JJP Honey Packaging Enterprise Accounts for the Month of April, 2019 (Math Problem Sample)
Assessment #1:
Assessment Code: BUS503_A1_V1
Assessment Name:
Assessment Type:
Subject Code:
Subject Name:
Practical Demonstration
Group Assessment
BUS503 (Level 5; Credit 15)
Fundamentals of Accounting
Briefing Date: Week 1
Submission Date: Week 5
Weighting:
Marking:
50%
100 marks
Aims: Identify, define and explain accounting, accounting process, and some
management accounting techniques. The assessment will be a practical
demonstration based on simulated situation provided below.
Brief Overview: This assignment focuses on applying knowledge of the different accounting
standards practised in New Zealand and record transactions in the
accounting system. The learners will use management accounting
techniques such as break-even analysis for problem solving and decision-
making.
Submission
Format:
The submission will be in the form of a typed document providing answers
to the questions posed. A final soft copy of all assignments must be
submitted via Turnitin on NZSE-Moodlerooms online.
Standard of English for Level 5 Business Assessments
All student work that is submitted for assessment must meet the English requirements for
Level 5 business writing.
Any submitted assessment or part of an assessment that falls below the acceptable standard of
the English requirements for Level 5 business writing will not be marked.
If you have any questions regarding the English requirements for Level 5 business writing,
please talk to your tutor.
Referencing
2
You must correctly reference all submitted assessments according to APA 6 th ed. conventions
for both in-text citations and in your reference list.
You are required to reference because it is important to acknowledge the original source of
other people’s ideas, research and opinions, as well as providing evidence of having
undertaken independent research to support your own opinion/point of
view/hypothesis/argument.
Your tutor can provide further information and guidance on referencing and also direct you to
referencing guides and resources.
Wikipedia is not considered an acceptable source of reference.
FUNDAMENTALS IN ACCOUNTING GROUP ASSIGNMENT CASE OF:
JJP HONEY PACKAGING ENTERPRISE ACCOUNTS FOR THE MONTH OF APRIL, 2019
Student names:
Student ID:
University:
IRD number:
Share start-up capital: $17,962 each with equal holding and rights
INDUSTRY CLASSIFICATION CODE: N732010
BUSINESS DESCRIPTION
JJP Honey Packaging enterprise was initiated for the purpose of packaging honey products. Research has shown that customer’s choice are influenced by the product presentation (Kanekar et.al, 2010). It has been shown that proper packaging increases sales by 5% (Kieso et.al, 2016). Due to the decline in sales revenue for different honey producing firms, members decided to fill the niche by providing packaging to locally produced honey and thus help producers increase their revenue (Wild, 2000). The goal of the enterprise is to become the best honey packaging firm in New Zealand and to offer excellent customer services.
CHARTS OF ACCOUNTS
The enterprise will have:
Table 1: Charts of Accounts
Current assets
increase
Description
1 Inventory
Debit
Cost of items purchases but not yet sold
2 Debtors
Debit
Sales made but not yet paid for.
3 Cash
Debit
Record of payments using case and cheques received but not yet deposited.
4 Bank account
Debit
Money deposited and payments made using cheque
5 Prepayments
Debit
Payments made before their due dates
Fixed assets
6 Warehouse building
Debit
Non movable enterprise asset for inventory storage
7 Delivery van
Debit
For delivery of stock when purchased.
8 Fixtures and fittings
Debit
To aid in efficiency and smooth flow of activities
Current liabilities
9 Account payable
Credit
Accounts for goods received but not yet paid for.
10 Accruals
Credit
Accounts for payments that are due but not yet paid for.
Long-term liability
10 years bank loan
Credit
Loan to boost operations and to be paid within a long period
Revenue accounts
Sales
Credit
Will record stock leaving the enterprise and any faulty stock returned
Interest income
Credit
Record of interest received from investments made and drawings effected by members.
