Cashbook Platinum

For example:

Step 4: Setup an Asset Account

• Click on the Assets tab
  
• For this example we are purchasing a tractor. A tractor forms part of Plant & Equipment
  
• Note: Plant is immovable property or property that has been attached to the earth, whereas equipment (or machinery) is machines that can be moved on short notice
  
• Click on Plant & Equipment account to highlight
  
• Click Edit (or click on Add and fill in the following details)
  
• Your Asset account details should include:
  
  • Account Code: 765 (Account Code numbering should be in the same number range as other Asset accounts. i.e. 700's.)
    
  • Description: Plant & Equipment
    
  • Account Type: Asset
    
  • GST Category: 08. Capital Acquisitions
    
  • Reporting Group: 7-750 Property, Plant & Equipment
    
  • Tick Farm Asset check box
    
• Click OK to save
  

For example:

Step 5: Setup Another Other Expense Account

• Click on the Expenses tab
  
• Scroll down to see if there is a plant & equipment purchases account. Cashbook Platinum comes with a standard chart for account classification. This can be added to or modified to suit the user's requirements
  
• Click on Plant & Equipment Purchases, sub-account Large Plant
  
• Click Edit
  
• This account should have the following Details:
  
  • Account Code: e.g. 482A Note: Sub-accounts must start with the same code as the main or control account
    
  • If creating a new main account, keep the account code in the same number range as the other, Other Expense accounts. i.e. 400's
    
  • Tick Sub-Account of check box
    
  • Sub-Account of e.g. 482 Plant & Equipment
    
  • Description: e.g. Large Plant
    
  • Account Type: Other Expense
    
  • GST Category: 08. Capital Acquisitions
    
  • Reporting Group: e.g. 4-480 Plant & Machinery Purchased
    
  • From the Register Link dropdown menu, select Fixed Assets. This will provide direct access to the Fixed Asset register from data entry screens.
    
  • Balance Sheet Link: 765 Plant & Equipment (Liability account created in Step 4)
    
  • Click OK to save
    
• Click Close to exit Chart
  

For example:

Step 6: Setup an Interest Expense Account 

Note: The principal is the amount borrowed and have to pay back, and interest is what the lender charges for lending the money

• Click on the Expenses tab
  
• Scroll down to see if there is an interest account applicable. (Cashbook Platinum comes with a standard chart for account classification. This can be added to or modified to suit the user's requirements.)
  
• For this example, we will be paying interest on the purchase a tractor
  
• Click Edit (or Add button, fill in details as follows.)
  
  • Account Code: e.g. 320D Note: Sub-accounts must start with the same code as the main or control account.
    
  • If creating a new main account, keep the account code in the same number range as the other, Other Expense accounts. i.e. 300's.
    
  • Tick Sub-Account of check box
    
  • Sub-Account of e.g. 320 Interest on Asset Purchase
    
  • Description: e.g. Tractor
    
  • Account Type: Operating Expense
    
  • GST Category: 04. Acquistions with no GST
    
  • Reporting Group: e.g. 3-320 Finance Expenses
    
• Click OK to save
  

For example:

Step 7: Cashbook Entry to Record Purchase of Asset via a Loan and Add Asset to Fixed Asset Register

• Click on Cashbook toolbar option
  
• Click Add
  
• The transaction Type is Cash Journal
  

For example:

• Note:
  
  • Click on the New Asset radio dial
    
  • Original Cost - net of any GST
    
  • Purchased From - select from drop-down list of suppliers or enter new name
    
  • Value for depreciation - this will normally be the same as the cost of the asset
    
  • Date for depreciation - i.e. date from which depreciation is calculated - this will normally be the same as the purchase date
    
  • Depreciation Details - Depreciation Details such as (Depreciation) Rate%, Private Use% and Method of Depreciation - Diminishing Value and Prime Cost. - these should be entered after advice from your accountant
    

1. Note: There are two methods you can use to calculate asset depreciation
   

• Prime Cost - used to depreciated assets by equal amounts each year over its effective life
  
• Diminishing Value - uses a percentage to calculate depreciation i.e. the value of a depreciating asset decreases more it the early years of its effective life
  

Click on the following ATO website link: Prime cost and diminishing value methods for further information.

Note:  It is strongly advised you contact your accountant for help in calculating depreciation amounts and which method you should use. Your accountant can look at how your business operates to determine which method is appropriate. Also consult your accountant as to when to depreciate your assets, e.g. at the end of the financial year.

 Note: The sections coloured Red must have information entered in them. The other sections are optional

For example:

Step 8: Cashbook Entry to Record a Loan Repayment

• Click on Cashbook toolbar option
  
• Click Add
  
• The transaction Type is Payment
  

For example: Recording a loan payment which contains both interest and principal payments

The credit balance of your liability account (e.g. 857.01 JD tractor Loan) should agree with the loan balance shown on the loan statement furnished by your lender. If such a statement is not provided, you can phone your lender and ask for the principal balance on your loan.

To view the balance of your liability account/s at a given date, look at your Trial Balance:

• Click on Reports
  
• Accounting Detail
  
• Trial balance menu option
  
• Select the Report as at date
  
• Click on the Print button
  
• Scroll down to the Liabilities section of the Trial Balance
  
• See credit balance of your loan