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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:


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

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