Assignment 1: Procure to Pay
\nInstructions for submission:
\n1. The assignment must be done in a word-file.
\n2. The name of the word file should be \u2013 \u201cstudentname_section_rollno\u201d
\n3. This must be submitted one week from the date the assignment is uploaded
\nBusiness Case: Kerry Confectionery Ltd is Manufacturers of Coffee Bite, Caramilk, Coconut Punch, Lacto King, Orange Candy variety of Chocolates. The Chocolates Manufacturing Process is as follows
\n\u2022 Milk is Boiled to evaporate the Water content @100 Degree centigrade and it is called Boiled Milk
\n\u2022 Then to the boiled Milk, Sugar and Cocoa are added which has the water content. This is again boiled to evaporate all the water content to make it as Thick Liquid Milk called Condensed Milk
\n\u2022 Condensed Milk is allowed to be allowed to pass through a drier which takes all Water content and make it as dry chocolate.
\n\u2022 The dry chocolates are allowed to pass through a cutting machine which cuts the chocolates into different pieces of 5 grams, 10 grams, etc
\n\u2022 Then the pieces of chocolates are passed to a wrapper machine which wraps the chocolate and pass it on to a container
\n\u2022 Then the wrapped chocolates from the container are sent to a Packing machine which picks up chocolates and makes them as 500 grams, 1KG pack chocolate covers.
\n\u2022 Then the chocolates are placed in 10 kg, 20 Kg carton boxes and sent to Customers<\/p>\n
Kerry Confectionery Ltd is Manufacturers of Caramilk, Lactoking and Coconut Punch Chocolates. Their Statement of Affairs as on 31-Oct-2017 is as follows
\nBalance sheet as on 31-Oct-2007
\nLiabilities Amount in RS. Assets Amount in RS.
\nShare Capital 50000 Fixed Assets
\nLong term Loans Building 25000
\n8% Debentures 50000 Plant and Machinery 75000
\nLoan from ICICI 25000 Investments
\n20000
\nCurrent Liabilities Current Assets
\nSundry Creditors 50000 Inventory 25000
\nSundry Debtors 20000
\nBank 7500
\nCash 2500
\nTotal Liabilities 175000 Total Assets 175000<\/p>\n
During the period 01-Nov-2007 to 30-Nov-2007 following Transactions took place
\nTransactions
\n1st Nov – The production department raises a requisition to buy
\ni) Milk 500 Ltrs @ 12INR per Ltr \u2013 6000 INR
\nii) Sugar 500 Kgs @ 10INR per Kg \u2013 5000 INR
\niii) Cocoa 500 Kgs @ 25 INR per Kg \u2013 12500 INR
\n2nd Nov – The procurement department reviews the purchase requisition and raises a purchases order with Dairy International Ltd.(DIL) for the following
\ni) Milk 500 Ltrs @ 12INR per Ltr \u2013 6000 INR
\nii) Sugar 500 Kgs @ 10INR per Kg \u2013 5000 INR
\niii) Cocoa 500 Kgs @ 25 INR per Kg \u2013 12500 INR
\n3rd Nov – DIL Supplies Milk 500 Ltrs @ 12INR per Ltr \u2013 6000 INR
\n4th Nov \u2013 DIL Sends Invoice for INR 6000 with payment term 30 days, if paid within 5 days, then a discount of 5%
\n5th Nov \u2013 DIL supplies Sugar 500 Kgs @ 10INR per Kg \u2013 5000 INR and Cocoa 500 Kgs @ 25 INR per Kg \u2013 12500 INR
\n6th Nov \u2013 DIL sends Invoice for INR 5000 + INR 12500 with payment term 30 days, if paid within 5 days, then a discount of 5%
\n8th Nov The company pays DIL takes discount of 5% and deducts withholding tax of 10%
\nAssignment
\n1) Draw a process map of Procure to Pay applicable for the above scenario and explain each step with the applicable transaction and the Source Documents
\n2) Create the Accounting Entries for Each step, wherever it is applicable (Use the Chart of Accounts provided in Annexure A)<\/p>\n
Annexure A
\nChart of Accounts (COA)
\nThe proper accounts payable procedure begins with a good chart of accounts, which enables you to post your expenses to the correct account. The process is complete when you issue a check or electronic payment to the vendor for the amount due on or before the stated due date.
\nIf you\u2019re used to managing your own personal bills, you should have no problem transitioning to the accounts payable process. However, there are a few things you need to do in order to prepare and process accounts payable properly.
