Group Assignment Financial- Accounting Simulation PDF

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Summary

Group assignment for SEM 1 (Financial accounting and reporting)...

Description

INTERMEDIATE FINANCIAL ACCOUNTING AND REPORTING (ACC406)

GROUP PROJECT: ACCOUNTING SIMULATION LAUNDRY SHOP #2

PREPARED BY: NORMASNIEZA BINTI SHAHAROM

(2017587665)

NUR FARAHWAHIDA BINTI KAMAL ARIFFIN

(2020394873)

AIN ATHIRAH BINTI RAHIM

(2020357499)

GROUP: NBM1C

PREPARED FOR: PN. WAN NORASIAH BINTI WAN NORDIN

ACKNOWLEDGEMENT

“In the name of ALLAH the Most Gracious and the Most Merciful” Assalamualaikum, praise to Allah for His help and guidance that we finally completed our group assignment.

We would like to express our gratitude to everyone that involved rather directly and indirectly in helping us to complete this report. Firstly, we really appreciate all the helps, advises and information which given by our lecturer Madam WAN NORASIAH BINTI WAN NORDIN lecturer of Intermediate Financial Accounting and Reporting ACC406. Without her support, we may not be able to face and solve the difficulties that we are encounter during the process until we produce this task successfully.

In addition, we would like to take this opportunity to thanks those of our friends who helped us and giving some idea to us in order to complete this accounting simulation project.

Last but not least, thousands of thanks we would to like to express to our group members for the cooperation given to group. We know that without cooperation and tolerance between the group members, we couldn’t finish this perfectly. Finally, big thanks to our parents and family members that support us no matter how hard the situation is. They also help providing us with necessary financial to make this assignment a success project.

TABLE OF CONTENT NO

CONTENT

1

Introduction of Bubbles Laundry Shop

2

The business background of Bubble Laundry Shop: 2. 1 Organizational Details 2. 2 Owner’s Capital 2. 3 Location 2. 4 Type of Business 2. 5 Laundry Prices

3

Accounting Transactions (for 1 months)

4

Specialised Journals

5

Subsidiary Ledgers Account

6

Trial Balance as at that date; SOFP & SOPL

PAGE

1.0 INTRODUCTION OF THE BUBBLE LAUNDRY Bubble Laundry SDN. BHD was established to offers and provide good laundry services for customers and to gives high satisfaction for them when using our services. Bubble Laundry’s consumers are usually from middle and lower classwho is always busy with their daily life or if they do not have washing machine to wash their clothes at home. But we also are targeting high class consumers because we do believe that they will help us and give a wonderful impact and give advantages towards our laundry business.

In addition, Bubble Laundry SDN. BHD marketing strategies is to emphasize the quality and price of our services. We offer an affordable price to our consumers because many of them are from middle and lower class. Also, we wants to provide an excellent services that can give benefits to our customer such as we can help them by decreasing their workload pressure or stress, for the customers who cannot afford to buy their own washing machines, for customers who are unable to find the time to wash their clothes at their home and many more.

The management of Bubble Laundry consist of 3 lead workers which are Nur Farahwahida, Ain Athirah and Normasnieza. Each of us has extensive experience in marketing, finance, accountancy, operation and administration. Furthermore, all of us responsible to work together and take action to achieve our goals, vision and mission of business.

2.0 BACKGROUND OF THE ORGANIZATION 2.1 ORGANIZATIONAL DETAILS

Our company’s name is Bubble Laundry Shop where we inspired by the uniqueness of bubbles and we use the name because it is easy for our consumers to recognize the shop and frequently to come despite other than our facilities. The objectives of our business it to provide a laundry shop that can give satisfied experience regardless of the size of the load and washing preferences.

The organizational member of Bubble Laundry Shop is divided into six departments which is Ain Athirah as the General Manager and Administrative Manager, Nur Farawahida as the Marketing Manager and Operation Manager and lastly, Normasnieza as the Finance Manager and Accountant Manager.

Task for administration is the most important thing when open up a business. It is to ensure the business run smoothly. The performance, growth and survival of the business depend on managerial skills and capabilities. The manager should have the administration function such as planning, controlling, organizing, and leading the company. The task of administration manager is to set the employee’s salaries, protect the employee’s welfare compensation and fringe benefits, recruiting, provide the furniture and fitting in the office to ensure the employee comfortable working environment. The administration task also including plan and set the objective or goals of the business and ensure the company achieve the goals that have been set successfully. The administration also has to arrange the organizational structure, do a working schedule, and calculate all budgets relating to administration department.

