Decorator Contents: Sole Trader Setup, Financial Records & Analysis

This assignment provides a detailed solution for setting up a sole trader business named Decorator Contents. It includes the initial steps for starting the business, such as developing a business idea, conducting market research, and obtaining necessary licenses and registrations. The solution also covers creating industry contacts, preparing for launch, building a portfolio, and marketing the business. Furthermore, the assignment includes practical tasks such as preparing journal entries, posting transactions to the general ledger, and creating an income statement. It also analyzes the firm's profit and loss data from 2013 to 2020 to assess its financial performance. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Set up a sole trader
business as Decorator

Contents
ASSESSMENT 1............................................................................................................................................4
PART A.........................................................................................................................................................4
Steps for starting a new business as Decorator.......................................................................................4
Decision makers in Marks & Spencers.....................................................................................................5
PART B.........................................................................................................................................................6
Question 1...............................................................................................................................................6
Question 2...............................................................................................................................................7
PART 4.........................................................................................................................................................8
REFERENCES..............................................................................................................................................10

ASSESSMENT 1
PART A
Steps for starting a new business as Decorator
An interior designer possesses the imagination, abilities, and knowledge necessary to create a
functional and attractive place. They've arrived to the correct spot when you're an interior
designer wanting to enter the industry. Each new company owner begins at the beginnings, but
there are methods to jumpstart their designing shop's development in the first year by making
efforts that other businesses were just not doing or aren't aware of.
Have business idea: The first step in starting your redecorating company should be to write a
corporate strategy. Decide if you want to be a commodity creative who conceptualizes the layout
and offers the customer the essential materials, or just an advisor who doesn't sell anything.
Commodity architects are the most common starting point for architects with less expertise.
Conduct market research: Appear into other local designing firms to see what they specialize in,
how much they cost, and how their ideas look. Business differentiate from other decorater firms
by providing a unique style of design, specializing in certain aspects of construction, including
such British, giving reduced costs, or focus on particular locations.
License and registration: Submit an application for a company registration at your regional
government center or registrar's office, or submit an application whether that alternative exists in
their area.
Making industry contacts: Businesses manufacture carpeting, textiles, carpet, wall cladding, and
furniture, as well as distributors that represent various brands, should be investigated. Some
companies will provide architectural designers savings of up to 50%, so search around to see
who would give you the greatest deals. You may transfer the money on to your customers this
manner.
Preparing to launch: Invest on essential office equipment including a laptop, telephone, and word
processing. They could also wish to invest in specialist design tools so that you can provide your
clients with the best layouts.

Build portfolio: As your first customers will need to see a portfolios of your handiwork, so start
by redesigning your own house and documenting the changes you make with during photos.
Agree to remodel for friends and relatives, using as many approaches and strategies as possible.
Market your business: Set up a website or a Facebook page for your business and share photos
from your collection. To generate interest, use Twitter and Instagram to post before and after
photos of your tasks or step in the right direction. Create pamphlets and company postcards to
send out to prospective customers, and bring your portfolio with you if you go to meet with
them.
Decision makers in Marks & Spencers
Marks and Spencer Group plc (often shortened to M&S and referred to as Marks's or
Marks & Sparks) is a significant British international retailer based in London, England, that
specialized in apparel, home goods, and food. It is a component of the FTSE 250 Index, having
originally been a part of the FTSE 100 from its inception through 2019. Marks and Spencer aims
to ensure that the decision-making system is purposeful, consistent, and underpinned. The
company expects in collaborating to perform thorough investigations and activities, as well as
making better decisions in all aspects of policy, productivity, responsibility, and accountability.
Because management understands the skills of their designers, suppliers, manufacturing
cost, and sales revenue, Marks and Spencer may use a rational approach of strategic choices. For
example, it is a known that bikini sales will increase throughout the summertime. Marks and
Spencer can compensate for the expenses and acknowledgement using the analytical technique in
this way. They are well aware that bikini sales would increase throughout the summertime.
According to Luthans (1998), while using this approach, the responsible party continually
attempts to optimise business results. Selections are aimed at the best collection position, where
marginal cost and marginal total revenues. One disadvantage of this judgement approach is that
it takes a considerable amount of time and knowledge in order to fulfill the objectives efficiently.
This would be an excellent technique for achieving Marks & Spencer's aims because
achievement is assured.

