIVE AT THE START OF THIS
YEAR. EXTRA INACTIVE ACCOUNTS ARE NOT ADDED TO THE GENERAL LEDGER. IF
YOU NEED ROOM FOR ADDING ADDITIONAL ACCOUNTS AND LAST YEAR'S GENERAL
LEDGER DOES NOT HAVE SUFFICIENT INACTIVE ACCOUNTS FOR YOUR NEEDS
(INACTIVE ONES TO BE MADE ACTIVE), ANSWER `N' TO THE FOLLOWING
QUESTION AND USE OPTIONS 1, 2 AND 3 OF THE SETUP MENU. THAT IS THE
ONLY WAY TO PROVIDE FOR ADDITIONAL INACTIVE ACCOUNTS.
ARE YOU SURE YOU WANT TO START A NEW GENERAL LEDGER? (N=NO, Y=YES) _
If you answer `N' to the question above, the SETUP menu reappears. If
you answer `Y', processing continues. CPA-LEDGER checks to determine
if you prepared an income statement and a balance sheet immediately
before executing Option 4 of the SETUP menu. If CPA-LEDGER find that
you did not use the DAILY menu to prepare and income statement and a
balance sheet, the following arrears:
YOU HAVE EITHER (1) NOT YET USED OPTION 3 OF THE DAILY MENU TO PREPARE
AN INCOME STATEMENT AND A BALANCE SHEET OR (2) YOU USED DAILY OPTION 1
SINCE YOU LAST USED OPTION 3. YOU MUST USE DAILY MENU OPTION 3 BEFORE
CPA-LEDGER WILL START YOUR GENERAL LEDGER FOR THE CURRENT YEAR.
PRESS ANY KEY AND YOU WILL BE RETURNED TO THE DAILY MENU.
After you press a key, the SETUP menu reappears. If CPA-LEDGER finds
that you DID comply with the income statement and balance sheet
requirements, the message above does not appear. Instead, CPA-LEDGER
continues to the next step - it checks to be sure that a general
96-16
ledger exists for creating the current year general ledger. If not,
the following appears:
GENERAL LEDGER DATA FILES NOT FOUND. PRESS ANY KEY AND YOU WILL BE
RETURNED TO THE SETUP MENU.
After you press a key, the SETUP menu reappears. Assuming that a
general ledger does exist, the system proceeds to create a general
ledger for the current year. After the process is complete, the
following message appears:
YOUR NEW GENERAL LEDGER HAS BEEN STARTED. FOR DOCUMENTATION PURPOSES,
A TRIAL BALANCE WILL BE PRINTED. THE TRIAL BALANCE WILL SHOW ALL
ACTIVE ACCOUNTS AND THEIR RELATED BALANCES. SAVE THE TRIAL BALANCE
FOR FUTURE REFERENCE. MAKE SURE THAT YOUR PRINTER IS ON AND IS READY
TO PRINT. ALSO MAKE SURE THAT THE PAPER IS AT TOP-OF-PAGE. YOUR
PRINTER WILL BE AT TOP-OF-PAGE WHEN THE PRINTER WILL PRINT ON THE VERY
FIRST LINE AT THE TOP OF THE PAGE. PRESS ANY KEY WHEN YOU ARE READY TO
CONTINUE.
After you press a key, a new trial balance is printed. Before the new
trial balance is printed, however, you are asked to enter "today's
date". At the top of the trial balance, this message is printed:
THIS TRIAL BALANCE SHOWS BEGINNING ACCOUNTS AND BALANCES.
PRINTED OUTPUT.
The printed output comes from Option 2 of the DAILY menu - PRINT AN
UNADJUSTED TRIAL BALANCE. Refer to Chapter 7 of this manual for
sample output.
Practice.
Before you practice, here is a WARNING!!!! Be very sure that you
back-up any general ledger files that you use with Option 4 BEFORE you
use Option 4.
Go to the DAILY menu and select Option 3 (for preparing an income
statement and a balance sheet). The go to the SETUP menu and select
Option 4. Answer all questions `Y'. After processing is completed,
compare account titles and amounts on the trial balance with account
titles and amounts on the balance sheet. You should find NO
differences.
Note from Jim: I sure hope you backed-up the general ledger before you
used Option 4! If you didn't, then I hope you will never need your
previous year's general ledger again. If you do need it again and you
didn't back-up, sorry, it's gone, FOREVER. I did my best to warn you.
CHP17.TXT
96-17
CHAPTER 17
SETUP MENU - OPTION 6
AND
DAILY MENU - OPTION 11
SETUP Option 6 and DAILY Option 11 returns control to PC-DOS. This is
the ONLY way that you should discontinue CPA-LEDGER's processing.
NEVER, UNDER ANY CIRCUMSTANCES STOP CPA-LEDGER BY PRESSING THE
"Ctrl-Break" KEYS! Always allow CPA-LEDGER to process completely and
to return you to either the SETUP menu or the DAILY menu.
CHP2.TXT
14
CHAPTER 2
STANDARD MESSAGES AND REMINDERS
This and the following chapters contain a detailed discussion of
CPA-LEDGER and how to use the system. This chapter is devoted to
standard messages and reminders that will appear on the computer
screen anytime you use most any CPA-LEDGER option. Also, page 18
tells you what happens if you try to use the DAILY menu without first
using Options 1 & 2 of the SETUP menu.
We tried to leave nothing to chance when we were designing CPA-LEDGER.
We did not assume that you would remember to turn on your printer,
when to adjust the paper in your printer, or what to do if you make a
mistake in input. So, we decided to give you a message or a reminder,
whichever one is required, when it is needed.
We also decided that it would be a good idea to devote this entire
chapter to standard messages and reminders - so you may easily find
them in the event you need to refresh your memory at a later time.
PRINTER REMINDER.
Most of CPA-LEDGER's options require a printer. If a printer is
needed, the following appears on your screen immediately after you
make a selection from either the SETUP or DAILY menus:
ADJUST THE PAPER IN YOUR PRINTER SO THAT THE PAPER IS AT TOP-OF-PAGE.
THE PAPER WILL BE AT TOP-OF-PAGE WHEN THE PRINTER WILL PRINT ON THE
VERY FIRST LINE AT THE TOP OF THE PAGE.
PRESS ANY KEY WHEN YOU ARE READY TO CONTINUE.
Assume that you DO adjust the paper, but you FORGET to turn on the
printer. In that event, the following message will appear:
CHECK YOUR PRINTER. IT IS EITHER NOT TURNED ON OR IT IS OUT OF
PAPER. PRESS ANY KEY WHEN YOU ARE READY TO CONTINUE.
After you press a key, CPA-LEDGER continues where it left off.
15
ERRORS IN INPUT.
If you make an error in input (for example, alphabetic and numeric
data in lieu of completely numeric data), CPA-LEDGER will either:
. Display a separate message telling you that you made a mistake
and ask you for the corrected information, or
. Not display a separate message (one will be already on the
screen), but refuse to accept your input. So, if CPA-LEDGER
refuses to proceed, it is because your input is incorrect.
Please keep this in mind regarding errors in input. We very carefully
tried to check for as many errors as possible. By "errors", we are
referring to input such as month "13", day "32", and "12CDE.56" for a
dollar value. We are NOT referring to input such as month "11" that
should be "12", day "31" that should be "13", or dollars "1000.00"
that should be "10.00". So, be very careful in giving your input to
CPA-LEDGER. Take your time, be patient, and be very sure that your
input is ABSOLUTELY correct.
16
TODAY'S DATE.
Several of CPA-LEDGER's options (for both the SETUP and the DAILY
menus) show the "RUN DATE" on the printout. CPA-LEDGER asks you to
enter "TODAY'S DATE", like this:
ENTER TODAY'S DATE. (USE FORMAT MMDDYY. I.E., JUNE 10, 1985=061085.) _____
It might be good to explain the "MMDDYY" format because CPA-LEDGER
uses it consistently. MMDDYY means that you are to use two numbers
for EACH COMPONENT of a date - two numbers in a specific order.
. The first component (MM) is for the month. January is "01".
February is "02", and so on, up to December which is "12".
. The second component (DD) is for the day. Day one is "01".
Day two is "02", and so on up to the end of the month, which
will be either "28", "29", "30", or "31".
. The third component (YY) is for the year. 1985 is "85". 1986
is "86", and so on.
Be careful in entering your dates. CPA-LEDGER checks for obvious
errors (such as month 13, day 32, year 00). However, "hidden" errors
will not be detected. Here is an example of a "hidden" date error
that will be accepted.
. Assume that you want to enter June 2, 1985 in its MMDDYY
format.
. You SHOULD enter 060285.
. You DO enter 020685, in error.
CPA-LEDGER will accept your input as meaning February 6, l985 - not
the correct date June 2, 1985. So, be careful in entering your dates.
17
CPA-LEDGER BRIEFINGS.
Next comes a briefing on the input that CPA-LEDGER requires and on the
data processing that is about to begin. Some CPA-LEDGER options
automatically brief you. Others give you an option of bypassing the
briefing. (If you use a program frequently, you probably will have
read the briefing many times and would like to bypass it.) Here is the
question that you will be asked:
WOULD YOU LIKE TO HAVE A BRIEFING ON HOW TO USE THIS COMPUTER
PROGRAM DISPLAYED ON THE COMPUTER SCREEN?
ANSWER WITH `Y' FOR `YES' OR `N' FOR `NO'. _
If you answer `Y', CPA-LEDGER will brief you. Otherwise the briefing
is bypassed. We suggest that you read the briefing each time you use
a CPA-LEDGER option, at least until you become thoroughly familiar
with the system.
18
IF YOU DO NOT USE SETUP MENU OPTIONS 1 AND 2.
If you do not use SETUP menu Options 1 & 2, CPA-LEDGER will not allow
you to use any of the options of the DAILY menu and will display a
message telling you to return to the SETUP menu for using Options 1 &
2.
SUMMARY.
This chapter presented the standard messages and reminders that are
designed to help you use the system. To avoid repetition, they will
not be repeated in the chapters to come. Just remember that they do
appear.
There are other messages that you will see as you use CPA-LEDGER, but
they are not standard in the sense that they appear in all, or almost
all, of the SETUP and DAILY options. Rather, they are specialized.
They relate to the specific data processing tasks that you have
directed. These specialized messages will be discussed in the chapters
that follow.
CHP3-5.TXT
19
CHAPTER 3
SETUP MENU - OPTION 1
As mentioned in Chapter 1, CPA-LEDGER has two main menus. They are
the SETUP menu and the DAILY menu.
. The SETUP menu has five processing options and an option for
discontinuing processing. Use Options 1, 2, and 3 to start a
COMPLETELY NEW general ledger. Use Option 4 to start a general
ledger from the general ledger used during the previous year.
Use Option five to go to the DAILY menu.
. The DAILY menu has ten processing options and an option for
discontinuing processing. Use the ten processing options
DURING the year to record transactions and to obtain various
printed reports.
This and the next two chapters discuss the SETUP menu. The remaining
chapters take up the DAILY menu.
THE SETUP MENU.
Chapter 1 tells you how to use your PC-DOS diskette for loading BASICA
and for starting the SETUP menu. When the menu appears on your
computer screen, it will look like this:
CPA-LEDGER
SETUP MENU
SELECT ONE OF THE FOLLOWING OPTION NUMBERS BELOW.
1. MAKE A NEW GENERAL LEDGER AND ASSIGN ACCOUNT TITLES.
2. IDENTIFY SELECTED ACCOUNT NUMBERS THAT ARE IN THE NEW GENERAL
LEDGER AND IDENTIFY YOUR BUSINESS NAME.
3. ASSIGN BEGINNING DOLLAR AMOUNTS TO NEW GENERAL LEDGER ACCOUNTS.
4. START THIS YEAR'S GENERAL LEDGER FROM LAST YEAR'S GENERAL LEDGER.
5. GO TO THE DAILY MENU.
6. STOP ALL CPA-LEDGER PROCESSING AND RETURN CONTROL TO PC-DOS.
WHICH OPTION NUMBER DO YOU SELECT? _
(C) COPYRIGHT 1986, 1988, 1989 TRONOLONE & FOSTER,PC
20
If you wish to start a completely new general ledger, you must select
Options 1, 2, and 3 in CONSECUTIVE order. Select an option by
entering 1, 2, or 3 as your response to the menu question "WHICH
OPTION NUMBER DO YOU SELECT?". Then press the RETURN key on your
keyboard. After you do that, SETUP will load and execute the
appropriate computer program. This chapter covers SETUP menu Options
1, 2, and 3. Option 4 is discussed in Chapter 16. Option 4 is used
whenever you already have a general ledger and do not wish to reenter
all of the account titles and values. Option 4 automatically closes
your old general ledger and starts a new general ledger for the coming
year. (Make SURE you make a back-up of a general ledger BEFORE you use
it to start a new general ledger for the coming year, PLEASE!)
WHAT "SETUP" OPTIONS 1, 2, AND 3 ASK FOR.
The programs, as they execute, request several items of input. Respond
by giving your input at the computer's keyboard.
. Option 1 asks for your business name and for the titles of
accounts that you want included in your general ledger. It also
asks you to indicate, for each account, the "account balance",
which will be either a "D" for "debit" or a "C" for "credit". A
listing of accounts that you entered, showing account numbers and
titles, is printed after Option 1 is finished processing.
. Option 2 asks for a several account numbers and for your business
name. Get the account numbers from an Option 1 printout. As
explained in Chapter 1, and as will be illustrated in this
chapter, this data is stored by CPA-LEDGER for automatic
retrieval whenever it is needed. Option 2 is a time-saver for
you. For example, you inform CPA-LEDGER of your company name in
Option 2. Then, when printed reports are prepared, CPA-LEDGER
gets the name from its memory. The same concept applies for the
account numbers that you are asked to supply.
. Options 3 is for assigning dollar values to the accounts that you
established while using Option 1. Again, get the account numbers
from an Option 1 printout. (Use this option one time per year,
only.)
This chapter discusses Option 1. The next two chapters take up
Options 2 and 3. Option 4 is discussed in chapter 16.
WHAT OPTION 1 IS USED FOR.
Option 1 is use to establish a new general ledger at the beginning of
each accounting year.
The general ledger is subdivided into Balance Sheet and Income
Statement "account classifications". (All versions of CPA-LEDGER use
these two account classifications.) The classifications are:
21
. BALANCE SHEET ACCOUNT CLASSIFICATIONS
. CURRENT ASSETS
. INVESTMENT AND FUNDS
. OPERATIONAL ASSETS
. INTANGIBLE ASSETS
. OTHER ASSETS
. DEFERRED CHARGES
. CURRENT LIABILITIES
. LONG-TERM LIABILITIES
. CONTRIBUTED CAPITAL . These three classifications
. OTHER CONTRIBUTED CAPITAL . are replaced by capital &
. RETAINED EARNINGS . drawing accounts for part-
. ALL OTHER EQUITY ships & proprietorships.
. INCOME STATEMENT ACCOUNT CLASSIFICATIONS
. SALES
. PURCHASES AND RELATED ACCOUNTS
. OPERATING EXPENSES
. OTHER REVENUES AND GAINS
. OTHER EXPENSES AND LOSSES
. EXTRAORDINARY GAINS
. EXTRAORDINARY LOSSES
. INCOME TAX EXPENSE . Not used for partnerships
& proprietorships.
Appendix D discusses each of the above classifications and informs you
of the types of accounts included in each. Read the Appendix before
using Option 1.
WHAT OPTION 1 ASKS FOR.
Read Chapter 2 for the standard messages and reminders that are part
of Option 1. Also, before it starts processing information about
specific accounts, Option 1 asks for your business name.
Then, for each of the above account classifications, you will be asked
to enter:
. The number of accounts to be included in that classification.
Your answer may be zero or a positive number.
. The account titles, which may contain up to 30 characters.
. For each account title, a "code" to indicate whether the
account is a debit balance account or a credit balance
account. The codes are "D" for debit and "C" for credit.
22
OPTION 1 SEQUENCE OF EXECUTION AND AN ILLUSTRATION.
Following is an illustration that shows the Option 1 sequence of
execution. Two account classifications are used for the illustration
- "CURRENT ASSETS" and "INVESTMENT AND FUNDS".
This is a good time to inform you of a very important REQUIREMENT of
CPA-LEDGER. The requirement is that you should ALWAYS use the upper
case for alphabetic characters. The illustration that follows uses
lower case so that it will be easy for you to distinguish CPA-LEDGER
requests from your input. This is for illustration ONLY! ALWAYS,
ALWAYS press the "Caps-Lock" key on your keyboard before you start to
use CPA-LEDGER. The illustration follows.
ENTER YOUR BUSINESS NAME. ABC Wholesale, Inc.
After you enter your business name (ABC Wholesale, Inc. in the
illustration), Option 1 continues with:
THE FOLLOWING QUESTIONS PERTAIN TO THE BALANCE SHEET.
HOW MANY CURRENT ASSETS ACCOUNTS DO YOU WISH TO CREATE? 2
Assume that you enter "2", as shown above. Using your input, Option 1
will ask you to enter titles for the two Current Asset accounts.
Also, for each of these accounts, you will be asked to enter a "D" if
the account is a "debit" balance account or a "C" if it is a "credit"
balance account, as follows:
23
YOUR Caps-Lock KEY SHOULD BE `ON'
ENTER THE TITLE OF CURRENT ASSET ACCOUNT NUMBER 1 OF 2.
Cash on Hand
DOES THE ABOVE ACCOUNT NORMALLY HAVE A DEBIT BALANCE
OR A CREDIT BALANCE? ANSWER BY ENTERING A `D'
FOR `DEBIT' OR A `C' FOR `CREDIT'. d
After you make these two entries, CPA-LEDGER displays your input,
exactly as entered, and asks you to confirm whether or not it is
correct. (You may have misspelled the account title, for example.) If
you indicate that your input is incorrect, the previous two input
requests are repeated. Otherwise, the new account is added to your
general ledger and input requests and responses continue for the next
Current Asset account:
YOUR Caps-Lock KEY SHOULD BE `ON'.
ENTER THE TITLE OF CURRENT ASSET ACCOUNT NUMBER 2 OF 2.
Cash in ABC Bank
DOES THE ABOVE ACCOUNT NORMALLY HAVE A DEBIT BALANCE
OR A CREDIT BALANCE? ANSWER BY ENTERING A `D'
FOR `DEBIT' OR A `C' FOR `CREDIT'. d
Again, Option 1 asks you to confirm you input. Assuming that you find
no errors, input for Current Assets is complete. Option 1 now turns
to the next account classification, Investment and Funds. Assume that
there are no accounts under this classification. The Option 1 request
for input and the assumed response are shown below.
HOW MANY INVESTMENT AND FUNDS ACCOUNTS DO YOU WISH TO CREATE? 0
24
Because the input is zero, Option 1 moves to the next account
classification, Operational Assets. This process is repeated for each
Balance Sheet and Income Statement account classification. Using the
illustration above, Option 1 will create 16 general ledger accounts.
Two are active (the ones that you identified) and 14 are inactive.
(Don't forget to read Appendix D, which informs you of the types of
accounts that should be included in each of the account
classifications.) Two of the classifications display special messages.
When the RETAINED EARNINGS classification appears, this message also
appears if you enter 0 (zero) - "AT LEAST ONE RETAINED EARNINGS
ACCOUNT IS REQUIRED". When PURCHASES appears this message is
displayed - "IF YOU DO NOT WISH TO HAVE A COST OF GOODS SOLD SECTION
ON YOUR INCOME STATEMENT, ENTER 0 (ZERO). REFER TO THE USER'S MANUAL
FOR DETAILS." (See Appendix A.)
ERROR MESSAGES.
There are several errors that you might make while using Option 1. An
example is an entry of 13 for the month. Another example is failure
to make an entry when one is requested.
If you make an input error, Option 1 signals that you should reenter
your answer. Instructions for correct input will be displayed on the
computer screen.
PRINTED OUTPUT.
Using the above illustration for Current Assets and Investment and
Funds, the printout from Option 1 will look like this: (To conserve
space, all of the "inactive accounts" are not shown. Three dots (...)
indicate that you are to assume that other accounts are listed in the
same fashion as the account immediately above the three dots.)
25
PAGE 1
RUN DATE 01/01/85
ABC WHOLESALE, INC.
CHART OF GENERAL LEDGER ACCOUNTS
************************ BALANCE SHEET ACCOUNTS ************************
CURRENT ASSETS
CASH ON HAND NORMAL BALANCE = DEBIT ACCOUNT NUMBER IS 3
CASH IN ABC BANK NORMAL BALANCE = DEBIT ACCOUNT NUMBER IS 7
INVESTMENT AND FUNDS (Note: "Account Classifications" are printed,
even if you do not add any accounts in them.
OPERATIONAL ASSETS See page 21. Also see Appendix D regarding
the types of accounts that CPA-LEDGER expects
INTANGIBLE ASSETS in each account classification, when you use
either SETUP Option 1 or DAILY Option 8 - see
. . paragraph immediately below.)
. .
. .
Note that only accounts that you entered are printed. Also note the
account numbers above. The first two accounts (inactive ones, added
automatically) are Numbers 1 & 2, even though they are not printed.
Accounts 4, 5 & 6 are also "inactive" ones. CPA-LEDGER automatically
adds inactive accounts. Activate inactive accounts with Option 8 of
the DAILY Menu. Get a list of all inactive accounts with Option 7 of
the DAILY Menu. (Inactive accounts are for your future use, in the
event you want to add new accounts to your general ledger.)
Practice.
Set-up procedures for this first practice section depend on the
version of CPA-LEDGER that you have. First, let's talk about the
CPA-LEDGER computer programs. If you have the (1) hard disk version
or the (2) hard disk and floppy disk version, copy all files with
".BAS" (from your Program Disk) onto hard disk. If you have the two
floppy disk version, merely place the "Program Disk" in the B: drive.
Now let's provide for the general ledger files. If you have the hard
disk version, do nothing. CPA-ledger will create the files on hard
disk. If you have the (1) hard disk and floppy disk version or the
(2) two floppy disk version, place a blank floppy disk in the A:
drive. CPA-LEDGER will use the blank disk for the general ledger
files.
26
Now, go to BASICA and give one of the following commands, depending on
your version of CPA-LEDGER:
RUN "SETUP" (if you have either the hard disk version or the hard
disk and floppy disk version.)
RUN "B:SETUP (if you have the two floppy disk version.)
First, however, reread Chapter 2 so you will not forget about the
standard messages and reminders that are not covered in this chapter.
Also, read Appendix A, if you have not done so previously.