Next, marketing manager is needed to identify the marketing target, current market and determine the strategy that suitable to be used. To prepared marketing analysis and observe the strategic location to expand the business. Also, consistent in doing promotions to ensure the sales reach the objective goals and lastly to find out the steps and effort needed to be done systematically to smoothly increase in sales. For operation manager is must arrange the set of services and education that will be offer and ensure the smoothly flow of stock runs without having any shortage of stock. In addition, as a operation manager also need to ensure the quality of product, controlling the operation includes the welfare and safety of workers, give intention on matter of staff and workers, to ensure all stock and equipment is sufficient and make sure all machinery and equipment were in good condition and kept in the safe place to avoid from stealing.

Lastly, financial manager’s task is to prepared cash flow, trading profit and loss account and also the balance sheet of the company; manage the flow of organization financial from suffered loss. Most importantly is to handle the administration, operations and marketing expenses not over the budget. Also to ensure the organizations have financially stable and responsible in the entire activities that involves the company finance. End of the month, financial manager need to prepare report for the management and summarize all the business financial position in areas of income, expenses, capital usage and cash flows.

2.2 OWNER’S CAPITAL

Our owner’s capital is shared by three of us which is the total is RM 100,000. Definitions of owner’s capital are when the shareholders have invested in the business and also it referred as shareholders equity. We used it to buy our premises, machines and equipments, for renovations, cabinets for stuff, ironing tools, counter space for folding clothes and many more.

2.3 LOCATION The premise is located at No.17 &17A JALAN PLUMBUM Q7/Q, SEKSYEN 7, 40000 SHAH ALAM, SELANGOR, MALAYSIA. The chosen location can be considered as the most famous places and strategic with a variety shop. Since this place is located in town and the town is like the centre of attraction for most people in Shah Alam, Kuala Lumpur and also tourist.

Moreover, the advantage of this location as our premise is because to achieve our goals and objectives in providing laundry services. Also, the target is to help some business that requires frequent washing of linens and garments, such as hotels, restaurants, salons, spas, healthcare departments and more. For instance, it is easier for us to reach our consumers because it is the centre of our target location.

Furthermore, we also provide facilities in our premise for our consumers such as parking,

vendor

machines,

body

massage

machines

and

many

more.

2.4 TYPE OF BUSINESS

Bubble Laundry is a sole proprietorship that provides laundry services. Definition of sole proprietorship is a type of enterprise that is owned and run by one person or more that one person. In which this type of business entirely involves with consumers and other business that is frequently using laundry as their place to wash their linens and clothes. Bubble laundry also provides dry cleaning, ironing, folding, packaging and delivery to customers which have a huge amount of clothes or comforters for laundry. 2.5 LAUNDRY PRICES Normal wash:

Unit price (RM)

Cloths (1pcs)

2.50

Comforter (1pcs)

10.00

“Toto” (1pcs)

15.00

Iron: Shirt (1pcs)

1.20

Pant (1pcs)

1.20

Baju kurung /melayu (1 pair)

2.00

T-shirt (1pcs)

1.00

Blouse (1pcs)

1.00

Dry clean: Baju kurung /melayu (1 pair)

12.00

T-shirt (1pcs)

5.00

Pant (1pcs)

5,00

Fold: 1 basket

10.00

2-3 baskets

25.00

More than 3 baskets

50.00

Delivery charges: Less 10km

30.00

10km – 15km

50.00

15km – 30km

80.00

3.0 BUSINESS TRANSACTION BETWEEN BUBBLE LAUNDRY SHOP WITH SUPPLIERS & CUSTOMERS. This is the transaction of Bubble Laundry for 1 month as at 30 June 2019. All transaction of business with suppliers and customers is recorded in the table. This transaction can be used by the owner and accountant to analyst and do the accounting process for showing the profit and losses for the business. Bubble laundry start business from 1 January 2017. Below is the transaction for June 2019. Date

Description

Amount (RM)

1/6/2019

Owner distribute RM100,000 her personal fund for Bubble laundry Customer paid RM36 cash for 3 pairs with using dry clean wash Customer transferred amount RM70 for 5 pairs clothes using dry clean, ironing & packaging Made payment RM565.40 for Electric bill Paid water bill RM350.20 Customer pay RM30 cash for 3 of comforter’s wash Received payment worth RM3,000 for previous month from Sri Pacific hotel for dry clean, ironing, fold, and packaging. Received cash RM57.50 for normal wash for cloths and toto (3 toto, 5 cloths) A student paid RM28 in cash for dry clean & iron Paid RM230 using transferred in bank for payment of pamphlet & brochures Tol & parking Rm50 8% Bank loan for shop lot worth RM300,000 for 7 years Paid rental using Cash in bank RM1,800 Stationeries expenses RM50 Paid cash for second-hand van RM5,000 Purchase Soap with 30 days term of invoices RM500 Limra factory give invoice in 90 days term for Purchase machines: 13kg Frontload Washer-Extractor 13kg Gas dryer 8kg topload washer 9kg gas dryer

