School of Information Management & Systems.
Spring 2004.
285
Design of Library Services. Michael Buckland.
Assignment 10: Bookfund Accounting. Due March 19.
Instructions
Use parentheses for a deduction, reversal, or overdraft: ($10).
Accounting history. What follows is a history of events in a single
book fund with an academic fiscal year that ends June 30.
Unspent balances (and outstanding commitments) are carried forward.
This book fund started three years ago with an initial allocation of $200.
As of June 30, in Year One, $141 had been spent and $52 had been reserved
("encumbered") to pay for an outstanding order.
Hence the uncommitted balance at the fiscal year-end was $200 less $141
spent and less $52 encumbered, i.e. $7.
This is shown on the
Book Fund Journal on line 1.
For the new fiscal year starting July 1, Year Two, the bookfund was
increased by 10% for inflation: $200 + 10% = $220. With the
unexpended balance brought forward was $52 encumbered but not expended
+ $7 uncommitted = $59, so the new opening balance was $220 + $59 = 279.
Note that the encumbrance of $52 also carries forward. See line 2.
During Year Two the following events took place:
Aug 15: Book X was ordered. Estimated cost $60. Line 3.
Oct 20: Book X received. Actual price paid $70. Line 4,
Nov 1: Book Y ordered. Estimated cost $40. Line 5.
Jan 10: Vendor reports that the $52 book ordered in Year One is out of print. Order cancelled and encumbrance removed. Line 6.
March 10: Book Z ordered. Est. cost $160. Line 7.
May 23: Book Y received. Actual cost $40. Line 8.
Line 9 shows the closing balance as of June 30, Year Two.
During Year Three, the following happened:
July 1: The annual allocation ($200 in 1999; $220 in 2000)
was increased again by 10%.
Oct 10: Book A ordered. Est. cost $100.
Nov 1: Book B ordered. Est. cost $58.
Dec 15: Book A received. Costs 20% more than expected.
March 5: Book C ordered. Est. cost $50.
April 10: Order for book Z cancelled.
May 1: Campuswide budget crisis. Vice-Chancellor repossesses $100 of the allocation to this account for central campus administration.
May 7: Book C reported not yet published. Order cancelled.
May 15: Book D ordered: Est. cost $100.
June 1: Book B received. Cost $60.
Continue the
Book Fund Journal through Year Three: Show opening balance
on July 1;
Transactions during the year; and closing balance on June 30.
Use a calculator if you wish, but
do not use spreadsheet software.