ACCY5102 Applied Accounting Assessment 2, 2026 | Open Polytechnic

ACCY5102 Assessment 2

Weighting 

30%

Learning Outcome

• Process transactions using accounting software for an organisation.
• Apply tax rules to transactions for an organisation.

Scenario

In May 2026, Wiremu and Aroha established EDU SunCharge Limited. On 1 June 2026, they acquired the assets of an existing solar generator retailer and started their business operations. They have chosen to use Xero to track all business transactions, generate reports, and prepare GST returns. EDU SunCharge Limited registered for GST on a twomonthly payment basis starting from 1 June 2026.

Task 1: Set-up activity

1. Add a new organisation in My Xero.

a. Use the following organisational details.

• The name of your business is EDU ‘Your Name’ SunCharge Limited. Where ‘Your Name’ is, write your initials and surname, for example, EDU M Sims SunCharge Limited.
• Your industry is Higher Education.
• Your country is New Zealand.
• There are employees.
• Tick Yes, calculate GST on my transactions.
• Select, None I’m just starting.

b. Select Start Trial. You may be prompted to answer questions by Xero’s Setup Guide. It doesn’t really matter what you answer, as we won’t be using it.

c. From the settings menu, choose General, Users, and set yourself up as an Administrator.

d. From the accounting drop-down menu, choose Accounting Settings, Accounting, Conversion Balances. Then go into the conversion date tab and enter June 2026 as the conversion date.

2. Set up your chart of accounts.

a. Delete the existing chart of accounts and import the SunCharge Limited Chart of Accounts CSV file.

Note: This file is on the Assessment 2 page in your iQualify course.

b. Add the following chart of account items, setting their type and GST rates:

• 437 Interest expense
• 485 Subscriptions expense
• 625 Cash on hand.

c. Bank account set-up. Add the bank account (without bank feed) using the following details.

• Your bank is Koru Bank.
• The name of the account is Business Account.
• The account type is Other.
• The account number should be entered as 123.
• The account code is 621.
• The currency is NZD.

3. Enter opening balances

The company bank account was opened on 1 June. The asset purchases were funded by capital introduced and a bank loan. Details of the initial assets and liabilities when the business started trading are given in Table 1 below.

Enter your opening balances as shown in Table 1 below. (Enter these as 31 May 2026, even though they are actually 1 June balances.)

Table 1. Opening balances

4. Set up inventory.

a. Enter the following products for tracked inventory items as shown in Table 2.

Table 2. Inventory items

b. To establish your opening inventory, you need to enter a new adjustment for each inventory item using the following information. (Click on the inventory item and choose new adjustment.)

• The adjustment type is Increase quantity.
• The date is 1 June 2026.
• The adjustment account is 699 Inventory Adjustment.
• The reference is Opening inventory.
• The quantities for each type of inventory are shown in Table 3.

Table 3. Inventory adjustment (opening balance) numbers and amounts

5. Set up GST.

From the tax drop-down menu, choose GST returns. Add the following details.

• Accounting basis: Payments basis
• Frequency: 2 monthly
• GST number: 38-087-053
• Tax defaults: Tax inclusive
• View GST returns from: 1 June 2026 to 31 July 2026
• Type of GST: GST only (GST101)

You will need to return to the ‘GST returns’ screen to complete the set up.

6. Print opening trial balance.

a. Once you have completed the setup of your opening balances including the inventory adjustments, generate a Trial Balance using the trial balance report as at 1 June 2026.

b. Select None for comparison period(s). Include account type and select None for grouping.

c. Save this as a PDF file or Excel file.

Note: You need to combine all the output files into one file for submission. Choose a suitable file type that can combine your files into one file.

This will complete one of the reports required for the assessment.

(Task 1 total: 20 marks)

Task 2: Transactions

Using the Koru Bank Business Account, import a statement using the SunCharge Limited Bank Feed CSV file as the statement.

Note: This file is on the Assessment 2 page in your iQualify course.

• Enter all transactions in Table 4.

Remember that the bank transactions have already been imported into Xero, so many transactions can be recorded directly from the bank reconciliation screen.

Note: Be careful with GST. All figures are GST-inclusive where GST applies, unless otherwise stated.

Table 4. June and July transactions

• Complete the bank reconciliation.

The bank statement balance on 31 July is $85,209

(Task 2 total: 50 marks)

Task 3: Balance day adjustments

Record adjustments, including auto-reversals where appropriate, for the items below. 

1. Wiremu has an office he uses for their business at home and wants to record a home office expense for the first two months. Relevant expenses (GST-inclusive where applicable) for the whole house for the two months are as follows.

• Electricity $920
• Insurance $345
• Interest $335

The office is 10% of the whole house. Enter a manual journal.

2. Interest owing at 31 July on the company’s Koru Bank loan was $300. Enter a manual journal.

3. You discover that the invoice from Balance Ltd, received on 22 July, should have been $1,909, inclusive of GST. You need to enter a credit note to make this correction, not a manual journal.

(Task 3 total: 5 marks)

Task 4: Fixed Assets

Set up the fixed assets that were purchased with the business and during the two months and run depreciation to 31 July.

The overall fixed asset start date is 1 April 2026. You will need to set up two asset types: Motor vehicles, and Fittings and fixtures. Record the purchase date of the opening motor vehicles and opening fixture and fittings (from Table 1 Opening balances) as 31 May 2026, with 1 June 2026 as the depreciation start date. For investment boost, select ‘no claim for all assets’ as they are second-hand, except for the display tables on which you should claim the 20% investment boost.

Run depreciation on the assets for the period 1 June to 31 July 2026.

(Task 4 total: 10 marks)

Task 5: GST Return

Prepare the 1 June 2026 to 31 July 2026 GST return.

Details of any adjustments required have been included in the information above for Tasks 2 and 3.

Remember to check the GST Transaction report.

(Task 5 total: 5 marks)

Task 6: Reports

1. Prepare the following reports.

a. Trial balance at 31 July 2026. Compare with one month, no grouping.

b. Profit and loss for month of July 2026, with June 2026 figures shown as comparatives (accrual basis, no decimals).

c. Balance sheet (edit the layout to have the accounts in a logical order) as at 31 July 2026 (accrual basis, no comparatives, no decimals).

d. Depreciation schedule for the two months ended 31 July 2026.

e. Fixed asset reconciliation for the two months ended 31 July 2026.

f. GST return report, including GST transaction report, for the 1 June to 31 July 2026 GST period.

g. Bank reconciliation summary report 1 June to 31 July 2026 and bank statement 1 June to 31 July.

h. Aged receivables summary at 31 July 2026 (ageing period–two periods).

i. Aged payables summary at 31 July 2026 (ageing period–two periods).

j. Journal report for the period 1 June 2026 to 1 August 2026 for manual posted journals only (select Show posted manual journals only).

k. Account transactions (all accounts with transactions or non-zero balances) for the period 1 June 2026 to 1 August 2026. Group by account.

2. Export your reports as PDF or Excel files, plus your 1 June 2026 trial balance from Task 1, and combine the files into one document to be submitted.

(Task 6 total: 10 marks)