100,000.00

1/6/2019 1/6/2019 2/6/2019 2/6/2019 2/6/2019 3/6/2019

5/6/2019 6/6/2019 7/6/2020 8/6/2020 9/6/2020 10/6/2020 10/6/2020 11/6/2020 12/6/2019 15/6/2019

36.00 70.00 565.40 350.20 30.00 3,000

57.50 28.00 230.00 50.00 24,000 1,800.00 50.00 5,000 500.00

17,000 10,500 5,000 5,000

16/6/2019

17/6/2019 17/6/2019 18/6/2019

20/6/2019 20/6/2019 23/6/2019 24/6/2019 24/6/2019 26/6/2020 26/6/2020 27/6/2019 27/6/2019 29/6/2019

Credit purchase from Limra factory with 90 days term: 10 kg Dry Clean Washer (used) Handiron & 5 litre boiler Ironing board Owner took RM 250 worth of goods from the business for her own use. Owner took cash from the business Transferred cash in bank to Limra factory for purchase : Automatic booster pump High pressure cleaner Received debit note from Expresso Laundry for goods returned amounting to RM500. Received transferred amount RM5,700 from Honey Well company for April invoice. Received commission by cash RM 800 Receiving cash for normal wash Receiving cash for dry clean and ironing Customer paid for last two months invoice by transferred in bank RM2,590. Received delivery charges from Sri Pacific hotel Return some of soap because do not satisfied with the packaging that has hole on it. Sent the business's delivery van to workshop for repairs. The cost was RM 230 and paid by cash. Cash sales from walk in customer

40,000 1,200 1,800 250.00 300.00 1,800 2,600 500.00 5,700 800.00 25.00 36.00 2,590 200.00 350.00 230.00 266.00

4.0 Specialised Journal This is the Journal entry. Journal entry is the act of keeping or making records of any transaction either Economic or non-economic. Transactions are listed in an accounting journal that shows a company’s debit and credit balances. All transaction will be transferred into the journal using T account format. 1/6/2019

Bank a/c Total: 17/6/2019 17/6/2019

Drawing a/c Drawing a/c Total:

Owner distribute her personal fund for Bubble laundry Capital a/c Debit Credit RM 100,000 Capital a/c 100,000

550

915.60

RM 250 300

Credit RM 1,800 1,800

2/6/2019 2/6/2019

Total:

300.00

1,800.00

1,800

Made payment RM565.40 for Electric bill Paid water bill RM350.20 Utilities a/c Debit RM Electric bill a/c 565.40 Bank a/c Water bill a/c 350.20 Bank a/c

250.00

550

10/6/2020

Total:

RM 100,000 100,000

Owner took RM 250 worth of goods from the business for her own use. Owner took cash from the business Drawing a/c Debit Credit RM 250 Cash a/c 300 Inventory

Paid rental using Cash in bank Rent Expenses a/c Debit RM Rent expenses a/c 1,800 Bank a/c

100,000.00

565.40 350.20 Credit RM 565.40 350.20 915.60

23/6/2019

Cash a/c Total: 1/6/2019 1/6/2019 2/6/2019 5/6/2019 6/6/2019 24/6/2019 24/6/2019 29/6/2019

sales a/c sales a/c sales a/c sales a/c sales a/c sales a/c sales a/c sales a/c Total:

Received commission by cash RM 800 Cash a/c Debit Credit RM 800 Commission receive a/c 800 Customer paid RM36 cash for 3 pairs with using dry clean wash Customer transferred amount RM70 for 5 pairs clothes using dry clean, ironing & packaging Customer pay RM30 cash for 3 of comforter’s wash Received cash RM57.50 for normal wash for cloths and toto (3 toto, 5 cloths) A student paid RM28 in cash for dry clean & iron Receiving cash for normal wash Receiving cash for dry clean and ironing Cash sales from walk in customer Sales a/c Debit Credit RM 36.00 Cash a/c 70.00 Transferred amount a/c 30.00 Cash a/c 57.50 Cash a/c 28.00 Cash a/c 25.00 Cash a/c 36.00 Cash a/c 266.00 Cash a/c 548.50

