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8/9/2019 BKAL ASGMENT
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1
INTRODUCTION
I started my business on opening a computer business in Jalan Teow Siew Khor,Kluang.
My computer proprietorship business known as New Millenium Enterprise. The main reason
why I have fixed my business at Jalan Teow Siew Khor,Kluang because it is the place were very
strategic and at the same time it can help me to increase my profit the maximum. Besides that,
the place also were very near to get materials and supplies for my business and also I can save
my business cost in certain expenditure such as transportation cost to get materials or supplies,
oil and so on. Thirdly, I can also attracte my customer to purchase in my shop because it was quit
busy area since more people tend to shopping at Jalan Teow Siew Khor as there are many kind of
shop.
New Millenium Enterprise selling computers and also its components.New Millenium
Enterprise is also providing home delivery services for those order computers,notebook or any
computer components from my shop.This make customers feel convenient by purchasing
product from New Millenium Enterprise.
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BUSINESS TRANSACTION
During January 1st, my business engaged in the following transaction.
Date (January)
2010
1 Started the business by invested RM50 000 by cash
2 Purchased for office equipment,RM20 000
3 Purchased supplies by cash,RM10 000
4 Purchased supplies by credit,RM 3200
5 Performance customer services and earned revenue on account,RM49 000
7 Paid for marketing expense,RM6300
12 Paid for building,RM39 000
14 Purchased supplies on account,RM500
17 Paid RM200 on account
19 Commision received from service,RM4000
20 Received cash from client,RM4500
21 Paid office rent for January,RM950 in cash
23 Paid salaries for workers,RM6000 in cash
24 Utility expenses,RM1100
25 Paid interest in cash,RM1000
25 Paid miscellancous expenses,RM560
26 Received services fees from clients,RM1720
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29 Paid electrical bill,RM520
30 Paid wages expenses,RM2100
30 I withdrew RM3000 for personal used
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JOURNAL
DATE
(JANUARY)
DESCRIPTION REF DEBIT CREDIT
1 CashCapital
(Started the business by investedby cash)
0111
61
50 000
50 000
2 EquipmentCapital
(Purchased for office equipment )
0126
20 00020 000
3 Supplies
Cash(Purchased supplies by cash)
03
21
10 000
10 000
4 SuppliesAccount payabale
(Purchased supplies by credit)
31
01
3200
3200
5 Cash
Fees revenue(Performance customer services
and earned revenue on account )
12
01
49 000
49 000
7 Marketing expenseCash
(Paid for marketing expense)
0151
63006300
12 Building
Cash(Paid for building)
03
21
39 000
39 000
14 SuppliesAccount payable
(Paid supplies on account)
0251
500500
17 Account payable
Cash(Paid creditor)
21
01
200
200
19 CashCommision revenue
(Commision received fromservice)
3201
40004000
20 CashFees revenue
(Received cash from client)
3301
45004500
21 Rent
Cash(Paid office rent for January)
01
02
950
950
23 Salaries expense 34 6000
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Cash
(Paid salaries for workers)
21 6000
24 Utility expense
Cash
(Paid utility expenses)
35
01
1100
1100
25 Interest ExpensesCash
(Paid for interest)
3601
10001000
25 Miscellaneous expense
Cash(Paid miscellancous expense)
01
52
560
560
26 Account receivableFees revenue
(Received services fees fromclients)
3701
17201720
29 Electrical expenseCash(Paid electrical bill)
3801 520 520
30 Wages expense
Cash(Paid wages expenses)
01
51
2100
2100
30 Withdrawal
Cash(Withdrew for personal used)
62
01
3000
3000
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NO ACCOUNT NO ACCOUNT
01 Cash 31 Marketing expense
02 Account Receivable 32 Rent expense
03 Supplies 33 Salaries expense
11Equipment
34Utility expense
12 Account payable 35 Interest expense
26 Capital 36 Miscellaneous expense
61 Withdrawal 37 Electrical expense
62 Fees Revenue 38 Wages expense
LEDGER
CASH NO.01
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
1 50000 50000
3 10000 40000