\nCreating a chart of accounts that works with your business is one of the most important things you\u2019ll need to do before you begin to process accounts payable. Your chart of accounts is where all of your accounting transactions reside, and accounts payable is no exception.
\nWhile most accounting software applications include a default chart of accounts, be sure to add any additional accounts in order to track your accounts payable expenses properly. You can also set up your chart of accounts on spreadsheet software such as Microsoft Excel
\nAccount Code Account Description
\n1000 ASSETS
\n1010 CASH Operating Account
\n1020 CASH Debitors
\n1030 CASH Petty Cash
\n1200 RECEIVABLES
\n1210 A\/REC Trade
\n1220 A\/REC Trade Notes Receivable
\n1230 A\/REC Installment Receivables
\n1240 A\/REC Retainage Withheld
\n1290 A\/REC Allowance for Uncollectible Accounts
\n1300 INVENTORIES
\n1310 INV \u2013 Reserved
\n1320 INV \u2013 Work-in-Progress
\n1330 INV \u2013 Finished Goods
\n1340 INV \u2013 Reserved
\n1350 INV \u2013 Unbilled Cost & Fees
\n1390 INV \u2013 Reserve for Obsolescence
\n1400 PREPAID EXPENSES & OTHER CURRENT ASSETS
\n1410 PREPAID \u2013 Insurance
\n1420 PREPAID \u2013 Real Estate Taxes
\n1430 PREPAID \u2013 Repairs & Maintenance
\n1440 PREPAID \u2013 Rent
\n1450 PREPAID \u2013 Deposits
\n1500 PROPERTY PLANT & EQUIPMENT
\n1510 PPE \u2013 Buildings
\n1520 PPE \u2013 Machinery & Equipment
\n1530 PPE \u2013 Vehicles
\n1540 PPE \u2013 Computer Equipment
\n1550 PPE \u2013 Furniture & Fixtures
\n1560 PPE \u2013 Leasehold Improvements
\n1600 ACCUMULATED DEPRECIATION & AMORTIZATION
\n1610 ACCUM DEPR Buildings
\n1620 ACCUM DEPR Machinery & Equipment
\n1630 ACCUM DEPR Vehicles
\n1640 ACCUM DEPR Computer Equipment
\n1650 ACCUM DEPR Furniture & Fixtures
\n1660 ACCUM DEPR Leasehold Improvements
\n1700 NON \u2013 CURRENT RECEIVABLES
\n1710 NCA \u2013 Notes Receivable
\n1720 NCA \u2013 Installment Receivables
\n1730 NCA \u2013 Retainage Withheld
\n1800 INTERCOMPANY RECEIVABLES
\n1900 OTHER NON-CURRENT ASSETS
\n1910 Organization Costs
\n1920 Patents & Licenses
\n1930 Intangible Assets \u2013 Capitalized Software Costs
\n2000 LIABILITIES
\n2100 PAYABLES
\n2110 A\/P Trade
\n2120 A\/P Accrued Accounts Payable
\n2130 A\/P Retainage Withheld
\n2150 Current Maturities of Long-Term Debt
\n2160 Bank Notes Payable
\n2170 Construction Loans Payable
\n2200 ACCRUED COMPENSATION & RELATED ITEMS
\n2210 Accrued \u2013 Payroll
\n2220 Accrued \u2013 Commissions
\n2230 Accrued \u2013 FICA
\n2240 Accrued \u2013 Unemployment Taxes
\n2250 Accrued \u2013 Workmen\u2019s Comp
\n2260 Accrued \u2013 Medical Benefits
\n2270 Accrued \u2013 401 K Company Match
\n2275 W\/H \u2013 FICA
\n2280 W\/H \u2013 Medical Benefits
\n2285 W\/H \u2013 401 K Employee Contribution
\n2300 OTHER ACCRUED EXPENSES
\n2310 Accrued \u2013 Rent
\n2320 Accrued \u2013 Interest
\n2330 Accrued \u2013 Property Taxes
\n2340 Accrued \u2013 Warranty Expense
\n2500 ACCRUED TAXES
\n2510 Accrued \u2013 Federal Income Taxes
\n2520 Accrued \u2013 State Income Taxes
\n2530 Accrued \u2013 Franchise Taxes
\n2540 Deferred \u2013 FIT Current
\n2550 Deferred \u2013 State Income Taxes
\n2600 DEFERRED TAXES
\n2610 D\/T \u2013 FIT \u2013 NON CURRENT
\n2620 D\/T \u2013 SIT \u2013 NON CURRENT
\n2700 LONG-TERM DEBT
\n2710 LTD \u2013 Notes Payable
\n2720 LTD \u2013 Mortgages Payable
\n2730 LTD \u2013 Installment Notes Payable
\n2800 INTERCOMPANY PAYABLES
\n2900 OTHER NON CURRENT LIABILITIES
\n3000 OWNERS EQUITIES
\n3100 Common Stock
\n3200 Preferred Stock
\n3300 Paid in Capital
\n3400 Partners Capital
\n3500 Member Contributions
\n3900 Retained Earnings
\n4000 REVENUE