Establish these accounts in the practice general ledger (by using
Option 1 of the Setup Menu):
BALANCE SHEET ACCOUNTS:
. CURRENT ASSETS ACCOUNT TITLES (THREE ACCOUNTS):
. CASH IN BANK
. ACCOUNTS RECEIVABLE
. MERCHANDISE INVENTORY
. OWNER'S EQUITY ACCOUNT TITLES:
. RETAINED EARNINGS for a corporation
CAPITAL & DRAWING for a partnership or proprietorship
INCOME STATEMENT ACCOUNTS:
. SALES ACCOUNT TITLES (ONE ACCOUNT):
. SALES
Use the following as your company's name:
ABC WHOLESALE, INC. for a corporation
ABC WHOLESALE for a partnership or proprietorship
Use this page as a reference while you are answering questions that
will appear on your computer screen. When CPA-LEDGER asks you for the
number of accounts for an account classification that is not shown
above (i.e., any account classification other than CURRENT ASSETS,
RETAINED EARNINGS, CAPITAL, DRAWING AND SALES), your input should be
zero (0). If you do not understand, reread the "AN ILLUSTRATION"
section of this chapter.
One more point. As mentioned at the start of this chapter,
illustrated input to CPA-LEDGER is in lower case letters. This is for
clarity of illustration only. YOUR ALPHABETIC INPUT SHOULD ALWAYS BE
IN UPPER CASE. Your printouts will look much better that way. Use
27
the "Caps-Lock" key on your keyboard.
As mentioned in Chapter 1, you may use Option 1 more than one time.
If you want to use Option 1 again, refer to Chapter 1 for the
procedure that you should follow.
Save the printout that will automatically come from Option 1. You will
be asked to use both while you read the next two chapters.
27-1
CHAPTER 4
SETUP MENU - OPTION 2
WHAT OPTION 2 IS USED FOR.
During the early stages of designing CPA-LEDGER, we decided to use a
"computer trick" to solve a nagging problem. Here is the problem and
our solution:
. Many CPA-LEDGER computer programs need information that never
changes.
. An example is your business name, which is shown at
the beginning of every CPA-LEDGER printout. Another
example is the account number for beginning inventory,
which is used while preparing the Income Statement.
. The problem was to find some method for making this
information available to CPA-LEDGER, automatically, whenever
needed, without having to ask you to enter the data over and
over again.
. The "computer trick" is Option 2. It is used for permanently
storing a few account numbers and your company name. Then,
CPA-LEDGER automatically fetches this information, when
needed, at a later time.
WHAT OPTION 2 ASKS FOR.
Option 2 asks you to enter, in the order listed, account numbers for:
. Accounts Receivable.
. Beginning Inventory.
. Retained Earnings for corporations or capital & drawing
accounts for proprietorships & partnerships.
. Your business bank account(s).
CPA-LEDGER also asks for your business name. For partnerships, it
also asks how you wish to distribute profits to the partners.
That's all. Once you enter this information, CPA-LEDGER takes over.
The data is stored and is automatically made available to other
computer programs, when needed.
OPTION 2 SEQUENCE OF EXECUTION.
Read Chapter 2 for the standard messages and reminders that are part
of Option 2.
28
Use the printout from SETUP Option 1 to determine the account numbers
that you will be asked to enter.
Option 2 asks for the account numbers in the same order as the
accounts are listed under "WHAT OPTION 2 ASKS FOR", above. After you
enter an account number, Option 2 fetches the account title from the
general ledger.
Then, both the number and title are displayed for you to be sure that
you entered the correct information. If you signal that your input is
correct, the system moves to the next account. Otherwise, you are
asked to reenter a number for the current account.
Once you enter all of the account numbers, the last input is your
company name.
There is no computer printout from Option 2.
AN ILLUSTRATION.
Following is an illustration. Assume that:
. Three (3) is the account number for Accounts Receivable.
. The general ledger does not contain an account for Beginning
Inventory.
. Forty seven (47) is the account number for Retained Earnings.
. You have two bank accounts. Their general ledger account
numbers are 10 and 11.
Account number information is obtained from the SETUP Option 1
printout.
SETUP Option 1 input requests and your assumed responses are shown
below. (Requests are in all upper case. Responses are either numeric
or are in OTHER THAN upper case.)
ENTER THE ACCOUNT NUMBER FOR ACCOUNTS RECEIVABLE. 3
ENTER THE ACCOUNT NUMBER FOR BEGINNING INVENTORY. 0
(Note: A message is displayed below this request,
explaining the rules for omitting the Cost
of Goods Sold section of the Income State-
ment. See Appendix A.)
ENTER THE ACCOUNT NUMBER FOR RETAINED EARNINGS. 47
(Note: CPA-LEDGER requires a valid account number.
Zero (0) is not permitted.)
29
HOW MANY DIFFERENT CHECKING ACCOUNTS SHOULD BE INCLUDED IN THE
GENERAL LEDGER? CAREFULLY NOTE THAT THE REQUESTED INPUT IS FOR THE
NUMBER OF DIFFERENT CHECKING ACCOUNTS - NOT FOR THE NUMBER OF BANKS
IN WHICH YOU HAVE THOSE CHECKING ACCOUNTS. FOR EXAMPLE, IT YOU HAVE
TWO DIFFERENT CHECKING ACCOUNTS IN ONE BANK, YOUR INPUT SHOULD BE 2.
IF YOU HAVE FIVE CHECKING ACCOUNTS IN TWO BANKS, YOUR INPUT SHOULD
BE 5.
ENTER YOUR INPUT NOW. 2
(Note: You may enter 0.)
ENTER THE ACCOUNT NUMBER FOR BANK ACCOUNT NUMBER 1 OF 2. 10
(Note: You must enter a valid account number. Otherwise
an error message appears. The message allows you
to start over (with the "2" above) or to reenter
another account number.)
ENTER THE ACCOUNT NUMBER FOR BANK ACCOUNT NUMBER 2 OF 2. 14
ONE LAST INPUT IS REQUIRED BEFORE PROCESSING IS COMPLETE. THAT
INPUT IS THE NAME OF YOUR COMPANY. IF THE NAME IS `ABC COMPANY',
YOUR INPUT SHOULD BE `ABC COMPANY' (WITHOUT THE QUOTES).
ENTER THE NAME NOW. ABC Wholesale, Inc.
Note that zero (0) was used as the account number for Beginning
Inventory. Zero is the input when a requested account number is not
in your general ledger.
If you enter zero as an account number, Option 2 requests that you
verify that the requested account in not in your general ledger. If
you indicate that you made an input error, Option 2 repeats the input
request for that account. Otherwise, your input is accepted as
correct.
As mentioned, after you enter each of the account numbers (other than
a zero), Option 2 displays the title of that account as well as the
account number that you entered. Then you are asked to either accept
or reject your input. Thus, you are given a chance to recover from
input errors. Also, before asking for the account number for Retained
Earnings, the system reminds you that at least one Retained Earnings
account should have been established under Option 1.
ERROR MESSAGES.
There are several errors that you might make while entering data into
Option 2. An example is an entry of 13 for a month. The system will
not accept such input and will refuse to continue until you enter the
proper range of values.
30
If input instructions are not on the screen, the system displays a
message explaining your error and requests corrected input. These
input errors are:
ACCOUNT NUMBER IS TOO LARGE.
If you enter an account number that is not included in your general
ledger, Option 2 displays this message:
THE ACCOUNT NUMBER THAT YOU ENTERED IS TOO LARGE. THE LARGEST
ACCOUNT NUMBER IN THE GENERAL LEDGER IS (a number is shown).
CONSULT A CURRENT LISTING OF THE ACCOUNTS AND TRY AGAIN. PRESS ANY
KEY TO CONTINUE.
After you press a key, Option 1 continues at the point where the
error was made.
AN INACTIVE ACCOUNT.
If you enter an inactive account, the following appears on your
screen.
YOUR INPUT IS FOR AN INACTIVE ACCOUNT. ONLY ACTIVE ACCOUNTS CAN BE
PROCESSED AT THIS TIME. CONSULT A PRINTOUT FROM OPTION 1 OF THE
SETUP MENU.
IF YOU MADE A MISTAKE IN OPTION 1 OF THE SETUP MENU AND THIS ACCOUNT
IS NOT INCLUDED IN THE GENERAL LEDGER PRINTOUT, ANSWER `Y' TO THE
QUESTION THAT FOLLOWS AND YOU WILL BE RETURNED TO THE SETUP MENU FOR
USING OPTION 1 TO REENTER ALL OF YOUR ACCOUNT INFORMATION. UPON
REENTERING YOUR ACCOUNT INFORMATION, BE VERY CAREFUL AND TRY TO
AVOID MISTAKES.
DO YOU WISH TO RETURN TO THE SETUP MENU TO START AGAIN?
ENTER `Y' FOR `YES' OR `N' FOR `NO'.
Option 2 continues processing, using your directions.
SAME ACCOUNT ENTERED MORE THAN ONE TIME.
If you duplicate your input, Option 2 displays another message,
telling you that you entered the same account number a second time.
The message gives you the option of continuing with Option 2 or of
returning to the SETUP MENU for reentering all of your input by
using Option 1 again. If you opt to return to the SETUP MENU,
Option 2 first erases all of your data files, so you can start again
with Option 1.
31
Practice.
Use SETUP Option 2 to inform CPA-LEDGER of the account numbers and of
your business name, as explained under "WHAT OPTION 2 ASKS FOR" and
"AN ILLUSTRATION", above.
Use the printout from SETUP Option 1 to identify the appropriate
account numbers. The general ledger that you should use is the one
that you created under the Practice section of Chapter 3.
Save the practice general ledger. You will need it while reading
Chapter 5.
32
CHAPTER 5
SETUP MENU - OPTIONS 3 AND 4
WHAT OPTION 3 IS USED FOR.
SETUP Option 3 is for assigning opening balances to general ledger
accounts that you established by using SETUP Option 1 (Chapter 3).
Remember this. SETUP Option 1 starts each account with a zero
balance. Therefore, it is NOT necessary to assign a zero to those
accounts that should start with zero. Generally, these will be the
Income Statement revenue, expense, gain, and loss accounts.
WHAT OPTION 3 ASKS FOR.
Option 3, as stated above, asks for opening balances that should be
assigned to your general ledger accounts.
It is your responsibility to:
. Identify the ACCOUNT NUMBERS for accounts that should be
assigned an opening balance. Account numbers and titles are
shown on the SETUP Option 1 printout.
. Calculate the opening balances.
. Decide whether the each opening balance is a "debit" or
"credit" amount.
A SUGGESTED PROCEDURE.
Before using Option 3, use the SETUP Option 1 printout for making a
record of your opening balances. Write the amounts adjacent to the
appropriate account number. That will facilitate your input.
After recording amounts on the Option 1 printout, double check to be
sure that the total value of all debits amounts equals the total value
of all credit amounts.
Save the Option 1 printout for future reference.
OPTION 3 SEQUENCE OF EXECUTION.
Read Chapter 2 for the standard messages and reminders that are part
of Option 3.
33
Option 2 displays the following instructions and headings to assist
you in entering your opening balances.
ENTER YOUR DEBIT AND CREDIT ENTRIES BELOW. ALWAYS REMEMBER THAT:
1. EACH DEBIT OR CREDIT REQUIRES T-H-R-E-E INPUTS (THE ACCOUNT
NUMBER; A `D' FOR `DEBIT' OR A `C' FOR CREDIT; AND THE AMOUNT).
2. YOU MUST PRESS THE RETURN KEY AFTER E-A-C-H OF THE THREE ABOVE
INPUTS.
3. ALL MESSAGES WILL APPEAR IN THE UPPER PART OF THE COMPUTER
SCREEN.
4. JOURNAL ENTRIES REJECTED IN THEIR ENTIRETY ARE TO BE REENTERED.
5. ENTER `Q` (FOR QUIT) AFTER ALL OPENING BALANCES ARE ENTERED.
6. YOUR COMPUTER'S CAPS-LOCK KEY MUST BE `ON'.
ACCOUNT D=DEBIT DOLLAR
NUMBER C=CREDIT AMOUNT
Enter your entries under the appropriate headings. One line is used
for each debit or credit. Up to 30 debits and 30 credits may be
included in a single entry. Option 3 has no limit on the number of
entries.
AN ILLUSTRATION.
Assume that the following opening entry is to be made, using Option 3:
Account Number 3 Cash in Bank $ 5,000.10
Account Number 7 Accounts Receivable 12,450.00
Account Number 76 Retained Earnings $ 17,450.10
The opening entry would be entered in Option 3 as follows:
34
ACCOUNT D=DEBIT DOLLAR
NUMBER C=CREDIT AMOUNT
3 D 5000.10
7 D 12450.00
76 C 17450.10
Q
Notice that account titles are not used. Once the "Q" is entered,
Option 3 displays the entire opening entry, with account numbers and
titles. You are given an option of accepting or rejecting the entry.
If you signal Option 3 that your input is correct, and if debit
dollars equal credit dollars, the entry is posted to the general
ledger and is printed. Otherwise, you are asked to reenter the
incorrect entry, in correct form.
ERROR MESSAGES.
There are several errors that you might make while entering data into
Option 3. An example is 13 for a month. If instructions for correct
input are already displayed on the computer screen, Option 3 will not
continue until to enter the proper range of values.
If instructions are not on the screen, Option 3 displays a message to
assist you in determining why your input is incorrect and in
determining the action that you should take. These input errors are:
NO INPUT IS GIVEN FOR ANY ACCOUNTS.
In this event, Option 3 displays:
YOU DID NOT ENTER ANY DEBITS OR CREDITS. INPUT IS REQUIRED BEFORE
THE GENERAL LEDGER CAN BE POSTED. RETURN TO THE SETUP MENU, RERUN
THIS OPTION, AND ASK THAT INSTRUCTIONS BE DISPLAYED ON THE COMPUTER
SCREEN.
PRESS ANY KEY TO CONTINUE.
After you press a key, you are returned to the SETUP menu.
INCORRECT INPUT FOR DOLLAR VALUES.
See Chapter 6 (page 46) for this type of error and the message that
is displayed.
35
ENTERING THE SAME ACCOUNT NUMBER MORE THAN ONE TIME.
If you duplicate your input, this message appears:
THE ACCOUNT NUMBER (NBR. a number is shown) THAT YOU SELECTED FOR
POSTING WAS ASSIGNED AN OPENING BALANCE DURING THIS OR A PREVIOUS
SESSION. ONLY O-N-E OPENING BALANCE PER ACCOUNT IS PERMITTED.
PRESS ANY KEY TO CONTINUE.
After you press a key, Option 3 resumes at the point where the error
was made.
AN INACTIVE ACCOUNT IS SELECTED.
For this type of error, Option 3 displays:
YOU SELECTED AN INACTIVE ACCOUNT FOR POSTING. THE ACCOUNT NUMBER
THAT YOU SELECTED IS NUMBER (a number is shown). YOU WILL NOT BE
ALLOWED TO ASSIGN AN OPENING BALANCE TO THIS ACCOUNT BECAUSE IT IS
CLASSIFIED AS INACTIVE. REFER TO THE PRINTOUT OF THE CHART OF
ACCOUNTS FROM SETUP OPTION 1. IF YOU DID NOT MAKE A MISTAKE IN
YOUR INPUT, RETURN TO THE SETUP MENU AND SELECT ALL OPTIONS AGAIN,
STARTING WITH OPTION 1.
DO YOU WISH TO RETURN TO THE SETUP MENU? ENTER `Y' FOR `YES' OR
`N' FOR `NO'. _
If your answer is `Y', you will be returned to the SETUP menu. If
you answer `N', Option 3 resumes at the point where the input error
was made.
ENTERING AN INCORRECT DEBIT OR CREDIT INDICATOR.
While using SETUP Option 1, you assigned a "debit balance" or a
"credit balance" for each account in the general ledger. Except for
RETAINED EARNINGS and BANK ACCOUNTS, this account balance must be
maintained while using Option 3. That is, if you indicated to
Option 1 that Cash on Hand has a "debit balance", any amount
assigned to Cash on Hand in Option 3 must be a debit amount. If you
violate this rule, Option 3 displays:
YOUR OPENING ENTRY IS INCORRECT. YOU REQUESTED TO DEBIT A CREDIT
BALANCE ACCOUNT OR TO CREDIT A DEBIT BALANCE ACCOUNT. ACCORDING TO
YOUR INPUT, YOU WANT TO (debit or credit is shown) THE ACCOUNT (the
account title is shown). NONE OF YOUR ENTRY WILL BE POSTED UNTIL
YOU CORRECT THE PREVIOUS DEBIT OR CREDIT. WOULD YOU LIKE TO
REENTER THIS ENTIRE ENTRY FROM THE BEGINNING? IF YOUR ANSWER IS
`N' FOR `NO', YOU WILL BE ASKED TO REENTER THIS DEBIT OR CREDIT,
STARTING WITH THE A-C-C-O-U-N-T N-U-M-B-E-R.
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
36
If you answer `N', you will be requested to reenter the account
number. If you answer `Y', you will be asked to reenter the entire
entry, from the beginning.
PRINTED OUTPUT.
Using the above illustration, the printed output from Option 3 will
look like this:
PAGE 1
RUNDATE 01/01/85
ABC WHOLESALE, INC.
OPENING GENERAL LEDGER ENTRIES
ACCOUNT
NUMBER ACCOUNT DEBIT CREDIT
3 CASH IN BANK 5,000.10
7 ACCOUNTS RECEIVABLE 12,450.00
76 RETAINED EARNINGS 17,450.10
OPENING ENTRY
Practice.
Get the printout that you obtained while following the instructions in
the practice section of Chapter 3. Record these dollar amounts, on
the printout, for the accounts identified below:
. CASH IN BANK $ 1,350.00 DEBIT
. ACCOUNTS RECEIVABLE 4,000.65 DEBIT
. MERCHANDISE INVENTORY 8,400.00 DEBIT
. RETAINED EARNINGS 13,750.65 CREDIT
(Or, to the appropriate capital account if you have the
partnership or proprietorship version of CPA-LEDGER)
Use SETUP Option 3 to record the above data as an opening general
ledger entry. Get the appropriate account numbers from the Option 1
printout.
This chapter completes the discussion of the SETUP menu. You should
erase your data disk (the one that you created in Chapter 3 - not the
one received with CPA-LEDGER). We will not request that you use it
again.
The remaining chapters discuss the DAILY MENU. To get ready for the
DAILY MENU, copy the practice general ledger (on your Documentation
36-1
disk, files with an extension of .FIL) onto (1) your hard disk (where
you have CPA-LEDGER) if you have the hard disk only version of
CPA-LEDGER, or (2) one of your own floppy disks if you have either the
hard disk-floppy disk version or floppy disk only version of
CPA-LEDGER.
To copy the practice general ledger:
. Follow this procedure if you have the hard disk only version of
CPA-LEDGER:
. Make sure you are in the directory where CPA-LEDGER is stored.
. Place the Documentation Disk with the practice general ledger
(the disk with files that have an extension of .FIL) into the
A: drive.
. Give this command - COPY A:*.FIL C:/V
. Follow this procedure if you have either the hard disk-floppy disk
version or the floppy disk only version of CPA-LEDGER:
. If you have two floppy disk drives:
. Place the Documentation Disk with the practice general
ledger (the disk with files that have an extension of
.FIL) in the B: drive.
. Place one of your own blank disks into the A: drive.
. Give this command - COPY B:*.FIL A:/V
. If you have only one floppy disk drive:
. Place the Documentation Disk with the practice general
ledger (the disk with files that have an extension of
.FIL) in the A: drive.
. Make sure you have one of your own blank disks ready to
receive the files that are about to be copied.
. Give this command - COPY A:*.FIL B:/V
You will be required to swap the disks several times as the
copying proceeds.
CHP6-7.TXT
37
CHAPTER 6
DAILY MENU - OPTION 1
As mentioned in Chapter 1, CPA-LEDGER has two main menu options - the
SETUP menu and the DAILY menu. The SETUP menu and its processing
options were discussed in Chapters 3 through 5, except for SETUP
Option 4 which is discussed in Chapter 16. Beginning with this
chapter, we will take up the DAILY menu.
Refer to Chapter 1 for an overview of the DAILY menu. Also refer to
Chapter 2 for standard message and reminders that are designed to help
you use CPA-LEDGER. For brevity, these standard message and reminders
will not be repeated.
THE DAILY MENU.
Chapter 1 tells you how to use PC-DOS for loading BASICA and for
starting the DAILY menu. When the menu appears on your computer
screen, it will look like this:
CPA-LEDGER
DAILY MENU
SELECT ONE OF THE OPTION NUMBERS BELOW.
1. ENTER NEW TRANSACTIONS IN THE GENERAL LEDGER - NOT AUTOMATIC.
SEE NBR. 10.
2. PRINT AN UNADJUSTED TRIAL BALANCE.
3. PRINT FINANCIAL STATEMENT(S).
4. PRINT TRANSACTIONS THAT HAVE BEEN POSTED TO THE GENERAL LEDGER.
5. PRINT GENERAL LEDGER ACCOUNTS WITH DETAILS OF ALL DEBITS AND
ALL CREDITS.
6. PRINT BANK DEPOSITS AND CHECKS WRITTEN (CHECK REGISTER).
7. PRINT GENERAL LEDGER ACCOUNTS AND THEIR BALANCES.
8. ADD NEW ACCOUNTS TO THE GENERAL LEDGER.
9. PRINT A POST-CLOSING TRIAL BALANCE.
10. ENTER NEW TRANSACTIONS IN THE GENERAL LEDGER - AUTOMATIC.
11. STOP ALL CPA-LEDGER PROCESSING AND RETURN CONTROL TO PC-DOS.
WHICH OPTION NUMBER DO YOU SELECT? __
(C) COPYRIGHT 1986, 1988, 1989 TRONOLONE & FOSTER, PC
38
WHAT OPTION 1 IS USED FOR.
Option 1 is used for:
. Entering your day-to-day financial transactions in the general
ledger, and
. Entering any adjusting entries that are needed prior to
preparing the financial statements.
Read Appendix D and Appendix E before you use Option 1. The
Appendices contain an overview of the accounting process and identify
procedures that will help ensure that your account balances are kept
current and accurate.
as indicated above, Option 1 may be used to enter adjusting entries in
the general ledger prior to preparing financial statements. Consider
using the following procedures IF YOU MAKE ADJUSTING ENTRIES prior to
preparing the financial statements. (There is a way to make monthly
adjustments, without necessity of the following procedures. However,
the details are beyond the scope of this User's Manual. Se your local
CPA.)
