MAA261: Recording Business Transactions Using Xero- Financial Accounting Assignment Help

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Internal Code: TV710
Financial Accounting Assignment Help:
Task:
Practice Case
Aroma Ltd is a company operating in the Homewares Retail and Wholesale sector in Victoria. It sells diffusers to retail shops. The company commenced the business in 2016. You have been recently appointed as an Accounts Assistant by Aroma Ltd. You are required to help the company set up a computerised accounting system using Xero, and produce the monthly financial statements for July 2017.
• Company details:
Address: 555 Burwood Lane, Burwood, VIC 3125
Financial Year End: June
• Bank details:
Account Name: Cash at Bank – Aroma Ltd
Banker: Deakin Bank
BSB: 777-888
Account Number: 666666
• The following shows the company’s Balance Sheet as at 30 June 2017:
Aroma Ltd
Balance Sheet as at 30 June 2017
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• Transactions for the month of July 2017:
1. On 1 July, the company issued $2,000,000 shares.
2. On 1 July, the company purchased a motor vehicle in cash from Park Street Motors for $22,000 (GST inclusive).
3. On 1 July, the company paid for July advertising $2,750 (GST inclusive) to Oswald Marketing, and paid for three month insurance $1,650 (GST inclusive) to Jasmine Insurance. The prepaid insurance was initially recorded as an asset.
4. On 2 July, the company received cash from Kuno Retail in full settlement of the outstanding balance.
5. On 3 July, 5,000 bottles of D18 were sold to Pia Pty Ltd on terms n/30.
6. On 5 July, 20,000 bottles of D23 Manhattan diffusers were purchased from Greg Ltd on terms 1/15, n/30.
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7. On 13 July, the company returned 1,000 faulty bottles of D23 to Greg Ltd and received a credit note.
8. On 14 July, the company paid two weeks wages to employees. Gross wages were $20,000 inclusive of $4,000 withheld for PAYG.
9. On 15 July, 12,000 bottles of D23 and 3,000 bottles of D18 were sold to Joe Inc., n/30.
10. On 17 July, the company received a cheque from Joe Inc. in full settlement of the outstanding balance.
11. On 21 July, the company paid Hassan Supplies in full settlement of the outstanding balance.
12. On 24 July, Pia Pty Ltd returned 40 bottles of D18 diffusers. A credit note was issued.
13. On 28 July, the company paid two weeks wages to employees. Gross wages were $20,000 inclusive of $4,000 withheld for PAYG.
14. On 31 July, the company paid July electricity of $440 (inclusive of GST) to Paul Electrica, and July telephone and internet expense of $220 (inclusive of GST) to De Silva Tele.
15. On 31 July, the company paid Deakin Bank monthly loan instalment of $6,500 (Principal $5,700 and interest $800).
16. On 31 July, the company paid July rent of $33,000 (GST inclusive) to Eka Properties.
17. Kumanaid Inc. was declared bankrupt on 31 July.
• Additional information:
i. Depreciation is to be charged for Motor Vehicle at a rate of 10 per cent using the reducing balance method, with a zero residual value.
ii. Office Equipment are depreciated using the straight line method assuming a useful life of 10 years and a residual value of $10,000.
iii. On 31 July wages owing, $6,000, of which $1,200 is PAYG Withholdings Payable.
Note: You are required to perform adjusting entries for this practice case. However closing entries are not required for this practice case because July is not the financial year end for this company.

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