3/6/2019

800.00

RM 800 800 36.00 70.00 30.00 57.50 28.00 25.00 36.00 266.00

RM 36.00 70.00 30.00 57.50 28.00 25.00 36.00 266.00 548.50

Received payment worth RM3,000 for previous month from Sri Pacific hotel for dry clean, ironing, fold, and packaging. 26/6/2020 Received delivery charges from Sri Pacific hotel Account receivable a/c – Sri Pacific Debit Credit RM Account receivable Sri Pacific a/c 3,000 Sales a/c Account receivable Sri Pacific a/c 200 Sales a/c

RM 3,000 200

Total:

3,200

3,200

3,000 200.00

20/6/2019

Received transferred amount RM5,700 from Honey Well company for April invoice. Account receivable a/c – Honey well Debit Credit RM Account receivable Honey well a/c 5,700 Sales a/c

RM 5,700

Total:

5,700

5,700

26/6/2020

5,700

Customer paid for last two months invoice by transferred in bank RM2,590. Account receivable a/c – Customer Debit Credit RM Account receivable Customer a/c 2,590 Sales a/c

RM 2,590

Total:

2,590

7/6/2020 8/6/2020 10/6/2020 27/6/2019

Expenses a/c Expenses a/c Expenses a/c Expenses a/c Total:

2,590 Paid RM230 using transferred in bank for payment of pamphlet & brochures Tol & parking Rm50 Stationeries expenses RM50 Sent the business's delivery van to workshop for repairs. The cost was RM 230 and paid by cash. Expenses a/c Debit Credit RM 230 cash a/c 50 cash a/c 50 cash a/c 230 cash a/c 560

27/6/2019

2,590

230.00 50.00 50.00 230.00

RM 230 50 50 230 560

Return some of soap because do not satisfied with the packaging that has hole on it. Return outward a/c Debit Credit RM Return outward a/c 350 Purchases a/c

350.00

Total:

350

350

RM 350

15/6/2019

16/6/2019

Limra factory give invoice in 90 days term for Purchase machines: 13kg Frontload Washer-Extractor 13kg Gas dryer 8kg topload washer 9kg gas dryer Credit purchase from Limra factory with 90 days term: 10 kg Dry Clean Washer (used) Handiron & 5 litre boiler Ironing board

17,000 10,500 5,000 5,000 37,500 40,000 1,200 1,800 43,000

Machinery a/c – Limra Factory Debit RM 37,500 43,000

Machinery a/c Machinery a/c Total: 18/6/2019

Credit RM 37,500 43,000

Account payable a/c Account payable a/c

80,500

80,500

Transferred cash in bank to Limra factory for purchase : Automatic booster pump High pressure cleaner

1,800 2,600 4,400

Cash a/c – Limra Factory Debit

Credit

Cash a/c Cash a/c

RM 1,800 2,600

Total:

4,400

RM 1,800 2,600

Purchases a/c Purchases a/c

4,400

20/6/2019

Received debit note from Expresso Laundry for goods returned amounting to RM500. Account receivable a/c – Expresso Laundry Debit Credit RM Account receivable a/c 500 Return outward a/c

500.00

Total:

500

11/6/2020

Van a/c Total:

500 Paid cash for second-hand van RM5,000 Van a/c Debit RM 5,000 Bank a/c 5,000

RM 500

5,000 Credit RM 5,000 5,000

12/6/2019

Purchase Soap with 30 days term of invoices RM500 Purchase a/c Debit Credit RM Purchase a/c 500 Bank a/c

500.00

Total:

500

9/6/2020

Loan a/c Total:

500 8% Bank loan for shop lot worth RM300,000 for 7 years Loan a/c Debit Credit RM 24,000 Bank a/c 24,000

RM 500

24,000

RM 24,000 24,000

Conclusion

Bubble laundry is a sole proprietorship business type. In this business the owner has distribute Rm100,000 her own personal fund. Bubble laundry has established for 3 years since 2017. For the main business activity, Bubble laundry will be focusing in washing and dry clean. This business has potential in increasing the business profits within 5 years of expectation from 5% to nearly 20% starting from 2017 until 2021. In 2019, the owner has made a decision to expand their business with bought more machines and vehicle for the delivery. Bubble laundry already have their regular customers as they always maintain the good service. In terms of marketing, Bubble laundry choose to distribute pamphlet to every place that near their shop and also pass to walk in customer to see interesting services that they p...