Accounting processing using software (internal)
Internal 4 credits Chart of accounts Frequent transactions Infrequent transactions Complex transactions GST invoice basisAS 91175, 4 credits. The entity is GST-registered on the invoice basis, using a COMPUTERISED PERPETUAL inventory system. Achieved processes FREQUENT transactions; Merit sets up per-item inventory/COGS/sales accounts and adds INFREQUENT transactions; Excellence classifies accounts for every element except equity and adds COMPLEX transactions plus the banking function.
1 Reading the notation
The entity's accounting basis, and the frequent/infrequent/complex ladder.📖 Terms the schedule grades you on
4 terms- Entity basis
- GST-registered on the invoice basis, using a computerised PERPETUAL inventory system.
- Frequent transactions (Achieved)
- Cash receipts, cash payments, sales/purchases of THREE different inventory items.
- Infrequent transactions (Merit)
- Returns, sundry charges, drawing of goods, inventory shortage/loss, plant purchase on credit, error correction.
- Complex transactions (Excellence)
- Depreciation to disposal date, disposal for more/less than carrying amount, a three-account error correction, banking-function splits.
2 Frequent transactions
Cash receipts, cash payments, and sales/purchases across three different inventory items.| Transaction | What increases | What decreases / also happens |
|---|---|---|
| Cash sale | Bank, sales income | GST recorded |
| Credit sale (invoice out) | Accounts receivable, sales income | GST recorded; no cash yet |
| Receipt from a customer | Bank | Accounts receivable falls; no new income |
| Credit purchase (invoice in) | Expense or inventory, accounts payable | GST recorded |
| Payment to a supplier | Nothing new | Bank and accounts payable both fall |
The two rows that catch people: a receipt from a customer creates NO income (it was recorded at invoice time), and a payment to a supplier creates NO expense.
3 Infrequent transactions and per-item accounts
Six named transaction types, plus a chart of accounts set up per inventory item.The six named infrequent transactions
- Inventory returns.
- Sundry charges.
- Drawing of goods.
- Inventory shortage and/or losses.
- Purchase of plant or equipment ON CREDIT.
- Correction of errors.
4 Complex transactions
Depreciation to disposal, disposal gains/losses, three-account errors, and split banking totals. Worked Depreciating plant to its date of disposal Plant costing 8,000, straight-line depreciation $200/month, was sold on 15 August (7.5 months into the reporting period). Calculate depreciation from the END of the last reporting period to the DATE OF DISPOSAL, not to the full year: 7.5 months × $200 = ,500. Post this partial-period depreciation BEFORE calculating the disposal entry. Update the carrying amount (cost − accumulated depreciation including this partial charge) before comparing it to sale proceeds. The gain or loss on disposal = sale proceeds − updated carrying amount. ✓ Depreciating only to year end and then disposing understates accumulated depreciation and gets the gain/loss on disposal wrong — the partial-period charge must come first.5 Reports and checking the output
Producing reports is easy; the assessed part is checking they make sense. ✕Processing with no evidence of checking
The evidence that separates processing from data entry is a reconciled bank account, a reviewed trial balance, and corrections made where something looked wrong — not just a clean-looking set of reports with no visible checking.Practice
Recall it first, then use it — testing yourself builds the memory, where rereading the notes above only feels easier.
Recall and application shuffled together — you have to work out what each item wants before you can answer it, which is the part the exam actually tests. Both kinds feed the same spacing schedule, so anything you miss comes back sooner.
Say the answer out loud before flipping — that attempt is where the learning happens, even when you get it wrong.
Exam-style only. Instant feedback, shuffled each attempt, best score saved on this device.