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Faculty of Business and Managemen: Content Marks
Faculty of Business and Managemen: Content Marks
Program code and name: BA244 - Bachelor of Business Administration (Hons.) Operations Management
Group Project
Group Members:
Group: NBO1B
Date Submission:
Content Marks
TABLE OF CONTENTS
1.0 INTRODUCTION 1
2.0 FINDINGS 2
2.1 Background of Company 2
2.2 Characteristics of The Chosen Business 5
2.3 Classification of Possible Business Items 6
2.3.1 Assets 6
2.3.2 Liabilities 7
2.3.3 Drawing 9
2.3.4 Capital 10
2.3.5 Revenue 10
2.3.6 Expenses 11
2.4 Accounting Cycle 14
2.5 Advantages and Disadvantages of Accounting Recording Process 16
3.0 CONCLUSION 17
REFERENCES 18
1.0 INTRODUCTION
Based on the assignment instructions given, our group chose to run a delivery services business.
Due to the increasing prevalence of Covid-19 virus in our country, this delivery service has a high demand
among the community in doing business and also dealing with transactions.
Delivery service systems have their own importance in digital business. The existence of
businesses that use a digital approach, now society is acting in line with the convenience of technology
nowadays everything is done online. Based on the study, more and more consumers in the community are
more comfortable making purchases online than making purchases physically to a store. As example, when
customer ordered large shipment, the vendors used the courier services to delivering the customer orders.
With this, various benefits that we will get if we invest in an efficient delivery service system.
First, we must prioritize punctuality in the process of shipping goods. If the company offers effective
delivery services, then the timeliness of delivery and customer satisfaction will have a positive impact on
the business. In addition, the user must also make the right choice of which delivery company can deliver
the customer's order. Especially during the festive season, delivery service companies need to plan the
amount of customer requests and delivery times to avoid congestion and delays during delivery.
Second, the delivery service company must prioritize customer satisfaction. Apart from the time
aspect, the delivery service must also be responsible for the customer's package and avoid the problem of
loss. If there is a loss of packages from customers, it will have a negative impact on the business and
customers will also lose trust in the company. Therefore, companies need to ensure this does not happen
to ensure the company's reputation is always maintained and achieve the desired goals.
If the delivery service company can maintain good performance and ensure customer satisfaction
can be achieved, the company can further expand the business to other areas and also increase profits to
the company.
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2.0 FINDINGS
2
Business image:
a) Our Official Company Instagram
b) Services provided
3
c) Our business card
4
2.2 Characteristics of The Chosen Business
The characteristics of business including liability, number of owners, books and account keeping
business establishment, profit sharing, management, and control. Our chosen business for E-Commerce is
delivery service and business trading as our form of business. Our business name is Commex which is
stand for Commodity Express. Commex start their operation on Moving Service since March 2021.
Commex is a partnership where there is more than 2 people operate this business. A partnership business
has unlimited liability. Which means, any loss that company facing, the business owner will take
responsibility for any loss using their own personal funds. To operate delivery service, Commex also rent a
shophouse near industrial area and strategics place which is located at Lot G-15, Bangunan Perindustrian
Shah Alam, Seksyen 15 40200 Shah Alam, Selangor.
Commex is a trading business where there are two people build this business. The idea of
Commex comes from a sibling that have a mind of being successful entrepreneur. This business runs by
Amirul Khairi bin Zulkifli and Amirul Zaini bin Zulkifli.
Even Commex more to family business, any lost or business fails of the Commex, the payables
have a right against the partner’s personal properties. Owners need to record every financial transaction to
prevent from any frauds. Commex also registers with the Company Commission of Malaysia under the
Business Registration Act 1956 and 1957.
The main reason two siblings start up Commex is because they want to earn more side income.
They also want to earn as much knowledge that they can, so that they can share with others their
experiences in business.
The profit or loss will be shared according to the profit-sharing ratios. Following the agreement that
two siblings create, they agreed to share the profit 50-50. The idea of fair ratio that they agreed because
they contribute the same amount, which is RM 150,000.00 each person to start up the business.
