Steps for Starting a New Business as a Decorator and Decision Makers of Tesco Ltd.

The report discusses the steps for starting a new business as a decorator, decision makers of Tesco Ltd., and income statement for B Moore for the year ending 30th September 2021. It also provides an interpretation of the same.

Written Report

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
Part A......................................................................................................................................2
Part B......................................................................................................................................4
Part C......................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11
1

INTRODUCTION
Business refers to exchange of goods and services that takes between a customer and the
supplier. Here, customers pays the supplier with the money as a medium. In business a person
should know what are their assets and liabilities. Also, they are required to have sound
knowledge about their competitors and what products are they offering. Their are different size
of business like small, medium and large scale. To start a business the owner should have a
business plan ( Murray, 2019 ).
MAIN BODY
Part A
Steps for starting new business as a decorator are:
 Business plan: Write up the plan whether they want to go in product design or as a
consultant designer. In product design, the products are sell to the clients and designer
comes with its own design. Whereas, if they want to go as a consultant designer than they
will sell ideas not products. So, if decorator is having less experience than they should go
for product design (McKeever, 2018).
 Research Competitors: Here, they should research who are the competitors and what are
they offering and their prices. They should know what are the specialisation of their
competitors and what set them apart from other designers. After researching, decorator
should know what should be their USP so that customers get attract to them. Also, in
what areas they are good at.
 Capital needed: Determine what all would be required in running the business. Like what
would be the expenses that they need to incur to set up their office . How much amount
decorator will spend on promotional activities. Also, how much labour they will require.
 License and registration: Get the business registered and get the license to start the
business. For it, decorator can go to the registered local office or can register online.
Also, if decorator has plan to employ others than they need to have contract with builders
and need to apply for employee identification number.
 Networking: Make contacts with the suppliers directly so that you can get the material at
cheaper rate. For it decorator needs to research about manufacturers who make carpet,
wall coverings, flooring, fabrics and furniture. So that they can make more profit.
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 Launch business: Launch business and invest in office. So that customers coming at the
office should know what kind of quality you are offering. Also, keep the samples of the
designs so that customers get little knowledge about the quality that you are offering.
 Build portfolio: Whenever clients visit the office they need to see the work you have
done. So for it decorator need to build a portfolio. In portfolio they need to include before
and after pictures of their project. Also, in that portfolio clients feedback should also be
there.
 Market your business: To make the business successful decorator should spend money on
marketing of its business. This can be done with the help of the suppliers, architects and
real estate agents as they can refer their clients to you. Also, decorator can give
advertisement on newspaper so that customers can get to know about them. In today's
digital world they can promote and showcase their work on social media sites like
Instagram, Facebook, Pinterest and LinkedIn ( Parsjö, 2018).
Decision makers of Tesco Ltd. Are:
 Shareholders: They are the ones who support in long term sustainable development and
in delivering groups plan of action. They are the ones who invest in the business and
want more return on their investment.
 Customers: They are the king as every decision is taken considering them. So that Tesco
can deliver superior quality and provide value to customers. They influence in decision
making because if the percentage of customer increases than profit of the company will
also increase.
 Colleagues: Tesco consider the view of point of their colleagues as of great importance.
They consider the feedback of them and takes decision according to it. They also look
over that their employees are in touch with the customers so that they can know
preferences of the customer (Awadari and Kanwal,2019).
 Suppliers: They help in decision making because if they increase their cost than the
product price will also increase. Tesco has build great relationship with their customers
so that they can maintain the prices of their product. Also, they ensure that their suppliers
grow in number. They keep on adding new suppliers on their list so that customers can
get more options for the products that they purchase.
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 Community: Tesco builds its products such that they are affordable and accessible by the
customers. So that they can contribute to the communities socially and economically.
They are doing it by their little help plan which is their sustainability plan (Hunter, 2017).
Part B
Journal of F Polk
as on September 2021
Date Particulars l.f. Debit Credit
01/09/21 Bad debts a/c Dr. 105
to P Mullen a/c 105
( Bad debts written off)
05/09/21 Syme ltd a/c Dr. 150
to office fixtures a/c 150
( Office fixtures returned)
10/09/21 Cash a/c Dr. 180
Profit and loss a/c Dr. 131
to M. Abel a/c 311
(M. Abel declared bankrupt)
18/09/21 Machinery a/c Dr. 1800
to cash a/c 100
to bank a/c 500
to Brown ltd. A/c 1200
(Machinery purchased)
