ACC201_T2_2020_Assessment_3 Page 1 XXXXXXXXXXKaplan Business School Assessment...

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ACC201_T2_2020_Assessment_3

Page 1 XXXXXXXXXXKaplan Business School Assessment Outline

Assessment 3 Information

Subject Code: ACC201
Subject Name: Financial Accounting 1
Assessment Title: Assessment 3 – Individual Assignment
Assessment Type: Xero Practice Set (15%) and Written Report (5%)
Weighting: 20 %
Total Marks: 20
Submission: Submit all required reports on MOODLE
Due Date: Monday of Week 10 by 15:55 AEST

Your Task

1. You will be required to complete an online practice set by entering a series of transactions using
the Xero software and then generate financial reports. This component counts 15% towards the
overall assessment mark.
2. You are also required to write a
ief report on the company’s financial and liquidity status (400
words). This component counts 5% towards the overall assessment mark.
3. All required Reports (Assurance Dashboard; Accounts Transactions Report for the month of
October 2019; Profit and Loss Statement for the month ended 31 October 2019; Balance Sheet as
at 31 October 2019; Written report on the company’s financial and liquidity status) must be
submitted in PDF format on the Moodle.

Assessment Description

An online practice set is used in this subject. It is designed to provide experience in the practical and
technical skills essential to accounting with the Xero software, through the completion of a one-month
accounting cycle for a unique accounting scenario.

Assessment Instructions

• This is an individual assignment. Any work which has been copied or shared between students
will result in a fail grade for all students concerned.

• Please make sure you follow the guidelines noted below, relating to presentation, late policy
and academic integrity.

Page 2 XXXXXXXXXXKaplan Business School Assessment Outline

Important Study Information

Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences
of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct
Policy.

What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?

Click here for answers to these questions:
http:
www.kbs.edu.au/cu
ent-students/student-policies/.

Word Limits for Written Assessments

Submissions that exceed the word limit by more than 10% will cease to be marked from the point
at which that limit is exceeded.

Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the
esources on the MyKBS Academic Success Centre page. Click here for this information.
http:
www.kbs.edu.au/cu
ent-students/student-policies
https:
elearning.kbs.edu.au/course/view.php?id=1481
    Assessment 3 Information
    Subject Code:
    Subject Name:
    Assessment 3 – Individual Assignment
    Assessment Title:
    Xero Practice Set (15%) and Written Report (5%)
    Assessment Type:
    Weighting:
    Total Marks:
    Submit all required reports on MOODLE
    Submission:
    Monday of Week 10 by 15:55 AEST
    Due Date:
    20 %
    Financial Accounting 1
    20
    ACC201

1

Xero Case Study
Xpress Cuts – Hair Saloon
Kaplan Business School

2

COMMONWEALTH OF AUSTRALIA
Copyright Regulations 1969

WARNING
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School
pursuant to Part VB of the Copyright Act 1968 (the Act).
The material in this communication may be subject to copyright under the Act. Any further reproduction or
communication of this material by you may be the subject of copyright protection under the Act.
The material contains content owned by Kaplan Business School.
Do not remove this notice.
3

Contents
What is Xero? ....................................................................................................................... XXXXXXXXXX4
Quick Start Guide ................................................................................................................. XXXXXXXXXX4
Begin your Case Study .......................................................................................................... XXXXXXXXXX5
Case Study – Xpress Cuts ..................................................................................................... XXXXXXXXXX6
Required ............................................................................................................................... XXXXXXXXXX6
Get Familiar with Xero – Video Manuals ............................................................................. XXXXXXXXXX7
Step 1: Settings .................................................................................................................... XXXXXXXXXX8
Step 2: Transactions ........................................................................................................... XXXXXXXXXX14
Fixed Assets .....................................................................................................................

acc201t22020assessment3-kivpt32c.pdf xero-case-study-handbook-v2-3ycwat0g-ehxdnu5v.pdf

Abr Writing · Accepted Answer

Xpress Cuts - Balance Sheet.pdf
Balance Sheet
Balance Sheet  |  Xpress Cuts  |  17 October 2020   Page 1 of 1
Xpress Cuts 
As at 31 October 2019 
31 Oct 2019
Assets 
Bank 
Business Bank Account 114,781
Total Bank 114,781
Current Assets 
Accounts Receivable 13,301
Prepayments 3,630
Total Current Assets 16,931
Fixed Assets 
Computer Equipment 2,455
Office Equipment 5,000
Total Fixed Assets 7,455
Total Assets 139,167
Liabilities 
Current Liabilities 
Accounts Payable 8,927
Accrued Expenses (4,250)
GST 8,360
Rounding -
Total Current Liabilities 13,036
Total Liabilities 13,036
Net Assets 126,130
Equity 
Current Year Earnings 90,130
Owner A Share Capital 36,000
Total Equity 126,130
		Balance Sheet
Assurance_Dashboard.docx
	