5 49000 89000
7 6300 82700
12 39000 43700
17 200 43500
19 4000 47500
20 4500 52000
21 950 5105023 6000 45050
24 1100 43950
25 1000 42950
25 560 42390
29 520 41870
30 2100 39770
30 3000 36770
ACCOUNT RECEIVABLE NO.02
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
26 1720 1720
SUPPLIES NO.03
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DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
3 10000 10000
4 3200 13200
14 500 13700
EQUIPMENT NO.11
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
2 20000 20000
BUILDING NO.12
DATE(JANUARY) EXPLANATION REF DEB
IT CREDITB
ALANCEDT CT
12 39000 39000
ACCOUNT PAYABLE NO.21
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
4 3200 3200
14 500 3700
17 200 3500
CAPITAL NO.61
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
1 50000 50000
2 20000 70000
DRAWING NO.62
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
30 3000 3000
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FEES REVENUE NO.51
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
5 49000 49000
20 4500 5360026 1720 55220
MARKETING EXPENSE NO.31
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
7 6300 6300
SALARIES EXPENSE NO.32
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
23 6000 6000
RENT EXPENSE NO.33
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
21 950 950
INTEREST EXPENSE NO.34
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
25 1000 1000
UTILITY EXPENSE NO.35
DATE(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCEDT CT
24 1100 1100
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MISCELLANEOUS EXPENSE NO.36
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
25 560 560
ELECTRICAL EXPENSE NO.37
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
29 520 520
WAGES EXPENSE NO.38
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
30 2100 2100
COMMISSION REVENUE NO.04
DATE
(JANUARY)
EXPLANATION REF DEBIT CREDIT BALANCE
DT CT
19 4000 4000
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NEW MILLENIUM ENTERPRISE
TRIAL BALANCE
FOR THE ENDING JANUARY, 31ST
2010
Debit (RM) Credit (RM)Cash 36770
Account receivable 1720
Supplies 13700
Equipment 20000
Building 39000
Account payable 3500
Capital 70000
Withdrawal 3000
Fees revenue 55220
Marketing expense 6300
Rent expense 950Salaries expense 6000
Utility expense 1100
Interest expense 1000
Miscellaneous expense 560
Electrical expense 520
Wages expense 2100
Commission revenue 4000
Total 132720 132720
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NEW MILLENIUM ENTERPRISE
TRIAL BALANCE
FOR THE ENDING JANUARY, 31ST
2010
Debit (RM) Credit (RM)Cash 36770
Account receivable 1720
Supplies 13700
Equipment 20000
Building 39000
Account payable 3500
Capital 70000
Withdrawal 3000
Fees revenue 55200
Marketing expense 6300
Rent expense 950Salaries expense 6000
Utility expense 1100
Interest expense 1000
Miscellaneous expense 560
Electrical expense 520
Wages expense 2100
Commission revenue 4000
Total 132720 132720
Additional information gathered at 31st January 2010:
a) Supplies used 4000b) Depreciation of equipment- RM1500c) Depreciation for building is 25% from costd) Salaries accrued but not paid- RM600e) Accrued fees revenue but not recorded- RM3500f) Accrued rent is RM750
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JOURNAL ADJUSTING ENTRIES
DATE
(JANUARY)
DESCRIPTION REF DEBIT CREDIT
31st Supplies Expense
Supplies
4000
4000
31st Depreciation Equipment
Accumulated DepreciationEquipment
1500
1500
31st Depreciation building expenseAccumulated Depreciation
building
97509750
31st Salaries Expense
Salaries Payable
600
600
31st Account Receivable
Fees Revenue
3500
3500
31st Rent Expense
Rent Payable
750
750
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NEW MILLENIUM ENTERPRISE
INCOME STATEMENT
FOR THE ENDING JANUARY, 31ST
2010
RM RMFees Revenue 58720
Operating Expenses:
Salaries Expense 6600
Marketing Expense 6300
Wages Expense 2100
Utility Expense 1100
Interest Expense 1000
Rent Expense 1700
Miscellaneous Expense 560
Electrical Expense 520
a) Supplies Expense 4000b) Depreciation Equipment Expense 1500c) Depreciation building Expense 9750
