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Running head: ANALYSIS OF HAPPY FAMILY 1

Analysis of Happy Family

Sachin Kumar Sharma

Bus 305 Fundamental Accounting Principles

Presidential Business School

WESTCLIFF University

Padam Mahata

Prof. Dr Yvan Nezerwe

29 January 2018
ANALYSIS OF HAPPY FAMILY 2

Abstract

This analysis will show up the entrepreneur decision of happy family. As this paper consist of

the special journal, subsidiary ledgers, projected scales and numeric evaluation of happy family.
ANALYSIS OF HAPPY FAMILY 3

Analysis of Happy Family

A special journal is a accounting journal which is used to record and list the transactions from

where the bookkeepers can manage and set tract of different transactions activities. It includes

the cash receipt and payment account, purchase and purchase return account, sales and sales

return account. It contains numerous rows and multiples columns.

The types of special journal:

⦿ Cash receipt journal

⦿ Cash payment journal

⦿ Sales journal

⦿Purchase journal

⦿ General journal

In this case, among them only four types of journal are used. Cash receipt journal, Cash

payment journal, Sales journal, Purchase journal are included by Shazi Vishram which help

helps him to shape the special journal for her company included the appropriate control

procedure also.

The special journal that happy family likely to use is Sales journal:

Date Account Invoice number Ref Account


Debited Receivable Dr.
Sales cr.
2013 Samir Gc 109 S1 $600
August 19
August 19 Benjia Bao 110 S1 $1500
August 21 Benjia Bao 111 S2 $2000
August 24 Benjia Bao 112 S3 $700
August 25 John Abraham 113 S1 $1000
August 28 John Abraman 114 S2 $900
ANALYSIS OF HAPPY FAMILY 4

Subsidiary ledger is the book in which different accounting transaction are summarized,

record and posted. The format of account receivable subsidiary ledger that Shazi will likely

to use is:

Mr. Samir Gc AP 1 1

Date Ref Debit Credit Balance


2013
August 19 S1 $600 $600

Mr. John Abraham AP 2 1

Date Ref Debit Credit Balance


2013
August 25 S1 $1000 $1000
2013
August 28 S2 $900 $900

Mr. Bejia Bao AP 3

Date Ref Debit Credit Balance


2013
August 19 S1 $1500 $1500
2013
August 21 S2 $2000 $2000
2013
August 24 S3 $700 $700
ANALYSIS OF HAPPY FAMILY 5

Answer-2

Current annual amount of happy family=$100000000

In one year it will becomes=0% of 100000000

=$100000000

In two year= 20% of 100000000

=$20000000

Total=120000000

In third year=15% of 120000000

=$18000000

Total=$138000000

In forth year=25% of 138000000

=$4500000

Total=$172500000

In fifth year=20% of 172500000

=$34500000

Finally it becomes $207000000 at the end of fifth year.

From above we can easily conclude that if that pattern sales growth hold then happy family can

easily achieve their goal in fifth year by making it $207million.


ANALYSIS OF HAPPY FAMILY 6

References
Hillega, C. K. (n.d.). Retrieved from Cliff Notes : https://www.cliffsnotes.com/study-

guides/accounting/accounting-principles-i/subsidiary-ledgers-and-special-journals/subsidiary-

ledgers

Shaun. (n.d.). Retrieved from My Accounting Course:

https://www.myaccountingcourse.com/accounting-dictionary/special-journal

Wilkipedia. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Special_journals