99 APPENDIX B USING CPA-LEDGER WITH FIXED DISK The differing versions of CPA-LEDGER are discussed beginning on page 99-3. Information on ordering CPA-LEDGER from Tronolone & Foster begins there also. This version of CPA-LEDGER is for fixed disk. All of the CPA-LEDGER internal commands and files use the DEFAULT DRIVE, which should ALWAYS be C:. Both CPA-LEDGER and PC-DOS should be on fixed disk. Also, you might want to establish a separate directory for CPA-LEDGER. Refer to your IBM Disk Operating System reference manual for details. The same reference manual covers other considerations that are beyond the scope of this appendix, such as: . Fixed disk drive letters, and . How to prepare your fixed disk. Major advantages of fixed disk are speed the additional space for recording your transactions. A disadvantage is that only ONE general ledger can be recorded for each directory. If you have more than one general ledger, you might want the CPA-LEDGER version that has CPA-LEDGER on fixed disk and your general ledger on a floppy disk. That way, you can have as many general ledgers as you wish - one for each separate floppy. To order other versions of CPA-LEDGER, see page 99-3. It is important to understand that CPA-LEDGER needs access to BASICA. You can make BASICA available by either (1) copying BASICA onto the same directory where CPA-LEDGER resides or by (2) using the PATH command for the access (see your PC-DOS reference manual for an explanation of the PATH command). If you have any questions, call Jim at (703) 569-2254. Or, write Jim at 8529 Greeley Blvd., Springfield, Virginia 22152. As mentioned in the cover page of this manual, always call Jim after 7:30 PM weekdays or anytime during the weekend. Call back if the answering machine asks for your message. A reminder - the "Program Disk" contains the CPA-LEDGER computer programs (files with an extension of ".BAS") and a practice general ledger (files with an extension of ".FIL) is on the Documentation Disk. Before you start practicing, copy the practice general ledger onto a separate floppy to be used as a back-up. Of course, ALWAYS keep a back-up of the CPA-LEDGER computer programs, ALWAYS, ALWAYS, ALWAYS, ALWAYS!! 99-1 Several chapters in the User's Manual ask you to practice using CPA-LEDGER, which requires use of (1) the practice general ledger AND (2) the CPA-LEDGER computer programs. Copy both to your hard disk by following this procedure (while the default drive is C:, in the directory of your choice): 1. Follow these procedures: (Before you proceed, you might want to set up a separate directory for CPA-LEDGER. See your DOS User's Manual for the procedure.) a. To copy the computer programs onto hard disk, place the "Program Disk" in the A: drive and give this command: COPY A:*.BAS C:/V (and press the return key) b. To copy the practice general ledger onto hard disk, place the "Documentation Disk" (the one that has files with an extension of .FIL) in the A: drive and give this command: COPY A:*.FIL C:/V (and press the return key) There is no need to copy any part of the User's Manual to hard disk. c. Store the "Program Disk" and the "Documentation Disk" in a safe place. Once CPA-LEDGER has been loaded onto hard disk, the system is ready to use. Follow this procedure each time you wish to use CPA-LEDGER: 1. Boot to PC-DOS. 2. If necessary, go to the directory where CPA-LEDGER is stored. (That is, you may have stored CPA-LEDGER in it's own directory. If so, you will need to tell PC-DOS, either through an AUTOEXEC.BAT file or by giving appropriate commands at the keyboard, that you wish to go to the directory where CPA-LEDGER is stored. AS MENTIONED ABOVE, PLEASE REMEMBER THAT CPA-LEDGER M-U-S-T HAVE ACCESS TO BASICA. See the 5th paragraph on page 99.) 3. Type BASICA and press the return key. (If nothing happens at this point, you probably haven't followed the proper procedure for allowing PC-DOS to access BASICA. Refer to your reference manual for PC-DOS for the proper procedure.) 99-2 4. The next command depends on whether you want to start a new general ledger or you wish process files on a general ledger that is already on fixed disk. a. To start a new general ledger, type: RUN "SETUP" (and press the Enter key) b. To process a general ledger file that is already on fixed disk, type: RUN "DAILY" (and press the Enter key) After you press the Enter key, CPA-LEDGER's menu will appear. Select the option of your choice. Chapters in this User's Manual explain how to use each of the CPA-LEDGER options. 99-3 Nine separate options of CPA-LEDGER are available. They are: When Ordering, Business Type Processing Option Ask For Option A. Corporations #1. Hard Disk Only A1 Corporations #2. Floppy Disk Only A2 Corporations #3. Hard Disk & Floppy Disk A3 B. Partnerships #1. Hard Disk Only B1 Partnerships #2. Floppy Disk Only B2 Partnerships #3. Hard Disk & Floppy Disk B3 C. Sole Proprietorships #1. Hard Disk Only C1 Sole Proprietorships #2. Floppy Disk Only C2 Sole Proprietorships #3. Hard Disk & Floppy Disk C3 For EACH Business Type (A, B & C), CPA-LEDGER is used as follows: . Hard Disk Only - Processing Option #1. Both CPA-LEDGER and the general ledger files are maintained on hard disk. You will need a separate directory for each separate general ledger, with CPA-LEDGER in each directory. Read Appendix C regarding disk capacities. Always make sure that you have enough room available on your hard disk for CPA-LEDGER to record your general ledger transactions. Frequently check the space used and make additional space available to CPA-LEDGER if it is needed. Please do this frequently! Don't take the chance of running out of room on your hard disk! . Floppy Disk Only - Processing Option #2. CPA-LEDGER is on a diskette in the B: drive and the general ledger files are recorded on a diskette in the A: drive. A SEPARATE floppy is used for each SEPARATE general ledger. This allows you to secure your general ledger files when they are not in use - a good security practice. Also, if you use CPA-LEDGER for several clients, you can have each client's general ledger on a separate floppy. A potential problem, however, is that your (or a client's) general ledger may become too large, during the year, to "fit" on one floppy disk. Please remember this - you can use ONLY one 99-4 floppy disk for any one general