PART B
Question 1
Journal of F Folk for the month September 21
Date Details Fol DR CR
01/9/21 Assets: £ £
Van
Fixtures
Stock
Debtors:
P Mullen
M Abel
Bank
Cash
Creditors
Syme
A Hill
Capital
5700
2800
5200
105
311
1060
85 229
80
14952
15261 15261
1/9/21 Irrecoverable / Bad Debt 105
P Mullen 105
Being irrecoverable/ bad Debt written off 105 105
5/9/21 Payable / Creditor –Syme 80
Office – Furniture 80
Being unsuitable item returned to supplier 80 80
10/9/21 Cash 85
M. Abel 85
Irrevocable / Bad Debt 311
M. Abel 311
Being Cash received and Bad Debt written
off
396 396
18/9/21 Machinery 1800
Cash 100
Bank 500
Payables / Creditor ( Brown Ltd) 1200
Being Machinery, Part Cash/ Credit 1800 1800
26/9/21 Payable / Creditor (Brown Ltd) 500
Bank 500
Being: Part of Debt paid to Brown Ltd 500 500

26/9/21 Insurance 130
Bank 130
Insurance Refund 70
Insurance 70
Being: Insurance paid and private Ins.
Refund
200 200
Question 2
(a) Recording transactions in the general ledger of ABC enterprise
(b) Capital
Particulars Dr Amount (£) Particulars Cr Amount (£)
31/01/21 Balance c/d 30,000 01/01/21 Cash 30,000
30,000 30,000
31/01/21 Balance b/d 30,000
(c) Cash
Particulars Dr Amount (£) Particulars Cr Amount (£)
01/01/21Capital 30,000 05/01/21Exp (Store rent) 1,000
18/01/21Sales (food) 20,000 06/01/21Asset (W&D) 10,000
20/01/21Sales
(beverage)
13,000 07/01/21Exp (insurance) 1,200
11/01/21Exp (laundry fee) 200
15/01/21Exp (Tel & int) 2,220
15/01/21Exp (R, W & R) 950
16/01/21Exp (wages &
salary)
1,740
31/01/21 Balance c/d 45,690
63,000 63,000
01/04/20 Balance b/d 45,690
(d) Expense (Store rent)
Particulars Dr Amount (£) Particulars Cr Amount (£)
05/01/21 Cash 1,000 31/01/21 Balance c/d 1,000
1,000 1,000
31/12/21 Balance b/d 1,000
(e) Asset (Washer & Dryer)
Particulars Dr Amount (£) Particulars Cr Amount (£)
06/01/21 Cash 10,000 31/01/21 Balance c/d 25,000
18/01/21 Creditor (Supplier) 15,000
25,000 25,000
31/01/21 Balance b/d 25,000

(f)
(g) Trial balance
Serial
No.
Account title Dr Amount (£) Cr Amount (£)
1 Capital 30,000
2 Cash 45,690
3 Expenses (Store Rent) 1,000
4 Asset (Washer & Dryer) 25,000
5 Creditor (Supplier of Washer & Dryer) 15,000
6 Expense (Insurance) 1,200
7 Expense (Food Supplies) 8,000
8 Expense (Beverages) 7,000
9 Creditor (WH Adams Ltd) 15,000
10 Expense (Laundry Fee) 200
11 Expense (Telephone & Internet) 2,220
12 Expense (Rates, Water charges & Refuse) 950
13 Expense (Wages & Salaries) 1,740
14 Sales (Food) 20,000
15 Sales (Beverage) 13,000
Total 93,000 93,000
PART 4
Income Statement of B Moore for the year 30 September
Details
£ £
Sales 95000
Less Returns inwards (Sales Returns) (3500)
Net Sales 91500
Less Cost of Goods Sold :
Opening Stock 18,000
Plus Purchases 110,000
Less Returns outwards (Purchase Returns) (720)
Plus, Carriage inwards 890

128170
Less Closing Inventory 13000
115170
Gross Loss -23670
Less Expenses:
Carriage Outward 500
Motor Expenses 1400
Rent 7000
Telephone 830
Wages & Salary 14000
Insurance 1030
Office Expenses 800
Sundry Expenses 250 (25810)
Net Loss -49480
(b) From the data supplied on B More's profit and loss from 2013 to 2020, it can be concluded
that the firm's actual quality has been changing. In 2013, the firm earned 55800 dollars, which
climbed to 77100 dollars in 2014 and to 85500 dollars in 2015. Based on the firm's growth
pattern during the last three years, it can be found that the organization is on the upswing. From
2016 to 2018, there has been a changing trend, with a reduction for a while and then a rise. This
is the previous COVID's achievement, suggesting that the firm is in solid financial shape.
Y= 1326x + 121793
= 1326(9) + 12793
= 11934 + 12793
= 24727

REFERENCES
Books and Journal
Iaquinto, A.L., Jancenelle, V. and Macpherson, W.G., 2017. Finance-oriented directors and crisis
management: Blissful ignorance in the hospitality industry? Journal of Hospitality and
Tourism Management. 32. pp.82-88.
Jain, P. and et.al, 2017. Hospitality REITs and financial crisis: a comprehensive assessment of
market quality. Journal of Property Investment & Finance.
Kim, C. S. and et.al, 2018. Review of reviews: A systematic analysis of review papers in the
hospitality and tourism literature. International Journal of Hospitality Management. 70.
pp.49-58.
Kim, S.H., Lee, K. and Fairhurst, A., 2017. The review of “green” research in hospitality, 2000-
2014. International Journal of Contemporary Hospitality Management.