MAA261 : Xero Practice Case and Guide - Accounting Assignment

Internal Code : MAS6161

Accounting Assignment

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

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.