ledger. If the floppy disk becomes "full", there is only ONE solution - call me and I will send you the "hard disk only" version of CPA-LEDGER and you must convert to hard disk processing. In the interim, you may experience delays (waiting on the disks from me) and you will PROBABLY have to use the latest back-up copy of your general ledger files when you convert to hard disk operations, which will cause additional delay in bringing your system up-to-date. That means re-entering transactions since your last backup (your "full" floppy disk may be unusable). In other words, you have plenty of headaches ahead if you order this version and one of your floppy disks become full. If you have ANY doubts, DON'T KEEP YOUR GENERAL LEDGER FILES ON FLOPPY DISK - USE THE HARD DISK VERSION. Appendix C gives you some GENERAL ideas about how may transactions that may "fit" on a floppy disk. But, PLEASE, use Appendix C to get a general idea of floppy disk capacities and NOT for absolute specifics for your case. As explained in Appendix C, YOUR floppy disk capacity depends on many factors, including how your enter your transactions and your mix of transactions. . Hard Disk & Floppy Disk - Processing Option #3. CPA-LEDGER is kept on hard disk (in one directory) and the general ledger files are recorded on a diskette in the A: drive. A separate floppy is used for each separate general ledger. Like for Floppy Disk Only, you will be able to secure your general ledger files when they are not in use. However, PLEASE read the last two paragraphs under "Floppy Disk Only - Processing Option #2", above and be aware of the consequences if a floppy disk becomes full. Again, please DO NOT keep your general ledger files on floppy disk if you think there is any chance of the floppy becomming full during the accounting year. The CPA-LEDGER differences for Business Types pertains to how the Owner's Equity section of the Balance Sheet is maintained. The Business Type for corporations is the one in the public domain and you should have (through practicing with the system) have an understanding on how it functions. Details on the partnership and sole proprietorship Business Types are described below. PARTNERSHIPS. Instead of asking for information about a corporation's owners' equity, the names of partner's capital and drawing accounts are requested. This is done in SETUP menu option 1. 99-5 The partnership Business Type gives you two options for distributing profits to partners. Either (one, not both) of the options are selected in SETUP menu Option 2. They are: . Profits and losses are to be distributed to partners based on a fixed percentage for profits and losses (the same percentage for BOTH profits and losses). You can change the percentages anytime that you wish. You may also switch to the second option, below, any time that you wish. However, any changes pertain to the entire period for which you prepare financial statements. For example, assume two partners with a profit/loss percentage of 50/50. In June, you wish to change the percentages to 40/60. After the June changes, the 40/60 is effective since the first of the year, just as if you had started the year with 40/60. . The second option is that profits and losses are NOT to be distributed, automatically, by CPA-LEDGER. Instead, you are asked to make the allocation after CPA-LEDGER (1) informs you of the profit or loss amount and (2) requests a distribution. CPA-LEDGER asks for the distribution, by partner name, each time you use DAILY option 3. SETUP menu option 2 asks you for the number of partners in the partnership and each partner's name. Your allocation of profit/loss amounts permit more flexibility than is provided by a fixed percentage allocation. Like the fixed percentage allocation, above, any allocation pertains to the entire period for which you request financial statements. The allocation process proceeds as follows, after you ask for an income statement: . First, CPA-LEDGER informs you of the profit/loss for year-to-date and asks you to be ready to make the distribution to partners. . Second, CPA-LEDGER displays partner names (there is a limit on the number of partners and that limit is 10) and asks that you enter the profit/loss amount for each partner, in turn. 99-6 . Provided that your allocation equals the profit/loss amount, CPA-LEDGER proceeds to prepare the financial statements. Otherwise, you are returned to the first step, above. SOLE PROPRIETORSHIPS. Instead of asking for information about a corporation's owners' equity, the names of proprietor's capital and drawing accounts are requested. This is done in SETUP menu option 1. 99-7 IF YOU WISH TO ORDER CPA-LEDGER FROM TRONOLONE & FOSTER, PC. Requested donations for expanded versions of CPA-LEDGER are identified below. As previously mentioned, the system comes in nine different version. For clarity, we subdivide the versions into (1) Business Types (there are three - corporations, partnerships, and sole proprietorships) and Processing Options (there are three - Hard Disk Only, Floppy Disk Only, and Hard Disk and Floppy Disk). Requested donations are: ------------ Requested Donation ------------- Your First Your Second Your Third Processing Processing Processing Business Type Option Option Option -------------------- --------------- ---------- --------- Corporations $45.00 $40.00 $40.00 Partnerships 45.00 40.00 40.00 Sole Proprietorships 45.00 40.00 40.00 For example, assume that your first order is for two Business Types (corporations and partnerships). The total requested donation is $90.00. Later, you order the second Processing Option for corporations. The requested donation is $40.00 for the second order. Your donations are greatly appreciated. They help defray the costs of maintaining the system and for providing free consultation on the technical programming of CPA-LEDGER. Please be sure to specify (1) the Business Type and (2) the Processing Option that you wish for us to ship to you. Also please be sure to show your current address so that we may update our records. For any Business Type and Processing Option ordered from Tronolone & Foster, you may obtain updated copies anytime that you wish. Just send your request to Tronolone & Foster (address on the cover page of the User's Manual) along with $5 for postage and handling of each shipment.