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2.3 Classification of Possible Business Items
2.3.1 Assets
Figure 1.1
Figure 1.2
Figure 1.3
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Owner bought 2 sets of
4 Computer
computer for operational
usage costing RM2,500
each.
Figure 1.4
2.3.2 Liabilities
Figure 2.1
7
2 3-tonne Owner bought used 3-tonne
lorry lorry valued at RM 55,000 on
credit with monthly payment of
RM650
Figure 2.2
Figure 3.3
8
2.3.3 Drawing
1 Cash Owner take RM500 to buy gifts for Refer figure 4.1
staff.
2 Cash Owner takes RM100 for his own Refer figure 4.2
use.
MEMO
Date:30 April 2021
Figure 4.1
MEMO
Date:2 May 2021
Note:Owner took cash with amount of RM 100
(Ringgit Malaysia: One hundred only) for his own
usage.
Manager
Figure 4.2
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2.3.4 Capital
2.3.5 Revenue
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Figure 5.1 Service Price List
2.3.6 Expenses
5-tonne lorry:RM1000
3-tonne lorry:RM800
1-tonne lorry:RM500
Salary given:RM1500
each
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Salary given:RM1700
each
Driver :3 people:
Salary given:RM1900
each
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Figure 6.1 Example of fuel expenses receipt
PAYSLIP
EARNINGS RM
SALARY 1900.00
DEDUCTIONS RM
EPF 190.00
SOCSO 11.00
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Figure 6.3 Example receipt of payment transfer for lorry.
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2.4 Accounting Cycle
Accounting cycle is a process for completing a company’s bookkeeping tasks. It provides a clear
guide such as recording, analyzing or final report for a business. The accounting cycle is created or
invented to make the financial of business activities for business owners and it’s also to ensure that the
financial statement is organized and accurate.
Accounting cycle is very important for an organization because it shows the financial accounting
that businesses need to perform to be in compliance with federal regulations and tax codes. For example,
the government requires every company to disclose their financial results and pay the taxes based on the
profit that the company achieved.
Besides that, the accounting cycle is also important for the company to analyze internal financial
performance. For example, identifying transactions and record transactions in a journal is an ongoing
process while processes such as adjusting trial balance occur at the end of the process. So, by separating
the process and having the information on each process, the company can plan and make decisions about
financial strategies.
So, there are eight processes for the accounting cycle and the accounting usually starts by
recording every transaction of the company and ends with a report of the company activities for the
designated cycle timeframe. Below this are the eight processes of the accounting cycle.
● Identifying Transaction
● Record Transaction
● Post Journal Entries to Ledger Account
● Prepare Unadjusted Trial Balance
● Prepare Adjusting Entries
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● Prepare Adjusted Trial Balance
● Prepare Financial Statement
● Prepare Closing Entries
Explanation for Accounting Cycle for Commex Sdn Bhd
Transaction is the process that is involve in buying or selling and this might include the trade or
exchange of goods or services. When an exchange or transaction occurs in the Commex Sdn Bhd, it will be
recorded in the company accounting system. Before it is recorded, Commex Sdn Bhd will identify the
transaction so it will be recorded in a right journal
Once Commex Sdn Bhd already done with the identifying process, it will do the recording
transaction process. Each of the transaction that has been made by Commex Sdn Bhd need to be recorded
in the appropriate journal. There will be seven journals that Commex Sdn Bhd have which is Sales Journal,
Purchases Journal, Return Inwards Journal, Return Outwards Journal, General Journal, Cash receipt
Journal and Cash Payment Journal.
After Commex Sdn Bhd already done with the recording transaction, it will go the next process
which is posting the journal entries to the ledger account. General ledger will be used to create Commex
Sdn Bhd financial statement.
Next, Commex Sdn Bhd will prepare the unadjusted trial balance. It will be used to verify the total
debit and credit for Commex Sdn Bhd is equal. In the unadjusted trial balance, there will be a list of
accounts and their balances before any adjusting entries are made to create the financial statement.
