Practical Completion Point 3 – Computerised Section

Practical Completion Point 3 – Computerised Section
For this final part of the practical assignment you will be using the same information as for Practical
Completion Point 1 with a couple of extra transactions but entering all data into a computerised system.
The purpose of this exercise is to allow you to compare and contrast the skills needed to utilise different
styles of systems.
For this task the Xero Accounting Package will be used. The aim of this exercise is not to train you in the
use of this system but to give you exposure to it. Basic instructions and comparable sample data are
provided at the end of this document to assist you in navigating the system.
Alistair Adin runs a business Al Adin’s Lamps and Rugs that specialises in ornaments and interior design.
He has contacted you for some assistance in setting up a new accounting system. Alistair has managed to
collect enough information to create a chart of accounts for you to work from.
Task 1
Enter the information below from the chart of accounts and schedules in order to set up Alistair’s new
system in the Xero Accounting Software.
Al Adin’s Lamps and Rugs – Chart of Accounts as at 1 July 2019
103 Petty Cash 120.00
105 Bank 2,380.00
107 Accounts Receivable Control 9,438.00
109 Allowance for Bad and Doubtful Debts 676.00
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111 Inventory 3,458.00
113 Stationery on Hand 220.00
115 Prepaid Insurance 2,400.00
116 Prepaid Rent 12,000.00
140 Warehouses 96,000.00
141 Acc. Depreciation – Warehouses 24,000.00
150 Delivery Vehicle 63,000.00
151 Acc. Depreciation – Delivery Vehicle 13,280.00
160 Shop Fittings 16,400.00
161 Accumulated Depreciation – Shop Fittings 8,460.00
207 Accounts Payable Control 6,149.00
205 Accrued Wages 1,498.00
210 Telephone Expense Payable 264.00
220 Vehicle Maintenance Payable 385.00
299 GST 1,250.00
250 Credit Giving Society Loan (15-year) 103,000.00
303 Capital – Alistair Adin 46,454.00
Additional Notes
You need to enter the information below into the appropriate subsidiary ledger accounts.
Schedule of Accounts Receivable
as at 1 July 2019
Acc. No.
10701 Just the Palace 1,562
10703 Agro’s Bazzar 649
10705 Arabian Night Lights 3,278
10707 Genieus Home Ideas 3,949
9,438
Schedule of Accounts Payable
as at 1 July 2019
20701 Tarnished Lamps 2,145
20703 Jars from Afar 825
20705 Rugs in the Air 3,179
6,149
Task 2
Enter the following transactions into Xero Accounting software using the instructions provided on the
subject website to guide you.
Transactions
July 1 Purchased 10 Hand Woven Rugs from Rugs in the Air. Each rug cost $330 (including GST).
July 2 Sold 25 Table Lamps to Arabian Night Lights for $58 each (net of GST).
July 5 Made a cash sale of 3 rugs to Iago Bird for $750 each (net of GST)
July 8 Paid the full amount owed to Jars from Afar less a 5% discount for early payment.
July 10 Sold 60 candles to Agro’s Bazzar for $40 each (net of GST).
July 12 Received cash (net of GST) from Ms Jasmine Rajah for completing a home inspection and interior
design options report. The fee for this service was $620 (net of GST).
July 13 Paid all employees their fortnightly wages. The total cash payment was $2,200 (GST Free).
July 15 Purchases 50 “Scents of the Desert” candles for $25 each from Tarnished Lamps. An additional
delivery charge of $50 was incurred (All amounts are net of GST).
July 17 Received a cheque from Genieus Home Ideas being full settlement of their account.
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July 21 Paid the $385 owing to the “Camel Masters” for vehicle maintenance completed in June.
July 29 Made a cash payment of $561 (including $27 GST) to Connecting U for the last two months
telephone usage.
Submission Requirements
Once you have completed the data entry in the above two tasks, you will need to export the following
reports into a single excel file.
Required Reports – Dated July 31
– Balance Sheet
– Aged Payables
– Aged Receivables
In addition to the above reports you will need to provide a brief statement of approximately 100-200
words indicating what information can be identified from the reports you have produced and how
accessing this information compares to the manual system you used in Completion Point 1. This statement
should be included in your excel file along with your exported reports.
Once your reports and statement are combined into a single file then this file must be uploaded to the
submission point on learnonline.
A quick introduction to Xero Accounting
The purpose of the following notes are to allow you to set up a Xero Account and interact with the
software in a way that enables you to complete the requirements of this assignment. The purpose of this
exercise is not to provide training in the use of this software, rather it is aimed at giving you exposure to a
popular accounting package and allow you to contrast this with a manual system.
The images/details in these guidelines are for reference only and do not represent the data you should be
entering. Students need to use the names/titles from the above assessment information.
One of the first things you will need to do is give yourself full control over the system.
Enabling the Adviser option
? From the menu, click on Settings.
? Under the heading “Organisation”, select “Users”.
? From the list of users, click on three dots by your username.
? Select the “Adviser” role (and remember to click “Update Permissions” at the bottom of the page:
Entering Opening Balances
At this point we are ready to enter the opening balances from our chart of accounts into the system. As
Xero is designed to track all activity and simplify the data entry process there is no separate General
Journal.
The accounts can be entered all at once by
– Selecting the Accounting Tab and choosing Advanced
– Select the Conversion Balances
– Select Conversion Date – use the start of the month for your practical task
– Now y

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