INTRODUCTION

I started my business on opening a computer business in Jalan Teow Siew Khor,Kluang.

My computer proprietorship business known as New Millenium Enterprise. The main reason

why I have fixed my business at Jalan Teow Siew Khor,Kluang because it is the place were very

strategic and at the same time it can help me to increase my profit the maximum. Besides that,

the place also were very near to get materials and supplies for my business and also I can save

my business cost in certain expenditure such as transportation cost to get materials or supplies,

oil and so on. Thirdly, I can also attracte my customer to purchase in my shop because it was quit

busy area since more people tend to shopping at Jalan Teow Siew Khor as there are many kind of

shop.

New Millenium Enterprise selling computers and also its components.New Millenium

Enterprise is also providing home delivery services for those order computers,notebook or any

computer components from my shop.This make customers feel convenient by purchasing

product from New Millenium Enterprise.

1
BUSINESS TRANSACTION

During January 1st, my business engaged in the following transaction.

Date (January)

2010
1 Started the business by invested RM50 000 by cash
2 Purchased for office equipment,RM20 000
3 Purchased supplies by cash,RM10 000
4 Purchased supplies by credit,RM 3200
5 Performance customer services and earned revenue on account,RM49 000
7 Paid for marketing expense,RM6300
12 Paid for building,RM39 000
14 Purchased supplies on account,RM500
17 Paid RM200 on account
19 Commision received from service,RM4000
20 Received cash from client,RM4500
21 Paid office rent for January,RM950 in cash
23 Paid salaries for workers,RM6000 in cash
24 Utility expenses,RM1100
25 Paid interest in cash,RM1000
25 Paid miscellancous expenses,RM560
26 Received services fees from clients,RM1720
29 Paid electrical bill,RM520
30 Paid wages expenses,RM2100
30 I withdrew RM3000 for personal used

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JOURNAL

DATE DESCRIPTION REF DEBIT CREDIT

(JANUARY
)
1 Cash 01 50 000
Capital 11
(Started the business by invested 61 50 000
by cash)
2 Equipment 01 20 000
Capital 26 20 000
(Purchased for office equipment )
3 Supplies 03 10 000
Cash 21 10 000
(Purchased supplies by cash)
4 Supplies 31 3200
Account payabale 01 3200
(Purchased supplies by credit)
5 Cash 12 49 000

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 Fees revenue 01 49 000
(Performance customer services
and earned revenue on account )
7 Marketing expense 01 6300
Cash 51 6300
(Paid for marketing expense)
12 Building 03 39 000
Cash 21 39 000
(Paid for building)
14 Supplies 02 500
Account payable 51 500
(Paid supplies on account)
17 Account payable 21 200
Cash 01 200
(Paid creditor)
19 Cash 32 4000
Commision revenue 01 4000
(Commision received from
service)
20 Cash 33 4500
Fees revenue 01 4500
(Received cash from client)
21 Rent 01 950
Cash 02 950
(Paid office rent for January)
23 Salaries expense 34 6000
Cash 21 6000

(Paid salaries for workers)

24 Utility expense 35 1100

Cash 01 1100
(Paid utility expenses)
25 Interest Expenses 36 1000
Cash 01 1000
(Paid for interest)
25 Miscellaneous expense 01 560
Cash 52 560
(Paid miscellancous expense)
26 Account receivable 37 1720
Fees revenue 01 1720
(Received services fees from
clients)
29 Electrical expense 38 520
Cash 01 520
(Paid electrical bill)

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 30 Wages expense 01 2100
Cash 51 2100
(Paid wages expenses)
30 Withdrawal 62 3000
Cash 01 3000
(Withdrew for personal used)

NO ACCOUNT NO ACCOUNT
01 Cash 31 Marketing expense
02 Account Receivable 32 Rent expense
03 Supplies 33 Salaries expense
11 Equipment 34 Utility expense
12 Account payable 35 Interest expense
26 Capital 36 Miscellaneous expense
61 Withdrawal 37 Electrical expense
62 Fees Revenue 38 Wages expense