Total Operating Expenses 35130
Net Income 23590
NEW MILLENIUM ENTERPRISE
STATEMENT OF OWNERS EQUITY
FOR THE ENDING JANUARY, 31ST
2010
RM RM
Capital, February 1st,2010 70000
Net income 23590
Less withdrawal 3000
Commission 4000
Owners Equity 24590
Capital, January 31st,2010 94590
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JOURNAL CLOSING ENTRIES
DATE(JANUARY)
DESCRIPTION(Closing entries)
REF DEBIT CREDIT
31st Fees RevenueCommission Revenue
Income Summary
587204000
62720
31st Income Summary
Expenses
35150
Salaries Expense 6600
Marketing Expense 6300
Wages Expense 2100
Utility Expense 1100
Interest Expense 1000Rent Expense 1700
MiscellaneousExpense
560
Electrical Expense 520
d) Supplies Expense 4000e) Depreciation Equipment
Expense1500
f) Depreciation buildingExpense
9750
31st Income Summary
Capital
27570
2757031st Capital
Withdrawal
3000
3000
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NEW MILLENIUM ENTERPRISE
POST CLOSING TRIAL BALANCE
JANUARY, 31ST
2010
Debit (RM) Credit (RM)Cash 36770
Account receivable 5220
Supplies 9700
Equipment 20000
Building 39000
Account payable 3500
Capital 94590
Salaries Payable 600
Rent Payable 750
Accumulated Depreciation
Equipment
1500
Accumulated Depreciation Building 9750
Total 110690 110690
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GIFT GO GO (GGG) ENTERPRISE
COMPARATIVE INCOME STATEMENT FOR THE YEAR AND MONTH ENDED,
DEC 31ST
,2009 AND JANUARY 31ST
, 2010
2009 2010 Amount(inc.dec) %
Fees Revenue 59000 62720 3720 6.31
Selling Expenses 31000 28830 2170 7.53
Admin Expenses 5600 6300 700 12.5
Net Income 22400 27590 5190 18.81
VERTICAL ANALYSIS
GIFT GO GO (GGG) ENTERPRISE
COMPARATIVE BALANCE SHEET AS AT THE JANUARY 31ST
, 2009 AND 2010
2009
Amount %
2010
Amount %
Fixed Assets
Equipment 14000 15.01 18500 18.60
Building 23000 24.65 29250 29.41
Current Assets
Cash 30400 32.58 36770 36.98
Account Receivable 17000 18.22 5220 5.25
Supplies 8900 9.54 9700 9.75Total Assets 93300 100 99440 100
Current Liabilities
Account Payable 2900 3.11 3500 3.52
Salaries Payable 900 0.96 600 0.60
Rent Payable 1000 1.07 750 0.75
Owners Equity 88500 94.86 94590 95.12
Total Liabilities and
Owners Equity
93300 100 99440 100
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GIFT GO GO (GGG) ENTERPRISE
COMPARATIVE INCOME STATEMENT FOR THE YEAR AND MONTH ENDED,
DEC 31ST
,2009 AND JANUARY 31ST
, 2010
2009
Amount %
2010
Amount %
Fees Revenue 59000 100 62720 100
Selling Expenses 31000 52.54 28830 45.97
Admin Expenses 5600 9.49 6300 10.04
Net Income 22400 37.97 27590 43.99
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Return on Assets
Return on Assets = Net Income + Interest Expense/ Average total assets
2009 2010
Net Income 22400 27590
Interest Expense 750 1000
Total Assets (2008= 86700) 93300 99440
Return on Assets 23150/90000 28590/96370
25.72% 29.67%
Efficiency Ratio,
Inventory turnover (2010) =Supplies/ Average supplies
9700/(8900+9700)/2
9700/9300
1.04 times
Assets Turnover = Net Sales/ Average total assets
2009 2010
Fees Revenue 59000 62720
Total Assets 93300 99440
Assets Turnover (2010) = 62720/ 96370
0.65 times
SOLVENCY RATIO
Debt ratio = Total Liabilities/ Total Assets
2009 2010
Total Liabilities 4800 4850
Total Assets 93300 99440
Debt Ratio 5.14% 4.88%
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Equity ratio = Total Owners Equity/ Total assets
2009 2010
Total Owners Equity 88500 94590
Total assets 93300 99440
Equity ratio 94.86% 95.12%
Times Interest Earned = Income before tax and Interest Expense
2009 2010
Income before tax and interest expense 5550 5850
Interest Expense 750 1000
Times Interest earned 7.4 times 5.85 times
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SUMMARY ABOUT MY BUSINESS
As my business is just only started, I am satisfied because the business is going on profit
although it is less from the year before this. In the future, I will make my business get well place
in market and advertised as my business will be well known by more customers. I will definitely
enhance my business in the future upcoming as my recent business going on with the profit as it
can surely improve my business in the upcoming years.