Specifications

Computer Tutorial 3 Lesson 2  19
Adding more new accounts
Add more new accounts to complete the chart of accounts for Sample Company Ltd.
11. Use the method illustrated in steps 2 to 9 to add the following new accounts. Accept
the default unless specified below:
Account Description Structure Account Normal Account
Code type balance Group
1750 Long-term ACC Balance Sheet Debit Other assets
investments
6650 Sundry ACC Income Debit Cost and
Statement expenses
12. Leave the G/L Account window open for the next exercise.
EXERCISE 2.6
Modifying the details of an account
On reviewing the chart of accounts, you find that account 1035 (Bank - savings) was assigned
to the Other assets account group but should have been assigned to the Current assets account
group. Although it does not affect the processing of transactions and balances, it does affect
the printing of financial statements. To modify this account, work through the following
steps:
1. If you know the account number of the account that you want to change, enter the
number in the Account field. If you do not know it, use the Finder button to display
the Finder - Accounts window. Enter the appropriate information in the Find by: and
Filter: fields. The G/L Account window will display the information for the
Bank - savings account.
2. To change the Account group, click the drop-down arrow next to the Account Group
field. Select Current assets.
3. Click the Save button to save this new information.
4. Leave the G/L Account window open for the next exercise.
You can change other details of an account using the same procedure. However, there are
restrictions on modifying accounts. Here are some important ones:
 You cannot change an account number. However, you can create a new account and
account number, and transfer the balance from an old account to the new one. If you make
the old account inactive, you can delete it (see Exercise 2.7) once the account details are
past the established date for maintaining details. This information would be determined by
management or be based on the size of your hard drive. Some companies only maintain
details for one year, while others might go back two to three years.
 You can change the account type. However, changing the account type from Income
Statement to Balance Sheet or vice versa can cause the calculation of net income and
retained earnings to be incorrect. When closing the year, the balance of an income
statement account is closed to the retained earnings account, while that of a balance sheet
account is carried over to the new year.