. Return to PC-DOS and make a copy onto another disk the data
files that are on your data disk. Use the COPY command to make
the copy. Your IBM Disk Operating System Manual explains how
to use COPY.
. Return to BASICA and then to the DAILY menu of CPA-LEDGER, as
explained in Chapter 1.
. Use Option 1 to record the adjustments. Prepare the financial
statements. Then, erase the data disk that you used to prepare
the financial statements (the disk has been permanently
altered). Finally, copy the data files without the adjustments
to the disk that you erased. This will restore the data files
to their form prior to preparing the financial statements.
Please remember this - DO NOT USE OPTION 1 TO ENTER CLOSING ENTRIES!
CPA-LEDGER DOES THAT FOR YOU, AUTOMATICALLY. USE CPA-LEDGER, OPTION
1, FOR RECORDING DAILY TRANSACTIONS AND FOR ADJUSTING ENTRIES, ONLY.
CPA-LEDGER AUTOMATICALLY PREPARES THE CLOSING ENTRIES.
OPTION 1 SEQUENCE OF EXECUTION.
Option 1 starts with this message:
WOULD YOU LIKE A BRIEFING ON HOW TO USE THIS COMPUTER PROGRAM TO BE
DISPLAYED ON THE COMPUTER SCREEN?
ENTER `Y' OR `YES' OR `N' FOR `NO'. _
39
If your answer is `N' (for `NO'), Option 1 asks you to start entering
your daily transactions or adjustments. See the paragraph, following,
entitled, "ENTERING YOUR DAILY TRANSACTIONS OR THE ADJUSTMENTS FOR
FINANCIAL STATEMENTS."
If your answer is `Y' (for `YES'), the following appears on your
computer screen:
THIS COMPUTER PROGRAM IS TO BE USED ONLY FOR POSTING DAILY OR
ADJUSTING ENTRIES TO THE GENERAL LEDGER ACCOUNTS. EACH GENERAL
LEDGER ACCOUNT TO BE POSTED M-U-S-T (REPEAT, MUST) BE AN ACTIVE
ACCOUNT. YOU CAN DETERMINE WHICH ACCOUNTS ARE ACTIVE BY RETURNING
TO THE DAILY MENU, SELECTING OPTION 7, AND SPECIFYING THAT ALL
ACCOUNTS BE PRINTED. IF YOU DESIRE TO RECLASSIFY AN ACCOUNT FROM
INACTIVE TO ACTIVE STATUS (SO THAT YOU WILL BE ALLOWED TO POST A
TRANSACTION TO IT), YOU SHOULD USE OPTION 8 FROM THE DAILY MENU.
DO YOU WISH TO CONTINUE WITH THIS SESSION?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If your answer is `N' (for `NO'), Option 1 stops processing and you
will be returned to the DAILY menu.
If your answer is `Y' (for `YES'), the following will appear on your
computer screen:
THE COMPUTER IS READY TO START ACCEPTING YOUR GENERAL LEDGER
ENTRIES.
EACH ENTRY REQUIRES AT LEAST ONE DEBIT AND ONE CREDIT.
EACH DEBIT OR CREDIT, IN TURN, REQUIRES INPUT UNDER DESCRIPTIVE
COLUMN HEADINGS THAT WILL APPEAR ON THE COMPUTER SCREEN.
TO ASSIST YOU BRIEF INSTRUCTIONS WILL BE DISPLAYED ABOVE THE COLUMN
HEADINGS.
AFTER EACH CREDIT TO A BANK ACCOUNT, THE COMPUTER WILL ASK YOU FOR
THE PAYEE`S NAME. THE COMPUTER WILL PROMPT YOU FOR THIS INPUT.
ALL MESSAGES WILL APPEAR ABOVE THE COLUMN HEADINGS. THE ERROR
MESSAGES ARE SELF EXPLANATORY.
(Continued on next page.)
40
PRESS THE RETURN KEY AFTER YOU ENTER EACH REQUESTED INPUT.
NEVER, UNDER A-N-Y CIRCUMSTANCES, INTERRUPT THIS PROGRAM BY PRESSING
THE `Ctrl-Break' KEYS ON YOUR KEYBOARD!
PRESS ANY KEY TO CONTINUE.
After you press a key, Option 1 is ready to start accepting your
general ledger entries.
ENTERING YOUR DAILY TRANSACTIONS OR THE ADJUSTMENTS FOR FINANCIAL
STATEMENTS.
The following will appear on your computer screen when Option 1 is
ready to accept your general ledger entries:
EACH DEBIT OR CREDIT ENTRY REQUIRES INPUT IN THE COLUMNS BELOW.
1. `DATE' COLUMN IS FOR TRANSACTION DATE. USE FORMAT YYMMDD-6/30/84=063084.
2. `POSTING REFERENCE' COLUMN IS FOR FUTURE REFERENCE TO SUPPORTING
DOCUMENTATION. EXAMPLES ARE SALES INVOICE NUMBER AND PURCHASE
INVOICE NUMBER.
3. ENTER `S' (FOR SAME) TO USE THE PREVIOUS DATE OR POSTING
REFERENCE.
---->4. ENTER `?' FOR DR/CR TO SUM ALL PREVIOUS DR/CR IN AN ENTRY - AUTO
TOTAL.
5. ENTER `Q' (FOR QUIT) FOR ACCOUNT NUMBER WHEN JOURNAL ENTRY IS
COMPLETE.
6. YOUR COMPUTER'S CAPS-LOCK KEY MUST BE `ON'.
*********************************************************************
ACCOUNT D=DEBIT DOLLAR POSTING CHECK
DATE NUMBER C=CREDIT AMOUNT REFERENCE NUMBER
(Reader, to make sure you don't misunderstand - the following is also
part of the screen.)
*************************************************************************
* Read this before you begin. It is very important that you enter the *
* correct date for each transaction. The date that you enter is used *
* to update a data base that accumulates transactions according to the *
* date that they occurred. If you use an incorrect date, your data *
* base will be updated for the improper period and your monthly *
* financial statements will be incorrect. Follow rule #1 at the top *
* of the screen for the date format. PRESS ANY KEY TO CONTINUE. *
*************************************************************************
After you press a key, the message (immediately above) disappears and
CPA-LEDGER begins to ask for your input.
41
Notice the instructions that appear above the column headings. You
will enter each debit or credit under the columns shown - with one
line being used for each debit or credit. When you enter an account
---->number, the account's title appears at the bottom of the screen. The
last two column headings (POSTING REFERENCE and CHECK NUMBER) appear
only when needed. Also, as you enter the dollar amounts, the totals
of the debits and credits also appear at the bottom of the screen.
. The POSTING REFERENCE column appears for the first debit or
credit of each general ledger entry. After that, it
disappears.
. The CHECK NUMBER column appears each time that you credit a
bank account. After entering the check number, the following
message appears immediately below the credit entry:
ENTER THE PAYEE FOR THE ABOVE CHECK. _______________________
After you enter the payee, the CHECK NUMBER column and the
message disappear.
---->After you complete your entry for each debit or credit, CPA-LEDGER
asks you if all information on that line of information is correct. It
does that by displaying "OK? (Y/N)" in the extreme right side of the
screen. If you enter "Y", the system asks for the next debit or
credit. If you enter "N", however, your erroneous input is erased
from the screen (and ignored by CPA-LEDGER) and you are asked to
reenter that line of information.
This process continues until you have completed your general ledger
entry. As indicated in instruction 5 above the column headings,
signal the end of a complete general ledger entry by entering a single
`Q' (for QUIT) in the ACCOUNT NUMBER column.
---->Each general ledger entry may contain up to 30 debits and 30 credits.
If you exceed either of those limits, the following message will
appear on your computer screen:
MAXIMUM OF 30 DEBIT OR 30 CREDIT POSTINGS EXCEEDED. REDESIGN YOUR
ENTRY SO THAT THE MAXIMUMS WILL NOT BE EXCEEDED. NONE OF THIS ENTRY
WILL BE POSTED UNTIL YOU REDESIGN THE ENTRY.
PRESS ANY KEY TO CONTINUE.
After you press a key, Option 1 returns to that part of the computer
program that gets ready for the next general ledger entry. See the
paragraph, following, entitled "GETTING READY FOR THE NEXT GENERAL
LEDGER ENTRY."
42
HOW TO DISCONTINUE INPUT FOR A GENERAL LEDGER ENTRY.
A single `Q' (for QUIT) in the ACCOUNT NUMBER column is used to signal
that a general ledger entry is complete.
After you enter the `Q', the following request is displayed:
ENTER EXPLANATION FOR THE ABOVE ENTRY. ______________________________
After you enter the explanation, Option 1 displays your entire general
ledger entry for your review and approval. The entry will not be
posted to the general ledger unless you approve it. The display and
approval process is explained below.
REVIEWING AND APPROVING YOUR GENERAL LEDGER ENTRY.
Option 1 gives you a chance to approve each entry before posting the
general ledger. The approval process starts with this message:
YOUR INPUT WILL BE DISPLAYED ON THE SCREEN SO THAT YOU MAY VERIFY
IT. (FOR YOUR INFORMATION, ACCOUNT TITLES ASSIGNED TO THE ACCOUNT
NUMBERS THAT YOU INPUT WILL ALSO BE DISPLAYED.) CAREFULLY NOTE ANY
ERRORS SO THAT INCORRECT DATA WILL NOT BE POSTED TO THE ACCOUNTS.
PRESS ANY KEY TO CONTINUE.
After you press a key, the following appears on your screen. (The
example given is for debit entries. A separate screen is used for
credits, in the same format.)
YOUR DEBIT ENTRIES (WITH ACCOUNT TITLES) APPEAR BELOW. THE LIST FOR
DEBIT ENTRIES IS COMPLETE. NOTE ANY INPUT ERRORS. PRESS ANY KEY TO
CONTINUE.
ACCOUNT DOLLAR POSTING CHECK
DATE NUMBER ACCOUNT TITLE AMOUNT REFERENCE NUMBER
Each debit and credit entry that you entered will be displayed under
the columns. After the display of both debits and credits is complete
and after you have pressed a key to continue, the following question
will appear on your computer screen:
43
DO YOU DESIRE TO POST THE DEBIT AND CREDIT ENTRIES THAT YOU JUST
REVIEWED?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If you notice a mistake and answer `N' (for `NO'), Option 1 erases the
entry from its memory and returns to the section of the program that
gets ready for the next general ledger entry. See the paragraph,
following, entitled "GETTING READY FOR THE NEXT GENERAL LEDGER ENTRY."
If you answer `Y' (for `YES'), Option 1 automatically makes sure that
the total value of debits equals the total value of credits. If the
debits and credits agree, your entry is posted to the general ledger.
---->There is a process that CPA-LEDGER follows that you should know about.
It you enter `Y' to the above inquiry and debit amounts equal credit
amounts, CPA-LEDGER posts to TWO data bases, (1) the master data base
used to prepare cumulative financial statements and (2) a data base
use for accumulating information for monthly income statements. If
the data base for monthly financial statements become unusable, the
following message will appear:
PROCESSING ERROR. MONTHLY DATA BASE RECORD NOT FOUND. DISCONTINUE
YOUR USE OF CPA-LEDGER UNTIL YOU HAVE CONTACTED JIM FOSTER AT
(703)569-2254. PROCESSING WILL CONTINUE TO UPDATE THE MASTER DATA
BASE FOR THIS TRANSACTION. WHEN YOU ARE ASKED, TELL CPA-LEDGER THAT
YOU DO NOT WISH TO POST ANY ADDITIONAL TRANSACTIONS. THEN, CALL (OR
WRITE IF YOU PREFER) JIM FOSTER AND GIVE HIM THIS MESSAGE:
A message for Jim appears here.
PRESS ANY KEY TO CONTINUE.
As the message states, you should discontinue using CPA-LEDGER and
contact Jim Foster. (You should rarely, if ever, see the message - it
will appear only if CPA-LEDGER notices that notices that the data base
is not usable. The message is listed in this manual so that you will
know what to do - contact Jim Foster. In the meantime, be sure that
you keep frequent backups of your data files (those with an extension
of .FIL).
44
Continuing, if the debits and credits do NOT agree, the following
message appears on your screen:
FOR THE ENTRY THAT YOU JUST REVIEWED, THE TOTAL VALUE OF THE DEBITS
DO NOT EQUAL THE TOTAL VALUE OF THE CREDITS. OR, YOU ENTERED ONLY
DEBITS OR YOU ENTERED ONLY CREDITS, WITH ZERO VALUES. IF YOU ENTER
ZEROS AS VALUES, THERE MUST BE AT LEAST ONE DEBIT AND ONE CREDIT.
NONE OF THE DEBITS OR CREDITS FOR THIS ENTRY WILL BE POSTED TO THE
GENERAL LEDGER. CAREFULLY REVIEW THE DEBIT AND CREDIT AMOUNTS AND
REENTER THE ENTIRE ENTRY FROM THE BEGINNING. THE TOTAL VALUES ARE
AS FOLLOWS:
TOTAL VALUE OF DEBITS = $
TOTAL VALUE OF CREDITS = $
THE COMPUTER IS PAUSING FOR YOU TO REVIEW YOUR SOURCE DOCUMENTATION.
DETERMINE WHETHER YOUR DOCUMENTATION OR YOUR INPUT IS IN ERROR.
REMEMBER, NO DEBITS OR CREDITS OF THIS ENTRY WILL BE POSTED TO THE
GENERAL LEDGER. REENTER THIS ENTRY EITHER DURING THIS SESSION OR AT
A LATER TIME. IN E-I-T-H-E-R CASE, C-A-R-E-F-U-L-L-Y MARK
THE ENTRY SO THAT YOU WILL REMEMBER THAT IS IT TO BE REENTERED.
PRESS ANY KEY TO CONTINUE.
Note: If you are wondering why provision was made for entering
zeros as values, it is to allow you to enter your cancelled
N checks. Just make you entry in normal fashion, with zeros for
E values, and a credit to the bank account. Then enter the check
W number and payee. Presto! You have a record of your cancelled
check. Another suggestion, use "C-CHK" for the posting
reference. Then you can use DAILY Menu Option 4 to print ALL
cancelled checks, whenever you wish.
After you press a key, Option 1 erases the erroneous entry from its
memory and proceeds to get ready for the next general ledger entry, as
discussed in the paragraph that follows.
GETTING READY FOR THE NEXT GENERAL LEDGER ENTRY.
After each general ledger entry is processed, Option 1 asks if you
wish to enter additional debits and credits, with this question:
DO YOU DESIRE TO ENTER ADDITIONAL DEBITS AND CREDITS?
ENTER `Y' OR `YES' OR `N' FOR `NO'. _
If you answer `N' (for `NO'), the number and value of entries posted
45
to the general ledger are printed on the printer. Then, you will be
returned to the DAILY menu.
If you answer is `Y' (for `YES'), you will be asked to enter the next
series of debits and credits. See the paragraph, above, entitled
"ENTERING YOUR DAILY TRANSACTIONS OR THE ADJUSTMENTS FOR FINANCIAL
STATEMENTS." This process will be repeated until you answer `N' (for
`NO') to the above question.
ERROR MESSAGES.
Option 1 monitors your input, as much as possible, to help ensure that
your general ledger entries are correct. Some of the error messages
were discussed above. Others are discussed below.
In some cases, the system will merely refuses to accept your input.
An example is where you enter a date in the improper format - perhaps
you enter 20 for the month. In these cases, instructions for such
input are already displayed on the screen and, as stated, the system
merely refuses to proceed.
In other cases, however, you will need a more detailed explanation.
Refer to the paragraph entitled "ENTERING YOUR DAILY TRANSACTIONS OR
THE ADJUSTMENTS FOR FINANCIAL STATEMENTS" and get the column headings
firmly in mind. The paragraphs that follow inform you what will
happen if you enter incorrect data in the columns. In each case, when
an error message is indicated, the instructions above the column
headings will disappear and the error message will be displayed. After
that, if appropriate, the instructions will reappear as they were
before they disappeared.
INACCURATE ENTRY IN THE DATE COLUMN.
If you enter an incorrect date in the DATE column, the system will not
proceed until you do make an entry, in the proper format.
45
INACCURATE ENTRY IN THE ACCOUNT NUMBER COLUMN.
If you enter an INACTIVE account number in the ACCOUNT NUMBER column,
the following error message will appear above the column headings:
YOU SELECTED AN INACTIVE ACCOUNT NUMBER FOR POSTING. THE ACCOUNT
NUMBER THAT YOU SELECTED IS NUMBER (a number is shown.) BEFORE A
GENERAL LEDGER ACCOUNT CAN BE POSTED, IT M-U-S-T FIRST BE CLASSIFIED
AS AN ACTIVE ACCOUNT BY USING OPTION 8 OF THE DAILY MENU. OTHERWISE,
THE ENTRY WILL NOT BE PERMITTED.
DO YOU WISH TO RETURN TO THE DAILY MENU?
ENTER `Y' FOR `YES' OR `N' FOR `NO.' _
If you answer `N' (for `NO'), you will be allowed to continue with
your general ledger entry. If you enter `Y' (for `YES'), processing
will stop and you will be returned to the DAILY menu.
If you enter an account number that is too large in the ACCOUNT NUMBER
column, the following error message will appear above the column
headings:
YOUR INPUT FOR THE ACCOUNT NUMBER IS TOO LARGE. THE LARGEST ACCOUNT
NUMBER IN THE GENERAL LEDGER IS ACCOUNT NUMBER (a number is shown.)
IF DESIRED YOU CAN DETERMINE THE ACCOUNT NUMBERS IN THE GENERAL
LEDGER BY SELECTING OPTION 7 IN THE DAILY MENU AND SPECIFYING THAT
ALL ACCOUNTS BE PRINTED.
PRESS ANY KEY TO CONTINUE.
After you press a key, you will be allowed to continue with your
general ledger entry.
INACCURATE ENTRY IN THE D=DEBIT / C=CREDIT COLUMN.
If you enter anything other than a `C ', `D' or `?' in this column,
you will be asked to reenter your input. (Use `?' as the final input
N for journal entry and all previous debits and credits will be summed
E and the final debit or credit will be automatic - a handy device if
W you don't like to add debits or credits for the final balancing
amount.)
46
INACCURATE ENTRY IN THE DOLLAR AMOUNT COLUMN.
If you make an incorrect entry in this column (such as alphabetic
characters, blanks, or a misplaced decimal point), the following error
message will appear above the column headings:
YOUR INPUT FOR THE DOLLAR AMOUNT IS INCORRECT. THE O-N-L-Y
ALLOWABLE CHARACTERS FOR THE DOLLAR AMOUNT ARE ZERO (0) THROUGH NINE
(9) AND A DECIMAL POINT TO SEPARATE DOLLARS AND CENTS. EXAMPLES OF
CORRECT INPUT, FOR EITHER DEBITS OR CREDITS, ARE SHOWN BELOW.
0 .01 1 1.00 1.01 126 126.00 126.59 1648 1648.00 1648.29
THE MINIMUM DOLLAR AMOUNT FOR ANY ONE DEBIT OR CREDIT IS 0
THE MAXIMUM DOLLAR AMOUNT FOR ANY ONE DEBIT OR CREDIT IS 9999999.99.
PRESS ANY KEY TO CONTINUE.
After you press a key, you will be allowed to continue with your
general ledger entry.
INCORRECT ENTRY IN THE POSTING REFERENCE COLUMN.
Input is required for the posting reference. Unless you enter some
combination of characters (alphabetic or numeric), Option 1 will
refuse to continue until you do make an entry.
Read Appendix E, which contains some suggestions on systematic
procedures for using posting references. Posting references are
IMPORTANT (especially with DAILY Option 4); so, please do not overlook
R their significance. A "trick" with posting references - using
E standard posting references (such as "LOAN 1") for standard
A transactions (such as for an important loan) will allow you to use
D DAILY Option 4 to print ALL of such transactions, anytime that you
wish. Neat, eh! Carefully plan your posting reference scheme.
INCORRECT ENTRY IN THE CHECK NUMBER COLUMN OR FOR THE PAYEE.
Input is required for the CHECK NUMBER and for the PAYEE anytime you
credit a bank account. If you do not enter this input,
CPA-LEDGER refuses to continue until you do make an entry. Your input
can be any combination of alphabetic or numeric characters.
47
AN ILLUSTRATION.
Assume that the following entry is to made in the general ledger,
using Option 1, for sales made on February 16, 1985. The sales
transaction is recorded on an internal company DAILY CASH REPORT
number DCR 36. (Appendix E illustrates a form that you may use for
your DAILY CASH REPORT.)
Account Number 3 Cash in Bank $ 5,000.10
Account Number 11 Accounts Receivable 12,450.00
Account Number 171 Sales $17,450.10
After the CPA-LEDGER briefing, the following will appear on your
computer's screen. The entry to record the transaction is shown below
the column headings.
EACH DEBIT OR CREDIT ENTRY REQUIRES INPUT IN THE COLUMNS BELOW.
1. `DATE' COLUMN IS FOR TRANSACTION DATE. USE FORMAT YYMMDD-6/30/84=063084.
2. `POSTING REFERENCE' COLUMN IS FOR FUTURE REFERENCE TO SUPPORTING
DOCUMENTATION. EXAMPLES ARE SALES INVOICE NUMBER OR PURCHASE
INVOICE NUMBER.
3. ENTER `S' (FOR SAME) TO USE THE PREVIOUS DATE OR POSTING
REFERENCE.
4. ENTER `?' FOR DR/CR TO SUM ALL PREVIOUS DR/CR IN AN ENTRY - AUTO
TOTAL.
5. ENTER `Q' (FOR QUIT) FOR ACCOUNT NUMBER WHEN JOURNAL ENTRY IS
COMPLETE.
6. YOUR COMPUTER'S CAPS-LOCK KEY MUST BE `ON'.
**********************************************************************
ACCOUNT D=DEBIT DOLLAR POSTING
DATE NUMBER C=CREDIT AMOUNT REFERENCE
021685 3 D 5000.10 DCR 36
11 D 12450.00
171 C 17450.10
Q
Notice, in the above illustration, that the CHECK NUMBER column is not
shown. This is because there was no credit to a bank account. If
there had been a credit to a bank account, the CHECK NUMBER column
would have appeared to the right of the POSTING REFERENCE column.
Also, the POSTING REFERENCE column, above, disappears after the first
line of input. See the previous paragraph entitled "ENTERING YOUR
DAILY TRANSACTIONS OR THE ADJUSTMENTS FOR FINANCIAL STATEMENTS" for a
detailed discussion.
Also notice that account titles were not used while entering the
transaction.