	
	
Xpress Cuts - Profit and Loss.pdf
Profit and Loss
Profit and Loss  |  Xpress Cuts  |  17 October 2020   Page 1 of 1
Xpress Cuts 
1 October 2019 to 31 October 2019 
31 Oct 19
Income 
Sales 118,808
Total Income 118,808
Less Cost of Sales 
Cost of Goods Sold 21,660
Total Cost of Sales 21,660
Gross Profit 97,148
Less Operating Expenses 
Advertising 550
Consulting & Accounting 91
Entertainment 280
Motor Vehicle Expenses 109
Rent 5,455
Subscriptions 409
Telephone & Internet 90
Travel - National 34
Total Operating Expenses 7,017
Net Profit 90,130
		Profit and Loss
Xpress_Cuts_-_Company_Financial_&_Liquidity_Position.rtf
Xpress Cuts
Company Financial and Liquidity Status
Xpress cuts is hair salon start up by Mary Smith as sole trader in Melbourne Central. For the purpose of examining the financial position of the company financial statements i.e. Balance sheet and Profit and loss A/c and ratios play a key role. Below are the key ratios which helps in determining the company’s financial and liquidity status: -
		Working capital Ratio – It helps in identifying the company’s ability to meet its current liabilities requirement with current assets.
Working capital Ratio = Current Assets/Current Liabilities
			=16931/13026
			=1.3
Working capital ratio of Xpress cuts is higher than 1 hence it can fairly be interpret that company is in good position to meet its current liabilities requirements.
		Quick Ratio – It depicts coverage of current liabilities by cash or ready cash value Items
Quick Ratio = (Current Assets – Inventory)/Current Liabilities
	     =16931/13036
	     =1.3
Since Quick ratio is also higher than one company is able to pay off its liabilities with cash or ready cash current assets
		Gross Profit Ratio – This helps in measuring the manufacturing or marketing efficiencies.
Gross Profit Ration = Gross Profit/Sales
		     =97148/118088
		     =82.26%
This is sound percentage showing that our of total sales approx. 82% is gross margin available for operating exp.
		Net Profit Ratio – This ratio helps in determining the overall profitability of the company
Net Profit Ratio = Net Profit/Sales
		 =90130/118088
	      =76.32%
76% of net profit ratio shows the effectiveness of Mary smith in operating Xpress cuts. The ratio can be considered fairly good in any industry being profit bought as bottom line
		Return on assets – This ratio helps in understanding the company’s ability to deploy its assets for the purpose of revenue generation
Return on Assets = Net income / Total assets
		  = 90130/139167
		  = 64.76%
Xpress Cuts is operating with 64.76% return on assets , a low ROA shows the inefficiencies of the management while high ROA shows efficiency in asset deployment and management being used for the purpose of business
		Return on Investment – This ratio helps in understanding the company’s efficiency in deploying its capital into the company.
Return on Investment=Net Income/Owner’s Equity
			=90130/126130
			=71.5%
Clearly, Xpress cuts is operating with high return on Investment 
Conclusion
As can be observed Xpress cuts is working with high liquidity ratios hence it is in sound position to pay off its current liabilities with current assets. Company is also maintaining high gross profit and net profit margin hence it shows company is operating with high efficiency. Further high return on assets and Investment shows its assets and capital is deployed efficiently in the Xpress cuts.
Xpress_Cuts_-_Account_Transactions.pdf
Account Transactions Xpress Cuts                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Account Transactions
Xpress Cuts
For the period 1 October 2019 to 31 October 2019
DATE SOURCE DESCRIPTION REFERENCE DEBIT CREDIT RUNNINGBALANCE GROSS GST
Accounts Payable
Opening Balance - - - - -
1 Oct 2019 Payable Invoice Pinnacle Real Estate - 6,000.01 6,000.01 6,000.01 -
1 Oct 2019 Payable Payment Payment: Hair Warehouse 2,800.00 - 3,200.01 (2,800.00) -
1 Oct 2019 Payable Invoice Hair Warehouse - 6,222.16 9,422.17 6,222.16 -
2 Oct 2019 Payable Invoice Hair Warehouse - 1,900.00 11,322.17 1,900.00 -
2 Oct 2019 Payable Payment Payment: Hair Warehouse 1,900.00 - 9,422.17 (1,900.00) -
