General InformationThis assignment requires you to use double entry manual recording and computer accountingsoftware (XERO) for a small business. It covers many of the common transactions of everydaybusiness in Australia, including Goods and Service Tax (GST). It is not meant to be a data entryexercise. You are required to carefully understand each transaction, double entry of it and how thesoftware records them in ledgers and how reports are created.You must strictly follow the assignment guidelines and must use the XERO educationversion (the access given by the convenor) when recording the data in XERO accountingpackage (do not use your own XERO trail version). Otherwise, your assignment will not beconsidered for marking, as the convenor does not have the access to your selected XEROtrail versions.Specific InformationSea Surf (ABN 65 992 718 643) is a retail and wholesale surf shop, owned and operated by BillyBond. The business is located at No 4, 1st View Street, Surf Paradise, which is a seaside townfamous for surfing. The shop has a nautical atmosphere and is very well organised. Products consistof surfboards, boogie boards and Surfing Manuals. Sea Surf also sells second-hand surfboards oncommission. Sea Surf also sells products to surf shops around the coast. The business is registered2for GST and therefore charges GST 10% on all inventory sales and surf lessons, and pays GST 10%on inventory purchases, fixed asset purchases and most of the business expenses.IMPORTANT: When establishing the business name for the assignment, record your name andthen Sea Surf. (example; ‘Johnking Sea Surf’)Employees:Sea Surf employs two casual assistants, Brian Jardine, works as a surfing instructor and Carl Hollandwho works in the shop selling stock, and taking bookings for surf lessons. Billy pays both Brian andCarl $30 per hour. Each employee works between 10 to 15 hours per week, depending on the seasonand demand. Payday is every second Wednesday.At the end of February, Sea Surf owed 5 hours pay to both Brian and Carl. PAYE tax for eachemployee should be $6 per hour. Wages expenses is not subjected to GST