47-1
There is one other point that you should understand. It is this:
. While you enter your debits and credits, CPA-LEDGER:
. Identifies the title of the most recent account number that
you enter, and
. Shows the cumulative total of all debits and credits for each
journal entry, as you enter the debit and credit values.
This information is shown at the bottom of your screen. For example,
after the second debit shown on page 47 is entered the following
appears at the bottom of the screen:
ACCOUNT = ACCOUNTS RECEIVABLE - TRADE DR= 17,450.10 CR= .00
After the first credit is entered (see the entry on page 47), the
information changes to:
ACCOUNT = SALES DR= 17,450.10 CR= 17,450.10
After the entry is posted (or rejected for posting), the debit and
credit amounts shown above return to zero.
Please carefully note that the debit and credit values, shown above,
pertain to the cumulative value of debits and credits entered for a
specific journal entry and NOT to the account number identified to the
left of the values.
48
Once the `Q' is entered (the fourth entry under the ACCOUNT NUMBER
column, page 47), the following will appear on your computer screen:
ENTER EXPLANATION FOR THE ABOVE ENTRY. __________________________
Assume that your input for the explanation is "DAILY SALES, 2/16/85".
The explanation is included in the output, illustrated on pages 49 and
50. After you enter the explanation the following appears on your
screen:
YOUR INPUT WILL BE DISPLAYED ON THE SCREEN SO THAT YOU MAY VERIFY
IT. (FOR YOUR INFORMATION, ACCOUNT TITLES ASSIGNED TO THE ACCOUNT
NUMBERS THAT YOU INPUT WILL ALSO BE DISPLAYED.) CAREFULLY NOTE ANY
ERRORS SO THAT INCORRECT DATA WILL NOT BE POSTED TO THE ACCOUNTS.
PRESS ANY KEY TO CONTINUE.
After you press a key the following appears on your screen:
YOUR DEBIT ENTRIES (WITH ACCOUNT TITLES) APPEAR BELOW.
THE LIST OF DEBIT ENTRIES IS COMPLETE. NOTE ANY INPUT ERRORS.
PRESS ANY KEY TO CONTINUE.
ACCOUNT DOLLAR POSTING CHECK
DATE NUMBER ACCOUNT TITLE AMOUNT REFERENCE NUMBER
021685 3 CASH IN BANK 5,000.10 DCR 36
11 ACCOUNTS RECEIVABLE 12,450.00
After you press a key (refer to the instruction in the third line of
the narrative, above), the credit entry will appear for your review:
49
YOUR CREDIT ENTRIES (WITH ACCOUNT TITLES) APPEAR BELOW.
THE LIST OF CREDIT ENTRIES IS COMPLETE. NOTE ANY INPUT ERRORS.
PRESS ANY KEY TO CONTINUE.
ACCOUNT DOLLAR POSTING CHECK
DATE NUMBER ACCOUNT TITLE AMOUNT REFERENCE NUMBER
021685 171 SALES 17,450.10 DCR 36
ENTRY EXPLANATION = DAILY SALES, 2/16/85
After you press a key (refer to the instruction in the third line of
narrative, above), the following will appear on your screen:
DO YOU DESIRE TO POST THE DEBIT AND CREDIT ENTRIES THAT YOU JUST
REVIEWED?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If you answer `Y' (for `YES'), the entire entry will be posted to the
general ledger. If you answer `N' (for `NO'), the entry will not be
posted.
Option 1 now needs to know if you wish to post additional debits and
credits to the general ledger. To make that determination, the
following question is next.
DO YOU DESIRE TO ENTER ADDITIONAL DEBITS AND CREDITS?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If you answer `N' (for `NO'), the number and value of entries posted
to the general ledger are printed. Then, you are returned to the
DAILY menu.
If you answer `Y' (for `YES'), you will be asked to enter the next
series of debits and credits. This process is repeated until you
answer `N' to the above question.
This illustration assumes that your general ledger entry is correct
and that you instructed Option 1 to post the general ledger. See the
previous paragraphs entitled "REVIEWING AND APPROVING YOUR GENERAL
LEDGER ENTRY" and "ERROR MESSAGES" for a description of error
processing.
50
PRINTED OUTPUT.
Using the above general ledger entry for illustration, the output from
Option 1 would be:
PAGE 1
RUNDATE 02/16/85
ABC WHOLESALE, INC.
GENERAL LEDGER ENTRIES
ACCT.
DATE NBR. ACCOUNT TITLE DEBIT CREDIT
021685 3 CASH IN BANK 5,000.10
11 ACCOUNTS RECEIVABLE 12,450.00
171 SALES 17,450.10
DAILY SALES, 2/16/85
POSTING REFERENCE = DCR 36
NUMBER OF GENERAL LEDGER ENTRIES POSTED = 1
VALUE OF ALL DEBITS POSTED = $ 17,450.10
VALUE OF ALL CREDITS POSTED = $ 17,450.10
DIFFERENCE - DEBITS LESS CREDITS POSTED = $ 0.00
Practice.
Before starting this practice session, make sure that you have copied
the practice general ledger (1) onto hard disk if you have the "hard
disk only" version of CPA-LEDGER or (2) onto one of your blank floppy
disks if you have either the hard disk-floppy disk or floppy disk only
versions of CPA-LEDGER. For instructions, see the bottom of page 36
and page 36-1. We will move ahead slightly and use the DAILY menu to
print an unadjusted trial balance. Do not be concerned. CPA-LEDGER
knows what to do. Just follow these procedures:
51
. After you load BASICA, type this command at your keyboard, as
you see it below:
RUN "DAILY" (if you have either the hard disk only or
hard disk-floppy disk versions of CPA-LEDGER.)
RUN "B:DAILY" (if you have the two floppy disk version.)
. Select Option 2 from the DAILY menu & direct output to the
printer.
. In a few seconds, the proper computer program will be loaded.
Enter the date when it is asked for, and your unadjusted trial
balance will be printed on the printer.
Review the trial balance. Notice the account numbers in the left-hand
column. You will use these account numbers in making two general
ledger entries. The entries are:
. On February 16, 1985, cash sales totaled $17,450.10. $5000.10
of the total was deposited in the bank on the same date. The
remainder ($12,450.00) should be charged to accounts
receivable. The company uses a DAILY CASH REPORT to record
daily cash receipts and uses the report as a posting reference
document. (See Appendix E.) The DAILY CASH REPORT is numbered
DCR 36. The entry to be recorded is:
Cash in Bank $ 5,000.10
Accounts Receivable 12,450.00
Sales $17,450.10
Transaction explanation = Daily sales, 2/16/85
Posting reference = DCR 36
. On the same day, February 16, 1985, the company collected and
deposited in the bank $3000.00 from accounts receivable. The
collection was recorded on DAILY CASH REPORT number DCR 36.
The entry to be recorded is:
Cash in Bank $ 3,000.00
Accounts Receivable $ 3,000.00
Transaction explanation = Collections on account
Posting reference = DCR 36
Use Option 1 of the DAILY menu to record the above two general ledger
entries. Use the trial balance to determine the account numbers that
you should use while making the entries in Option 1.
52
CHAPTER 7
DAILY MENU - OPTION 2
WHAT OPTION 2 IS USED FOR.
Option 2 is used to print on the printer or to display on your
computer's screen an unadjusted trial balance from the general ledger.
. When Option 2 starts execution, you will be given the option of
having the output to be directed to either your printer or your
computer's screen. Make your selection by entering `1' or `2' to
this question, which appears on the screen:
ENTER `1' FOR OUTPUT TO GO TO THE PRINTER OR `2' TO THE SCREEN. _
After the unadjusted trial balance has been printed, the following
appears:
DISPLAY THE TRIAL BALANCE AGAIN, OR PRINT IT? (Y/N) _
If you enter "Y", the first message, above, reappears. Thus, you may
display the trial balance over and over and then print it, all in one
processing session.
This chapter will be short because, other than responding to standard
message and reminders mentioned in Chapter 2, CPA-LEDGER does most of
the work.
If you completed the Practice section of Chapter 6, you already know
how to use Option 2. The Practice section of Chapter 6 also asked you
to enter two entries in the general ledger. The two entries, of
course, changed some of the trial balance dollar amounts.
In the Practice section of this chapter, you will be asked to prepare
a second unadjusted trial balance. Then, you may compare the two
trial balances (one from Chapter 6 and one from this chapter) to see
how the dollar amounts changed.
FOOTNOTE DISCLOSURES.
Footnote disclosures are usually included financial statements. In
our opinion, the unadjusted trial balance should not be an exception.
The objective of footnotes is to disclose all relevant information
needed for economic decisions but which cannot be effectively
communicated in any other manner.
Full disclosure is important so that the unadjusted trial balance will
not be misleading. Examples of common disclosures are:
53
. An explanation of all significant accounting policies of the
company, such as depreciation methods, amortization of
intangibles, and inventory costing methods.
. An explanation of adjustments needed to bring the unadjusted
trial balance up-to-date. The merchandise inventory date
should be disclosed. Old inventory values are common on
unadjusted trial balances.
. Details of pension plans.
. Maturity dates on payables and receivables.
. Certain restrictions related to long-term debt.
. Long-term leases.
. Contingencies.
. Any changes in accounting principles.
After the unadjusted trial balance has been printed (but NOT if you
display it on your screen), Option 2 displays a message on your
computer screen that:
. Informs you of the importance of footnote disclosures.
. Identifies common types of disclosures.
. Shows an example of a disclosure that you can use as a guide.
After you have had a chance to read the message, Option 2 continues by
asking if you would like to include footnote disclosures as part of
the trial balance. If your answer is no, you will be returned to the
DAILY menu.
If your answer is yes, you will be asked to enter each disclosure, one
at a time. The disclosures will be consecutively numbered,
automatically, and will be printed on pages that follow the unadjusted
trial balance. The following is an example of a disclosure.
FOOTNOTE DISCLOSURES.
Note 1. Long-Term Notes Payable ($50,000) shown in the unadjusted
trial balance is payable in 1990 ($20,000) and 1991
($30,000).
There is no limit to the number of disclosures that you can make.
54
Practice.
Prepare an unadjusted trial balance, using the instructions contained
in the Practice section of Chapter 6. Compare the dollar amounts on
the trial balance with the dollar amounts on the trial balance that
you prepared in the previous chapter. Notice that the dollar amounts
changed based on the dollar value of the two general ledger entries
that you entered.
CHP8.TXT
55
CHAPTER 8
DAILY MENU - OPTION 3
WHAT OPTION 3 IS USED FOR.
DAILY Option 3 is used for printing:
. A cumulative Income Statement, with or without footnote
disclosures,
. A cumulative Balance Sheet, with or without footnote
disclosures,
. Cumulative Statements of Owners' Capital (for partnerships and
proprietorships - see chapters 18 & 19), and
. A ratio analysis of the cumulative Income Statement &
cumulative Balance Sheet.
. An Income Statement for a month or a for continuous series of
months, with or without footnote disclosures. ("Continuous
series" means that the months must be in order - such as
January, February, and March. "Continuous series" does NOT
mean, for example, January and March because February is
missing. Just to be sure you understand, let's assume that
you would like to print ONE Income Statement for January and
March, ONLY. (It's not possible in ONE Income Statement, to
get to the point.) Continuing, you enter the beginning date as
January and the ending date as March. Assuming that you have
previously entered transactions for January through March,
CPA-LEDGER will search the data base and accumulate all
transactions for the period January, February, & March. Here
is one final point - CPA-LEDGER does NOT check to see if you
have entered your transactions - it merely searches the data
base for the period that you request and accumulates
transactions (zero and otherwise) for that period. For
example, assume that you have entered transactions for January
only and ask for an Income Statement that covers the period
January and February. Your financial statement's printed data
will be for January - because you haven't entered transactions
for the entire period that you requested. If you not sure you
understand, contact Jim Foster (see the cover page of the
User's Manual).
Refer to Chapter 2 for an explanation of the standard messages and
reminders that are part of Option 3. After the standard messages and
reminders, Option 3 asks for:
56
. The beginning and ending dates to be printed on your financial
statements.
. The value of the ending merchandise inventory, IF you
previously directed CPA-LEDGER to include a Cost of Goods Sold
Section in your Income Statement. (See Appendix A.) If you ask
for an Income Statement for a month (or a series of months),
CPA-LEDGER also asks for the value of both beginning and
ending inventories, PROVIDED, of course, that you previously
asked for the Cost of Goods Sold to be included in your Income
Statement.
. Information about primary and contra accounts.
. Make very sure that you understand the concept of primary
and contra accounts before you use this feature of
CPA-LEDGER. Improper classification of accounts as
having primary/contra relationships can cause your
financial statements to be incorrect. If you need
assistance in this area, contact your local CPA.
If you want cumulative financial statements, the Income Statement is
printed first, followed by the Balance Sheet. After both statements
have been printed, Option 3 prints ratios pertaining to the reported
financial data.
If you want a monthly Income Statement, it is printed and you are
returned to the DAILY menu, after, of course, you add any desired
footnotes to the statement.
OPTION 3 SEQUENCE OF EXECUTION AND AN ILLUSTRATION.
Option 3 begins execution by asking which type of financial
statement(s) that you wish. This screen appears:
57
YOU HAVE TWO OPTIONS FOR FINANCIAL STATEMENTS.
1. PRINT AN INCOME STATEMENT & BALANCE SHEET.
(Note: The Statement of Partners'/Owner's Capital is also
identified for partnerships/sole proprietorships.
. THIS OPTION PRINTS FINANCIAL STATEMENTS FOR THE ENTIRE
ACCOUNTING PERIOD - FROM THE FIRST OF THE YEAR TO THE LAST
TRANSACTION THAT YOU ENTERED. FOR EXAMPLE, ASSUME THAT YOU
STARTED YOUR GENERAL LEDGER AS OF JANUARY 1 AND THAT THE LAST
TRANSACTION THAT YOU ENTERED WAS DATED JUNE 30. ALL FINANCIAL
STATEMENTS WILL BE FOR THE PERIOD JANUARY 1 THRU THE LAST
TRANSACTION THAT YOU ENTERED ON JUNE 30.
2. PRINT AN INCOME STATEMENT FOR ANY ONE MONTH OR ANY SERIES OF
CONTINUOUS MONTHS.
. FOR EXAMPLE, YOU CAN PRINT AN INCOME STATEMENT FOR JANUARY,
FOR JANUARY THRU FEBRUARY, FOR JANUARY THRU MARCH, FOR
FEBRUARY THRU JUNE, OR FOR ANY OTHER PERIOD. THE ONLY
REQUIREMENT IS THAT THE MONTHS MUST BE CONTINUOUS AND THAT YOU
MUST HAVE ENTERED TRANSACTIONS FOR THOSE MONTHS - IF YOUR
INCOME STATEMENT INCLUDES A COST OF GOODS SOLD SECTION, YOU
WILL BE ASKED FOR THE VALUES OF BOTH (1) BEGINNING & (2)
ENDING INVENTORY. BE PREPARED TO ENTER THOSE VALUES.
DO YOU WISH TO CONTINUE? (Y/N) _
If you enter "N", the DAILY menu reappears. If you answer "Y", the
question, above, "DO YOU WISH TO CONTINUE? (Y/N) is replaced by this
question:
WHICH FINANCIAL STATEMENT OPTION DO YOU WISH? _
If you enter "1", the option for cumulative financial statements is
processed. If you answer "2", CPA-LEDGER processes the monthly
financial statement option.
The following discussion takes up (1) cumulative financial statements
first, (2) followed by monthly ones, (3) followed by processing that
is the same for both cumulative and monthly financial statements.
Processing, as far as you are concerned, is almost the same for either
cumulative or monthly Income Statements. To distinguish the
differences, the following discussion will be subdivided into
"CUMULATIVE FINANCIAL STATEMENTS ONLY", (2) "MONTHLY INCOME STATEMENT
ONLY", AND (3) "BOTH CUMULATIVE AND MONTHLY FINANCIAL STATEMENTS".
58
CUMULATIVE FINANCIAL STATEMENTS ONLY.
After the standard messages and reminders, Option 3 begins by
requesting that you enter two dates and the value of ending inventory.
The requests and the assumed input ("010184", "123184", and
"112250.00") are:
DATES, BELOW, DO NOT GOVERN THE PERIOD COVERED FOR FINANCIAL STATEMENT
AMOUNTS. THE DATES ARE FOR PRINTING PURPOSES ONLY.
ENTER THE BEGINNING DATE TO BE PRINTED ON ALL FINANCIAL STATEMENTS.
(USE FORMAT MMDDYY. I.E., JUNE 30,1984 = 063084.) 010184
ENTER THE ENDING DATE TO BE PRINTED ON ALL FINANCIAL STATEMENTS.
(USE FORMAT MMDDYY. I.E., DECEMBER 31,1984 = 123184.) 123184
ENTER VALUE OF ENDING INVENTORY. 112250.00
(Note: You are asked for the value of the ending inventory ONLY if
you set up accounts for beginning inventory and one or more
accounts related to purchases. See Appendix A.
MONTHLY FINANCIAL STATEMENTS ONLY.
Dates to be printed on the Income Statement are requested, in the same
manner as explained above for "CUMULATIVE FINANCIAL STATEMENTS ONLY" -
except that the dates requested are those to be printed on the Income
Statement. After entering the dates, the following screen appears
ONLY IF YOU REQUESTED CPA-LEDGER TO INCLUDE A COST OF GOODS SOLD
SECTION IN YOUR INCOME STATEMENT. See Appendix A.
ENTER THE VALUE OF BEGINNING INVENTORY ___________
ENTER THE VALUE OF ENDING INVENTORY ___________
After entering the inventory values, the following screen appears, in
all cases, whether or not you have a Cost of Goods Sold Section in
your Income Statement:
59
AS REQUESTED BELOW, ENTER THE BEGINNING AND ENDING MONTHS TO BE
COVERED BY THE INCOME STATEMENT. USE FORMAT `MM'. I.E., JANUARY =
01, FEBRUARY = 02, ETC. THE ENDING MONTH MUST BE EQUAL TO OR GREATER
THAN THE BEGINNING MONTH AND ALL MONTHS MUST BE EQUAL TO OR BETWEEN 01
AND 12.
ENTER BEGINNING MONTH __
ENTER ENDING MONTH __
(Note: The dates entered DO NOT control the beginning and ending
dates printed on the Income Statement. Printing dates are asked for
when the program first starts to execute.)
After you enter the ending month, the following question appears on
the same screen:
REVIEW YOU DATES. ARE THEY CORRECT? (Y/N) _
If you enter "N", you are asked to reenter the beginning and ending
months. If you answer "Y", processing continues as described below
for "BOTH CUMULATIVE AND MONTHLY FINANCIAL STATEMENTS". Before
leaving the monthly financial statement, however, there are two final
points.
---->POINT 1. If you are already using CPA-LEDGER, run the program titled
"UPDATE.BAS" that is on the Program Disk. UPDATE.BAS will start your
monthly data base. Know this - the monthly data base will be updated
each time that you post the general ledger from the date that you run
UPDATE.BAS; however, IT DOES NOT update the monthly data base for your
previous transactions. For example, it you are already using
CPA-LEDGER and the day that you run UPDATE.BAS is June 16, the monthly
data base will be updated each time that you post the general ledger
June 16 and thereafter.
---->POINT 2. There is a process that CPA-LEDGER follows that you should
know about. CPA-LEDGER uses a data base that summarizes monthly
transactions to prepare your Income Statement. If the data base
become unusable, the following message will appear:
60
PROCESSING ERROR. MONTHLY DATA BASE RECORD NOT FOUND. DISCONTINUE
YOUR USE OF CPA-LEDGER UNTIL YOU CONTACT JIM FOSTER AT
(703)569-2254. CALL (OR WRITE IF YOU PREFER) JIM FOSTER AND GIVE
HIM THIS MESSAGE:
A message for Jim appears here.
PRESS ANY KEY TO CONTINUE.
As the message states, you should discontinue using CPA-LEDGER and
contact Jim Foster. (You should rarely, if ever, see the message - it
will appear only if CPA-LEDGER notices that notices that the data base
is not usable. The message is listed in this manual so that you will
know what to do - contact Jim Foster. In the meantime, be sure that
you keep frequent backups of your data files (those with an extension
of .FIL)).
BOTH CUMULATIVE AND MONTHLY FINANCIAL STATEMENTS.
The illustration that follows is for the Income Statement. Option 3
processing for the Balance Sheet is the same, except for the name of
the financial statement, account titles, and account numbers. After
you enter the two dates and the inventory value (above), Option 3
continues with:
THE PURPOSE OF THESE INSTRUCTIONS IS TO EXPLAIN THE MEANING OF
`PRIMARY' AND `CONTRA' ACCOUNTS. YOU SHOULD UNDERSTAND THESE
INSTRUCTIONS BEFORE YOU CONTINUE.
A `CONTRA' ACCOUNT IS AN ACCOUNT WHOSE BALANCE IS SHOWN ON THE
INCOME STATEMENT AS EITHER AN ADDITION TO OR A SUBTRACTION FROM
ANOTHER ACCOUNT. FOR EXAMPLE, THE BALANCE OF THE ACCOUNT `PURCHASE
RETURNS AND ALLOWANCES' IS SHOWN ON THE INCOME STATEMENT AS A
SUBTRACTION FROM THE ACCOUNT `PURCHASES'. `PURCHASE RETURNS AND
ALLOWANCES' IS THE ***CONTRA*** ACCOUNT AND `PURCHASES' IS THE
***PRIMARY*** ACCOUNT. IT IS IMPORTANT THAT YOU UNDERSTAND THE
MEANING OF `PRIMARY' AND `CONTRA' ACCOUNTS' BEFORE YOU CONTINUE.
YOU CAN IDENTIFY `PRIMARY' AND `CONTRA' ACCOUNTS, AS WELL AS THEIR
ACCOUNT NUMBERS, FROM A TRIAL BALANCE OR A LISTING OF ACTIVE
ACCOUNTS. IN THE QUESTIONS THAT FOLLOW AFTER THESE INSTRUCTIONS,
YOU WILL BE ASKED TO ENTER THE ACCOUNT NUMBERS OF PRIMARY AND
CONTRA ACCOUNTS.
PRESS ANY KEY TO CONTINUE.
After you press a key, the following appears on your computer screen:
61
DOES THE INCOME STATEMENT CONTAIN ANY CONTRA ACCOUNTS?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If you answer `N', Option 2 prints the Income Statement. If you
answer `Y', the following appears on your computer screen:
ENTER THE QUANTITY OF *** PRIMARY *** ACCOUNTS THAT HAVE CONTRA
ACCOUNTS. YOU SHOULD DETERMINE THIS QUANTITY BY REVIEWING A
CURRENT TRIAL BALANCE OR A LISTING OF ACTIVE ACCOUNTS.
