accounts

PROJECT WORK ON ACCOUNTS

PRESENTED BY

MANISH SINGHANIA

CLASS – XI ‘C’

ROLL NO. – 8

SOLE TRADER

1. Who is a Sole Trader ?Ans. - Sole Trader business is started by a single person

who alone prepares the blueprints of the business and arranges the necessary finance. No legal formalities are required for opening a sole proprietorship. Any one can start a business of his own whenever and wherever he likes.

2. Why would you like to be a sole trader ?Ans :- I would like to be a sole trader because it is done by

individual person. There will be no partners, no sharing of profits, no legal formalities.

There are some characteristics that why should be a sole trader :-

(i) Single Ownership :- A sole proprietorship is wholly owned by one individual.

(ii) One-man control :- The proprietor alone takes all the decisions relating to the business.

(iii) No legal entity :- There is no legal formalities of starting a sole trader. Anyone can open a business.

(iv) No-profit sharing :- The sole proprietor alone is entitled to all the profits and losses of business.

What type of business would you like to start?

Ans. I would like to start a manufacturing company of incense sticks. The firm name will be “MANISH PERFUMERY”. I would like to start this business because there is no tax in the Jharkhand. There is less chance of loss because this business is not basis on the credit. The marketing has to be done daily. There should be a regular supply of goods. All the products should be of good quality. In this business the staff is very necessary without staff the business couldn’t be run. The machinery need is very less. To set up the business the place should be big.

What process would you take to purchase the product?

Ans. The process that would you take to purchase the product are :-i. First of all I will enquiry about the quality of

material and then its price and from wherever I will get at lesser price and good quality I will buy from there.

ii. Then the order will be place according to the demand.

iii. Then the payment will be done.iv. After the payment the goods will be delivered

to my destination.

Trial Balance of Manish Perfumery as on 31st December, 2010, 2011

PARTICULARS

AMOUNT OF 2010 (Dr.)

AMOUNT OF 2010 (Cr.)



Opening Stock

30000

Land 80000 80000

Building 60000 60000

Furniture 40000 40000

Machinery 60000 60000

Live Stock 50000 50000

Bills 4000 4000 5000 3000

Cash at Bank 8000 10000

Cash in Hand 2000 6000

Purchases 120000 150000

Sales 260000 320000

Debtors 20000 26000

Creditors 26000 20000

Capital 120000 160000

Drawing 30000 22000

Long term loan

100000 80000

Salary 16000 18000

Wages 4000 6000

Carriage Inward

2000 3000

Carriage Outward

4000 4000

Electricity 6000 8000

Interest 2000 3000

Bad Debts 2000 2000

TOTAL 510000 510000 583000 583000

Closing Stock 30000 36000

Manish PerfumeryTrading and Profit & Loss Accountfor the year ending 31st December, 2010, 2011

PARTICULARS AMOUNT OF 2010 (Dr.)


PARTICULARS



To Opening Stock 30000 By Sales 260000 320000

To Purchases 120000 150000 By Closing Stock

30000 36000

To Wages 4000 6000

To Carriage Inward

2000 3000

To Gross Profit (transferred to P&L A/c

164000 167000

TOTAL 290000 356000 290000 356000

To Salary 16000 18000 By Gross Profit 164000 167000

To Carriage Outward

4000 4000

To Electricity 6000 8000

To Interest 2000 3000

To Bad Debts 2000 2000

To Net Profit (transferred to Capital A/c)

134000 132000

TOTAL 164000 167000 164000 167000

Balance Sheet as on 31st December, 2010, 2011

Liabilities Working of 2010(Dr.)

Working of 2011 (Cr.)

Amount of 2010 (Dr.)

Amount of 2011 (Cr.)

Assets Amount of 2010

(Dr.)

Amount of

2011 (Cr.)

Capital Add : Net ProfitLess : Drawing

120000 134000 30000

16000013200022000

224000 270000 Land 80000 80000



Machinery

60000 60000

Long Term Loan

100000 80000

Creditors 26000 20000 Closing Stock

30000 36000

Live Stock

50000 50000

Bills Payable 4000 3000 Debtors 20000 26000

Bills Receivable

4000 5000

Cash at Bank

8000 10000

Cash in Hand

2000 6000

TOTAL 354000 373000 354000 373000

Anticipated Trial Balance of Manish Perfumery as on 31st December, 2012, 2013 PARTICULARS




AMOUNT OF 2013(Cr.)

Opening Stock 36000 40000

Land 80000 80000



Machinery 60000 60000

Live Stock 50000 55000

Bills 6000 4000 8000 6000

Cash at Bank 12000 14000

Cash in Hand 6000 4000

Purchases 230000 260000

Sales 400000 520000

Debtors 20000 40000

Creditors 10000 8000

Capital 150000 150000

Drawing 20000 10000

Long Term Loan

96000 40000

Salary 20000 26000

Wages 8000 10000

Carriage Inward

3000 3000

Carriage Outward

2000 3000

Electricity 6000 8000

Interest 4000 5000

Bad Debts 3000 4000

Bank Overdraft

6000 6000

TOTAL 666000 666000 730000 730000

Closing Stock

40000 42000

AnticipatedManish Perfumery

Trading and Profit & Loss Accountfor the year ending 31st December, 2012, 2013

PARTICULARS



PARTICULARS AMOUNT OF 2012 (Dr.)


To Opening Stock

36000 40000 By Sales 400000 520000

To Purchases 230000 260000 By Closing Stock

40000 42000

To Wages 8000 10000

To Carriage 3000 3000

To Gross Profit 163000 249000

TOTAL 440000 562000 440000 562000

To Salary 20000 26000 By Gross Profit 163000 249000

To Carriage 2000 3000

To Electricity 6000 8000

To Interest 4000 5000

To Bad Debts 3000 4000

To Net Profit 128000 203000

TOTAL 163000 249000 163000 249000

Anticipated Balance Sheet

as on 31st December 2012,2013 Particulars

Working of 2012

Working of 2013

Amount of 2012

Amount of 2013

Particulars

Amount of 2012

Amount of 2013

Capital Add : Net ProfitLess : Drawings

15000012800020000

15000020300010000

258000 343000 Land 80000 80000



Machinery

60000 60000

Long Term Loan

96000 40000

Creditors 10000 8000 Closing Stock

40000 42000

Bills Payable

4000 6000 Debtors 20000 40000

Bills Receivable

6000 8000

Cash at Bank

12000 14000

Bank Overdraft

6000 6000 Cash in Hand

6000 4000

TOTAL 374000

403000 374000 403000

2010 2011 2012 2013

SALES

260000

320000

400000

520000

50000

150000

250000

350000

450000

550000

SALES

Axis Title

2010 2011 2012 2013

NET PROFIT

134000

132000

128000

203000

25000

75000

125000

175000

225000

NET PROFIT

Axis Title

What steps where taken by you to increase the sale ?

Ans :- The steps taken by me to increase the sale are:

i. Better Transport Facility has to be made.

ii. Regular supply of the product in the market.

iii. Providing services to the customer according to their needs.

iv. Making good quality of the product.

What problems encountered by you to set up the business ?

> For setting this business I have to need a huge capital as it is a incense sticks work for which I took a loan from bank for a particular period.

> For growth of my business I have to work hard because as it was not known by the normal customers.

What problems encountered by you while making this project ?

> I have taken help from my friend Navneet for making this project.

> I have taken help from commerce book of Std. XI.

accounts

Education

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