Date post: | 13-Jul-2015 |
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Business |
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A type of business enterprise or proprietorship which is owned by one
person who is fully liable for the company's debts and fulfillment of
contracts with his/her personal wealth unless incorporated.
I WOULD LIKE TO BE SOLE TRADER BECAUSE:-
I would like to start business of “FURNITURE”
as a sole trader with the name of “ GOLDEN
FURNITURE ”.
I have selected furniture business because:-
It will lead me to profit maximization.
Less worker required as compared to other
business.
Work is done only by skilled worker so
spoiling of raw material is less.
FOR BULK PURCHASE
ENQUIRYQUATATIONORDEREXEQUTION OF
ORDERDELIVERY OF
GOODSPAYMENT
SINGLE ITEM PURCHASE
ENQUIRY
SELECTION OF PRODUCT
PAYMENT OR PARTELY PAYMENT
HOME DELIVERY
PARTICULARS Dr (2009) Dr (2010) Cr (2009) Cr (2010)
Opening stock 80000 100000
land & building 60000 60000
Plant &
machinery
60000 60000
furniture 40000 40000
Motor van 50000 50000
Lose tools 4000 4000
debtor 58000 30000
Cash at bank 2000 12000
Cash in hand 4000 14000
salary 16000 5000
wages 2000 5000
Carriage inward 2000 2000
Carriage
outward
4000 3000
advertisement 6000 5000
PARTICULAR
S
AMOUNT PARTICULAR
S
AMOUNT
To opening
stock
180000 By sales 359000 329000
To purchase 54000 11500 - Sales return 30000
- Purchase
return
42500 By closing
stock
102500
To wages 7000
To carriage
inward
4000
To gross
profit
229000
431500 431500
To salaries 21000 By gross 229000
LIABILITIES AMOUNT ASSET AMOUNT
CAPITAL
ACCOUNT
FIXED ASSET
capital 420000 land &
building
120000
+net profit 103000 Plant &
machinery
120000
-drawings 36000 487000 furniture 80000
Motor van 100000
LONG TERM
LIABILITIES
Lose tools 8000
Long term
Loan
110000
Bank o/d 10000 CURRENT
ASSET
CURRENT Cash at bank 14000
PARTICULARS Dr (2011) Dr (2012) Cr (2011) Cr (2012)
Opening stock 40000 110000
land & building 70000 70000
Plant &
machinery
70000 70000
Furniture 50000 50000
Motor van 50000 50000
Lose tools 14000 14000
Debtor 18000 40000
Cash at bank 12000 82000
Cash in hand 14000 64000
Salary 26000 15000
Wages 12000 15000
Carriage inward 12000 12000
Carriage 14000 13000
PARTICULARS AMOUNT PARTICULAR
S
AMOUNT
To opening
stock
150000 By sales 419000 379000
To purchase 94000 31500 - Sales
return
40000
- Purchase
return
62500 By closing
stock
122500
To wages 27000
To carriage
inward
24000
To gross profit 269000
501500 501500
To salaries 41000 By gross
profit
269000
LIABILITIES AMOUNT ASSET AMOUNT
CAPITAL
ACCOUNT
FIXED ASSET
capital 440000 land &
building
140000
+net profit 18000 Plant &
machinery
140000
-drawings 54000 404000 furniture 100000
Motor van 100000
LONG TERM
LIABILITIES
Lose tools 28000
Long term
Loan
230000
Bank o/d 53000 CURRENT
ASSET
CURRENT
LIABALITIES
Cash at bank 94000
WAGES DECREASE BY 20%:-
7000*20%=1400
7000-1400=5600
IMPACT ON GROSS PROFIT:-
If the WAGES decreased by 20% then the GROSS
PROFIT will increase.
If the WAGES INCREASE BY 20%:-
If the WAGES increased by 20% then the GROSS
PROFIT will decrease
INCREASE IN INDIRECT EXPENSE BY 20%:-
SALARY- 41000
RENT - 60000
CARRIAGE OUTWARD-20000
ADVERTISMENT- 31000
COMISSION PAID- 32000
184000
INCREASEBY 20%=220800
Product verity increases. People employed for problem handling of
customers regarding products. Free delivery facility is provided for
customer who purchase single furniture. Style and quality increased. Quality of advertisement has been
improved. Servicing facility has been introduced for
our customers. Discount are available on every product. Easy payment system has been introduced.
Research for choosing the business was tough and time taking.
Choosing right person for right job was also a kind of hurdle which I faced.
Arranging finance was other problem.
Problems also accord while finding the place for setting up the office and godown.
Choosing right place for targeted customer, so that we can start business was hard thing to do.
While making this project I found many opportunity and threat which can Accor in sole trading. I also came to know about the market condition and the competitors of the sole trading. This project also lead me to learn the sole trading business more closely.