LEDGER
CASH NO.01

DATE EXPLANATION REF DEBIT CREDIT BALANCE

5
 (JANUARY DT CT
)
1 50000 50000
3 10000 40000
5 49000 89000
7 6300 82700
12 39000 43700
17 200 43500
19 4000 47500
20 4500 52000
21 950 51050
23 6000 45050
24 1100 43950
25 1000 42950
25 560 42390
29 520 41870
30 2100 39770
30 3000 36770

ACCOUNT RECEIVABLE NO.02

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
26 1720 1720

SUPPLIES NO.03

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
3 10000 10000
4 3200 13200
14 500 13700

EQUIPMENT NO.11

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
2 20000 20000

6
BUILDING NO.12

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
12 39000 39000

ACCOUNT PAYABLE NO.21

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
4 3200 3200
14 500 3700
17 200 3500

CAPITAL NO.61

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
1 50000 50000
2 20000 70000

DRAWING NO.62

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
30 3000 3000

FEES REVENUE NO.51

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
5 49000 49000
20 4500 53600
26 1720 55220

7
MARKETING EXPENSE NO.31

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
7 6300 6300

SALARIES EXPENSE NO.32

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
23 6000 6000

RENT EXPENSE NO.33

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
21 950 950

INTEREST EXPENSE NO.34

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
25 1000 1000

UTILITY EXPENSE NO.35

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
24 1100 1100

MISCELLANEOUS EXPENSE NO.36

DATE EXPLANATION REF DEBIT CREDIT BALANCE

8
(JANUARY DT CT
)
25 560 560

ELECTRICAL EXPENSE NO.37

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
29 520 520

WAGES EXPENSE NO.38

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
30 2100 2100

COMMISSION REVENUE NO.04

DATE EXPLANATION REF DEBIT CREDIT BALANCE

(JANUARY DT CT
)
19 4000 4000

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 NEW MILLENIUM ENTERPRISE
TRIAL BALANCE
FOR THE ENDING JANUARY, 31ST 2010

Debit (RM) Credit (RM)

Cash 36770
Account receivable 1720
Supplies 13700
Equipment 20000
Building 39000
Account payable 3500
Capital 70000
Withdrawal 3000
Fees revenue 55220
Marketing expense 6300
Rent expense 950
Salaries expense 6000
Utility expense 1100
Interest expense 1000
Miscellaneous expense 560
Electrical expense 520
Wages expense 2100
Commission revenue 4000
Total 132720 132720

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 NEW MILLENIUM ENTERPRISE
TRIAL BALANCE
FOR THE ENDING JANUARY, 31ST 2010

Debit (RM) Credit (RM)

Cash 36770
Account receivable 1720
Supplies 13700
Equipment 20000
Building 39000
Account payable 3500
Capital 70000
Withdrawal 3000
Fees revenue 55200
Marketing expense 6300
Rent expense 950
Salaries expense 6000
Utility expense 1100
Interest expense 1000
Miscellaneous expense 560
Electrical expense 520
Wages expense 2100
Commission revenue 4000
Total 132720 132720

Additional information gathered at 31st January 2010:

a) Supplies used 4000

b) Depreciation of equipment- RM1500
c) Depreciation for building is 25% from cost
d) Salaries accrued but not paid- RM600
e) Accrued fees revenue but not recorded- RM3500
f) Accrued rent is RM750

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JOURNAL ADJUSTING ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT

(JANUARY
)
31st Supplies Expense 4000
Supplies 4000
31st Depreciation Equipment 1500
Accumulated Depreciation 1500
Equipment
31st Depreciation building expense 9750
Accumulated Depreciation 9750
building
31st Salaries Expense 600
Salaries Payable 600
31st Account Receivable 3500
Fees Revenue 3500
31st Rent Expense 750
Rent Payable 750

