£199.99 £139.99 for one year of Unlimited learning. Offer ends on 14 November 2022 at 23:59 (UTC). T&Cs apply

Find out more
End of week exercise
Skip main navigation

End of week exercise

.

End of week exercise

Inventory Items

  1. Go to Xero.com and log into your Advantage Tennis Coaching company
  2. Click ‘Business’ -> ‘Products and services’ and create two inventory items, follow the ‘add an inventory item’ link.
    After the two inventory items are created, you will see the items are displayed as new products.

Product and services

3. Using the case study information, record the purchase and sale of inventory as listed on September 5th, 10th, 30th.
4. You will use the same functions discussed previously. For example, to record the transaction on 5 Sept, select ‘Bills to pay’:

  • Supplier – Add/use the contact ‘Tennis Supplies’
  • Enter the correct transaction date
  • due date is ‘5 Oct 2019’ a month later.
  • Ensure to select the correct ‘item’ i.e. the pre-established inventory item.
  • enter relevant quantity
  • click ‘approve’

Total 2,625

Recording Transactions

  1. continue the other two sales transactions on 10th and 30th September. You will need to use the ‘Invoices’ and ‘Receive Money’ functions.
  2. If you have issues of finding the functions, you can go through the Xero Central Support Resources, for example:

3. Using ‘Spend Money’ function to record the transactions for AMI Insurance and Welcome Bank (interest) on 30th Sept.
4. Using ‘Receive Money’ record the transaction for Albany School. Ensure appropriate GST is applied.
5. After recording all transactions, your bank account should look like this:

 All transactions
6. compare the bank balance with the bank total in Excel and manual bank ledger:

Assets

Ledger Accounts
7. to record the deprecation transactions, go to ‘Accounting’ and select ‘Manual journals’, click ‘New Journal’. After entering the journals, your posted journals will look like this:

Manual journals

Product Reports

  1. Go to Accounting tab, Find ‘Profit and Loss’ statement
  2. Change the date to show the period 1 September to 30 September 2019, then click ‘Update’. It should look like this:

Profit and Loss

3. compare the income statement in Xero with Excel

Income statement of advantage tennis coaching
4. Go to Accounting tab, Find ‘Balance Sheet’ statement.
5. Change the date to show 30 September 2019, then click ‘Update’. It should look like this:

Balance Sheet
6. compare the Balance Sheet in Xero with Excel

Balance sheet excel

This article is from the free online

Accounting for Today’s Dynamic World

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education