3 Oct 2019 Payable Invoice Hair Warehouse - 3,600.00 13,022.17 3,600.00 -
3 Oct 2019 Payable Payment Payment: Hair Warehouse 3,600.00 - 9,422.17 (3,600.00) -
4 Oct 2019 Payable Payment Payment: Pinnacle Real Estate 6,000.00 - 3,422.17 (6,000.00) -
4 Oct 2019 Payable Invoice Computer and Technology Group - 2,700.01 6,122.18 2,700.01 -
4 Oct 2019 Payable Payment Payment: Computer and Technology Group 2,700.00 - 3,422.18 (2,700.00) -
5 Oct 2019 Payable Invoice Cutting Crew - 899.91 4,322.09 899.91 -
5 Oct 2019 Payable Invoice Cutting Crew - 900.00 5,222.09 900.00 -
8 Oct 2019 Payable Payment Payment: Hair Warehouse 2,800.00 - 2,422.09 (2,800.00) -
8 Oct 2019 Payable Invoice Hair Warehouse - 4,665.12 7,087.21 4,665.12 -
15 Oct 2019 Payable Payment Payment: Hair Warehouse 2,658.10 - 4,429.11 (2,658.10) -
15 Oct 2019 Payable Payment Payment: Cutting Crew 900.00 - 3,529.11 (900.00) -
15 Oct 2019 Payable Overpayment Overpayment: Hair Warehouse - Overpayment 141.90 - 3,387.21 (141.90) -
15 Oct 2019 Payable Invoice Hair Warehouse - 2,658.10 6,045.31 2,658.10 -
22 Oct 2019 Payable Overpayment Allocation Hair Warehouse 141.90 - 5,903.41 (141.90) -
22 Oct 2019 Payable Overpayment Allocation Hair Warehouse - Overpayment - 141.90 6,045.31 141.90 -
22 Oct 2019 Payable Payment Payment: Hair Warehouse 2,800.00 - 3,245.31 (2,800.00) -
22 Oct 2019 Payable Invoice Hair Warehouse - 4,905.12 8,150.43 4,905.12 -
Account Transactions
DATE SOURCE DESCRIPTION REFERENCE DEBIT CREDIT RUNNINGBALANCE GROSS GST
Account Transactions Xpress Cuts                                                                                                                                                                                                                                                                                                                                                                                                                                                     
29 Oct 2019 Payable Invoice Hair Warehouse - 3,576.08 11,726.51 3,576.08 -
29 Oct 2019 Payable Payment Payment: Hair Warehouse 2,800.00 - 8,926.51 (2,800.00) -
31 Oct 2019 Payable Invoice HR Specialist - 4,250.00 13,176.51 4,250.00 -
31 Oct 2019 Payable Payment Payment: HR Specialist 4,250.00 - 8,926.51 (4,250.00) -
Total Accounts Payable 33,491.90 42,418.41 8,926.51 8,926.51 -
Closing Balance - 8,926.51 8,926.51 - -
Accounts Receivable
Opening Balance - - - - -
12 Oct 2019 Receivable Invoice Cash Sale Weekends 12/10/19-13/10/19 12,758.01 - 12,758.01 12,758.01 -
14 Oct 2019 Receivable Invoice Cash Sale Weekdays 14/10/19-18/10/19 31,524.00 - 44,282.01 31,524.00 -
14 Oct 2019 Receivable Payment Payment: Cash Sale Weekends 12/10/19-13/10/19 - 12,758.01 31,524.00 (12,758.01) -
18 Oct 2019 Receivable Payment Payment: Cash Sale Weekdays 14/10/19-18/10/19 - 31,524.00 - (31,524.00) -
19 Oct 2019 Receivable Payment Payment: Cash Sale Weekends 19/10/19-20/10/19 - 11,391.00 (11,391.00) (11,391.00) -
19 Oct 2019 Receivable Invoice Cash Sale Weekends 19/10/19-20/10/19 11,391.00 - - 11,391.00 -
21 Oct 2019 Receivable Invoice Cash Sale Weekdays 21/10/19-25/10/19 45,061.00 - 45,061.00 45,061.00 -
25 Oct 2019 Receivable Payment Payment: Cash Sale Weekdays 21/10/19-25/10/19 - 45,061.00 - (45,061.00) -
26 Oct 2019 Receivable Invoice Cash Sale Weekends 26/10/19-27/10/19 16,654.00 - 16,654.00 16,654.00 -
28 Oct 2019 Receivable Payment Payment: Cash Sale Weekends 26/10/19-27/10/19 - 16,654.00 - (16,654.00) -
28 Oct 2019 Receivable Invoice Cash Sale Weekedays 28/10/19-31/10/19 13,301.00 - 13,301.00 13,301.00 -
Total Accounts Receivable 130,689.01 117,388.01 13,301.00 13,301.00 -
Closing Balance 13,301.00 - 13,301.00 - -
Accrued Expenses
Opening Balance - - - - -
31 Oct 2019 Payable Invoice HR Specialist - Wages & Salaries 4,250.00 - (4,250.00) (4,250.00) -
Total Accrued Expenses 4,250.00 - (4,250.00) (4,250.00) -
Closing Balance 4,250.00 - (4,250.

ACC201_T2_2020_Assessment_3 Page 1 XXXXXXXXXXKaplan Business School Assessment Outline Assessment 3 Information Subject Code: ACC201 Subject Name: Financial Accounting 1 Assessment Title: Assessment 3...

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