Assignment 1: Procure to Pay
Directions for submission:
1. The task should be achieved in a word-file.
2. The title of the phrase file needs to be – “studentname_section_rollno”
three. This should be submitted one week from the date the task is uploaded
Enterprise Case: Kerry Confectionery Ltd is Producers of Espresso Chunk, Caramilk, Coconut Punch, Lacto King, Orange Sweet number of Sweets. The Sweets Manufacturing Course of is as follows
• Milk is Boiled to evaporate the Water content material @100 Diploma centigrade and it’s known as Boiled Milk
• Then to the boiled Milk, Sugar and Cocoa are added which has the water content material. That is once more boiled to evaporate all of the water content material to make it as Thick Liquid Milk known as Condensed Milk
• Condensed Milk is allowed to be allowed to cross via a drier which takes all Water content material and make it as dry chocolate.
• The dry candies are allowed to cross via a chopping machine which cuts the candies into totally different items of 5 grams, 10 grams, and many others
• Then the items of candies are handed to a wrapper machine which wraps the chocolate and cross it on to a container
• Then the wrapped candies from the container are despatched to a Packing machine which picks up candies and makes them as 500 grams, 1KG pack chocolate covers.
• Then the candies are positioned in 10 kg, 20 Kg carton bins and despatched to Clients
Kerry Confectionery Ltd is Producers of Caramilk, Lactoking and Coconut Punch Sweets. Their Assertion of Affairs as on 31-Oct-2017 is as follows
Steadiness sheet as on 31-Oct-2007
Liabilities Quantity in RS. Belongings Quantity in RS.
Share Capital 50000 Mounted Belongings
Long run Loans Constructing 25000
eight% Debentures 50000 Plant and Equipment 75000
Mortgage from ICICI 25000 Investments
20000
Present Liabilities Present Belongings
Sundry Collectors 50000 Stock 25000
Sundry Debtors 20000
Financial institution 7500
Money 2500
Whole Liabilities 175000 Whole Belongings 175000
Throughout the interval 01-Nov-2007 to 30-Nov-2007 following Transactions befell
Transactions
1st Nov – The manufacturing division raises a requisition to purchase
i) Milk 500 Ltrs @ 12INR per Ltr – 6000 INR
ii) Sugar 500 Kgs @ 10INR per Kg – 5000 INR
iii) Cocoa 500 Kgs @ 25 INR per Kg – 12500 INR
2nd Nov – The procurement division opinions the acquisition requisition and raises a purchases order with Dairy Worldwide Ltd.(DIL) for the next
i) Milk 500 Ltrs @ 12INR per Ltr – 6000 INR
ii) Sugar 500 Kgs @ 10INR per Kg – 5000 INR
iii) Cocoa 500 Kgs @ 25 INR per Kg – 12500 INR
third Nov – DIL Provides Milk 500 Ltrs @ 12INR per Ltr – 6000 INR
4th Nov – DIL Sends Bill for INR 6000 with fee time period 30 days, if paid inside 5 days, then a reduction of 5%
fifth Nov – DIL provides Sugar 500 Kgs @ 10INR per Kg – 5000 INR and Cocoa 500 Kgs @ 25 INR per Kg – 12500 INR
sixth Nov – DIL sends Bill for INR 5000 + INR 12500 with fee time period 30 days, if paid inside 5 days, then a reduction of 5%
eighth Nov The corporate pays DIL takes low cost of 5% and deducts withholding tax of 10%
Assignment
1) Draw a course of map of Procure to Pay relevant for the above situation and clarify every step with the relevant transaction and the Supply Paperwork
2) Create the Accounting Entries for Every step, wherever it’s relevant (Use the Chart of Accounts supplied in Annexure A)
Annexure A
Chart of Accounts (COA)
The right accounts payable process begins with a great chart of accounts, which permits you to publish your bills to the right account. The method is full if you situation a examine or digital fee to the seller for the quantity due on or earlier than the acknowledged due date.
When you’re used to managing your individual private payments, you shouldn’t have any downside transitioning to the accounts payable course of. Nonetheless, there are some things you want to do so as to put together and course of accounts payable correctly.
Making a chart of accounts that works with your online business is among the most necessary belongings you’ll want to do earlier than you start to course of accounts payable. Your chart of accounts is the place your entire accounting transactions reside, and accounts payable is not any exception.
