Acc individual assignment PDF

Preview

Summary

FACULTY TECHNOLOGY MANAGEMENT& TECHNOPRENEURSHIP (FPTT)UNIVERSITI TEKNIKAL MALAYSIAMELAKAPRINCIPLES OF ACCOUNTINGBTMP 1533 SEMESTER 1 SESSION 2019/INDIVIDUAL ASSIGNMENT (10%)DATE OF SUBMISSIONNAME & MATRIX NUMBER,FACULTY & PROGRAMMENAME OF LECTURERCOMPANY NAME: Bridal and Gro...

Description

FACULTY TECHNOLOGY MANAGEMENT & TECHNOPRENEURSHIP (FPTT) UNIVERSITI TEKNIKAL MALAYSIA MELAKA PRINCIPLES OF ACCOUNTING BTMP 1533

SEMESTER 1

SESSION 2019/2020

INDIVIDUAL ASSIGNMENT (10%) DATE OF SUBMISSION

NAME & MATRIX NUMBER

,FACULTY & PROGRAMME NAME OF LECTURER COMPANY NAME:

Bridal and Groom Company

TOTAL MARKS:

1

CONTENT NO. 1.0

PARTICULAR Background of Company

PAGE

2.0 3.0

Trial Balance at 31 August 2019 Business Transactions

5 6

4.0

General Journal

7

5.0

General Ledger

8-9

6.0

Trial Balance of at 30 September 2019

10

7.0

Financial Statement

8.0

Conclusions and Recommendation

14

Appendix

15

3-4

11-13

1.0 Background of company The Bride and Groom Company is a sole proprietor ownership business which owned by Lim Li Shan. Bride and Groom Company is a business which mainly focus 2

in service industry especially target wedding couple as their main customer source. The main business operation of Bride and Groom Company is serving couple on their way to marriage and give them the best memories during the pre-wedding. The company offers customers with their own wedding packages. For examples, Bride and Groom Company offers a packages called travel marriage which is bringing the couple to their favourite country to enjoy their honeymoon but at the same time, shooting their best pre-wedding photos at overseas. From the feedback of customers, most of them satisfied with this service and indeed enjoy and build sweet memories during the trip. Besides, Bride and Groom also provide packages for prewedding videos and photos. Bride and Groom Company also selling wedding dress, suit and accessories for the wedding couple. At the same time, the company provide also the make-up services for the bridal. The main sources of revenue of Bride and Groom Company is the service packages provided and also the selling of accessories such as bracelets, necklaces, earrings, bridal crown and the list goes on. Bride and Groom Company had its organisation chart. The company is owned by Lim Li Shan and the company is incharged by a shop manager Lau Cheng Jia. The organisation also build up by a designer, Sia Chee How, a photographer Wong Qing Wee and a customer service worker Lau Yi Ying. The organisation chart as below:

Organisation Chart of Bride and Groom Company

3

2.0 Trial balance for August 2019

4

Bride and Groom Company Trial Balance at 31 August 2019 Account Cash Account Receivables Equipments Fittings Account Payables Sales Capital, Joyi

Debit

Credit

( RM ) 25200 2530 2000 2980

( RM )

3520 2790 26400 32710

Total

3.0 Transactions Bride and Groom Company Business Transaction of September 2019 5

32710

September

2

Fitting purchases of RM 350.

3

Paid Rental RM 2000 which cover the rental from September, October and November and accounts to Prepaid Rental Expenses, Rental Expenses and Cash.

10

Purchase RM 890 stock of bridal accessories and preserved fresh flower for bridal bouquet on credit.

15

Provide pre-wedding package service which cost RM 2,899 to a Customer who paid a deposit of RM 1,500 in cash and the balance will be paid on 26 August 2019.

16

Equipment will depreciate 10% per annual.

18

Paid RM 590 shooting expenses for the purpose of advertising and decoration arrangement.

20

Paid workers’ salaries of RM 4800.

22

Receive insurance commission RM 380.

26

Paid utilities expenses of RM 790.

27

Bridal and Groom sold accessories worth RM 100 to Wendy and William couple with discount allowed RM10.

29

Withdraws accessories of amount RM 700 for personal use.

4.0 General Journal

6

5.0 General Ledger

7

8

9

6.0 Trial Balance Bride and Groom Company Trial Balance at 30 September 2019 Account

Cash

Debit

Credit

( RM )

( RM )

20140

Account Receivables

3829

Equipments

2000

Fittings

3330

Account Payables

4410

Sales

2790

Capital, JOYI

26400

Prepaid Rental Expenses

1500

Rental Expenses

1000

Purchases

190

Service Revenue

2899

Shooting Expenses

590

Salaries Expenses

4800

Insurance Commission

380

Utilities Expenses

790

Discount Allowed

10

Drawings

700

Depreciation Expenses

17

Accumulated Depreciation Expenses

17

Total

37896

10

37896

7.0 Financial Statement Bride and Groom Company Statement of Profit or Loss for the month ended 30 September 2019 Sales Purchase

2790 (190) 2600

Revenue Service Revenue Insurance Commission

2899 380

Expenses Rental Expenses Shooting Expenses Salaries Expenses Utilities Expenses Depreciation Expenses Discount Allowed Net Loss

500 590 4800 790 17 10

Bride and Groom Company Owner’s Equity Statement For the month ended 30 September 2019 11

3279 5879

6707 828

Owner’s Capital, September 1

26400

Net Loss

828 25572

Owner’s Drawings

( 700 ) 24872

Account Payables

4410 29282

Bride and Groom Company Statement of Financial Position For the month ended 30 September 2019

12

Non Current Asset

13

Equipments Accumulated Depreciation Fittings

2000 (17) 3330

Current Asset Cash Prepaid Rental Expenses Account Receivables

18640 1500 3829 29282

Owner’s Equity Owner’s Capital Net Loss

26400 828

Owner’s Drawing

(700)

Account Payables

4410 29282

Conclusion and Recommendation Bridal and Groom Company is not in a very secure financial position. If the company is in the first instance to survive and grow in the coming days, improvements in every area of the company is needed or a must. The key areas that have to pay more attention or reform are profitability, and financial stability. Bride and Groom Company must address these areas simultaneously if the company wants to overcome this present poor record. Method of calculation for current ratio can be

14

found in appendix. The current ratio Bridal and Groom Company is 5.44:1 which means that for every ringgit of current liabilities, company has 5.44 ringgit of current assets. The ratio is not big enough to ensure company’s financial problems in coming months or years. However this analysis has its limitation. A greater evaluation can only be occurs when utilisation of other resources such as comparisons with budget forecasts and the statement of changes in financial position. Only after these process only the company can be fully described of its current situation and possible future occur. In a nutshell, Bride and Groom Company does not have strong future prospects in the areas of profitability, liquidity or stability if it continues on its current path. The founder should be concerned with its profitability and reducing their expenses in every aspects.

Appendix Current Ratio=

Current Assets Current Liabilities

=

23969 4410

15

=5.44:1

16...