After that, Commex Sdn Bhd will prepare an adjusted entry. Usual, adjusting entries will be made
at the end of the accounting period. Usually, Commex Sdn Bhd will prepare adjusting entries by monthly.
These adjusting entries will reflect the revenues earned and expenses incurred during an accounting
period.
Once Commex Sdn Bhd already done with preparing an adjusted entry, the company will prepare
an adjusted trial balance. Adjusted trial balance is will display the balance of all accountings including the
adjustment that have been made at the end of the accounting period.
Next, Commex Sdn Bhd will prepare the financial statement. The financial statement can be
created through adjusted trial balance and it will display the report on Commex Sdn Bhd financial results,
condition and also the cash flow for Commex Sdn Bhd.
Lastly, Commex Sdn Bhd will prepare the closing entries. When Commex Sdn Bhd in the closing
phase, all of the temporary accounts will be brought to zero to prepare for the next accounting period.
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2.5 Advantages and Disadvantages of Accounting Recording Process
There are several advantages of the account recording process. First and foremost, company
accounting process will be more effective and clearer. Company can track back every transaction that
company made, or company received. Next, business owner also can easily monitor money flow for every
transaction made. This will prevent from any fraud happen while the business running. Hence, when
company do all recording process, they can compare the performance of the business organization. So,
they can improve their business management very well. Not only that, company also can prevent any fraud
and error that made while recording all the transactions. Lastly, accounting recording process are very
important because every transaction provide all the information whether the account earned or loss in
profit.
The disadvantages of accounting recording process are it is un efficient in business activities.
Because sometimes there is misleading information received and wrongly key in the details. So, whenever
company want to tracked back all the information, they cannot get the real one. Next, account recording
process sometimes did not help to determine the real figure of any transactions happened. Hence,
company also cannot see or show any improvement in business activities. This situation will affect the
business background and account recording process. Account recording process also can be biased and
not transparent because sometimes, company missed out every step-in account recording process. Lastly,
account recording process is just an estimated figure made and did not provide complete details of every
transaction.
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3.0 CONCLUSION
Commex Sdn. Bhd. provides delivery service mainly in terms of delivering goods upon customer
request. It is a great step for the owner of this company to register the business as “Sdn Bhd” as it has
limited liability. As this business is set up in the times of crisis and instability of economy, there is chance
for it to fail. Therefore, the owner will have a lesser risk in getting bankrupt if thing turns out bad.
Since this is a fresh company, lot of improvement can be taken into place in order to grow the
business further. This company can be compared to Lalamove as both as are related to on-demand
shipping. Lalamove business model is one of the model that can be implemented into this company as their
model has been proven to provide a great result as now they have expanded around Asian.
If a company is poorly managed and have a bad accounting, there will be no accurate budget, the
company reputation will be tarnished, stakeholder will lose their faith. If thing goes of control, the company
might be facing with bankruptcy. This can be avoided if a good accounting process which consist of storing,
sorting, retrieving, summarizing of transaction is being implemented.
Therefore, a company should manage its accounting process in a good and orderly manner. By
that, it will be able to show the company financial position thus gives the owner the idea of decision making
in regards of the company financial position and gain confidence from its stakeholders.
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REFERENCES
1. 5 consequences you need to face with bad accounting . Back Office Partners. (n.d.).
https://www.backoffice.com.my/accounting/5-consequences-you-need-to-face-with-bad-
accounting/.
2. Lalamove Business Model - How Does Lalamove work . JungleWorks. (2021, January 12).
https://jungleworks.com/lalamove-business-model-explained/.
3. Parsons, N., Morgaine, B., Berry, T., Michael, J., & Candice Landau. (2021, June 15). How to
Write the Best Business Plan - 2021 Complete Guide . Bplans Blog.
https://articles.bplans.com/how-to-write-a-business-plan/.
4. Rude, J. A. (2011). The Cycles of the Accounting Cycle. Journal of Business & Economics
Research (JBER), 1(5). https://doi.org/10.19030/jber.v1i5.3012
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