Assessment 1: Individual Assignment

Requirements: 1. This assignment is in two parts, a manual set of financial records (Part A) and a set of financial records compiled using Xero software (Part B). Part A must be completed on the individual PROFORMA provided. The PROFORMA is located in the ‘assessment 1 folder'. Part B must be completed using Xero, a computerised accounting package. You are required to create the Xero file.

2. All figures in the manual set of financial records can be recorded to the nearest whole dollar.

Submission Instructions: 1. You must type your answer onto the PROFORMA provided for Part A.

You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy.

Any work you submit may be checked by electronic or other means for the purposes of detecting collusion and/or plagiarism.

Part A: Manual Preparation of Financial Records

Use the MAA261 Pro Forma Journals and Ledgers file to complete Part A of the assignment. This file contains the journals, ledgers, Adjusted Trial Balance, Statement of Financial Performance and Statement of Financial Position. Note that this file is supplied in "word" format so that you can adjust the columns or add ledgers if you wish to do so.

1. Sort all transactions in date order and record them in date order.

2. Using the information provided record the opening balances and then record all transactions for the month of July in the:

a. General Journal and then

b. General ledger

c. Prepare a stock card to determine cost of sales.

3. Please acquire a thorough understanding about the recording process before you enter transactions (please refer the relevant lecture and tutorial material and the text book for further information).

4. You are then required to record the end of month balance day adjustments in the general journal and post to the relevant general ledger accounts.

5. Prepare an adjusted trial balance as at 31st July, i.e. after posting all balance day adjustments. If the trial balance does not balance do not proceed until it does.

6. Prepare an Income Statement for the month ended 31st July, and a Statement of Financial Position as at 31st July.

Part B: Preparation of Financial Records Using Xero

In part B you process the same transactions using Xero. Xero is a cloud-based computerised accounting package. There are detailed video instructions on creating your Xero file and recording transactions in Xero available on CloudDeakin. It is highly recommended that you watch these before undertaking Part B.

Please note: you will have a free 30 day access to Xero. Do not create your Xero file until there is 30 days until the due date.

1. Using your internet browser click on the given link attached in a file below.

2. Complete the required information.

3. Xero will send you an email which allows you to activate your account.

4. Once you log onto Xero, Select Settings, General Setting, Organisation Setting

5. Complete the following information:

Display Name: ABCDE PTY LTD Your name (For example ABCDE PTY LTD Tracey McDowall)

Legal Trading Name: ABCDE PTY LTD Your name (For example ABCDE PTY LTD Tracey McDowall)

Line of business: Retail

Organisation type: Sole Trader

ABN: leave blank

The reminder of the form does not need to be completed for the purposes of the assignment.

6. Return to General Setting, click Chart of Accounts. Xero has suggested a range of accounts for your use. The account names may be slightly different to those in your manual set of accounts. This is okay, you do not need to standardise the names. Additional accounts will need to be added. To add new accounts, Click on new accounts and complete the necessary information.

7. Return to General Settings and select financial settings. Check that the financial year-end is 30 June 2018. The tax defaults for both sales and purchases should read "tax inclusive". Change these details if necessary.

8. Return to general settings.

9. Select Conversion Balances. Click on conversion date and change the month to July (this means you will enter the opening balances based on the 30 June 2017 closing balances). Save.

10. Click on Add Comparative Balances (if necessary click on "Show all accounts"). Enter the opening balances by account from the opening Statement of Financial Position in the appropriate debit/credit column. Xero operates with only one GST account - "GST Clearing", a current liability. There is no opening balance in the GST clearing account. Make sure the opening balances debits and credits are equal to each other. Save.

A new window will open that requires you to enter the opening balances for individual debtors and then creditors. ABCDE has only one debtor and one creditor. When you setup the debtor and the creditor, assume the date of the invoice was 1 June 2017.

11. Go to Accounts, Select inventory. Click on Add new item and create each inventory account. Then import opening inventory balances using the wizard available in Xero.

You are now ready to start entering the transaction data into Xero. You should record transactions in date order. This is critically important for any inventory transactions (sales and purchases) as Xero calculates the value of inventory using the moving weighted average method. It is easiest to enter sales, purchases and cash transactions through the dashboard.

Information related to above question is enclosed below:

Attachment:- Info.rar

Attachment:- ProformaMAA261T12018IndividualAssignmentProforma.rar