ENTER THE QUANTITY OF PRIMARY ACCOUNTS NOW. IF YOU HAVE MADE A
MISTAKE AND WISH TO INDICATE THAT THERE ARE NO PRIMARY ACCOUNTS
WITH CONTRA ACCOUNTS, ENTER A ZERO (0). _
If you enter a zero, Option 3 starts printing the Income Statement. If
you enter one or another number up through 20 (there is a limit of 20
primary accounts), Option 3:
. Displays instructions on how you should proceed.
. Asks for pertinent information that pertains to each primary
and contra account.
An example follows, assuming one primary and one contra account. The
primary account is Sales (account number 171), and the contra account
is Sales Returns and Allowances (account number 175).
62
ENTER THE PRIMARY AND CONTRA ACCOUNT NUMBERS BELOW. PAY ATTENTION
TO THE TYPE OF INPUT THAT IS REQUESTED. WORK FROM A CURRENT TRIAL
BALANCE. THE INPUT THAT YOU MAKE (BELOW) WILL BE DISPLAYED (LATER)
FOR YOUR REVIEW AND APPROVAL OR DISAPPROVAL. IF YOU DISAPPROVE THE
INPUT, YOU WILL BE ASKED TO REENTER ALL OF THE DATA - STARTING AT
THE POINT WHERE THE COMPUTER ASKS IF THERE ARE ANY PRIMARY AND
CONTRA ACCOUNTS TO BE CONSIDERED. THUS, IF YOU REJECT YOUR INPUT,
IT WILL BE COMPLETELY ERASED FROM THE COMPUTER'S MEMORY AND YOU
WILL BE GIVEN A FRESH START.
ENTER THE ACCOUNT NUMBER FOR *** PRIMARY *** ACCOUNT 1. 171
(Note: See the note immediately below.)
ENTER THE ACCOUNT NUMBER FOR *** CONTRA *** ACCOUNT 1. 175
(Note: CPA-LEDGER will not accept an inactive account,
an active account with a zero balance, or a
valid account more than one time.)
ENTER THE QUANTITY OF CONTRA ACCTS. FOR THE ABOVE
PRIMARY ACCT. (LIMIT 2) 1
The sequence followed by Option 3 in asking for the above data is:
. First, you are asked to enter the account number for the
primary account. (See the first input line.)
. Next, you are asked to enter the quantity of contra accounts.
Note that there is a limit of two contra accounts for each
primary account. (See the third input line.)
. Finally, you are asked for the account numbers of up to two
contra accounts, depending on your input on the third input
line. (See the second input line.)
This process is repeated for each primary account that has an
offsetting contra account. After your entries are complete, the
following will appear on the computer screen:
63
YOUR INPUT WILL BE DISPLAYED FOR YOUR REVIEW. ACCOUNT NUMBERS, AS
WELL AS ACCOUNT TITLES WILL BE DISPLAYED. IT IS VERY IMPORTANT
THAT THE INPUT BE ABSOLUTELY CORRECT BEFORE THE PROGRAM USES IT TO
PREPARE THE INCOME STATEMENT. OTHERWISE, THE STATEMENT MAY BE
INCORRECTLY PREPARED. SO, REVIEW THE DATA V-E-R-Y CAREFULLY AND
NOTE ANY ERRORS.
TO THE LEFT ON THE SCREEN WILL BE ONE PRIMARY ACCOUNT, WITH THE
RELATED CONTRA ACCOUNT(S) TO THE RIGHT. STUDY THE DISPLAYED DATA
VERY C-A-R-E-F-U-L-L-Y AND NOTE ANY INPUT ERRORS. STUDY THE
ACCOUNT TITLES, AS WELL AS THE ACCOUNT NUMBERS. IT IS EXTREMELY
IMPORTANT THAT YOUR INPUT FOR THE PRIMARY AND CONTRA ACCOUNTS BE
ABSOLUTELY CORRECT.
AFTER YOU FINISH YOUR REVIEW, YOU WILL BE ASKED TO INDICATE WHETHER
YOUR INPUT WAS OR WAS NOT CORRECT. IF YOU INDICATE THAT YOUR INPUT
WAS INCORRECT, THE COMPUTER WILL ASK YOU TO REENTER YOUR DATA, FROM
THE BEGINNING.
PRESS ANY KEY TO CONTINUE.
After you press a key to continue, the following will appear on your
screen: (Refer to the previously entered account number 175 (Sales
Returns and Allowances) as a contra account to primary account number
171 (Sales). These entries were made, above, when Option 3 asked for
the account numbers of primary and contra accounts.)
YOUR INPUT (WITH ACCOUNT TITLES) IS DISPLAYED BELOW. CAREFULLY
REVIEW THE INPUT AND NOTE ANY ERRORS. ONE PRIMARY ACCOUNT, WITH
THE ACCOUNT NUMBER AND TITLE, IS ON THE SCREEN TO THE LEFT. THE
RELATED CONTRA ACCOUNT(S), WITH ACCOUNT NUMBER(S) AND TITLE(S), IS
ON THE SCREEN TO THE RIGHT. CONSIDER IT TO BE AN INPUT ERROR IF
ACCOUNT NUMBERS DO NOT CORRESPOND TO THE ACCOUNT TITLES. ALSO
CONSIDER IT TO BE AN INPUT ERROR IF THE DISPLAYED CONTRA ACCOUNT(S)
DO NOT RELATE TO THE DISPLAYED PRIMARY ACCOUNT. (IF ALL OF YOUR
ACCOUNT NUMBERS ARE NOT SHOWN BELOW, THEY WILL APPEAR WHEN YOU
PRESS A KEY TO CONTINUE.)
****** PRIMARY ACCOUNT ****** ****** CONTRA ACCOUNT ******
ACCT. ACCT.
NBR. ACCOUNT TITLE NBR. ACCOUNT TITLE
171 SALES 175 SALES RETURNS & ALLOWANCES
DISPLAY IS COMPLETE. PRESS ANY KEY TO CONTINUE.
64
After you press a key, the following appears on you screen:
WERE ALL PRIMARY / CONTRA ACCOUNTS CORRECT AS DISPLAYED? (IF YOU
INDICATE THAT THEY WERE N-O-T CORRECT, YOU WILL BE ASKED TO ENTER
THE DATA AGAIN.)
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If your answer is `N', Option 3 will ask you reenter all of your input
about the primary and contra accounts, beginning with the question
"DOES THE INCOME STATEMENT INCLUDE ANY CONTRA ACCOUNTS?".
If your answer is `Y', Option 3 prints the Income Statement.
ERROR MESSAGES.
Like all CPA-LEDGER options, Option 3 monitors your input to help
ensure that you do not make a mistake. In some cases, the system will
merely refuse to accept your input. An example is where you enter a
date in the incorrect format - perhaps you enter 20 for the month. In
these cases, instructions for correct input are already displayed on
the screen.
In other cases, however, you will need a more detailed explanation.
The following is a summary of the error messages that you may
encounter.
INACCURATE ENTRY FOR THE BEGINNING OR ENDING FINANCIAL STATEMENT DATES.
In this case, the system refuses to proceed until you enter the
correct range of values. Instructions are on the computer screen.
INACCURATE ENTRY FOR THE BEGINNING INVENTORY OR ENDING INVENTORY.
If you enter anything except zeros through nines and a decimal point
to separate dollars and cents, the following message will appear below
your input:
ENTRY IS INCORRECT. TRY AGAIN.
PRESS ANY KEY TO CONTINUE.
After pressing a key, you will be asked to reenter the ending
inventory value.
65
INACCURATE ENTRY FOR PRIMARY OR CONTRA ACCOUNT NUMBERS.
An incorrect entry for primary or contra account numbers may fall into
several areas. They are:
. You might not enter a numeric value - ZZ for example. In this
case, Option 1 requests that you reenter your input.
. You might enter an account number that is not on the financial
statement that is about to be printed. In this case, the
following message appears at the top of the computer screen:
YOUR ENTRY FOR THE ACCOUNT NUMBER WAS (a number is shown).
THAT ACCOUNT NUMBER IS NOT INCLUDED IN THE (the financial
statement to be printed is identified). STUDY A CURRENT TRIAL
BALANCE AND CORRECT YOUR INPUT.
PRESS ANY KEY TO CONTINUE.
. You might enter the same account number the second time. In
that case the following message appears at the top of your
computer screen:
YOU ENTERED THE SAME ACCOUNT NUMBER A SECOND TIME. A PRIMARY
OR CONTRA ACCOUNT SHOULD BE IDENTIFIED ONE TIME ONLY. STUDY A
CURRENT TRIAL BALANCE AND CORRECT YOUR INPUT.
PRESS ANY KEY TO CONTINUE.
. You might enter an inactive account number or an active
account with a zero balance. In that event the following
appears at the top of your screen:
ERROR - INACTIVE ACCOUNT OR ACCOUNT WITH A ZERO BALANCE. YOUR
INPUT CALLS FOR ACCT. NUMBER (a number is shown). STUDY A
CURRENT TRIAL BALANCE AND CORRECT YOUR INPUT.
PRESS ANY KEY TO CONTINUE.
After you press a key, Option 3 asks if you wish to start again. If
so, you are asked again if there are any primary accounts that have
contras. If you indicate that you do not wish to start again, Option 3
continues where it left off.
PRINTED OUTPUT.
As already mentioned, printed output from Option 3 will be:
66
. FOR CUMULATIVE FINANCIAL STATEMENTS.
. First, an Income Statement. And, if you ordered the footnote,
Balance Sheet, and analysis capabilities of CPA-LEDGER (see
pages ii and iii of this manual), the processing will
continue, as follows:
. Second, footnote disclosures for the Income Statement.
. Third, a Balance Sheet.
. Fourth, footnote disclosures for the Balance Sheet.
. Fifth, ratios pertaining to amounts shown on the Income
Statement and the Balance Sheet.
. FOR MONTHLY FINANCIAL STATEMENTS.
. The Income Statement is printed, followed by footnotes to the
Income Statement. Then you are returned to the DAILY menu.
For cumulative financial statements, if you do not have CPA-LEDGER's
footnote, Balance Sheet, and ratio capabilities, you will be returned
to the DAILY menu once the Income Statement is printed. Otherwise,
the processing continues, as indicated above (footnotes for the Income
Statement, the Balance Sheet, footnotes for the Balance Sheet, and a
ratio analysis of information on both the Income Statement and the
Balance Sheet).
Because the output from Option 1 can be quite lengthy, sample output
not shown in this chapter. Rather, the example for the Income
Statement will come from the practice section that is to follow.
The Balance Sheet, also not illustrated, is quite detailed. For
example, accounts are grouped by account classification (current
assets, operational assets, current liabilities, long-term
liabilities, contributed capital, retained earnings, etc.). Subtotals
and final totals are shown, contra and primary accounts are offset and
then the contra account is subtracted from primary account, with the
net balance also being printed. Totals are shown for various captions
such as current assets, operational assets, current liabilities,
long-term liabilities, total assets, and total liabilities and owners'
equity.
67
FOOTNOTE DISCLOSURES.
Footnote disclosures are usually included with financial statements.
The objective of these footnotes is to disclose all relevant
information needed for economic decisions but which cannot be
effectively communicated in any other manner.
Full disclosure is important so that the financial statements will not
be misleading. Examples of common disclosures are:
. An explanation of all significant accounting policies of the
company, such as depreciation methods, amortization of
intangibles, and inventory costing methods.
. Details of pension plans.
. Maturity dates on payables and receivables.
. Certain restrictions related to long-term debt.
. Long-term leases.
. Contingencies.
. Any changes in accounting principles.
If you have ordered the additional capabilities (see pages ii and iii
of this manual), Option 3 displays a message on your computer screen
after either the Income Statement or the Balance Sheet has printed.
The message:
68
. Reminds you of the importance of footnote disclosures.
. Identifies common types of disclosures for the financial
statement that has just been printed.
. Shows an example of a disclosure that you can use as a guide.
After you have had a chance to read the message, Option 3 continues by
asking if you would like to include any footnote disclosures in the
financial statement. If your answer is no, the footnotes are
bypassed.
If your answer is yes, you will be asked to enter each disclosure, one
at a time. Option 3 consecutively numbers each disclosure and gives
you a chance to make corrections before they are printed.
The following is an example of a disclosure that Option 3 might print.
(You enter the narrative, beginning with "Long-Term Notes Payable" and
ending with "... and 1987 ($30,000).". CPA-LEDGER does everything
else.
FOOTNOTE DISCLOSURES.
Note 1. Long-Term Notes Payable ($50,000) shown in the Balance
Sheet are payable in 1986 ($20,000) and 1987 ($30,000).
68-1
FINANCIAL STATEMENT ANALYSIS.
First, remember this - financial statement analysis is for cumulative
financial statements ONLY. They are NOT printed for monthly Income
Statements.
Financial statements give valuable information concerning the position
of a business and the results of its operation. Analysis of data on
financial statements is necessary in reaching conclusions about
financial matters. When the financial position of a business is being
considered, three factors are usually of primary interest. They are:
. Solvency. To be solvent, a business must be able to meet its
liabilities as they mature. Statements are analyzed to
determine if the business is, and will likely continue to be,
solvent.
. Profitability. Profitability is measured by earnings shown on
Income Statements. The nature, amount, and regularity of
earnings are important in appraising profitability.
. Endurability. To be endurable, a business must be able to (1)
meet both short-term and long-term obligations and (2) provide
a reasonable return to the owners. Solvency, profitability,
and efficient use of resources are important in appraising
endurability.
There are many available methods for analyzing financial statements.
One method is to use financial and operating relationships expressed
in the terms of "ratios". CPA-LEDGER presents several ratios that may
be helpful in analyzing your financial statements.
You should understand, however, that ratios have little significance
unless they are judged after applying appropriate standards. Standards
might consist of:
. Ratios of your industry.
. Ratios of other companies that are within your industry and
that are in your local area.
. Past ratios of your company.
You should also understand that the ratios that you will need for a
particular analysis depends upon the purpose of that analysis.
CPA-LEDGER presents several ratios that may assist you in making a
preliminary study of the solvency, profitability, and endurability of
your business. We caution you, however, that no attempt has been made
to give CPA-LEDGER capability for complete financial statement
analysis. Carefully read the two paragraphs that follow "EXPLANATION
OF RATIOS" on page 66.
68-2
RATIOS PREPARED BY OPTION 3.
Option 3 automatically prepares over a dozen ratios for your study.
(Assuming, that is, that your financial statements have the data
necessary to compute the ratios.) They ratios are:
. Ratios for solvency analysis:
. Current ratio.
. Ratio of working capital to total assets.
. Ratio of cash in bank to current liabilities.
. Ratio of sales to accounts receivable.
. Distribution of cash, accounts receivable, and inventory:
. Cash in bank to the total of the three.
. Accounts receivable to the total of the three.
. Merchandise inventory to the total of the three.
. Ratios for profitability analysis:
. Ratio of operating income to net sales.
. Ratio of net profit to net sales.
. Ratio of gross profit to net sales.
. Ratio of operating expenses to net sales.
. Operating ratio.
. Ratio of net income to owners' equity.
. Ratios for endurability analysis.
. Ratio of assets provided by creditors.
. Ratio of assets provided by owners.
. Ratio of owner's equity to fixed assets.
. Ratio of current assets to total liabilities.
. Ratio of operating income to total assets.
Option 3 not only prints the ratios. It also prints a short
explanation on how each ratio can be used in studying the results of
operations.
SAMPLE PRINTOUT OF THE ANALYSIS OF FINANCIAL STATEMENTS.
The following is a sample printout of how Option 3 presents the
analysis of the Income Statement and the Balance Sheet:
68-3
RATIOS FOR SOLVENCY ANALYSIS.
CURRENT RATIO 250.5 %
RATIO OF WORKING CAPITAL TO TOTAL ASSETS 15.9 %
RATIOS FOR PROFITABILITY ANALYSIS.
RATIO OF OPERATING INCOME TO NET SALES 15.0 %
RATIO OF NET INCOME TO OWNER'S EQUITY 8.5 %
RATIOS FOR DURABILITY ANALYSIS.
RATIO OF ASSETS PROVIDED BY CREDITORS 21.5 %
RATIO OF ASSETS PROVIDED BY OWNERS 78.5 %
EXPLANATION OF RATIOS.
THOROUGH ANALYSIS OF FINANCIAL STATEMENTS IS A SPECIALIZED AREA THAT
REQUIRES PROFESSIONAL TRAINING AND JUDGEMENT. ALSO, CPA-LEDGER IS
NOT DESIGNED TO PROVIDE FINANCIAL STATEMENT ANALYSIS TO COVER ALL
NEEDS IN ALL CIRCUMSTANCES. DO NOT MAKE FINAL JUDGMENTS BASED ON
RATIOS THAT COME FROM CPA-LEDGER. INSTEAD, USE THE RATIOS AS
GENERAL GUIDELINES AND GET PROFESSIONAL ASSISTANCE BEFORE YOU MAKE
ANY CONCLUSIONS OR DECISIONS.
BEFORE INTERPRETING RATIOS FOR YOUR BUSINESS, YOU SHOULD DEVELOP
STANDARDS AS TO WHAT CONSTITUTES A HIGH RATIO AND WHAT CONSTITUTES A
LOW RATIO. YOU CAN DO THIS BY USING PAST HISTORY OF YOUR BUSINESS,
BY CONSULTING INDUSTRY STANDARDS, AND BY CONSULTING, IF AVAILABLE,
RATIOS OF SELECTED COMPETING COMPANIES IN YOUR LOCAL AREA. IN
SETTING YOUR STANDARDS, REMEMBER THAT THERE IS A DELICATE BALANCE
BETWEEN A RATIO THAT IS TOO HIGH AND A RATIO THAT IS TOO LOW.
CURRENT RATIO.
THE CURRENT RATIO IS COMPUTED BY DIVIDING TOTAL CURRENT ASSETS
BY TOTAL CURRENT LIABILITIES. THIS RATIO IS A MEASURE OF A
BUSINESS' ABILITY TO MEET ITS CURRENT OBLIGATIONS. A RULE OF
THUMB IS THAT THE CURRENT RATIO IS UNSATISFACTORY IF IT IS LESS
THAN 200 PERCENT. HOWEVER, AS MENTIONED, DEVELOP YOUR OWN
STANDARD. ALSO CONSIDER THE FOLLOWING:
. YOUR BUSINESS CAN HAVE A HIGH CURRENT RATIO AND STILL HAVE
A CASH DEFICIENCY.
. A HIGH CURRENT RATIO MAY BE THE RESULT OF OVERSTOCKING OF
INVENTORY.
. A HIGH CURRENT RATIO MAY INDICATE EXCESS FUNDS WHICH SHOULD
BE PUT TO BETTER USE, SUCH AS INVESTING IN SHORT-TERM
SECURITIES.
68-4
RATIO OF WORKING CAPITAL TO TOTAL ASSETS.
THIS RATIO IS COMPUTED BY DIVIDING CURRENT ASSETS MINUS CURRENT
LIABILITIES BY TOTAL ASSETS. THE RATIO IS A MEASURE OF THE
DISTRIBUTION AND LIQUITY OF ASSETS AFTER CURRENT LIABILITIES
HAVE BEEN DEDUCTED FROM CURRENT ASSETS. A HIGH RATIO MIGHT
INDICATE:
. EXCESSIVE ACCOUNTS RECEIVABLE, DUE TO POOR COLLECTION
PERFORMANCE.
. UNUSED CASH THAT POSSIBLY SHOULD BE PUT TO BETTER USE, SUCH
INVESTMENT IN SHORT-TERM SECURITIES.
. OVERSTOCKING OF INVENTORY. A SHIFT FROM THE MORE CURRENT
ASSETS OF CASH AND RECEIVABLES TO INVENTORY IS USUALLY
REGARDED AS UNDESIRABLE.
A LOW RATIO MAY INDICATE A WEAKNESS IN THE CURRENT POSITION.
(SEE THE CURRENT RATIO.)
For brevity, additional explanations of the ratios are not shown in
this chapter. The remaining explanations are similar in nature.
The public domain version of CPA-LEDGER does not have capability for
analyzing financial statements. If you would like to have this added
feature, refer to the instructions on pages ii and iii of this User's
Manual.
Practice.
Use Option 3 and your practice general ledger to prepare a CUMULATIVE
Income Statement - Option 1 of financial statement menu.
. Use the following input:
. Beginning date for the Income Statement is 010185
. Ending date for the Income Statement is 022885.
. The value of the ending inventory is $112,250.00.
(Use 112250.00 as your input.)
. The primary and contra accounts are:
(Note that Sales and Purchases have two contra
accounts each.)
68-5
------PRIMARY ACCOUNT------ ---------CONTRA ACCOUNT--------
ACCT. ACCT.
NO. ACCOUNT TITLE NO. ACCOUNT TITLE
INCOME STATEMENT:
171 SALES 175 SALES RETURNS AND ALLOWANCES
179 SALES DISCOUNT
185 MERCHANDISE PURCHASES 189 PURCHASE RETURNS & ALLOWANCES
193 PURCHASES DISCOUNT
After printing the CUMULATIVE financial statements, use Option 3 of
the DAILY menu once again. This time, ask for an Income Statement for
March. When your are asked:
Enter 03 for the beginning date.
Enter 03 for the ending date.
Enter 10000 for the beginning inventory.
Enter 9500 for the ending inventory.
---->Your practice disk does not include any "monthly" postings for any
month other than March. These transactions were entered for the sole
purpose of allowing you to practice using the monthly Income Statement
feature. The March transactions are not intended to be fully
consistent with January transactions, which were created in the past.
CHP9-11.TXT
69
CHAPTER 9
DAILY MENU - OPTION 4
WHAT OPTION 4 IS USED FOR.
DAILY Option 4 is for selecting and printing or displaying on your
computer screen transactions that you posted to the general ledger
while using DAILY Option 1. You may select and print transactions
based on:
. Dates.
. Account numbers.
. Dollar amounts.
. Check numbers.
. Document numbers or other information entered as the posting
reference.
This capability comes in handy if you want to review a previously
entered transaction. An example might be to determine which entries
were made on a particular date. Or, you might want to know if a check
has been posted to the records. The list is endless. Whatever your
reason, Option 4 will scan the entire general ledger and search for
the transactions. If found, they will be printed or displayed (as you
specify) for your review.
Remember, the transactions printed or displayed are those that you
posted to the general ledger while using DAILY Option 1.