26/09/21 Brown ltd a/c Dr. 600
to bank a/c 600
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( Half of the cash paid to brown ltd )
28/09/21 Insurance a/c Dr. 60
Drawings a/c Dr. 70
to bank a/c 130
(Insurance paid of house and office)
Journal
of T accounts
as on 1st August 2021
Date Particulars l.f. Debit Credit
01/08/21 Bank a/c Dr. 12400
to Loan a/c 12400
(Loan received from Santander bank)
02/08/21 Cash a/c Dr. 2800
to Bank a/c 2800
(Amount transfer from bank)
03/08/21 Van a/c Dr. 6200
to Bank a/c 6200
(Van purchased)
04/08/21 Furniture a/c Dr. 3400
to Bank a/c 1000
to sharp office ltd a/c 2400
(Furniture purchased)
08/08/21 Van a/c Dr. 8700
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to Toyota co. a/c 8700
(Van purchased)
15/08/21 Office fixtures a/c Dr. 110
to cash a/c 110
(Office fixtures purchased)
19/08/21 Toyota co. a/c Dr. 8700
to Bank a/c 8700
(Amount paid to Toyota co.)
25/08/21 Bank a/c Dr. 430
to cash a/c 430
(Cash paid in bank)
28/08/21 Office fixtures a/c Dr. 750
to Bank a/c 750
(Office fixtures purchased)
LEDGER
BANK ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
01/08/21 to Loan a/c 12400 01/08/21 by balance b/d 0
25/08/21 to cash a/c 430 02/08/21 by cash a/c 2800
31/08/21 to balance c/d 6620 03/08/21 by van a/c 6200
04/08/21 by furniture a/c 1000
19/08/21 by Toyota co. a/c 8700
28/08/21 by office fixtures a/c 750
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TOTAL 19450 TOTAL 19450
LOAN ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
31/08/21 to balance c/d 12400 01/08/21 by balance b/d 0
01/08/21 by bank a/c 12400
TOTAL 12400 TOTAL 12400
CASH ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
01/08/21 to balance b/d 0 15/08/21 by office fixtures a/c 110
02/08/21 to Bank a/c 2800 25/08/21 by bank a/c 430
31/08/21 by balance c/d 2260
TOTAL 2800 TOTAL 2800
VAN ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
01/08/21 to balance b/d 0 31/08/21 by balance c/d 14900
03/08/21 to Bank a/c 6200
08/08/21 to Toyota co. a/c 8700
TOTAL 14900 TOTAL 14900
FURNITURE ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
01/08/21 to balance b/d 0 31/08/21 by balance c/d 3400
04/08/21 to Bank a/c 1000
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04/08/21 to sharp office ltd
a/c
2400
TOTAL 3400 TOTAL 3400
SHARP OFFICE LTD. ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
31/08/21 to balance c/d 2400 01/08/21 by balance b/d 0
04/08/21 by furniture a/c 2400
TOTAL 2400 TOTAL 2400
TOYOTA CO. ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
19/08/21 to Bank a/c 8700 08/08/21 by van a/c 8700
TOTAL 8700 TOTAL 8700
OFFICE FIXTURES ACCOUNT
Date Particulars j.f. Amount Date Particulars j.f. Amount
01/08/21 to balance b/d 0 31/08/21 by balance c/d 860
15/08/21 to cash a/c 110
28/08/21 to Bank a/c 750
TOTAL 860 TOTAL 860
TRIAL BALANCE
as on 31st August, 2021
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S.NO Particulars Debit Credit
1 Bank account 6620
2 Loan account 12400
3 Cash account 2260
4 Van account 14900
5 Furniture account 3400
6 Sharp office ltd. Account 2400
7 Office fixtures account 860
TOTAL 21420 21420
Part C
Income Statement for B Moore
for the year ending 30th September 2021
PARTICULARS AMOUNT AMOUNT
I. Revenue
a. Sales 95000
(-) Sales return 3500 91500
II. Cost of goods sold 115170
III. Gross Loss (I-II) -23670
IV. Distribution cost
a. Carriage outwards 500 500
V. Administrative expenses
a. Wages & salaries 14000
b. Office expenses 800
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c. Fixtures and fittings 18500
d. Motor expenses 1400
e. Rent 7000
f. Telephone charges 830
g. Sundry expenses 250 42780
Loss from Operations -66950
VI. Finance cost
a. Insurance 1030 1030
Loss before tax -67980
Working note:
a. Cost of goods sold
Opening stock 18000
(+) Purchases 110000
(+) Carriage inwards 890
(-) Purchase return 720
(-) Closing stock 13000
Cost of goods sold 115170
Interpretation:
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021
Profit/Loss55800 77,100 85,500 98,400 87,600 97,200 112,400 (65,400) -67980
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If we take the average of profit and loss from year 2013 to 2021 it will be 68253. So it can be
interpreted that in year 2022 their will be a profit. The profit in 2022 will be less as compared to
2019 by nearly 40000. The profit will be low because the economy will open slowly. From years
2013-2019 the company was having profit only. The loss in two consecutive years was due to
coronavirus pandemic as buying power of people had become low. Consumers were spending
more on necessary items only. The industry that was flourishing in these two years was medical
industry only. Also, as the coronavirus pandemic is on the phase of getting end so the economy
will be in full run and the business of the company will again boom (Easton And et.al, 2018).
CONCLUSION
From the above report, it can be concluded that for starting the business owner needs to have a
business plan and need to know about decision makers that could affect the business. Also,
journal entries, ledger and trial balance has been enclosed in the report. Income statement has
been included and the analysis has been done of it in the report.
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REFRENCES
Awadari, A.C. and Kanwal, S., 2019. Employee participation in organizational change: A case of
Tesco PLC. International Journal of Financial, Accounting, and Management, 1(2),
pp.91-99.
Easton, P.D. And et.al, 2018. Financial statement analysis & valuation. Boston, MA: Cambridge
Business Publishers.
Hunter, F., 2017. Community power structure: A study of decision makers. UNC Press Books.
McKeever, M.P., 2018. How to write a business plan. Nolo.
Murray, B., 2019. The Purpose of Business: Why Values, Meaning and Purpose Really, Really
Matter. Effective Executive, 22(1), pp.10-17.
Parsjö, E., 2018. Gamification of Education in Starting a Business: A Surveyof Support for new
Entrepreneurs.
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