International College of Management ACC601 Xero Assignment

This assignment solution provides a comprehensive overview of an accounting assignment using Xero software. It includes the generation and analysis of various financial reports, such as aged payables and receivables, general ledgers, profit and loss statements, and balance sheets. The assignment focuses on the financial performance evaluation of Palm Beach S & W Shop Pvt Ltd, analyzing revenue, cost of goods sold, operating expenses, and net profit. The solution highlights the company's strong financial position, emphasizing the importance of accurate accounting practices and the impact of minor transaction errors. The assignment also includes a discussion on the organization's performance, highlighting revenue generation, profit margins, and overall financial health. Furthermore, the assignment requires students to interpret the reports and analyze the financial position of a company using the Xero accounting software.

Running head: ACCOUNTING FOR MANAGEMENT DECISIONS
Accounting for Management Decisions
Name of the Student:
Name of the University:
Author’s Note

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ACCOUNTING FOR MANAGEMENT DECISIONS
Table of Contents
Question 1:.......................................................................................................................................2
Question 2:.......................................................................................................................................2
Question 3:.......................................................................................................................................3
Question 4:.......................................................................................................................................4
Question 5:.......................................................................................................................................4
Question 6:.......................................................................................................................................6
Question 7:.......................................................................................................................................6
Question 8:.......................................................................................................................................8
Question 9:.......................................................................................................................................9
Question 10:.....................................................................................................................................9

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ACCOUNTING FOR MANAGEMENT DECISIONS
Question 1:
Question 2:

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ACCOUNTING FOR MANAGEMENT DECISIONS
Question 3:

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ACCOUNTING FOR MANAGEMENT DECISIONS
Question 4:
Question 5:
Profit and Loss
Palm beach 4017703
For the 2 months ended 31
August 2019
Account Jul-Aug
2019
Trading Income
Interest Income 75.00
Revenue - Surf Lessons 64,436.32

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ACCOUNTING FOR MANAGEMENT DECISIONS
Revenue - Yoga Lessons 12,327.25
Sales Revenue - Clothing and
merchandise
3,31,658.0
0
Total Trading Income 4,08,496.5
7
Cost of Sales
Cost of Goods Sold 1,50,075.0
0
Total Cost of Sales 1,50,075.0
0
Gross Profit 2,58,421.5
7
Operating Expenses
Accounting fees 3,500.00
Advertising expenses 9,000.00
Bank Fees 441.00
Depreciation 1,539.17
Electricity 387.64
Freight & Courier 4,740.00
General Expenses 359.25
Insurance 8,375.00
Interest Expense 500.00
Motor Vehicle Expenses 1,100.00
Rent 4,015.15
Repairs and Maintenance 15,000.00
Sales and marketing expenses 13,240.00
Telephone & Internet 950.00
Wages and Salaries 25,700.00
Total Operating Expenses 88,847.21
Net Profit 1,69,574.3
6

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ACCOUNTING FOR MANAGEMENT DECISIONS
Question 6:
Question 7:
Balance Sheet
Palm beach 4017703
As at 31 August 2019

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ACCOUNTING FOR MANAGEMENT DECISIONS
Account 31 Aug
2019
Assets
Bank
Cash at bank 3,56,549.60
Total Bank 3,56,549.60
Current Assets
Accounts Receivable 15,455.00
Inventory 72,775.00
Prepaid advertisement 60,000.00
Prepaid Council rates 348.48
Prepaid Insurance 25,125.00
Prepaid Rent 4,416.67
Total Current Assets 1,78,120.15
Fixed Assets
Accumulated depreciation - MV (16,666.67)
Computerized cash register 4,500.00
Leasehold Improvements 58,500.00
Less Accumulated Depreciation - Leasehold (15,102.25)
Less Accumulated depreciation - Office Equip' (6,600.00)
Less Accumulated Depreciation Computerized cash
register (41.25)
Motor vehicles 45,000.00
Office Equipment 25,200.00
Total Fixed Assets 94,789.83
Total
Assets 6,29,459.58
Liabilities
Current Liabilities
Accounts Payable 59,600.00
Accruals - Holiday Pay 22,075.00
GST 17,630.90
Historical Adjustment (1,09,568.18
)
Petty Cash 3.50
Rounding 9.00
Total Current Liabilities (10,249.78)
Non-current Liabilities
Bank Loan - due in 2026 40,000.00
Total Non-current Liabilities 40,000.00
Total
Liabilities 29,750.22
Net Assets 5,99,709.36
Equity
Current Year Earnings 1,69,574.36
Dividend Declared (20,000.00)
Retained Earnings 2,50,135.00
Share Capital 2,00,000.00
Total Equity 5,99,709.36

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ACCOUNTING FOR MANAGEMENT DECISIONS
Question 8:

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ACCOUNTING FOR MANAGEMENT DECISIONS
Question 9:
Question 10:
The performance of the organisation is appropriate, as the company is making adequate
level of revenues and net profits by providing service and selling goods. The company’s net

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ACCOUNTING FOR MANAGEMENT DECISIONS
profits is relatively high, where the management is also able generate higher level of income by
reducing the total expenses incurred from their operations. Both the total assets and equity
section of the organisation has improved. However, minor transactions errors needs to be taken
into considerations, which is hampering the actual valuation of the organisation. Therefore,
making relevant adjustments have helped in determining that the financial position of the
organisation is strong, as the assets, valuations and net profits are high.