OPTION 4 SEQUENCE OF EXECUTION AND AN ILLUSTRATION.
Refer to Chapter 2 for the standard messages and reminders that are
part of Option 4. After the standard messages and reminders, the
following will appear on your computer screen.
ENTER `1' FOR OUTPUT TO GO TO THE PRINTER OR `2' TO THE SCREEN. _
Following your input, CPA-LEDGER asks for your search criteria. (The
second request for input, shown below, appears after you give your
answer to the first request. For clarity of illustration, both are
shown together. The assumed answer to the first request is "3" and
the assumed answer to the second request is "1".)
70
SELECT ONE OF THE FOLLOWING NUMBERS. EXCEPT FOR NUMBER 6, YOUR
SELECTION WILL GOVERN WHAT ADDITIONAL INPUT WILL BE REQUESTED.
1. A SPECIFIC TRANSACTION DATE OR A RANGE OF TRANSACTION DATES.
2. A SPECIFIC ACCOUNT NUMBER OR A RANGE OF ACCOUNT NUMBERS.
3. A SPECIFIC DOLLAR AMOUNT OR A RANGE OF DOLLAR AMOUNTS.
4. A SPECIFIC CHECK NUMBER OR A RANGE OF CHECK NUMBERS.
5. A SPECIFIC POSTING REFERENCE.
6. NO CRITERIA - ALL GENERAL LEDGER ENTRIES WILL BE PRINTED.
WHICH NUMBER DO YOU SELECT? 3
SELECT ANOTHER NUMBER. LIKE THE FIRST NUMBER, YOUR SELECTION WILL
GOVERN WHAT ADDITIONAL INPUT WILL BE REQUESTED.
1. A SPECIFIC TRANSACTION MONTH AND DAY, SUCH AS MAY 16.
2. A SPECIFIC TRANSACTION MONTH, SUCH AS MAY.
3. A RANGE OF TRANSACTION MONTHS, SUCH AS FROM MAY TO SEPTEMBER.
4. DISREGARD THE TRANSACTION DATE. (THE DATE WILL BE IGNORED.)
WHICH NUMBER DO YOU SELECT? 1
Answers to these two requests for input dictate how Option 4 will
proceed. If the first request had been answered with "6" (instead of
"3", as shown), Option 4 would have proceeded immediately to printing
all general ledger entries. If the answer had been "1" (instead of
"3"), the fourth possibility (DISREGARD THE TRANSACTION DATE ...)
would not have appeared in the second request for input.
Continuing with answers "3" and "1", the following will appear on your
screen: (Like before, for clarity, all input requests are shown
together. The assumed inputs are "2", "3000.00", "5000.00", and
"0519".)
71
THE FIRST NUMBER THAT YOU ENTERED DIRECTS CPA-LEDGER TO SELECT
ENTRIES BASED ON A SPECIFIC DOLLAR AMOUNT OR A RANGE OF DOLLAR
AMOUNTS.
ENTER `1' TO USE A SPECIFIC DOLLAR AMOUNT OR
`2' TO USE A RANGE OF DOLLAR AMOUNTS. 2
ENTER THE BEGINNING (LOW) DOLLAR AMOUNT. 3000.00
ENTER THE ENDING (HIGH) DOLLAR AMOUNT. 5000.00
THE SECOND NUMBER THAT YOU ENTERED DIRECTS CPA-LEDGER TO SELECT
ENTRIES BASED ON A SPECIFIC TRANSACTION MONTH AND DAY.
ENTER THE SPECIFIC TRANSACTION MONTH AND DAY.
(USE FORMAT MMDD. I.E., JULY 16 = 0716.) 0519
After you make the last entry above ("0519"), Option 4 begins
searching the general ledger. The search is for any transaction that
is dated May 19 and that has a debit or a credit valued between
$3,000.00 and $5,000.00. The dollar value is based on the value of
each debit and each credit - not on their total values.
If the search is successful, Option 4 prints or displays (as you
previously requested) the entire transaction for your review.
There are slight variations in the above displays. For example, if
you had answered question 2 with "3" (in lieu of "1", as shown), the
last request for input would have asked for both the low and high
months instead of only the specific transaction month and day.
After printing or displaying the general ledger entries, Option 4
displays this message and question on your screen, after telling you
that it displayed or printed your records:
DO YOU WISH TO PRINT OR DISPLAY OTHER TRANSACTIONS?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If your response is `Y', Option 4 displays:
IF YOU INTEND TO PRINT (ON THE PRINTER), MAKE SURE THAT THE PAPER IS
AT TOP-OF-PAGE. PRESS ANY KEY WHEN YOU ARE READY.
Once you press a key, CPA-LEDGER starts again, with the request for
you specify whether output is to be printed on the printer or
displayed on the screen.
72
There may be cases where Option 4 does not find any general ledger
entries meeting your selection criteria. In that event, the following
is displayed on your screen:
NO TRANSACTIONS WERE FOUND THAT MET YOUR SELECTION CRITERIA.
DO YOU WISH TO TRY AGAIN?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
The Option 4 response to `Y' or `N' is the same as described, above,
for instances when entries were found and printed.
ERROR MESSAGES.
Option 4 monitors your input to help ensure that you do not make a
mistake. In one case (when Option 4 asks for TODAY'S DATE - see
Chapter 2), the system refuses to proceed until you enter the correct
range of values. Instructions are already on the computer screen
explaining the required date format.
In all other cases, Option 4 displays this message immediately below
your incorrect input:
ENTRY IS INCORRECT. TRY AGAIN. PRESS ANY KEY TO CONTINUE.
You will be given time to study the required input and to decide on
necessary corrections. All information needed to determine the
correct input will be on your computer screen.
PRINTED/DISPLAYED OUTPUT.
Using the above illustration, assume that only one transaction valued
between $3,000.00 and $5,000.00 was entered in the general ledger on
May 19. Also assume that the entry was for charge sales in the amount
of $4,800.00. The printout or display on the screen would be as
follows:
73
PAGE 1
RUNDATE 06/15/85
ABC WHOLESALE, INC.
GENERAL LEDGER ENTRIES
ACCOUNT
DATE NUMBER ACCOUNT TITLE DEBIT CREDIT
05/19/85 11 ACCOUNTS RECEIVABLE $4,800.00
171 SALES $4,800.00
CHARGE SALES
POSTING REFERENCE DCR #148
If your screen becomes full while displaying an entry, CPA-LEDGER
tells you that there is more and asks you to press any key for the
remaining lines. Otherwise, the system tells you that the display is
complete.
Practice.
Use Option 4 and your practice general ledger to:
. Print all entries that have been made to the general ledger.
This can be done by entering "6" (in lieu of "3" shown in the
above illustration) in answer to the first request for input.
. Print any of the entries that you made while practicing in
Chapter 8. Also, display them on your computer's screen.
74
CHAPTER 10
DAILY MENU - OPTION 5
WHAT OPTION 5 IS USED FOR.
Use DAILY Option 5 whenever you want to review your general ledger
accounts, their details, and their balances. For each general ledger
account printed, the following information is shown:
. The account number and title.
. The beginning balance.
. The value of transactions posted to the account.
. The ending balance.
. Details of each transaction posted to that account, including
the:
. Transaction date.
. Transaction explanation.
. Posting reference.
. Check number (if applicable).
. Transaction amount.
When this option starts to execute, you are given the option of
directing the output to either the printer or the screen. Make your
choice by answering this question:
ENTER `1' FOR OUTPUT TO GO TO THE PRINTER OR `2' TO THE SCREEN. _
The discussion which follows refers to "printed". Please remember
this - print means printing on the printer OR displaying on the
screen, whichever you specify by answering the question above. That
will make the sentences much easier to write, and easier for you to
read.
You can limit the printout (remember, that also means display, if that
is what you asked for) to any accounts that you wish. Once CPA-LEDGER
starts processing, it asks you identify the accounts you want to
print.
You can also limit the printout to any monthly period(s) that you wish
- a month or a range of months. Or, if you wish, the printout will
75
show all transactions regardless of when they were entered into the
system.
The transactions printed are those that you entered into the system
while using DAILY Option 1.
Contrast this Option with Option 4 discussed in Chapter 9. Option 4
(Chapter 9) prints entire entries that have been posted to the general
ledger, regardless of the general ledger account involved. Option 5
(this chapter), however, summarizes entries by general ledger account
and considers only that part of an entry that affected the account
being summarized.
As mentioned above, you can summarize the general ledger by any
account(s) or for any monthly period(s) that you wish. This means
that you can reconstruct your general ledger accounts. For example,
assume that it is now July 20. You wish to reconstruct your general
ledger accounts for March. No problem. As you will learn below, this
is easily done by telling Option 4 that you desire your output to be
for the month of March. Option 4 will print the beginning balance for
March, the March transactions, and the ending balance as of March 31.
You can do the same thing for a range of months, say from January
through March. Just tell CPA-LEDGER that you want the printout to be
for the period January through March. You can also use Option 5 to
document your general ledger, at the end of the year, by telling
CPA-LEDGER to print both balance sheet and income statement accounts
and to disregard the date. If you do that, each account general
ledger will be printed. The printout will show each debit and credit
to each account, which may come in handy during the future.
Or, (and this is handy if you are tracing entries to specified
accounts or want to review entries in only a few accounts) you can
restrict the printout to one, two, three, or any number of accounts.
Thus, there is no need for you to print the entire general ledger if
you are interested in only a few accounts.
OPTION 5 SEQUENCE OF EXECUTION AND AN ILLUSTRATION.
Refer to Chapter 2 for the standard messages and reminders that are
part of Option 5. After the standard messages and reminders, the
following will appear on your computer screen:
76
YOU HAVE AN OPTION OF ONE OF TWO PRINTOUTS. THEY ARE:
1. FOR ANY TIME PERIOD THAT YOU WISH, PRINT TRANSACTIONS THAT HAVE
BEEN POSTED TO (1) BALANCE SHEET ACCOUNTS, OR (2) INCOME
STATEMENT ACCOUNTS, (3) BOTH BALANCE SHEET AND INCOME STATEMENT
ACCOUNTS. IF YOU SELECT BALANCE SHEET ACCOUNTS, FOR EXAMPLE,
ALL BALANCE SHEET ACCOUNTS ARE PRINTED AND YOU CANNOT RESTRICT
THE PRINTOUT TO ONLY CERTAIN OF THE BALANCE SHEET ACCOUNTS.
2. THIS PRINTOUT IS THE SAME AS NUMBER 1, ABOVE, EXCEPT THAT YOU
CAN RESTRICT THE PRINTOUT TO ANY ACCOUNT(S) THAT YOU WISH.
WHICH DO YOU SELECT, 1 OR 2? _
The processing following your input depends upon whether you select
"1" or "2" to CPA-LEDGER's inquiry. As summary of the processing is:
. IF YOU SELECT "1":
. CPA-LEDGER asks you if you want to print (1) balance sheet
accounts only, (2) income statement accounts only, or
(3) both.
. IF YOU SELECT "2":
. CPA-LEDGER asks you to identity the general ledger account
numbers to be printed.
. IF YOU SELECT "1" OR "2":
. CPA-LEDGER asks you to identify the period to be covered in
the printout.
In the following discussion, it will be assumed that you select "1"
and the processing steps will be explained. Following that, it will
be assumed that you select "2" and, again, the processing steps will
be explained. Following that, the processing for identifying the
printout time period will be discussed.
If you answer "1" to CPA-LEDGER inquiry regarding the printout that
you want, the following appears on your computer's screen:
77
SELECT ONE OF THE FOLLOWING NUMBERS. THE NUMBER THAT YOU SELECT
WILL GOVERN WHICH GENERAL LEDGER ACCOUNTS ARE PRINTED FOR YOUR
REVIEW. FOR EACH GENERAL LEDGER ACCOUNT PRINTED, THE FOLLOWING
INFORMATION WILL BE SHOWN - (1) ACCOUNT NUMBER, (2) BEGINNING
BALANCE, (3) ENDING BALANCE, AND (4) DETAILS OF EACH TRANSACTION
POSTED TO THAT GENERAL LEDGER ACCOUNT. THE DETAILS WILL, FOR EACH
TRANSACTION, INCLUDE THE TRANSACTION DATE, THE TRANSACTION
EXPLANATION, POSTING REFERENCE, CHECK NUMBER (IF APPLICABLE), AND
THE TRANSACTION AMOUNT. THE TOTAL VALUE OF ALL PRINTED TRANSACTIONS
IS ALSO SHOWN.
THE NUMBERS AND THEIR MEANINGS ARE SHOWN BELOW.
1. BALANCE SHEET ACCOUNTS ONLY, OR
2. INCOME STATEMENT ACCOUNTS ONLY, OR
3. BOTH BALANCE SHEET AND INCOME STATEMENT ACCOUNTS.
WHICH NUMBER DO YOU SELECT? (ENTER 1, OR 2, OR 3.) 1
After "1" is entered (above), CPA-LEDGER asks you about the time
period to be covered in the printout. Time period processing will be
explained after an explanation of processing in the event you tell
CPA-LEDGER you want to identify the specific accounts to be included
in the printout (that is, if you answer with a "2" to the question of
the type of printout desired, as explained on the previous pages.
If you answer "2" to CPA-LEDGER inquiry regarding the printout that
you want, the following appears on your computer's screen:
ENTER TODAY'S DATE. USE FORMAT MMDDYY. (I.E., JUNE 8, 1984=080884). ____
After entering the date, this appears on your screen:
WOULD YOU LIKE A BRIEFING ON HOW TO USE THIS COMPUTER PROGRAM?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If you enter `N', the briefing is bypassed. If you enter `Y', the
following appears:
THIS OPTION SUMMARIZES TRANSACTIONS BY GENERAL LEDGER ACCOUNT.
ENTER UP TO 10 ACTIVE GENERAL LEDGER ACCOUNTS AND CPA-LEDGER WILL
PRINT EACH TRANSACTION THAT HAS BEEN POSTED TO EACH ACCOUNT. IF YOU
WANT TO PRINT MORE THAN 10 ACCOUNTS, TELL CPA-LEDGER THAT YOU WISH
TO PRINT MORE ACCOUNTS, WHEN YOU ARE ASKED.
78
ENTER A `Q' (FOR QUIT) AFTER ALL ACCOUNT NUMBERS HAVE BEEN ENTERED.
YOU CAN SUMMARIZE THE ACCOUNTS BY A SPECIFIC MONTH, A RANGE OF
MONTHS, OR YOU CAN TELL CPA-LEDGER TO IGNORE THE TRANSACTION DATE
AND ALL TRANSACTIONS WILL BE SUMMARIZED, REGARDLESS OF DATE.
PRESS ANY KEY WHEN YOU ARE READY TO CONTINUE.
After you press a key, the following appears on your computer screen:
IN THE SCREEN WHICH FOLLOWS, YOU WILL BE ASKED TO ENTER UP TO 10
ACCOUNT NUMBERS. EACH ACCOUNT NUMBER MUST, REPEAT, MUST BE AN
ACTIVE ACCOUNT IN YOUR GENERAL LEDGER. IN ORDER TO AVOID CONFUSION,
PLEASE REMEMBER THIS:
IF YOU ENTER AN INACTIVE ACCOUNT NUMBER OR IF YOU ENTER AN ACCOUNT
NUMBER THAT IS NOT IN YOUR GENERAL LEDGER (SUCH AS ZERO OR A
NUMBER THAT EXCEEDS THE LAST ACCOUNT NUMBER IN YOUR GENERAL
LEDGER), CPA-LEDGER WILL NOT ACCEPT YOUR INPUT. A SHORT ERROR
MESSAGE WILL APPEAR AT THE BOTTOM OF YOUR COMPUTER SCREEN.
IT IS RECOMMENDED THAT YOU USE A CURRENT LIST OF GENERAL LEDGER
ACTIVE ACCOUNTS WHILE YOU ARE ENTERING INPUT THAT WILL BE REQUESTED
NEXT.
PRESS ANY KEY TO CONTINUE.
After you press a key, CPA-LEDGER asks you to identify the account
numbers that you want it to print. The screen looks like this:
ENTER `Q' (QUIT) FOR THE ACCOUNT NUMBER TO QUIT.
1 ENTER GENERAL LEDGER ACTIVE ACCOUNT NUMBER. ____
Assume that you enter "3", an active account. A message appears at
the bottom of the screen, asking if you wish to process the identified
account. The message looks like this (account title assumed):
ACCOUNT TITLE = CITY BANK - DOWNTOWN BRANCH
PROCESS THIS ACCOUNT? (`Y' FOR `YES' OR `N' FOR `NO') _
If you enter `N', you are asked to reenter the account number. If you
answer `Y', the screen changes and looks like this:
78-1
ENTER `Q' (QUIT) FOR THE ACCOUNT NUMBER TO QUIT.
1 ACCOUNT NUMBER = 3 & ACCOUNT TITLE = CITY BANK - DOWNTOWN BRANCH.
2 ENTER GENERAL LEDGER ACTIVE ACCOUNT NUMBER. ____
The number on the extreme left is your request number. Remember, you
can enter 10 per screen. (You can use a many screens as you wish, with
10 account numbers per screen. CPA-LEDGER prints the account numbers
entered in a screen and asks if you want to print additional accounts.
Thus, the number of accounts that you can print is limited only by the
accounts in your general ledger.)
This concludes the discussion regarding how you tell CPA-LEDGER which
accounts to include in your printout. Next, we need to discuss how
you tell CPA-LEDGER about the time period to be covered in the
printout.
THE TIME PERIOD TO BE COVERED IN THE PRINTOUT.
Regarding the time period, two requests for input follow. The second
request does not appear until you give your answer to the first one.
For clarity of illustration, however, both are shown together. The
assumed answer to the first request is "2" and the assumed answers to
the second request are "01" and "02".)
SELECT ANOTHER NUMBER. THE NUMBER THAT YOU SELECT WILL DETERMINE
WHICH ADDITIONAL QUESTIONS ARE TO BE ASKED ABOUT THE TIME PERIOD
THAT YOU SELECT.
1. A SPECIFIC TRANSACTION MONTH, SUCH AS MAY.
2. A RANGE OF TRANSACTION MONTHS, SUCH AS FROM MAY TO SEPTEMBER.
3. DISREGARD THE DATE. (THE DATE WILL BE IGNORED.)
WHICH NUMBER DO YOU SELECT? (ENTER 1, OR 2, OR 3.) 2
THE NUMBER THAT YOU ENTERED IMMEDIATELY ABOVE DIRECTS CPA-LEDGER TO
LIMIT THE PRINTOUT TO TRANSACTIONS THAT OCCURRED DURING A RANGE OF
MONTHS.
ENTER THE BEGINNING (LOW) MONTH. (USE FORMAT MM. I.E. JULY = 07.) 01
ENTER THE ENDING (HIGH) MONTH.(USE FORMAT MM. I.E. OCTOBER = 10.) 02
After you make the last entry above ("02"), CPA-LEDGER begins
summarizing the general ledger accounts for the period January through
February.
There are slight variations in the above displays. For example, if
78-2
question 2 had been answered with "1" (in lieu of "2") the last
request for input would have asked for the specific transaction month
instead of for both the beginning and ending months.
After summarizing and printing the general ledger accounts, Option 5
displays this message and question on your computer screen:
GENERAL LEDGER ACCOUNTS THAT MET YOUR SELECTION CRITERIA HAVE BEEN
PRINTED. DO YOU WISH TO PRINT ANY ADDITIONAL GENERAL LEDGER
ACCOUNTS? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If your answer is `Y', Option 5 starts again with the first request
for input. (The first request, above, was answered with "1" as the
assumed input.) If you respond with `N', Option 4 will return you to
the DAILY menu.
There may be instances where Option 5 does not find any general ledger
entries for the period that you specify. In that event, the following
is displayed on your screen:
NO ENTRIES WERE POSTED FOR THE PERIOD THAT YOU SELECTED.
DO YOU WISH TO TRY AGAIN?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
The Option 5 response to `Y' or `N' is the same as described, above,
for instances when entries were found.
ERROR MESSAGES.
There are several types of errors that you might make while entering
your data into Option 5. An example is an entry of 13 for a month.
Another example is a number that is not within a range of numbers
requested.
If you make an input error, Option 5 refuses to proceed until you
reenter your answer. Instructions will be on the screen so that you
may determine the correct input.
If you tell CPA-LEDGER to print only selected general ledger accounts
(the account numbers that you enter), you may enter an inactive
account or an account that is not in your general ledger. If so, a
message will appear at the bottom of your screen telling you that your
input is incorrect. The message will ask that you try again.
PRINTED OUTPUT.
The following sample output uses assumed answers shown in the above
illustration. (The assumed answers specify that Option 5 is to
summarize general ledger accounts for January and February. The
summary is to be limited to those accounts related to the Balance
Sheet.) For brevity, a summary for only one account is shown. Other
78-3
accounts would be summarized in the same fashion. (The entries in the
POSTING REFERENCE column are explained in Appendix E.)
In the sample printout to follow, the second and third lines of the
printout title is "POSTINGS TO GENERAL LEDGER ACCOUNTS PERTAINING TO
THE BALANCE SHEET". This is an example of a title if you tell
CPA-LEDGER you want to print balance sheet accounts. If you had
informed CPA-LEDGER that you wished to enter the specific account
numbers to be printed, the title would be "POSTED TRANSACTIONS".
PAGE 1
RUNDATE 06/15/85
ABC WHOLESALE, INC.
POSTINGS TO GENERAL LEDGER ACCOUNTS PERTAINING TO THE
BALANCE SHEET
FOR MONTHS 01 AND 02
ACCT. POSTING CHECK
NBR. DATE TRANSACTION EXPLANATION REFERENCE NUMBER AMOUNT
3 01/01/85 OPENING JOURNAL ENTRY OPENING 12,620.10
3 01/02/85 CASH TRANSACTIONS 1/2 DCR #1 4,726.22
3 01/08/85 SALES RETURN., CASH SALE FORM 11 1 105.00-
3 01/14/85 CASH TRANSACTIONS 1/15 DCR #2 4,854.81
3 01/14/85 SALES TAX FOR DEC. 84 FORM 12 2 1,410.00-
3 01/14/85 PAYROLL DUE, 1/14/85 FORM 12 3 1,590.00-
3 01/14/85 PAYROLL DUE, 1/14/85 FORM 12 4 819.08-
3 01/20/85 AIR CONDITIONER REPAIR FORM 10 5 800.00-
3 01/21/85 PAYMENT ON ACCOUNT FORM 9 6 7,350.00-
3 01/29/85 CASH TRANSACTIONS 1/29 DCR #3 10,720.01
VALUE OF ABOVE TRANSACTIONS 20,847.06
BEGINNING BALANCE PRIOR TO ABOVE TRANSACTIONS .00
ENDING BALANCE AFTER ABOVE TRANSACTIONS 20,847.06
ACCOUNT NAME (FOR ABOVE DATA) IS CASH IN BANK
Practice.
