Question 1

When setting up a new company in Peachtree you can follow these basic procedures and steps:

1. Launch Peachtree Software: - Launch the Peachtree software on your computer.

2. Create a New Company: - From the main menu, click on "File" and select "New Company" or
"New Company Setup." - Follow the setup wizard prompts that guide you through the process of
creating a new company.

3. Company Information: - Provide basic company information such as the company name,
address, contact details, and fiscal year start and end dates. - Set a unique company ID and
establish your company's reporting currency.

4. Chart of Accounts: - Define your chart of accounts, which represents the financial structure
and categories of your company's transactions. - You can choose to utilize the default chart of
accounts provided by Peachtree or customize it according to your specific needs. - Add new
accounts, modify existing ones, or import a predefined chart of accounts if necessary.

5. Vendor and Customer Information: - Enter the details of your vendors and customers into the
system. - Include essential information such as names, addresses, contact information, payment
terms, and any other relevant details.

6. Inventory Setup (if applicable): - If you deal with inventory, set up your inventory items and
related information. - Define unit of measure, pricing, inventory quantity tracking, and other
relevant inventory settings.

7. Bank Accounts and Transactions: - Set up your bank accounts by entering their details,
including account numbers, balances, and reconciliation settings. - Enter any existing bank
transactions, such as outstanding checks or deposits, to ensure accurate reporting.

8. Security and User Access: - Establish user accounts and assign appropriate permissions based
on roles and responsibilities within the company. - Secure your company data by specifying
access rights and restrictions for different users.

9. Data Conversion or Import (if applicable): - If you are migrating from another accounting
system, you may need to convert or import existing data into Peachtree. - Follow the provided
guidelines or use conversion tools to transfer data accurately.

10. Backup and Data Protection: - Set up regular backup procedures to protect your company
data. - Maintain backups in safe locations and establish a plan for disaster recovery.

Question 2

A. Cash basis and accrual basis accounting:

The main difference between cash basis and accrual basis accounting lies in the timing of when
transactions are recorded.

Cash basis accounting records transactions when cash is received or paid out. It focuses on actual
cash inflows and outflows, disregarding any unpaid bills or yet-to-be-received payments. It is
relatively simpler and commonly used by small businesses to track their cash flow.

On the other hand, accrual basis accounting recognizes transactions when they occur, regardless
of cash flow. It takes into account revenues when they are earned (regardless of payment) and
expenses when they are incurred (regardless of payment). This method provides a better view of
a company's financial performance and is generally used by larger businesses for more accurate
financial reporting.

B. Real-time and Batch posting:

Real-time posting refers to the immediate recording and update of transactions or data as they
occur. It allows for instant availability of information and enables quick analysis and decision-
making. Real-time posting is commonly used in systems where data needs to be constantly
updated and accessed, such as online banking or inventory management.

On the other hand, batch posting involves collecting and processing a group of transactions at
specific intervals. Instead of immediate updates, transactions are accumulated and posted
together as a batch. This method helps streamline the processing of large volumes of data and
reduces processing time. Batch posting is often used in scenarios where real-time updates are not
necessary or feasible, such as monthly financial statements.

C.General journal and special journal:

General journal, also known as the book of original entry, is where all the financial transactions
of a business are initially recorded in chronological order. It includes various types of
transactions like cash payments, sales, purchases, and other miscellaneous entries. General
journals provide a comprehensive record of all transactions and serve as a primary reference for
posting to the general ledger.

On the other hand, special journals are used to record specific types of frequently occurring
transactions. Examples of special journals include the sales journal, purchases journal, cash
receipts journal, and cash disbursements journal. These journals are designed to simplify and
streamline the recording process for specific transactions. Special journals allow for better
organization and efficiency in accounting, especially in businesses with high transaction
volumes.

Question 3

To maintain a chart of accounts in Peachtree, you can follow these basic procedures and steps:
1. Set up a new company: Begin by creating a new company file in Peachtree and provide the
necessary details such as company name, address, fiscal year, etc.

2. Access the chart of accounts: Once your company file is created, navigate to the chart of
accounts module in Peachtree. This module allows you to define and manage your accounts.