\n4010 REVENUE \u2013 PRODUCT 1
\n4020 REVENUE \u2013 PRODUCT 2
\n4030 REVENUE \u2013 PRODUCT 3
\n4040 REVENUE \u2013 PRODUCT 4
\n4600 Interest Income
\n4700 Other Income
\n4800 Finance Charge Income
\n4900 Sales Returns and Allowances
\n4950 Sales Discounts
\n5000 COST OF GOODS SOLD
\n5010 COGS \u2013 PRODUCT 1
\n5020 COGS \u2013 PRODUCT 2
\n5030 COGS \u2013 PRODUCT 3
\n5040 COGS \u2013 PRODUCT 4
\n5700 Freight
\n5800 Inventory Adjustments
\n5900 Purchase Returns and Allowances
\n5950 Reserved
\n6000 \u2013 7000 OPERATING EXPENSES
\n6010 Advertising Expense
\n6050 Amortization Expense
\n6100 Auto Expense
\n6150 Bad Debt Expense
\n6200 Bank Charges
\n6250 Cash Over and Short
\n6300 Commission Expense
\n6350 Depreciation Expense
\n6400 Employee Benefit Program
\n6550 Freight Expense
\n6600 Gifts Expense
\n6650 Insurance \u2013 General
\n6700 Interest Expense
\n6750 Professional Fees
\n6800 License Expense
\n6850 Maintenance Expense
\n6900 Meals and Entertainment
\n6950 Office Expense
\n7000 Payroll Taxes
\n7050 Printing
\n7150 Postage
\n7200 Rent
\n7250 Repairs Expense
\n7300 Salaries Expense
\n7350 Supplies Expense
\n7400 Taxes \u2013 FIT Expense
\n7500 Utilities Expense
\n7900 Gain\/Loss on Sale of Assets<\/p>\n
————-<\/p>\n
Procure to Pay is the first assignment.
\nSubmission Instructions:<\/p>\n
1. The task must be completed in a word document.<\/p>\n
2. The word file should be named “studentname section rollno.”<\/p>\n
3. This must be provided within one week of the assignment’s submission date.<\/p>\n
Kerry Confectionery Ltd is a chocolate manufacturer that produces Coffee Bite, Caramilk, Coconut Punch, Lacto King, and Orange Candy chocolates. The following is a description of the chocolate manufacturing process:<\/p>\n
\u2022 Boiled milk is milk that has been boiled to evaporate the water content at 100 degrees Celsius.<\/p>\n
\u2022 Then, to the cooked milk, sugar and cocoa with water content are added. This is then cooked again to evaporate all of the water content, resulting in Thick Liquid Milk known as Condensed Milk.<\/p>\n
\u2022 Condensed Milk is permitted.<\/p>\n","protected":false},"excerpt":{"rendered":"
Assignment 1: Procure to Pay Instructions for submission: 1. The assignment must be done in a word-file. 2. The name of the word file should\u2026<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7641,7638,7639,7640,7637],"tags":[8893,1053,8883,8885,8884,8888,8889,8890,8894,8892,8887,8886,54,8895,8891],"class_list":["post-99638","post","type-post","status-publish","format-standard","hentry","category-australia-essay-writers","category-canada-essay-writers","category-ireland-essay-writers","category-uae-essay-writers","category-usa-essay-writers","tag-australia-nursing-writing-help","tag-case-study-help","tag-criminal-justice-essay-writers","tag-criminal-law-research-essay-writers","tag-criminology-paper-writing-service","tag-essay-roo","tag-my-assignment-help","tag-need-nursing-assignment-help-in-australia","tag-nursing-assignments","tag-nursing-essay-help-by-australian-academic-writers","tag-nursing-essay-writing-help-australia","tag-nursing-homework-assignment-help","tag-nursing-writing-help","tag-nursing-writing-helpers","tag-treat-assignment-help"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/99638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=99638"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/99638\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=99638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=99638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=99638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}