Use Option 5 and your practice general ledger to summarize all general
ledger transactions. Then, use Option 5 again and tell CPA-LEDGER
that you wish to print specific account numbers. Obtain a trial
balance and print or display as many accounts as you wish. Use the
trial balance to identify the accounts numbers to be printed. For the
period to be covered, use January.
79
CHAPTER 11
DAILY MENU - OPTION 6
WHAT OPTION 6 IS USED FOR.
DAILY Option 6 prints a complete list of all transactions that have
either increased or decreased your bank account(s). Each bank account
is treated separately, with a separate printout.
When this option starts to execute, you are given the option of
directing the output to either the printer or the screen. Make your
choice by answering this question:
ENTER `1' FOR OUTPUT TO GO TO THE PRINTER OR `2' TO THE SCREEN. _
The discussion which follows refers to "printed" output. Please
remember this - print means printing on the printer OR displaying on
the screen, whichever you specify by answering the question above.
That will make the sentences much easier to write, and easier for you
to read.
You may limit the printout (remember, "printout" also means display if
you asked for the output to be displayed on your computer's screen) to
any period you wish - a month, a range of months, or the entire
accounting period. This means that you may reconstruct your bank
accounts, as recorded in the general ledger, for any period that you
wish. For example, assume that today's date is June 20. You may
direct Option 6 to reconstruct your bank accounts for any prior month,
such as February. All you do is to inform Option 6 (as will be
explained below) that you wish to limit the time period to February.
You may also want to use Option 6 to assist in reconciling your bank
statement with CPA-LEDGER's general ledger. Option 6 can assist by
printing all transactions that you entered as either increases or
decreases to the bank account(s). The printout will show:
. The general ledger account number.
. The transaction date.
. The payee (if the transaction decreased the bank account).
. An explanation (if the transaction increased the bank
account).
. The posting reference.
. The check number, if applicable.
. The amount of the increase or decrease.
80
OPTION 6 SEQUENCE OF EXECUTION AND AN ILLUSTRATION.
Chapter 2 discusses the standard messages and reminders that are part
of Option 6. After the standard messages and reminders, the following
will appear on your computer screen:
WOULD YOU LIKE A BRIEFING ON HOW TO USE THIS COMPUTER PROGRAM?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If you respond with `Y' the following briefing appears on your screen:
(If you respond with `N', the briefing is bypassed.)
THIS COMPUTER PROGRAM PRINTS TRANSACTIONS THAT HAVE EITHER INCREASED
OR DECREASED THE BANK ACCOUNT(S). EACH BANK ACCOUNT, IF THERE IS
MORE THAN ONE, CAUSES A SEPARATE PRINTOUT. BANK TRANSACTIONS ARE
SELECTED BASED ON CRITERIA THAT YOU SUPPLY. THE SELECTION CRITERIA
IS EITHER A MONTH, A RANGE OR MONTHS, OR FOR THE ENTIRE ACCOUNTING
PERIOD TO DATE.
PRESS ANY KEY WHEN YOU ARE READY TO CONTINUE.
When you press a key, the following appears: (Two requests for input
are shown below. The second one appears after an entry is made to
satisfy the first request. For clarity, both are shown together. The
assumed entry, shown below, for the first request is "2". The assumed
entries for the second request are "01" and "02".)
SELECT ONE OF THE FOLLOWING NUMBERS. THE NUMBER THAT YOU SELECT
WILL DETERMINE WHICH ADDITIONAL QUESTIONS ARE TO BE ASKED ABOUT THE
TIME PERIOD.
1. A SPECIFIC TRANSACTION MONTH, SUCH AS MAY.
2. A RANGE OF TRANSACTION MONTHS, SUCH AS MAY TO SEPTEMBER.
3. DISREGARD THE TRANSACTION DATE. (THE DATE WILL BE IGNORED.)
WHICH NUMBER DO YOU SELECT? (ENTER 1, OR 2, OR 3.) 2
YOU INDICATED YOUR DESIRE TO LIMIT THE PRINTOUT TO TRANSACTIONS THAT
OCCURRED DURING A RANGE OF MONTHS.
ENTER THE BEGINNING (LOW) MONTH. (USE FORMAT MM. I.E. JULY = 07.) 01
ENTER THE ENDING (HIGH) MONTH. (USE FORMAT MM. I.E. OCTOBER = 10.) 02
81
After the last input ("02" above), Option 6 starts preparing the
printout for the period requested - January and February for the
illustration.
There are slight variations in the above displays. For example, if
input for the first request had been "1" (in lieu of "2" as
illustrated), the second request would have been for the transaction
month instead of the beginning and ending months.
After printing transactions meeting your selection criteria, Option 6
displays this message and question on your computer screen:
ALL BANK TRANSACTIONS THAT YOU SELECTED HAVE BEEN PRINTED.
DO YOU WISH TO PRINT ADDITIONAL BANK TRANSACTIONS?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
If your response is `Y', Option 6 starts again, with the first request
for input. (See the request, above, that was answered with "2.) If you
respond with `N', Option 6 returns you to the DAILY menu.
There may be cases where Option 6 does not find any transactions
meeting your selection criteria. In that event, the following will
appear on your screen:
NO BANK TRANSACTIONS WERE FOUND THAT MET YOUR SELECTION CRITERIA.
DO YOU WISH TO TRY AGAIN?
ENTER `Y' FOR `YES' OR `N' FOR `NO'. _
The Option 6 response to `Y' or `N' is the same as described, above,
for instances when entries were found.
ERROR MESSAGES.
There are several types of errors that you might make while entering
your data into Option 6. An example is an entry of 13 for a month.
Another example is a number that is not within a range of numbers
requested.
82
If you make an input error, Option 6 refuses to proceed until you
reenter your answer. Instructions will be on the screen so that you
may determine the correct input.
PRINTED OUTPUT.
The following is a sample of output from Option 6.
PAGE 1
RUNDATE 01/30/85
ABC WHOLESALE, INC.
CHECK REGISTER
FOR MONTH 01
ACCT. PAYEE (IF A DECREASE) POSTING CHECK
NBR. DATE EXPLANATION (IF AN INCREASE) REFERENCE NUMBER AMOUNT
3 01/01/85 OPENING JOURNAL ENTRY OPENING 12,620.10
3 01/02/85 CASH TRANSACTIONS DCR #1 4,726.22
3 01/08/85 JAY'S HOBBY SHOP FORM 11 1 105.00-
3 01/14/85 CASH TRANSACTIONS 1/15 DCR #2 4,854.81
3 01/14/85 STATE DEPARTMENT OF TAXATION FORM 12 2 1,410.00-
3 01/14/85 M. S. JONES FORM 12 3 1,590.00-
3 01/14/85 M. R. JONES FORM 12 4 819.08-
3 01/20/85 ACE AIR CONDITIONING, INC. FORM 10 5 800.00-
3 01/21/85 ACME SUPPLY FORM 9 6 7,350.00-
3 01/29/85 CASH TRANSACTIONS 1/29 DCR #3 10,720.01
VALUE OF ABOVE TRANSACTIONS 20,847.06
BEGINNING BALANCE PRIOR TO ABOVE TRANSACTIONS .00
ENDING BALANCE AFTER ABOVE TRANSACTIONS 20,847.06
ACCOUNT NAME (FOR ABOVE DATA) IS CASH IN BANK
Practice.
Use Option 6 and your practice general ledger to print bank
transactions that were recorded during the months of January and
February. Display the same transactions on your computer's screen.
FILES466.TXT
Disk No: 466
Program Title: CPA LEDGER 1 OF 2 (Program & Practice Diskette)
PC-SIG version: 2.2
This is disk 1 of CPA-LEDGER; it contains all of CPA-LEDGER's main and
practice programs. CPA-LEDGER is a menu-driven general ledger and
financial statement program. It`s designed for non-manufacturing
businesses that offer products or services for sale. You must have a
knowledge of double entry bookkeeping to operate this package.
The CPA-LEDGER has plenty of muscle to record your daily transactions.
Any one general ledger entry may have up to 30 debits and 30 credits,
with total values of up to 999,999,999.99. Also, you may use any
combination of 1 to 30 characters to identify the payee of a check. A
very powerful system!
Be sure to read the user`s manual on DISK 468 before you attempt to use
the CPA-LEDGER in your business.
Usage: Financial.
Special Requirements: A version of BASIC.
How to Start: After loading BASICA, run the SETUP program.
Suggested Registration: $45.00
File Descriptions:
ACTDTL BAS Processes the G/L files that are on your data disk.
???????? FIL Data file (9 files).
???????? TXT Text file (6 files).
CHKREG BAS Prints transactions that inc or dec bank accounts.
DAILY BAS Handles most daily operations and transactions.
GENLGR BAS To be used for establishing a new general ledger.
GLACTS BAS This program prints a chart of general ledger accounts.
NEWACT BAS Allows the user to add new accounts to the g/l.
OPNBAL BAS Opens and posts balances to the general ledger.
PANDL BAS Handles primary & contra accnts & income statements.
POST BAS This program allows the user to post entries.
PSTCLS BAS This program will prepare a Post-closing trial balance.
READ ME Author supplied documentation file.
SELTRA BAS This program selects input ranges and dates.
SETUP BAS This is the User's initial "SETUP" program.
STOACT BAS This program sets up and stores the accounts.
TRIBAL BAS This is the Trial Balance program.
PC-SIG
1030D E Duane Avenue
Sunnyvale Ca. 94086
(408) 730-9291
(c) Copyright 1987,88,89 PC-SIG, Inc.
FILES468.TXT
Disk No: 468
Program Title: CPA Ledger 2 of 2 (466 1st disk in set)
PC-SIG version: 2.1
This is the second of a two disk set. It contains CPA-LEDGER's User's
Manual (over 150 pages). The manual is subdivided into 15 chapters and
Appendix A through Appendix E. They may be printed out using an ASCII
word processor or the DOS COPY command. We suggest you start with the
README and the PREFACE.TXT; they are excellent introductions.
Usage: Financial.
Special Requirements: A version of BASIC.
How to Start: After loading BASICA, run the SETUP program.
Suggested Registration: $45.00
File Descriptions:
CHP1 TXT CPA-LEDGER overview.
CHP12-15 TXT Daily Menus - options 7,8,9 and 10 plus Setup Menu.
CHP2 TXT Standard messages and reminders.
CHP3-5 TXT Setup Menus - options 1,2 and 3.
CHP6-7 TXT Daily Menus - options 1 and 2.
CHP8 TXT Daily Menu - option 3.
CHP9-11 TXT Daily Menus - options 4,5 and 6.
PREFACE TXT Introduction, Table of Contents, disclaimer etc.
READ ME Author supplied documentation file.
PC-SIG
1030D East Duane Avenue
Sunnyvale Ca. 94086
(408) 730-9291
(c) Copyright 1986,87,88,89 PC-SIG, Inc.
GO.TXT
╔═════════════════════════════════════════════════════════════════════════╗
║ <<<< Disk No: 468 CPA Ledger 2 of 2 >>>> ║
╠═════════════════════════════════════════════════════════════════════════╣
║ ║
║ To print the manual, type: ║
║ ║
║ MANUAL (press enter) ║
║ ║
╚═════════════════════════════════════════════════════════════════════════╝
PREFACE.TXT
Before you start reading this User's Manual, see page xx.
CPA-LEDGER
(Version 3.3)
by
TRONOLONE & FOSTER, PC
CERTIFIED PUBLIC ACCOUNTANTS
9108 VOLUNTEER DRIVE
ALEXANDRIA, VIRGINIA 22309
For technical assistance always contact:
James E. Foster, CPA
8529 Greeley Blvd.
Springfield, Virginia 22152
(703) 569-2254 (after 7:30 PM weekdays or
anytime during the weekend)
A Few Preliminary Notes to You:
CPA-LEDGER is available for corporations, partnerships, and sole
proprietorships. Also, for each of the three, versions are
available for hard disk only, hard disk (CPA-LEDGER) and floppy
disk (general ledger data files), and floppy disk only (with
CPA-LEDGER on drive B: and the general ledger on the A: drive.
Thus, nine different versions are available. See Appendix B for
details. Ordering information begins on page 99-6.
APPENDIX B CONTAINS INFORMATION ON HOW TO LOAD CPA-LEDGER ON
YOUR MICROCOMPUTER. PLEASE READ THE APPENDIX.
----->Before you attempt to use CPA-LEDGER, you should possess a
knowledge of double-entry bookkeeping. See the discussion that
begins on page 3.
----->Before starting your own general ledger, be sure to read Chapter
3 and Appendix D, paying close attention to "account
classifications" used by CPA-LEDGER. It is very important that
you include each of your accounts in the proper "account
classification".
----->Also, be SURE to read the last paragraph on page 1 of 2 of the
READ.ME file on the Program Disk & Practice Disk.
COPYRIGHT 1986, 1988, 1989 TRONOLONE & FOSTER, PC
ii
DISCLAIMER.
CPA-LEDGER (which includes the computer programs, the practice
diskette, and the User's Manual) is distributed on an as is basis
without warranty or guarantee. In no event will Tronolone & Foster be
liable to you, any other person, or any other entity for any loss,
damage, or compensation, for any reason, that is caused or is alleged
to be caused by any part of the CPA-LEDGER system. This disclaimer
applies to any and all copies of CPA-LEDGER that you may have,
regardless of source.
Disclaimed losses, damages, and compensation include, but are not
limited to, regardless of reason, interruption of service; lost
profits; lost savings; loss of business; inability to use or delays in
the use of CPA-LEDGER upon initial receipt or anytime after it has
been initially received; and anticipatory profits or consequential
losses or damages related to use of the CPA-LEDGER computer programs,
the CPA-LEDGER practice diskette, or the CPA-LEDGER User's Manual.
PERMISSION TO COPY.
Individuals and organizations are granted permission to copy the
CPA-LEDGER computer programs, the CPA-LEDGER practice diskette, and
the CPA-LEDGER User's Manual as a complete unit for distribution to
others, PROVIDED that (1) no changes are made to the CPA-LEDGER
computer programs as released by Tronolone & Foster, PC; the
CPA-LEDGER practice diskette; or the CPA-LEDGER User's Manual, as each
of the three were originally received from, or as subsequently changed
by, Tronolone & Foster; (2) the CPA-LEDGER computer programs, the
CPA-LEDGER practice diskette, and the CPA-LEDGER User's Manual are
distributed together; (3) there is no charge in ANY form to the
individual or organization that receives the copy. Individuals or
organizations using CPA-LEDGER are granted permission to make as many
internal copies as are needed. In all other cases, not specifically
covered above, written permission should be obtained from Tronolone &
Foster before copies are made of the CPA-LEDGER computer programs, or
the CPA-LEDGER practice diskette, or the CPA-LEDGER User's Manual.
Also, see "USER SUPPORTED SOFTWARE", below.
HOW TO ORDER THE EXPANDED VERSION OF CPA-LEDGER.
If you find CPA-LEDGER be useful, your contribution would be
appreciated. Complete ordering information is included in Appendix B,
together with an explanation of the nine versions available to you.
Order from Tronolone & Foster, PC. The address is on the cover sheet
of this manual. Your contribution will entitle you to:
1. Up to twenty hours of consultation, without charge, by mail or
telephone, on how to use CPA-LEDGER. These consultations,
however, are limited to an explanation of the technical aspects
of CPA-LEDGER computer processing and will not include any
accounting or bookkeeping consultations or services in any form.
iii
All consultations will be on a time available basis at the
convenience of Tronolone & Foster and will be between the hours
of 7:30 PM - 10:00 PM (Virginia time) weekdays and anytime
weekends. All telephone toll charges will be at the expense of
the person or entity making the call. Long distance calls will
not be returned. (We hope that you can understand this policy -
returning scores of long distance calls can become quite
expensive.)
2. CPA-LEDGER's Balance Sheet AND footnote capabilites for the
unadjusted trial balance, Income Statement and Balance Sheet.
3. CPA-LEDGER's financial statement analysis (ratios) capability.
4. "New enhancements" to CPA-LEDGER. See "A NOTE FROM JIM", on the
following page.
5. The latest version of CPA-LEDGER, anytime that you wish. THIS
OFFER IS LIMITED TO THE VERSION OF CPA-LEDGER THAT YOU ORDERED
FROM TRONOLONE & FOSTER. For example, if you ordered from
Tronolone & Foster the partnership version for hard disk only,
this offer extends only to the partnership version for hard
disk. See Appendix B, beginning on page 99-3, if you would like
to have another version of the system.
To receive an updated copy of the version that you have (#5,
immediately above), send your name, address & $5 for postage and
diskette handling. If you did not order your version of
CPA-LEDGER from Tronolone & Foster, the updating service is not
available to you.
---> PLEASE REMEMBER THIS - this manual discusses the full
capabilities of CPA-LEDGER, some capabilites that are in the
public domain and some that are not. If you obtained CPA-LEDGER
from the public domain and have not ordered the expanded system
from Tronolone & Foster, CPA-LEDGER capabilites not in the
public domain (items 2 & 3 above and all items discussed in "A
NOTE FROM JIM" below) are NOT included on the disks that you
----> have. PLEASE REMEMBER THAT AS YOU READ THIS MANUAL.
USER SUPPORTED SOFTWARE.
Individuals and organizations are granted permission to change, at
their own risk, the system so that it better serves their own personal
accounting needs or the organization's own internal accounting needs.
Individuals or organizations who demonstrate or distribute CPA-LEDGER
to others are NOT given permission to change any part of the
CPA-LEDGER system without prior written approval from Tronolone &
Foster. Also, if you change any part of the CPA-LEDGER system, you
are NOT authorized to distribute any part of CPA-LEDGER, including the
User's Manual, to others. Also see "PERMISSION TO COPY", above.
iv
A NOTE FROM JIM.
If you have questions on how to use the CPA-LEDGER computer programs,
please do not hesitate to contact me! Your contribution entitles you
to that. I enjoy talking to CPA-LEDGER users and your call or letter
will be most welcome. Call me anytime after 7:30 PM weekdays
(Virginia time) or anytime during weekends. My phone number and
address are on the cover sheet of this manual. CPA-LEDGER has been
changed from processing described in previous versions of the User's
Manual. Here are the major changes:
. CPA-LEDGER is available for partnerships and sole
proprietorships, as well as for corporations. See Page 99-3.
Also see Chapters 18 and 19. There is one thing you should know
about CPA-LEDGER User's Manuals that are in circulation.
Beginning in July, 1988, we released CPA-LEDGER versions for
partnerships and sole proprietorships. The old User's Manual
makes no mention of partnerships or sole proprietorships. This
User's Manual was updated for partnerships and sole
proprietorships by adding two new chapters - Chapters 18 & 19.
Also, partnerships and sole proprietorships are referred to
briefly in selected places throughout this User's Manual.
Chapters 18 & 19, however, contain the detailed information.
. New Enhancements (But see the next-to-last paragraph on page iii.)
. Option 5 (Print General Ledger Accounts With Details Of All
Debits and All Credits) of the DAILY menu has been enhanced by
allowing you to summarize any account(s) that you wish. This
enhancement could prove helpful (and save printing time) if
you wish to review transactions posted to only a limited
number of accounts. See Chapter 10.
. Option 3 (Print Financial Statements) of the DAILY menu has
been changed and it should be much more useful to you. Option
3 can now print an income statement for any whole month, or
series of consecutive whole months. For example, you can have
CPA-LEDGER print an income statement for January, or for
February, or for January through March, or for February and
March, etc. This enhancement will be useful if you are
interested in comparing income statements for differing
periods. The old Option 3 printed financial statements from
the beginning of the accounting period through the last
transaction that you entered, and you could not control the
period covered in the printout. This feature has been
retained, with the added capability of an income statement for
a whole month or series of consecutive whole months. See
Chapter 8.
v
. Five of the Daily Menu options have been enhanced so that you
can direct output to either the printer or your computer's
screen. These enhancements will be useful if you don't need
printed output and you wish to, say, quickly search for a
previous transaction or to review all debits and credits to a
particular account. The five options that have both screen
and printout capabilities are:
. Unadjusted trial balance. See Chapter 7.
. Print transactions that have been posted to the general
ledger. See Chapter 9.
. Print general ledger accounts with details of all debits
and all credits. See Chapter 10.
. Print bank deposits and checks written. See Chapter 11.
. Print general ledger accounts and their balances. See
Chapter 12.
. Option 1 of the DAILY menu (the one you use to post the
general ledger):
. Now displays the account title when you enter an account
number. That makes it easier to make sure that your are
using the proper account as you supply CPA-LEDGER with
posting information.
. Displays the cumulative total value of debits and credits
as you proceed with each entry. This makes it easier for
you to keep track of the accuracy of your debit and
credit values. (Don't worry - CPA-LEDGER watches what you
do and will NOT post your general ledger unless the total
value of debits equals the total value of credits. The
display information is merely to let you know what
CPA-LEDGER knows.)
. Can now sum a long list of debits and credits, saving you
time and frustration. For example, assume that you have
entered 10 debits to various expense accounts and that
the sum of the debits is to be credited to your bank
account. Rather than sum the 10 debits, you can have
CPA-LEDGER do that for you - automatically. See Chapter
6, which tells you to enter "?" for the debit/credit
indicator of the last account number and CPA-LEDGER will
automatically credit the bank account. After that, you
enter the check number and purpose of the transaction and
the entry is complete.
. Will let you correct your mistakes while entering a
journal entry, thus saving you more time and frustration.
Here is how CPA-LEDGER does that - at the end of each
complete line of debit or credit information, CPA-LEDGER
vi
asks if all of your input is correct. If you answer
"yes", you are asked to enter the next debit or credit.
If you answer "no", however, CPA-LEDGER ignores your
erroneous input on that line and asks for new
information. So, if you press the "Enter" key and THEN
see an error, you are allowed to correct that error
before going on to the next debit or credit. In old
versions of CPA-LEDGER, you had no choice but to proceed
and to reject the entry after a long series of
unproductive processing. No more. See Chapter 6 for
details.
. Option 10 of the DAILY menu is new. See Chapter 15. Option
10 allows you to:
. Save standard transactions for automatic posting, in the
future.
. Automatically post transactions that you previously saved.
