TASK - PART A
Imagine below are month wise transactions for Fyke & Fyke Traders LLC during the year 2016. You are required to prepare the following financial statements for the year ended 31st December 2016.
1. Profit and Loss Account
2. Balance Sheet
You are required to complete the task using the accounting software, Tally.
January
Jan 1st
Owner invested RO 59,000 and brought in tables and Chairs for office worth RO.6,600 as capital and some deposits in National Bank of Oman RO. 19,000
Jan 3rd
Company purchased RO 14,500 stock on credit from Maryam Traders LLC Company borrowed RO10,000 from a Bank Muscat for 6 years
Company sold RO11,000 for cash.
Stock purchase for sale on cash 6,000 and credit for RR Co RO.3,000 Sold Goods RO.8500
Jan 21st
Deposited Cash in to Bank RO. 2,000 Jan 22nd
Company purchased RO 1,200 delivery vehicle and paid in cash. Jan 24th
Company sold RO11,000 for cash Jan 26th
Company sold for RO 500 on credit to LLT Jan 28th
Company sold for RO 800 on credit to LLT
February
Feb 5th
Company paid RO 6,100 salaries Feb 12th
Deposited Cash in to Bank Muscat RO. 200 Feb 19th
Sold Goods for RO. 1550 and received a bank transfer for the amount on the same day. Company purchased RO 5,000 stock on credit from RR Co
March
March 1st
Company paid RO 6,100 salaries March 2nd
Sales RO.1000 for cash
March 18th
Water bills RO. 750 paid Internet bills RO.100 paid
Telephone Expenses paid RO.350 March 28th
Rent received RO 2600 from tenants
April
April 1st
Company paid RO 6,100 salaries Company paid RO 600 rent.
Sales RO.1200
Sales made RO. 1000 April 28th
Commission paid RO.200 Rent Paid RO 1200
April 29th
Sales made RO. 400 Sales made RO. 1000
May
May 1st
Company paid RO 7,200 salaries
Taken short term loan for 3 months RO.2200 May 15th
Purchased goods RO2000 Sold Goods RO2, 600 May 25th
Commission received RO.700 Commission Paid RO.250 May 29th
Sales made RO. 400 Sales made RO. 1000
June
June 15th
Company paid RO 7,200 salaries. Telephone Expenses paid RO.400 June 25th
Sales RO.3000
Discount Allowed RO.1150 June 28th
Sales RO 2200 to LLT Traders on credit
Paid MARIYAM Suppliers RO 16,000 by cheque June 30th
Received RO.5, 000 from RR Co
June 30th
Sales made RO. 800 Sales made RO. 900
July
July 1st
Fuel Expenses RO.250 July 1st
Sales RO.810 made July 1st
Company paid RO 7,200 salaries Company paid RO600 rent.
Sales Return RO 2000 from LLT Traders July 15th
Stationary Expenses RO.70 Travel Expenses RO.550 July 18th
July 29th
Sales Return RO.210. Discount received RO.320
August
Aug 1st
Paid Salaries 7,200 Sales RO.6200
Staff development Expenses RO.410 Rent Received RO. 1200
Aug 25th
Commission Received RO 2800 Postage Expenses RO.50
September
Sep 1st
Company paid RO 7,200 salaries
Closed bank loan RO 1,200 with an interest charged RO 50. Bank Charges RO 23 paid
Sep 6th
Postage Expenses RO.20
October
Oct 1st
Cash Sales RO.12,000 Oct 15th
Deposited cash to bank RO.2,100 Oct 25th
Overdraft Taken from bank RO.9,000
November
Nov 1st
Company paid RO 7,200 salaries Nov 12th
Postage Expenses RO.10 Sales RO.2,450
Nov 20th
Postage Expenses RO 50 Cash Sales RO.1800 Prepaid Rent RO.600
December
Dec 1st
Company paid RO 7,200 salaries Dec 12th
Advertisement Expenses RO.1200 Dec 21st
Entertainment Expenses RO.420 Dec 25th
Wages Paid RO. 410 Dec 31st
Sales made RO 5700
Additional Information
Depreciation Expenses at 10.5 % on all fixed assets to be charged.
PART B
a) Critically assess the results of this business and explain the reasons for its profit (or Loss) as the case may be.
b) Extent your suggestions/ recommendations if any/if required.
PART C
Individual Presentation of the report
(Assessment criteria set based on student's knowledge on content of the report to authenticate his/her work, presentation skills, confidence and clarity in language)