Whereas most accounting software program purposes embrace a default chart of accounts, make sure to add any extra accounts so as to monitor your accounts payable bills correctly. You too can arrange your chart of accounts on spreadsheet software program akin to Microsoft Excel
Account Code Account Description
1000 ASSETS
1010 CASH Working Account
1020 CASH Debitors
1030 CASH Petty Money
1200 RECEIVABLES
1210 A/REC Commerce
1220 A/REC Commerce Notes Receivable
1230 A/REC Installment Receivables
1240 A/REC Retainage Withheld
1290 A/REC Allowance for Uncollectible Accounts
1300 INVENTORIES
1310 INV – Reserved
1320 INV – Work-in-Progress
1330 INV – Completed Items
1340 INV – Reserved
1350 INV – Unbilled Value & Charges
1390 INV – Reserve for Obsolescence
1400 PREPAID EXPENSES & OTHER CURRENT ASSETS
1410 PREPAID – Insurance coverage
1420 PREPAID – Actual Property Taxes
1430 PREPAID – Repairs & Upkeep
1440 PREPAID – Lease
1450 PREPAID – Deposits
1500 PROPERTY PLANT & EQUIPMENT
1510 PPE – Buildings
1520 PPE – Equipment & Gear
1530 PPE – Automobiles
1540 PPE – Laptop Gear
1550 PPE – Furnishings & Fixtures
1560 PPE – Leasehold Enhancements
1600 ACCUMULATED DEPRECIATION & AMORTIZATION
1610 ACCUM DEPR Buildings
1620 ACCUM DEPR Equipment & Gear
1630 ACCUM DEPR Automobiles
1640 ACCUM DEPR Laptop Gear
1650 ACCUM DEPR Furnishings & Fixtures
1660 ACCUM DEPR Leasehold Enhancements
1700 NON – CURRENT RECEIVABLES
1710 NCA – Notes Receivable
1720 NCA – Installment Receivables
1730 NCA – Retainage Withheld
1800 INTERCOMPANY RECEIVABLES
1900 OTHER NON-CURRENT ASSETS
1910 Group Prices
1920 Patents & Licenses
1930 Intangible Belongings – Capitalized Software program Prices
2000 LIABILITIES
2100 PAYABLES
2110 A/P Commerce
2120 A/P Accrued Accounts Payable
2130 A/P Retainage Withheld
2150 Present Maturities of Lengthy-Time period Debt
2160 Financial institution Notes Payable
2170 Building Loans Payable
2200 ACCRUED COMPENSATION & RELATED ITEMS
2210 Accrued – Payroll
2220 Accrued – Commissions
2230 Accrued – FICA
2240 Accrued – Unemployment Taxes
2250 Accrued – Workmen’s Comp
2260 Accrued – Medical Advantages
2270 Accrued – 401 Okay Firm Match
2275 W/H – FICA
2280 W/H – Medical Advantages
2285 W/H – 401 Okay Worker Contribution
2300 OTHER ACCRUED EXPENSES
2310 Accrued – Lease
2320 Accrued – Curiosity
2330 Accrued – Property Taxes
2340 Accrued – Guarantee Expense
2500 ACCRUED TAXES
2510 Accrued – Federal Earnings Taxes
2520 Accrued – State Earnings Taxes
2530 Accrued – Franchise Taxes
2540 Deferred – FIT Present
2550 Deferred – State Earnings Taxes
2600 DEFERRED TAXES
2610 D/T – FIT – NON CURRENT
2620 D/T – SIT – NON CURRENT
2700 LONG-TERM DEBT
2710 LTD – Notes Payable
2720 LTD – Mortgages Payable
2730 LTD – Installment Notes Payable
2800 INTERCOMPANY PAYABLES
2900 OTHER NON CURRENT LIABILITIES
3000 OWNERS EQUITIES
3100 Frequent Inventory
3200 Most well-liked Inventory
3300 Paid in Capital
3400 Companions Capital
3500 Member Contributions
3900 Retained Earnings
4000 REVENUE
4010 REVENUE – PRODUCT 1
4020 REVENUE – PRODUCT 2
4030 REVENUE – PRODUCT three
4040 REVENUE – PRODUCT four
4600 Curiosity Earnings
4700 Different Earnings
4800 Finance Cost Earnings
4900 Gross sales Returns and Allowances
4950 Gross sales Reductions
5000 COST OF GOODS SOLD
5010 COGS – PRODUCT 1
5020 COGS – PRODUCT 2
5030 COGS – PRODUCT three
5040 COGS – PRODUCT four
5700 Freight
5800 Stock Changes
5900 Buy Returns and Allowances
5950 Reserved
6000 – 7000 OPERATING EXPENSES
6010 Promoting Expense
6050 Amortization Expense
6100 Auto Expense
6150 Unhealthy Debt Expense
6200 Financial institution Expenses
6250 Money Over and Brief
6300 Fee Expense
6350 Depreciation Expense
6400 Worker Profit Program
6550 Freight Expense
6600 Presents Expense
6650 Insurance coverage – Normal
6700 Curiosity Expense
6750 Skilled Charges
6800 License Expense
6850 Upkeep Expense
6900 Meals and Leisure
6950 Workplace Expense
7000 Payroll Taxes
7050 Printing
7150 Postage
7200 Lease
7250 Repairs Expense
7300 Salaries Expense
7350 Provides Expense
7400 Taxes – FIT Expense
7500 Utilities Expense
7900 Achieve/Loss on Sale of Belongings
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Procure to Pay is the primary task.
Submission Directions:
1. The duty should be accomplished in a phrase doc.
2. The phrase file needs to be named “studentname part rollno.”
three. This should be supplied inside one week of the task’s submission date.
Kerry Confectionery Ltd is a chocolate producer that produces Espresso Chunk, Caramilk, Coconut Punch, Lacto King, and Orange Sweet candies. The next is an outline of the chocolate manufacturing course of:
• Boiled milk is milk that has been boiled to evaporate the water content material at 100 levels Celsius.
• Then, to the cooked milk, sugar and cocoa with water content material are added. That is then cooked once more to evaporate all the water content material, leading to Thick Liquid Milk often called Condensed Milk.
• Condensed Milk is permitted.
