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introduction to accountant

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TASK - 1.................................................page 1-4 TASK - 2...............................................page 5-7 TASK - 3...............................................page 8-9 TASK - 4...............................................page 10-12 TASK - 5...............................................page 13-14 TASK - 6...............................................page 15-23 TASK - 7................................................page 24-32 TASK -8.................................................page 33-38 TASK - 9................................................page 39-43 TASK - 10...............................................page 44-48 Bibliography And Sources I have used............page 49 Task-1 Acknowledgement: I would like to be grateful to my teacher for helping me out in this assignment. Introduction: For this assignment my aim to give advice to someone who is unsure about what is required and cannot see the purpose of maintaining accounting records. Basically, this person is one who does not understand the value of Account and its purpose. What is an accounting? An account is to be defined as the skills or practice of maintaining accounts and preparing reports. And the purpose is to aid financial control and Management of a business. Book keeping: Book keeping is the process of recording in books of account or on computers the financial effects of business transactions. In bookkeeping, an accountant keeps a comprehensive record of how much your business owes creditors and how much is owed to you. The records of these transactions also indicate how much you have invested in equipment and inventory. Why Accounting? There are many reasons to keep accounts in business, which consists these certain points: * To record * To monitor * To control * To manage * To measure * To inform The main features of Accounting * Recording Transaction * Monitoring activity and Controlling the business * Helping the management of the business * Informing the various stakeholders * Controlling the purse string * Planning for the feature * Comparing with past performance * Analysis and evaluation Recording Transaction- Recording transactions includes documenting revenues (by invoices or sales receipts), and entering purchases (in the account payable account) and expenditures (in the check register). Using Office Accounting, the small business owner can move beyond daily recording to higher level accounting tasks, such as recording sales orders, tracking prospective customers, and projecting sales opportunities and cash flow. ...read more.


�412,000 Net Loss -�37,000 Less Indirect Cost Rate �6,000 Telephone �1,200 Wages and Salaries �30,000 �-37,200 Net Loss -�74,200 Looking at trading Profit and Loss of Jin Winter, I think it is a not a successful business because of negative result which is net Loss �-74200 so far. In my opinion if the business results continue end up with the negative result, business may shut down within days or months. Z man production Ltd Trading, Profit and Loss account for year ending 31st December 2006 � �� Sale �810,000 Sales return �18,900 Net turn over �791,100 Less cost of sale Opening stock �21,800 Purchase �553,550 Carriage in �5,400 Purchase Return (-) 914650 Closing Return (-) 17560 Cost of sale �548,540 Gross profit �246,060 Commission received �3,500 Discount received �3,500 �249,560 Less expenses Wages �75,900 Rent �7,540 Sundry expenses �6,545 Electricity/gas �4,700 Vehicles �6,540 Petrol �22,455 Advertising �7,590 Discount allowed �5,410 Insurance �7,900 Equipments �5,400 Carriage out �7,580 General repair �5,400 Bad Debt �5,500 Interest on Loan �5,500 �179,360 Net Profit �70,200 Analysis of Trading, profit and loss Account of Z man Production Looking at trading, Profit and Loss of z man Production Ltd Company, it's a successful company. However the company could make more profit by considering the following: Sales - They could sell more by reducing their product cost or raise their product cost in certain amount. The company should beware that it may effect on customer, if they rise too much. Purchase - They could consider purchasing fewer products or goods because in view of their amount of sales, purchase is higher. Petrol - The Company spend far more money on petrol; however they should aim to spend less amount of money on their petrol cost to raise their profit. Wages - Wages is one of the things which company could consider about it. Wages are bit higher then it should be. ...read more.


Liquidity ratio Working Capital Ratio - in year 2007, the working capital ratio looks reasonable healthy; current assets are nearly three times as much as current liabilities (3.4:1), so the firm should not have too much difficulty meeting debts that need to be paid in the short times .Whereas in year 2006, the working capital ratio also looked reasonable because the current assets was nearly twice times as much as current liabilities (1.5:1).In 2007, the business has too much current assets, which is too good for company . Liquid capital ratio- the liquid capital ratio also shows a good picture. Even with stocks taken out of the current assets the firm still have sufficient liquid assets to cover its bills, so it seems to be in a liquid position. In year 2006 the liquid capital ratio was (1.7:1) and year 2007 the liquid capital ratio is (4.3:1) which healthy for company. Assets utilisation Stock turnover ratio -Looking at J-Mitchell Ltd Company 2006, every 13 days to sell stock seems not long time but this is a manufacturing company and short turnover periods are not rare. Comparing to year 2007, year 2007 was good because in year 2007 every 10 days to sell stock which is quite short time. That means if the company carry on like this they may end up with more profits. Debtor's collection period's ratio - Debtors collection periods of J-Mitchell LTD company is good enough however; Debtors are not taking long times to pay their bills in year 2007 then year 2006.In year 2006 debtors took 13 days to pay their bills but in year 2007 debtors took 20 days to pay their bills. Usually debtors gets 30 days to pay back but in this company debtors haven't took the much long time to pay their bills. Creditor's collection ratio - in year 2006 and year 2007, an average of 20 days to pay bills suggests that the company has either negotiated good credit terms with suppliers or is struggling to pay bills. ?? ?? ?? ?? Introduction to Accounting 1 Ziaul Haque B8 Unit - 5 ...read more.

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