bkal asgment

8/9/2019 BKAL ASGMENT

1/23

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.


2/23

2

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


4/23

4

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


5/23

5

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)


DT CT

26 1720 1720

SUPPLIES NO.03


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DATE

(JANUARY)


DT CT

3 10000 10000

4 3200 13200

14 500 13700

EQUIPMENT NO.11

DATE

(JANUARY)


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)


DT CT

4 3200 3200

14 500 3700

17 200 3500

CAPITAL NO.61

DATE

(JANUARY)


DT CT

1 50000 50000

2 20000 70000

DRAWING NO.62

DATE

(JANUARY)


DT CT

30 3000 3000


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FEES REVENUE NO.51

DATE

(JANUARY)


DT CT

5 49000 49000

20 4500 5360026 1720 55220

MARKETING EXPENSE NO.31

DATE

(JANUARY)


DT CT

7 6300 6300

SALARIES EXPENSE NO.32

DATE

(JANUARY)


DT CT

23 6000 6000

RENT EXPENSE NO.33

DATE

(JANUARY)


DT CT

21 950 950

INTEREST EXPENSE NO.34

DATE

(JANUARY)


DT CT

25 1000 1000

UTILITY EXPENSE NO.35

DATE(JANUARY)

EXPLANATION REF DEBIT CREDIT BALANCEDT CT

24 1100 1100


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9

MISCELLANEOUS EXPENSE NO.36

DATE

(JANUARY)


DT CT

25 560 560

ELECTRICAL EXPENSE NO.37

DATE

(JANUARY)


DT CT

29 520 520

WAGES EXPENSE NO.38

DATE

(JANUARY)


DT CT

30 2100 2100

COMMISSION REVENUE NO.04

DATE

(JANUARY)


DT CT

19 4000 4000


10/23

10

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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TRIAL BALANCE


2010



Supplies 13700

Equipment 20000

Building 39000


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


12/23

12

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


13/23

13


INCOME STATEMENT


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


STATEMENT OF OWNERS EQUITY


2010

RM RM

Capital, February 1st,2010 70000

Net income 23590

Less withdrawal 3000

Commission 4000

Owners Equity 24590

Capital, January 31st,2010 94590


14/23


15/23

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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


16/23

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POST CLOSING TRIAL BALANCE

JANUARY, 31ST

2010



Supplies 9700

Equipment 20000

Building 39000


Capital 94590

Salaries Payable 600

Rent Payable 750

Accumulated Depreciation

Equipment

1500

Accumulated Depreciation Building 9750

Total 110690 110690


17/23


18/23

18

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


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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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


20/23


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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.

bkal asgment

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