12
 NEW MILLENIUM ENTERPRISE
INCOME STATEMENT
FOR THE ENDING JANUARY, 31ST 2010
RM RM
Fees Revenue 58720
Operating Expenses:
Salaries Expense 6600
Marketing Expense 6300
Wages Expense 2100
Utility Expense 1100
Interest Expense 1000
Rent Expense 1700
Miscellaneous Expense 560
Electrical Expense 520
a) Supplies Expense 4000
b) Depreciation Equipment Expense 1500
c) Depreciation building Expense 9750
Total Operating Expenses 35130
Net Income 23590

NEW MILLENIUM ENTERPRISE

STATEMENT OF OWNER’S EQUITY
FOR THE ENDING JANUARY, 31ST 2010

RM RM
st
Capital, February 1 ,2010 70000
Net income 23590
Less withdrawal 3000
Commission 4000
Owner’s Equity 24590
Capital, January 31st,2010 94590

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 NEW MILLENIUM ENTERPRISE
BALANCE SHEET
FOR THE ENDING JANUARY, 31ST 2010
RM RM
Assets
Current assets
Cash 36770
Account receivable 5220
Supplies 9700
Total Current assets 51690
Fixed assets
Equipment 20000
(-)Accumulated Depreciation Equipment 1500
Building 3900
(-)Accumulated Depreciation Building 9750
Total Fixed assets 47750
Total assets 99440

Liabilities
Current Liabilities
Account Payable 3500
Salaries payable 600
Rent Payable 750
Total Current Liabilities 4850
Total Liabilities 4850
Owner’s Equity ( Capital) 94590
Total Liabilities and owner’s equity 99440

14
JOURNAL CLOSING ENTRIES

DATE DESCRIPTION REF DEBIT CREDIT

(JANUARY (Closing entries)
)
31st Fees Revenue 58720
Commission Revenue 4000
Income Summary 62720
31st Income Summary 35150
Expenses
Salaries Expense 6600
Marketing Expense 6300
Wages Expense 2100
Utility Expense 1100
Interest Expense 1000
Rent Expense 1700
Miscellaneous 560
Expense
Electrical Expense 520
d) Supplies Expense 4000
e) Depreciation Equipment 1500
Expense
f) Depreciation building 9750
Expense
31st Income Summary 27570
Capital 27570
31st Capital 3000
Withdrawal 3000

15
 NEW MILLENIUM ENTERPRISE
POST CLOSING TRIAL BALANCE
JANUARY, 31ST 2010

Debit (RM) Credit (RM)

Cash 36770
Account receivable 5220
Supplies 9700
Equipment 20000
Building 39000
Account payable 3500
Capital 94590
Salaries Payable 600
Rent Payable 750
Accumulated Depreciation 1500
Equipment
Accumulated Depreciation Building 9750
Total 110690 110690

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 FINANCIAL STATEMENT ANALYSIS
HOROZONTOL ANALYSIS
ACCOUNT ON THE ENDED OF THE YEAR 2009

ACCOUNT AMOUNT (RM)

Equipment 14000
Building 28000
Cash 30400
Account Receivable 17000
Supplies 8900
Account Payable 2900
Salaries Payable 900
Rent Payable 1000
Capital 93100
Fees Revenue 59000
Selling Expense 31000
Admin Expense 5600

GIFT GO GO (GGG) ENTERPRISE

COMPARATIVE BALANCE SHEET AS AT THE JANUARY 31ST, 2009 AND 2010

2009 2010 Amount(inc.dec %

)
Fixed Assets
Equipment 14000 18500 4500 32.14
Building 23000 29250 6250 27.17
Current Assets
Cash 30400 36770 6370 5.06
Account Receivable 17000 5220 (11780) (69.29)
Supplies 8900 9700 800 8.25
Current Liabilities
Account Payable 2900 3500 600 20.69
Salaries Payable 900 600 (300) (33.33)
Rent Payable 1000 750 (250) (25)
Owner’s Equity 88500 94590 6090 6.88

17
 GIFT GO GO (GGG) ENTERPRISE
COMPARATIVE INCOME STATEMENT FOR THE YEAR AND MONTH ENDED,
DEC 31ST,2009 AND JANUARY 31ST, 2010

