School of Information Management & Systems   Spring 1999.   Michael Buckland.
290-1 Design of Library Services.

Assignment 5: Accounting Assignment - Due March 5
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 two years ago with an initial allocation of $200. As of June 30, 1996, $136 had been spent and $54 had been reserved ("encumbered") to pay for an outstanding order. Hence the uncommitted balance at the fiscal year-end was $200 less $136 spent and less $54 encumbered, i.e. $10. This is shown on the Book Fund Journal on line 1.
For the new fiscal year starting July 1, 1996, the bookfund was increased by 10% for inflation: $200 + 10% = $220. With the unexpended balance brought forward was $54 encumbered but not expended + $10 uncommitted = $64, so the new opening balance was $220 + $64 = 284. Note that the encumbrance of $54 also carries forward. See line 2.

During the 1996/97 fiscal year the following events took place:

Aug 15: Book X was ordered. Estimated cost $60. Line 3.
Oct 4: 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 $54 book ordered in 1989/90 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, 1997.

During 1997/98, the following happened:
July 1: The annual allocation ($200 in 1987; $220 in 1988) was increased again by 10%.
Oct 10: Book A ordered. Est. cost $110.
Nov 1: Book B ordered. Est. cost $46.
Dec 15: Book A received. Costs 10% 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 $46.

Continue the Book Fund Journal to show opening balance on July 1, 1997; Transactions during 1997/98; and closing balance on June 30, 1998.