Accounting Information Process:

Record the transaction of

Record the collection of payments related to legal
capital of each partner. requirements

Record the transactions

before and on construction
of buildings (house of
Record the transactions chicks, staffhouse and
under acquisition of warehouse).
equipment and materials. • records the purchases of
construction materials.
• records the payment of
salaries for the labor.

Record the transaction

Record the transactions under acquisition of chicks,
under advertisement of the feeds and vitamins
business supplies.

Summarizing of all
transactions under pre-
operating period
• Making Financial
statements for the period.
The clients inquire/visit to the Receipt 50% downpayment
office for the orders of the from client for inititial payment
chicken

The collector will gather all Recording of 50%

initial downpayment downpayment from the client

The cashier will receive all Delivering dressed chicken to

initial payment from the the market and also collecting
collector full payment to the client

-
 The clients inquire/visit to the office for the orders of the chicken- If the client wants

to order a dressed chicken they need to go in the office.

 Receipt 50% downpayment from client for inititial payment- The customers need to

pay initial payment to make sure that they will pay the whole amount when it delivered to

them. They will also give a receipt as a proof that they order chicken and down 50%.

 Recording of 50% downpayment from the client- The collector is the one who’s

responsible in recording initial payment from the customer.

 The collector will gather all initial payment- After the collector recorded all transaction

with regards for initial payment. He is also responsible in gathering all payments and

giving it to the cashier.

 The cashier will receive all initial payment from the collector- The cashier is

responsible for collecting all initial payment from the collector and giving payment for

the slaughter house to dressed the chicken.

 Delivering dressed chicken to the market and also collecting full payment to the

client- The full payment will receive when the dressed chicken is already delivered to the

client or to the market.

Findings:

The analysts find out that there are some details that they not include in the business and
accounting process. First there are some items that they mentioned on first part of the feasibility
study but it is not reflected on their schedule and financial statements such as the safety gears on
part of dress code ,bed and the fire extinguisher shown on the floor plan.

Recommendation:

The analysts recommend to make first a budget for the pre-operating period. It is
important to forecast the possible costs before contribution of capital. In recording transactions
especially on cash disbursements, must have control measures so it may not have lost in tracking
the available fund and no fraud happening inside the company.

It is also must have background research about how to run the business such as which
breed of chicks must purchase it should pick up breed those are fast growers with good livability
and buy only healthy chicks; generally alert and with bright eyes and active appearances.(Poultry
Manual, 2018)

The location of the business is not necessarily on mountain. It should be 500m to 1km from
nearest build up area and must accessible to water as well as power.(Poultry Manual, 2018)

The expenses that they put on their floor plan such as fire extinguisher and net must
include and projected in financial statements, and also the cost of safety gears as they mentioned
that they will provide it for the workers to perform efficiently without risking their safety. It is
necessary to include so may see the relevant total cost incurred.

The cost on installation of electricity must treat as expense, not as part of assets and set
its accounting title as transformer.