. Automatically post your bank account (or the bank account
of your choice if you have more than one such account) at
the end of a journal entry. See Chapter 15 - a new
chapter. The new Option 10 is intended to save you time
and to make it easier for you to use CPA-LEDGER.
. Option 4 of the SETUP menu is also new. It allows you to
automatically start your general ledger after the first year's
operation. It is no longer necessary to reenter all of your
general ledger information. See Chapter 16, a new chapter.
From time to time, I make changes to CPA-LEDGER. If you have any
suggestions, please do not hesitate to contact me. As you have
probably found by now, I want you to be pleased with CPA-LEDGER. You
will find that I will welcome your ideas! I have been programming too
long to think that ANY computer program can be what EVERYONE wants.
Far from it. First, I can only generalize what hopefully will be the
most useful in the most number of cases. Second, I, like you, am
human. I gave up perfection LONG ago. So, I have learned to listen
very carefully to the suggestions of others - there is strength in
numbers. That (constructive ideas), mixed with a generous portion of
patience usually gets the job done, reasonably well.
We do NOT have a program of notifying you each time that CPA-LEDGER is
changed. Contact me from time to time. I will advise you of the
latest changes, if any. After talking to me, if you want the latest
release, just sent $5 for postage and handling and I will rush the
latest version to you. See item 5 on page iii.
vii
A FEW MORE THOUGHTS - FROM ALL OF US.
Before proceeding, there are several points that need to made clear.
The disks you received are called "Program Disk" and "Documentation
Disk". They contain (1) the CPA-LEDGER computer programs (2) A
PRACTICE GENERAL LEDGER, and (3) the User's Manual. Here is how to
distinguish between files on the disks - (1) CPA-LEDGER computer
programs have an extension of ".BAS". (2) Files that comprise the
practice general ledger have an extension of ".FIL". (3) User Manual
files have an extension of ".TXT". (The "practice general ledger" is
already set up and is for practicing on how to use the system - it is
NOT intended for use as the general ledger that you will use in your
business.)
Second, CPA-LEDGER is programmed NOT to accept any date that you enter
UNLESS that date is January 1, 1986 or thereafter. The examples in
this manual and the prompts given by CPA-LEDGER illustrate the FORMAT
of required dates - NOT the dates that you should enter. So, please
remember, always use the actual transaction date - which should be
January 1, 1986 or a date after January 1, 1986. Date formats are
described later. (Some clients have a special need to enter dates
before 1986. If you ordered from us and wish to enter dates before
1986, call Jim. He will change the programs for you.)
Third, please do not overlook Chapters 18 and 19. Those two chapters
tell you about CPA-LEDGER processing for partnerships and sole
proprietorships.
viii
PREFACE
AN AUTOMATED GENERAL LEDGER AND FINANCIAL STATEMENT SYSTEM.
CPA-LEDGER is an automated general ledger and financial statement
system. The public domain version comes with income statement
capability. Balance Sheet capability is available from Tronolone &
Foster - see "HOW TO ORDER THE EXPANDED VERSION OF CPA-LEDGER", above.
Accounts receivable, accounts payable, and payroll capabilites are not
part of CPA-LEDGER, either in the public domain or expanded versions
of the system. You can keep these accounts in your general ledger,
but related subsidiary capability is not available.
CPA-LEDGER is designed for commercial non-manufacturing businesses
which offer products for sale (and, consequently, a cost of sales
section on the income statement), AND for service businesses without
inventory (and without a cost of sales section on the income
statement). Separate accounts can be set up for different product or
service lines; however, the system is not designed to prepare separate
financial statements for each of the lines.
Various small businesses may find CPA-LEDGER useful. Some of them
include retail merchandising businesses, grocery stores, hardware
dealers, hobby supply shops, landscaping gardeners, restaurants, and
service establishments such as veterinarians, non-profit organizations
and accountants. Test the system and find out if CPA-LEDGER suits
your needs. Then, make a decision on whether it is useful to YOU.
You should know, however, that CPA-LEDGER is generalized in the sense
that it was designed to meet the needs of a large number of
businesses. There is no guarantee that it will meet your specific
needs. Only YOU can make that decision. Use the "Program Disk" & the
practice general ledger files (see the INTRODUCTION and CHAPTER 1) to
test the system. Then decide if CPA-LEDGER will satisfy your
requirements. (The practice general ledger is for a business with a
cost of sales section on the income statement. Remember, CPA-LEDGER
can also prepare an income statement for service businesses - those
that do not need a cost of goods sold section.)
YOU SELECT ACCOUNT TITLES AND PREPARE THE GENERAL LEDGER ENTRIES.
During design, CPA-LEDGER was changed many times. However, we did
keep two of our original ideas. First, we wanted the user to be able
to determine the number and the titles of accounts that would be in
the system. That capability was retained.
ix
Second, we wanted CPA-LEDGER to have plenty of muscle in the area of
recording even the most complex business transactions. To do that, it
soon became evident that a single-entry, canned approach for
classifying transactions was not satisfactory. There were too many
limitations for today's complex business environment.
Regardless of the canned approach used, there were plenty of
transactions that just would not fit. Always, important transaction
possibilities either had to be ignored, or, possibly, misclassified if
they did occur.
So, we designed CPA-LEDGER to handle ANY transaction, regardless of
its simplicity or complexity. To do that, you and CPA-LEDGER will
form a team - you will supply the transactions and CPA-LEDGER will do
the processing.
ERROR CHECKING.
You should know that, to make your job easier, CPA-LEDGER has
extensive error checking capabilities. Here are a few.
. The system will not accept input that is either too long or
too short. Consider, for example, the explanation for a
general ledger entry. If you try to bypass the explanation
(too short), CPA-LEDGER will tell you what you did wrong, and
demand input. If you try to enter an explanation that is too
long, the system will ask that your input be the proper
length. And, all of this is automatic.
. CPA-LEDGER will not accept a transaction unless the dollar
values of debits and credits agree. If they do not agree, the
system will tell you what is wrong and tell you to correct the
information. Thus, the total value of all recorded debits and
the total value of all recorded credits will always agree.
. Before debit and credit dollars are accepted (assuming that
debit dollars equal credit dollars), CPA-LEDGER lists on your
computer screen the entire general ledger entry, including
account titles. Then, you can accept or reject the entry.
CPA-LEDGER lets you decide before it posts your books.
. All dollar entries (such as dollar amounts of transactions)
are verified before they are accepted.
. All calendar date entries are verified.
. CPA-LEDGER will not let you add (post) transactions to a
general ledger account that is not included in your chart of
accounts. This means that you will not have "lost"
transactions - lost because of being added to a nonexistent
account.
x
. CPA-LEDGER will not let you start a new account with an
illogical debit or credit. For example, you CPA-LEDGER knows
that it is illogical to start the account Cash On Hand with a
negative amount. It monitors your input and detects this type
of error.
. CPA-LEDGER will not let you change an account's opening
balance, once you open the account with a dollar amount. Nor
will it let you erase or change the way a transaction is
recorded, once that transaction is accepted by the system.
This provides an audit trail and gives you a complete record
of everything that went into the CPA-LEDGER. Imagine the
confusion if you (or someone else) changed previously recorded
data. What a mess that could be. So, CPA-LEDGER simply will
not allow it to happen. Order is the word, with everything
fully documented and permanently recorded.
SOME OTHER CPA-LEDGER FEATURES.
How frustrating it is to be using a microcomputer and have to
constantly refer to a user's manual for technical explanations of
error codes or for instructions on what to do next. This is not only
frustrating. It is also inefficient.
We solved a large part of that problem. As you use CPA-LEDGER you
will notice that:
. You will have a choice of having CPA-LEDGER brief you, in
simple understandable English, on what it is about to do -
before it does it. This briefing contains an explanation of
all of the types of input that will be expected. You will
know what will happen, before it happens.
. When CPA-LEDGER expects more than one item of input on a line,
complete instructions appear above that line.
. When CPA-LEDGER expects one item of input on a line, complete
instructions appear on the same line.
. CPA-LEDGER does not require long complex input. Instead, you
enter brief understandable information and CPA-LEDGER does the
rest - like using an account number to look up the account's
title and telling you what will be done with your input.
. If you make a computer error in giving your input, CPA-LEDGER
informs you that you made an error. If necessary, it tells
you what it found to be wrong, tells you what to do, pauses
for you to determine the correct input, and then continues
where it left off.
xi
. The system provides you with a printed copy of your input. If
information on that printed copy is needed at a later time,
the system will inform you to get the printout and will give
you complete instructions on what to do.
. CPA-LEDGER tells you when it has finished processing and gives
complete instructions on what you should do next.
. A common mistake is for one to forget to turn on the printer.
CPA-LEDGER watches for that and informs you if your printer is
not ready. Then, it waits for you to do whatever is required.
. CPA-LEDGER even tells you when to adjust the paper in your
printer and how to adjust it.
CPA-LEDGER also has plenty of muscle to record your daily
transactions. For example:
. Any one general ledger entry may have up to 30 debits and 30
credits.
. Each debit and credit may have any value up to $9,999,999.99.
. Total values of up to $999,999,999.99 may be printed on the
printer.
. Checks may be numbered from 1 to 999999 or any other
combination of six characters (alphabetic or numeric, or a
combination of both).
. Documents that support a transaction may be numbered from 1 to
9999999999 or any other combination of 10 characters
(alphabetic or numeric, or a combination of both).
. You may use any combination of 1 to 30 characters to identify
the payee of a check.
xii
. You may use any combination of 1 to 22 characters to describe
the purpose of transaction.
. You may use any combination of 1 to 30 characters as the title
of a general ledger account.
. Your general ledger may have up to 9,999 accounts.
CPA-LEDGER will also:
. List your chart of general ledger accounts.
. Add new general ledger accounts.
. Retrieve and print any general ledger entry that you entered
into system.
. Summarize your general ledger entries by general ledger
account and report the results to you.
. Provide you the status of any account.
. Prepare a listing of all deposits and checks, by bank account.
. Prepare a trial balance so that you may review the status of
the accounts.
. Prepare a formal Income Statement. It will also prepare a
formal Balance Sheet, allow you to add footnotes to your
financial statements, prepare Statements of Owners' Capital
for partnerships and proprietorships, and analyze (using
ratios) the financial statements. For partnerships, you can
direct CPA-LEDGER to distribute profits/losses automatically,
or you may make the distribution manually. See Chapters 18
and 19.
. Automatically start your general ledger after the first year.
. Allow you to "save" standard transactions for posting at a
later time.
. Post your bank account, at the conclusion of a journal entry.
. Sum previous debits and credits of an entry and determine the
dollar amount for the last debit or credit.
These are only a few examples. There are more. You will become
familiar with all of the features as you use the system.
xiii
TABLE OF CONTENTS
CHAPTER
DISCLAIMER, HOW TO ORDER, AND PREFACE ii
INTRODUCTION 1
PC-DOS 1
Program Disk and Practice General Ledger 1
PC-DOS, BASICA, Drive A:, Drive B:, Drive C:
& the COPY Command 2
Using CPA-LEDGER 2
Equipment Needs 2
PC-DOS and BASICA 3
Your Knowledge of Double-Entry Bookkeeping 3
Automatic Features 3
How This Manual Is Organized 4
1 CPA-LEDGER OVERVIEW 6
Menus - The Way to Access CPA-LEDGER Options 6
How to Begin Using CPA-LEDGER 6
An Overview of the "SETUP" Menu 7
SETUP Option 1 - Establish a New General Ledger 7
and Assign Account Titles
SETUP Option 2 - Identify Selected Account Numbers 8
That Are In The New General Ledger
And Identify Your Business Name
(For partnerships, SETUP Option 2
also asks for the procedure to
be followed in allocating profits/
losses to the partners. See
Chapter 18.)
SETUP Option 3 - Assign Beginning Dollar Amounts 9
to New General Ledger Accounts
SETUP Option 4 - Start This Year's General Ledger 9
From Last Year's General Ledger
An Overview of the "DAILY" Menu 9
DAILY Option 1 - Enter New Transactions In The 10
General Ledger - Not Automatic.
See Option 10.
DAILY Option 2 - Print An Unadjusted Trial Balance 10
DAILY Option 3 - Print Financial Statement(s) 10
(Note: For partnerships and sole
proprietorships, DAILY Option 3
also prints statement(s) of
partners'/owner's capital.
See Chapters 18 and 19.)
xiv
TABLE OF CONTENTS
CHAPTER
1 DAILY Option 4 - Print Transactions That Have Been 11
Posted to the General Ledger
DAILY Option 5 - Print General Ledger Accounts 11
With Details Of All Debits And
All Credits
DAILY Option 6 - Print Bank Deposits And Checks 11
Written (Check Register)
DAILY Option 7 - Print General Ledger Accounts 12
And Their Balances
DAILY Option 8 - Add New Accounts To The General 12
Ledger
DAILY Option 9 - Print a Post-Closing Trial Balance 13
DAILY Option 10- Enter New Transactions In The 13
General Ledger - Automatic
Backing Up Your Data Diskette 13
2 STANDARD MESSAGES AND REMINDERS 14
Printer Reminder 14
Errors in Input 15
Today's Date 16
CPA-LEDGER Briefings 17
3 SETUP MENU - OPTION 1 - Establish A New General 19
Ledger And Assign Account
Titles
The SETUP Menu 19
What "SETUP" Options 1, 2, and 3 Ask For 20
What Option 1 Is Used For 20
What Option 1 Asks For 21
Option 1 Sequence of Execution and an Illustration 22
Error Messages 24
Printed Output 24
Practice 25
xv
TABLE OF CONTENTS
CHAPTER
4 SETUP MENU - OPTION 2 - Identify Selected Account 27
Numbers That Are In The
New General Ledger And
Identify Your Business
Name
(For partnerships, SETUP Option 2
also asks for the procedure to
be followed in allocating profits/
losses to the partners. See
Chapter 18.)
What Option 2 is Used For 27
What Option 2 Asks For 27
Option 2 Sequence of Execution 27
An Illustration 28
Error Messages 29
Practice 31
5 SETUP MENU - OPTION 3 - Assign Beginning Dollar 32
Amounts To New General
Ledger Accounts.
What Option 3 is Used For 32
What Option 3 Asks For 32
A Suggested Procedure 32
Option 3 Sequence of Execution 32
An Illustration 33
Error Messages 34
Printed Output 36
Practice 36
NOTE: SEE CHAPTER 16 FOR SETUP MENU OPTION 4, WHICH
PROVIDES FOR AUTOMATIC STARTING OF YOUR GENERAL
LEDGER AFTER THE FIRST YEAR'S USE OF CPA-LEDGER.
6 DAILY MENU - OPTION 1 - Enter New Transactions In 37
The General Ledger - Not
Automatic. See Option 10.
The DAILY Menu 37
What Option 1 Is Used For 38
Option 1 Sequence of Execution 38
How to Discontinue Input for a General Ledger Entry 41
Reviewing And Approving Your General Ledger Entry 42
Getting Ready For The Next General Ledger Entry 43
Error Messages 44
Option 1 is continued on the next page.
xvi
TABLE OF CONTENTS
CHAPTER
6 An Illustration 47
Printed Output 50
Practice 50
7 DAILY MENU - OPTION 2 - Print An Unadjusted Trial 52
Balance
What Option 2 Is Used For 52
Footnote Disclosures 52
Practice 54
8 DAILY MENU - OPTION 3 - Print Financial Statement(s) 55
(Note: For partnerships and sole
proprietorships, DAILY Option 3
also prints statement(s) of
partners'/owner's capital.
See Chapters 18 and 19.)
What Option 3 Is Used For 55
Option 3 Sequence of Execution and an Illustration 55
Error Messages 59
Printed Output 60
Footnote Disclosures 62
Example of a Footnote Disclosure 63
Financial Statement Analysis 64
Ratios Prepared By Option 3 65
Sample Printout - Analysis of Financial Statements 65
Practice 68
9 DAILY MENU - OPTION 4 - Print Transactions That Have 69
Been Posted To The General
Ledger
What Option 4 Is Used For 69
Option 4 Sequence of Execution and an Illustration 69
Error Messages 72
Printed Output 72
Practice 73
xvii
TABLE OF CONTENTS
CHAPTER
10 DAILY MENU - OPTION 5 - Print General Ledger 74
Accounts With Details of
All Debits and All Credits
What Option 5 Is Used For 74
Option 5 Sequence of Execution and an Illustration 75
Error Messages 77
Printed Output 77
Practice 78
11 DAILY MENU - OPTION 6 - Print Bank Deposits and 79
Checks Written (Check
Register)
What Option 6 Is Used For 79
Option 6 Sequence of Execution and an Illustration 79
Error Messages 81
Printed Output 82
Practice 82
12 DAILY MENU - OPTION 7 - Print General Ledger 83
Accounts And Their Balances
What Option 7 Is Used For 83
Option 7 Sequence of Execution and an Illustration 84
Error Messages 85
Printed Output 85
Practice 86
13 DAILY MENU - OPTION 8 - Add New Accounts To The 87
General Ledger
What Option 8 Is Used For 87
Option 8 Sequence of Execution and an Illustration 88
Error Messages 91
Printed Output 93
Practice 93
14 DAILY MENU - OPTION 9 - Print A Post-Closing 94
Trial Balance
What Option 9 Is Used For 94
Option 9 Sequence of Execution 94
Error Messages 94
Practice 95
xviii
TABLE OF CONTENTS
CHAPTER
15 DAILY MENU - OPTION 10 - Enter New Transactions In 96-1
The General Ledger -
Automatic
A note on page numbering 96-1
What Option 10 is Used For 96-1
Option 10 Sequence of Execution 96-3
Practice 96-11
16 SETUP MENU - OPTION 4 - Start This Year's General 96-13
Ledger From Last Year's
General Ledger
What Option 4 is Used For 96-13
What Option 4 Asks For 96-13
Option 4 Sequence of Execution 96-14
Printed Output 96-16
Practice 96-16
17 SETUP MENU - OPTION 6 AND
DAILY MENU - OPTION 11 - Stop All CPA-LEDGER 96-17
Processing And Return
Control to DOS
18 CPA-LEDGER & PARTNERSHIPS 96-18
Why a Separate Chapter on Partnerships? 96-18
The SETUP Menu 96-18
SETUP Menu Option 1 96-19
SETUP Menu Option 2 96-20
The DAILY Menu 96-23
Manual Allocation of Profit/Loss to Partners 96-24
Automatic Allocation of Profit/Loss to Partners 96-28
The Balance Sheet (DAILY Menu Option 3) 96-31
Statement of Partner's Capital 96-32
19 CPA-LEDGER & SOLE PROPRIETORSHIPS 96-35
Why a Separate Chapter on Sole Proprietorships? 96-35
SETUP Menu Option 1 96-35
SETUP Menu Option 2 96-35
DAILY Menu Option 3 96-36
A listing of appendices is on the next page.
xix
APPENDIX A - CPA-LEDGER AND THE INCOME STATEMENT'S
COST OF GOODS SOLD SECTION 97
APPENDIX B - INSTALLING AND ORDERING CPA-LEDGER 99
APPENDIX C - SOME COMMENTS ON CAPACITIES 100
APPENDIX D - SOME COMMENTS ABOUT AN ACCOUNTING AND
BOOKKEEPING SYSTEM 103
Cash Versus Accrual Basis of Accounting 104
Procedures and Controls 105
The Accounting Cycle 106
Adjusting Entries 108
Reversing Entries 112
The Balance Sheet and the Income Statement 112
READ--------> Account Classifications Used By CPA-LEDGER 113
Accounts To Be Included In Your Accounting
System 116
APPENDIX E - SOME FORMS THAT MAY BE USED WITH CPA-LEDGER 117
Discussion 117
FORM 1 - Daily Cash Report 118
FORM 2 - Accounts Receivable Collections 120
FORM 3 - Other Cash Receipts 122
FORM 4 - Cash Payments for Merchandise
Purchases 123
FORM 5 - Operating Expenses Paid in Cash
(Other Than Salaries and Wages) 124
FORM 6 - Sales Returns Paid in Cash or
Sales Returns Credited to
Accounts Receivable 125
FORM 7 - Other Cash Disbursements 127
FORM 8 - Sales on Account 128
FORM 9 - Check Payments for Merchandise
Purchases 129
FORM 10 - Operating Expenses Paid By Check
(Other Than Salaries and Wages) 130
FORM 11 - Sales Returns Paid By Check 131
FORM 12 - Other Disbursements By Check 132
FORM 13 - Salaries and Wages 133
FORM 14 - Purchases on Account 135
FORM 15 - Purchase Returns 136
FORM 16 - Depreciation 138
FORM 17 - Other General Ledger Entries 139
xx
This User's Manual can be used for both the public domain and expanded
versions for CPA-LEDGER. The manual explains the full capabilities of
CPA-LEDGER, and if you are using the public domain version, some
capabilities described are not included in the computer programs that
you have. Please remember that.
Also, the expanded version of CPA-LEDGER comes on three diskettes and
the public domain version on two diskettes. The public domain version
diskettes are called:
. Program Disk & Practice Disk, which contains:
. The CPA-LEDGER computer programs (files with an extension of
".BAS".
. A practice general ledger (files with an extension of ".TXT".
----->. Portions of the User's Manual (files with an extension of
".TXT>
. Documentation Disk, which contains the REMAINDER of the User's
Manual (files with an extension of ".TXT").
As you read the User's Manual, you will notice that three disks are
referred to (as mentioned above) and that you are advised that the
above files are on different diskettes. For example, for the expanded
version, the practice general ledger is on disk 2 of the Documentation
Disk. Just remember, if you have the public domain version of
CPA-LEDGER, disk contents for you are as described above.
Directory of PC-SIG Library Disk #0468
Volume in drive A has no label
Directory of A:\
CHP1 TXT 38757 1-23-89 10:16a
CHP15 TXT 29625 1-23-89 10:15a
CHP16 TXT 9492 1-23-89 10:17a
CHP17 TXT 759 1-23-89 10:17a
CHP2 TXT 7653 1-23-89 10:16a
CHP3-5 TXT 42630 1-23-89 10:16a
CHP6-7 TXT 44708 1-23-89 10:16a
CHP8 TXT 42138 1-23-89 10:15a
CHP9-11 TXT 39034 1-23-89 10:16a
PREFACE TXT 54957 1-03-80 12:49a
READ ME 4938 1-03-80 1:23a
FILES468 TXT 1201 3-14-89 10:24a
FILES466 TXT 2173 3-14-89 10:22a
GO BAT 38 10-19-87 3:56p
GO TXT 694 3-08-89 3:34p
MANUAL BAT 165 3-08-89 3:34p
16 file(s) 318962 bytes
34816 bytes free