3. Create account groups: Determine the categories or groups that you want to establish within
your chart of accounts. These may include assets, liabilities, equity, income, and expenses.
Create these account groups accordingly.

4. Add general ledger accounts: Within each account group, add specific general ledger accounts.
These accounts represent individual financial categories such as cash, accounts receivable,
accounts payable, sales revenue, salaries expense, etc. Specify the account number, name, and
other relevant details for each account.

5. Assign account types: Assign appropriate account types to each general ledger account.
Peachtree offers various types such as bank, accounts receivable, accounts payable, sales,
expenses, etc. This step helps in accurate financial reporting and analysis.

6. Define account properties: Specify additional properties for each account, such as tax codes,
budgets, departments, or classes. These properties allow for more detailed tracking and reporting
of financial information.

7. Determine account structure: Consider the numbering system and hierarchy you want to
establish for your accounts. Decide whether you want to use a simple numbering scheme or a
more complex structure based on your business needs.

8. Review and adjust: Regularly review your chart of accounts to ensure its accuracy and
relevance. Make adjustments or additions as necessary to accommodate changes in your business
operations.

9. Maintain consistency: It is important to maintain consistency in naming conventions, account

numbering, and organization throughout your chart of accounts. This helps ensure clarity and
ease of use when working with financial data.

Question 4

1. Accurate Financial Records: By keeping customer and vendor information up to date,

Peachtree ensures that all financial transactions are accurately recorded. This includes invoices,
payments, and purchase orders, allowing for correct bookkeeping and financial reporting.

2. Efficient Communication: Having default information readily available saves time and effort
when communicating with customers or vendors. It allows for easy access to contact details,
payment terms, shipping preferences, and other important information, facilitating smooth
communication and reducing the chances of errors.

3. Streamlined Transactions: Default information in Peachtree can simplify the creation of

invoices, purchase orders, and other transaction documents. Automatic population of key details
such as billing addresses, payment terms, and shipping instructions helps in maintaining
consistency and speeding up the transaction process.

4. Inventory Management: Maintaining default inventory information ensures that accurate

inventory levels are reflected in the software. This includes default pricing, units of measure,
reorder points, and lead times. It enables effective inventory tracking, minimizing stockouts, and
optimizing inventory levels.

5. Personalized Customer Service: Having customer default information in Peachtree allows for
a personalized approach to customer interactions. It helps in understanding customer preferences,
order history, credit limits, and special pricing. This enables businesses to provide better
customer service, enhancing satisfaction and loyalty.

Question 5

Peachtree is a popular accounting software that helps businesses manage their financial
operations efficiently. When maintaining customer, vendor, and inventory subsidiary ledgers in
Peachtree, you would typically follow these basic procedures and steps:

1. Setting up the Subsidiary Ledgers:

- Create separate subsidiary ledgers for customers, vendors, and inventory in Peachtree.

- Ensure appropriate fields and data structures are in place to capture the relevant information.

2. Entering Customer Information:

- Enter customer details such as name, address, contact information, and payment terms into
the customer ledger.

- Assign unique customer identification numbers to each customer for easy reference and
tracking

3. Recording Sales Transactions:

- Record sales transactions, such as invoices or sales receipts, in the customer ledger.

- Include details such as invoice numbers, dates, items sold, quantities, prices, and payment
terms.

- Apply appropriate tax codes and discounts, if applicable.

 - Ensure accuracy and completeness of data entry.

4. Managing Vendor Information:

- Enter vendor details, such as name, address, contact information, and payment terms, into the
vendor ledger.

- Assign unique vendor identification numbers for easy identification and tracking.

5. Recording Purchase Transactions:

- Record vendor transactions, such as vendor invoices or bills, in the vendor ledger.

- Include details like invoice numbers, dates, items purchased, quantities, prices, and payment
terms.

- Apply applicable tax codes and discounts, if any.

- Verify the accuracy and completeness of data entry.

6. Tracking Inventory:

- Maintain and update the inventory subsidiary ledger for accurate tracking of inventory items.

- Record inventory item details such as item codes, descriptions, quantities, unit prices, and
cost of goods sold.

- Update inventory levels regularly based on purchases, sales, and adjustments.

7. Reconciling Ledgers:

- Perform regular reconciliations between the subsidiary ledgers and the general ledger.

