Xero Assignment

School of Accounting and Commercial Law

MMPA513 ACCOUNTING INFORMATION SYSTEMS

Trimester Three 2021

Lab 1: Xero

Objective of this lab: Through this lab, students will:

• Demonstrate high-level knowledge of the structure of Xero as an Accounting Information System (AIS) that will facilitate further analysis and discussion in the assignment and class; and

• Demonstrate an understanding of transaction processing and reports in this AIS.

We expect that before the cyber lab:

• Students will have registered an account with Xero.com, opened the Demo Company (NZ), and have the lab sheet ready for processing transactions into this company.

We expect that during the cyber lab:

• The lecturer will provide a brief demonstration of the software; and

• Students will key in the transactions listed in the lab sheet into the Demo Company (NZ).

Instructions:

• Enter all transactions as GST-exclusive (i.e. amounts given are before GST is added). Standard rate (15%) GST applies to all sales and purchases.

• Enter the same date for all transactions: 15 November 2021. o NB: the dates of the reports that you submit vary.

• ‘Save’ and ‘Approve’ all entries (except Inventory , which is ‘Save’ only, and Fixed Assets, which is ‘Register’).

2

Key into Xero the transactions listed below for 15 November 2021:

1. Create an invoice to Rex Media Group for 3 half-day training courses

conducted on 3 November. Terms are 20 days. Total amount $1,500 (plus

GST).

2. Pay Central Copiers for the amount over due ($163.56) from the Business

Bank Account. Add a reference to the payment of ‘Bill 945-Ocon’.

3. Create two new Inventory items, Blue Office Pen and Red Office Pen:

Item code PN-Blue. Item name: Blue Office Pen Items for both purchase and sale Unit price for purchase: $1.80. Account: 300 – Purchase. 15% GST on Expenses Unit price for sale: $2.50. Account: 200 – Sales. 15% GST on Income

Item code PN-Red. Item name: Red Office Pen All other details as for Blue Office Pen.

4. Create a Purchase Order for 100 blue office pens and 50 red office pens from

Office Supplies. Use the default unit prices and tax rates. Total amount $270

(plus GST).

5. Receive a bill from Capital Cab Co. for “Cab charges for staff travel in October

2021”. Account: 493 - Travel – National. Total amount billed $180 (plus GST).

Due 18 November 2021.

6. Transfer $2,500 from the Business Bank Account to the Business Savings

Account.

7. Add a new Expense Claim for yourself for the biscuits, tea and coffee you

bought from Countdown for $120 (plus GST1) for a celebration morning tea.

Account: 453 – Office expenses. Add a suitable description to the claim.

8. Go to Draft Items in Fixed Assets and select the item “FA-0004 Desks, chairs,

reception furniture for office” (amount $6,300). Specify depreciation as

follows:

Asset type: Office Equipment. Depreciation rate: 20%, straight line. Depreciation account: 416 – Depreciation. Depreciation start date: 1 December 2020. Register as a new fixed asset.

1 NB: this is unrealistic – expense claim amounts typically include GST. It is done here for reasons of simplicity.

3

9. Create a new invoice for Wilson Periodicals for the service PR-BR (project

management and implementation) performed on 1 November 2020. Quantity:

8 hours, $250 per hour. Total amount $2,000 (plus GST), due 1 December

2021.

10. Receive a bill for $1,100 (plus GST) from Net Connect for electricity and

phone charges for October 2020. Account: 489 – Telephone and Internet.

Due 20 November 2021.