2009 2010 Amount(inc.dec %

)
Fees Revenue 59000 62720 3720 6.31
Selling Expenses 31000 28830 2170 7.53
Admin Expenses 5600 6300 700 12.5
Net Income 22400 27590 5190 18.81

VERTICAL ANALYSIS
GIFT GO GO (GGG) ENTERPRISE
COMPARATIVE BALANCE SHEET AS AT THE JANUARY 31ST, 2009 AND 2010

2009 2010
Amount % Amount %
Fixed Assets
Equipment 14000 15.01 18500 18.60
Building 23000 24.65 29250 29.41
Current Assets
Cash 30400 32.58 36770 36.98
Account Receivable 17000 18.22 5220 5.25
Supplies 8900 9.54 9700 9.75
Total Assets 93300 100 99440 100
Current Liabilities
Account Payable 2900 3.11 3500 3.52
Salaries Payable 900 0.96 600 0.60
Rent Payable 1000 1.07 750 0.75
Owner’s Equity 88500 94.86 94590 95.12
Total Liabilities and 93300 100 99440 100
Owner’s Equity

18
 GIFT GO GO (GGG) ENTERPRISE
COMPARATIVE INCOME STATEMENT FOR THE YEAR AND MONTH ENDED,
DEC 31ST,2009 AND JANUARY 31ST, 2010

2009 2010
Amount % Amount %
Fees Revenue 59000 100 62720 100
Selling Expenses 31000 52.54 28830 45.97
Admin Expenses 5600 9.49 6300 10.04
Net Income 22400 37.97 27590 43.99

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RATIO ANALYSIS
Liquidity Ratio,
Current ratio = Current Assets/ Current Liabilities
2009 2010
Current Assets: 56300 51690

Current Liabilities: 4800 4850

Current Ratio: 11.73 10.66

Acid Test Ratio = Quick Assets/ Current Liabilities

2009 2010
Current Assets

Cash 30400 36770

Account Receivable 17000 5220

Supplies 8900 9700

Current Liabilities 4800 4850

Acid Test Ratio 56300/4800 51690/4850

11.73 10.66

Profitability Ratio,

Profit Margin = Net Income/ Fees Revenue

2009 2010
Fees Earned 59000 62720

Less Operating
Expenses 36600 35130
Net Income 22400 27590

20
Profit Margin 22400/59000 27590/62720
37.97% 43.99%
Return on Assets
Return on Assets = Net Income + Interest Expense/ Average total assets
2009 2010
Net Income 22400 27590
Interest Expense 750 1000
Total Assets (2008= 86700) 93300 99440
Return on Assets 23150/90000 28590/96370
25.72% 29.67%
Efficiency Ratio,
Inventory turnover (2010) =Supplies/ Average supplies
9700/(8900+9700)/2
9700/9300
1.04 times
Assets Turnover = Net Sales/ Average total assets
2009 2010
Fees Revenue 59000 62720
Total Assets 93300 99440
Assets Turnover (2010) = 62720/ 96370
0.65 times
SOLVENCY RATIO
Debt ratio = Total Liabilities/ Total Assets
2009 2010
Total Liabilities 4800 4850
Total Assets 93300 99440
Debt Ratio 5.14% 4.88%

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Equity ratio = Total Owner’s Equity/ Total assets
2009 2010
Total Owner’s Equity 88500 94590
Total assets 93300 99440
Equity ratio 94.86% 95.12%

Times Interest Earned = Income before tax and Interest Expense

2009 2010
Income before tax and interest expense 5550 5850
Interest Expense 750 1000
Times Interest earned 7.4 times 5.85 times

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 SUMMARY ABOUT MY BUSINESS
As my business is just only started, I am satisfied because the business is going on profit

although it is less from the year before this. In the future, I will make my business get well place

in market and advertised as my business will be well known by more customers. I will definitely

enhance my business in the future upcoming as my recent business going on with the profit as it

can surely improve my business in the upcoming years.

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