- Ensure that all transactions recorded in the subsidiary ledgers match the corresponding entries
in the general ledger.

- Investigate and resolve any discrepancies or errors that may arise.

8. Generating Reports:

- Utilize Peachtree's reporting features to generate various reports, including customer

statements, aging reports, vendor reports, and inventory reports.

- Review these reports to gain insights into the financial health of your business, outstanding
balances, payment due dates, and inventory levels.
Question 6

D.: How do you record quotes in Peachtree?In Peachtree, you can record quotes by following
these steps:

1. Open the Peachtree software and go to the Sales module.

2. Click on the Quotes option to create a new quote.

3. Fill in the customer details, such as name, address, and contact information.

4. Add the products or services that are being quoted along with their respective quantities and
prices.

5. Once the quote is complete, save it in the system.

6. You can also print or email the quote to the customer for their reference.

E. How do you convert quotes into sales orders in Peachtree?

To convert a quote into a sales order in Peachtree, you can perform the following steps:

1. Open the Peachtree software and navigate to the Sales module.

2. Locate the quote that you want to convert into a sales order.

3. Open the quote and review the details.

4. Click on the option to convert the quote into a sales order.

5. The system will automatically create a new sales order based on the information from the
quote.

6. Verify the details in the sales order and make any necessary changes.

7. Save the sales order in the system.

F: How do you record transactions related to cash and credit sales in Peachtree?

For recording transactions related to cash and credit sales in Peachtree, you can follow these
steps:

1. Open Peachtree and access the Sales module.

2. Choose the appropriate option for recording cash or credit sales, depending on the type of
transaction.
3. Enter the customer details, including name, address, and contact information.

4. Add the products or services sold, along with their quantities and prices.

5. For cash sales, record the payment received from the customer and allocate it to the
appropriate accounts.

6. For credit sales, specify the payment terms and due dates for the customer.

7. Save the transaction in Peachtree to ensure accurate record-keeping.

G. record transactions related to purchase orders, credit purchases, and cash purchases, you
would typically follow

1. Purchase Orders:

- Create a purchase order to initiate the request for goods or services from a supplier/vendor.
Include details such as the item, quantity, price, and any other relevant information.

- Once the purchase order is approved, it serves as a record of the transaction and can be used
for tracking purposes.

2. Credit Purchases:

- When making a credit purchase, you receive goods or services from a supplier/vendor with an
agreement to pay at a later date.

- Create a credit purchase entry in your accounting system, specifying the supplier/vendor,
invoice number, date, item details, quantity, price, and terms of credit.

- Ensure that the accounts payable balance reflects the amount owed to the supplier/vendor.

3. Cash Purchases:

- Cash purchases involve direct payment at the time of purchase, typically in cash or through
electronic means.

- Record cash purchases by creating a cash purchase entry in your accounting system. Include
details such as the supplier/vendor, date, item details, quantity, and cost.

- Reduce the cash balance and update the relevant expense account or inventory account to
reflect the purchase.

Question 7
To generate reports such as the general ledger trial balance and financial statements in Peachtree
you can follow these basic procedures and steps:

1. General Ledger Trial Balance: - Launch Peachtree and open your company file. - From the
main menu, go to "Reports" and select "General Ledger." - Choose the desired date range for the
trial balance report. - Review and select the accounts you wish to include in the report. - Click on
"Preview" or "Print" to generate the trial balance report, which will display the balances of all
selected accounts for the specified date range.

2. Financial Statements (Income Statement, Balance Sheet, and Cash Flow Statement): - Launch
Peachtree and open your company file. - From the main menu, go to "Reports" and select
"Financial Statements." - Choose the type of financial statement you want to generate (e.g.,
Income Statement, Balance Sheet, Cash Flow Statement). - Customize the report settings such as
the date range and accounts to be included. - Select the appropriate options for formatting and
presentation. - Click on "Preview" or "Print" to generate the financial statement report.

3. Customizing Reports: - Peachtree allows you to customize reports according to your specific
requirements. - After selecting the report you want to generate, click on the "Options" button or
tab to access customization settings. - Customize the report layout, add or remove columns,
apply filters, and modify other formatting options. - Save the customized report template for
future use if desired.