Capital accounts
James
Credit
Record their capital investments and any additional capital after initiation. The initial will be $17,962
John
Credit
Record their capital investments and any additional capital after initiation. The initial will be $17,962
Peter
Credit
Record their capital investments and any additional capital after initiation. The initial will be $17,962.
current accounts
James
Credit
Record of drawings, interests on drawings by the members and share of the profits they get from the enterprise
John
Credit
Record of drawings, interests on drawings by the members and share of the profits they get from the enterprise
Peter
Credit
Record of drawings, interests on drawings by the members and share of the profits they get from the enterprise
expense accounts
Discount allowed
Debit
Records discounts given on sales
Carriage outwards
Debit
Records expenses incurs in moving goods from point of sale to the client
Rent, rates and insurance
Debit
Records expenses incurred by the firm
Heating and lighting
Debit
Records expenses incurred by the firm
Postage, stationery and telephone
Debit
Records expenses incurred by the firm
Advertising
Debit
Records expenses incurred by the firm
Salaries and Wages
Debit
Records expenses incurred by the firm
Bad debts
Debit
Records expenses incurred by the firm
Provision for bad debts
credit
Record provisions made in case bad debts are not paid
Provision for depreciation
credit
Record provision for depreciation on immovable assets
Other accounts
Drawings
Debit
Records expenses incurred by the firm
Purchases
Debit
Records expenses incurred by the firm
Carriage inwards
Debit
Records expenses incurred by the firm
Purchases return
credit
Record returns made on faulty goods that had already been delivered to the enterprise
Sales return
Debit
Record returns made on faulty goods that had already been delivered to the customers
TRANSACTIONS FOR THE MONTH OF APRIL, 2019
1 The three members agreed to contribute a total sum of $17,962 each to make a total capital investment of $53,886 dollars on 1st of April.
2 To start operating, on 1st April some fixtures and fittings were needed that cost the partners a sum of $60,000 and would be depreciated at 10% on reducing balance.
3 The business began with an opening stock of $15,654.
4 On 2nd they purchased stock worth $35,680 from Emily on cash.
5 Credit sales worth $15,200 was made to Mr Crebal on 3rd April.
6 On 4th a purchase of $20,000 was made from Rose on credit.
7 Mrs Evans on 4th made purchases of $15,000. He made cash payments.
8 On 4th $2,000 was deposited to the bank by Mr Crebal.
9 On 5th April sales to Mr Edith on credit was made worth $13,600.
10 On the same day, stock worth $20,000 was purchased on cash
On 6th stock worth $13,407 was returned to the supplier Mrs Rose as it had defects.
On 7th Mrs Evans bought more honey worth $7859 on credit.
The partners agreed to purchase a delivery van on 8th worth $33,740 and depreciation would be on 10% using the straight line method.
On 9th purchases that had been made by Mrs Evans on 4th were faulty and hence she returned goods worth $4224.
On 10th the partners requested for more stock on credit worth $50,000 from Mrs Rose.
The supplier Mrs Rose gave a discount on the purchases worth $1750
A carriage inward of $11830 was incurred.
On 11th Mr Edith bought more stock worth $15,000 but deposited a cheque of $2440, paid $534 in cash and the rest was to be paid end month.
A carriage outward on sale of $4562 was incurred.
On 12th John took from the business cash worth $9220 for personal use.
On 14th the partners agreed to add more capital worth $10,000 each to purchase a building
On 15th a building worth $30,000 was purchased and the business was able to have a bigger warehouse.
On 16th stock worth $21, 000 was sold to Mrs Evans on credit, on 17th she returned goods worth $1400.
The partners agreed to take a bank loan on 17th which they could repay in 10years. The loan was worth $97,071 and they would be expected to pay equal instalments with an interest of 12% per annum. The loan interest will be reflected in the book of the following accounting period.
On 18th Peter withdrew $9220 from the business for personal use.
By 22nd Rent, rates and insurance was at $25,973
Mr Kiprot on 23rd made purchases of $172,211 on credit
A discount of $2306 was allowed on that sale.
On 24th additional stock worth $10,000 was acquired from Mrs Rose on credit.
On 25th ...
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