Financial Statements and Analysis: ACC1AIS Assignment, September 2019
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Practical Assignment
AI Summary
This assignment presents a comprehensive financial analysis of a baby products business, encompassing the creation of financial statements and performance evaluation. The solution begins with setting up a new business in Xero, followed by recording transactions for September 2019. The assignment includes a detailed trial balance, journal report, profit and loss statement, and balance sheet. Furthermore, it involves analyzing key financial performance factors by comparing the business's ratios to those of a major Australian retailer, Wesfarmers. The student has prepared the financial reports and analyzed the business's performance based on provided data, demonstrating proficiency in using Xero for accounting and financial analysis.

Running head: BACHELOR OF BUSINESS
Bachelor of Business
Name of the Student:
Name of the University:
Author’s Note
Bachelor of Business
Name of the Student:
Name of the University:
Author’s Note
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1
BACHELOR OF BUSINESS
Table of Contents
1. Trial Balance:...............................................................................................................................2
2. Journal Report 30th September:....................................................................................................3
3. Profit and Loss report 1st September 2019 to 30th September 2019:............................................8
4. Balance Sheet Report 30th September:.........................................................................................9
5. Analysing the financial performance factors:............................................................................11
References:....................................................................................................................................15
BACHELOR OF BUSINESS
Table of Contents
1. Trial Balance:...............................................................................................................................2
2. Journal Report 30th September:....................................................................................................3
3. Profit and Loss report 1st September 2019 to 30th September 2019:............................................8
4. Balance Sheet Report 30th September:.........................................................................................9
5. Analysing the financial performance factors:............................................................................11
References:....................................................................................................................................15

2
BACHELOR OF BUSINESS
1. Trial Balance:
Trial Balance
19250946 Jaisimran Singh
As at 29 September 2019
Account Debit Credit YTD Debit YTD
Credit
Revenue
Sales revenue (200) $4,14,719.
78
$9,36,618.8
8
Expenses
Bank Fees (404) $7.00 $7.00
Cost of Goods Sold (310) $2,08,764.
51
$2,08,764.5
1
Fire Insurance expense (433) $0.00 $3,000.00
Freight & Courier (425) $230.00 $230.00
Interest expense – 8% annually (437) $0.00 $784.03
Motor Vehicle Expenses (449) $700.00 $700.00
Salaries expense (477) $0.00 $25,000.00
Telecommunication expense (489) $0.00 $680.00
Warehouse rent expense (469) $0.00 $2,200.00
Warranty claims expense (401) $3,850.00 $3,850.00
Assets
Accounts Receivable (610) $99,464.55 $6,73,553.5
5
Accumulated Depreciation – Delivery
Van (741) $0.00 $8,400.00
Accumulated Depreciation – Store
building (731) $0.00 $62,500.00
Allowance for Doubtful Debts – 10%
(602) $0.00 $52,189.91
Cash at bank (600) $3,22,999.
93
$4,06,241.4
3
Computer Equipment (720) $2,500.00 $2,500.00
Delivery Van (740) $0.00 $40,000.00
Higher interest-bearing account (605) $50,000.00 $50,000.00
Inventory (630) $1,71,460.
23
$4,91,439.9
7
Plastic welding machinery (710) $46,750.00 $46,750.00
Prepaid Fire insurance (601) $0.00 $15,000.00
Prepaid miscellaneous office supplies
(604) $680.00 $680.00
Prepaid online advertisements (607) $7,236.00 $7,236.00
Prepaid product liability insurance
policy (603) $5,200.00 $5,200.00
Store Building (730) $0.00 $3,50,000.0
BACHELOR OF BUSINESS
1. Trial Balance:
Trial Balance
19250946 Jaisimran Singh
As at 29 September 2019
Account Debit Credit YTD Debit YTD
Credit
Revenue
Sales revenue (200) $4,14,719.
78
$9,36,618.8
8
Expenses
Bank Fees (404) $7.00 $7.00
Cost of Goods Sold (310) $2,08,764.
51
$2,08,764.5
1
Fire Insurance expense (433) $0.00 $3,000.00
Freight & Courier (425) $230.00 $230.00
Interest expense – 8% annually (437) $0.00 $784.03
Motor Vehicle Expenses (449) $700.00 $700.00
Salaries expense (477) $0.00 $25,000.00
Telecommunication expense (489) $0.00 $680.00
Warehouse rent expense (469) $0.00 $2,200.00
Warranty claims expense (401) $3,850.00 $3,850.00
Assets
Accounts Receivable (610) $99,464.55 $6,73,553.5
5
Accumulated Depreciation – Delivery
Van (741) $0.00 $8,400.00
Accumulated Depreciation – Store
building (731) $0.00 $62,500.00
Allowance for Doubtful Debts – 10%
(602) $0.00 $52,189.91
Cash at bank (600) $3,22,999.
93
$4,06,241.4
3
Computer Equipment (720) $2,500.00 $2,500.00
Delivery Van (740) $0.00 $40,000.00
Higher interest-bearing account (605) $50,000.00 $50,000.00
Inventory (630) $1,71,460.
23
$4,91,439.9
7
Plastic welding machinery (710) $46,750.00 $46,750.00
Prepaid Fire insurance (601) $0.00 $15,000.00
Prepaid miscellaneous office supplies
(604) $680.00 $680.00
Prepaid online advertisements (607) $7,236.00 $7,236.00
Prepaid product liability insurance
policy (603) $5,200.00 $5,200.00
Store Building (730) $0.00 $3,50,000.0
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BACHELOR OF BUSINESS
0
Liabilities
Accounts Payable (800) $20,001.20 $3,72,561.2
0
Apache Petrol businesses debit card (808) $777.70 $777.70
GST (820) $36,335.08 $62,536.57
Loan payable – Building Head Office (900) $0.00 $58,802.44
Northern Bank on a short-term loan (805) $52,000.00 $52,000.00
Provision for warranty – 5% (803) $0.00 $26,094.96
Unearned delivery revenue (802) $0.00 $24,800.00
Unearned repair revenue (807) $34,800.00 $34,800.00
Unearned subscription revenue (806) $18,288.00 $18,288.00
Equity
Capital (970) $0.00 $7,48,519.9
7
Total $7,48,381.
99
$7,48,381.
99
$23,96,353.
06
$23,96,353.
06
2. Journal Report 30th September:
Journal Report
19250946 Jaisimran Singh
From 30 Sep 2019 to 30 Sep 2019
ID 165 Insurance expense, Fire insurance (Manual Journal: Posted by Jaisimran Singh on
12 Oct 2019)
30 Sep
2019
Account Debit Credit
Fire Insurance expense (433) $1,500.00
Prepaid Fire insurance (601) $1,500.00
$1,500.00 $1,500.00
ID 164 Telecommunication accrued for September (Manual Journal: Posted by Jaisimran
Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Telecommunication expense (489) $340.00
Telecommunication payable (811) $340.00
$340.00 $340.00
ID 163 40% of deliveries are performed during September (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
BACHELOR OF BUSINESS
0
Liabilities
Accounts Payable (800) $20,001.20 $3,72,561.2
0
Apache Petrol businesses debit card (808) $777.70 $777.70
GST (820) $36,335.08 $62,536.57
Loan payable – Building Head Office (900) $0.00 $58,802.44
Northern Bank on a short-term loan (805) $52,000.00 $52,000.00
Provision for warranty – 5% (803) $0.00 $26,094.96
Unearned delivery revenue (802) $0.00 $24,800.00
Unearned repair revenue (807) $34,800.00 $34,800.00
Unearned subscription revenue (806) $18,288.00 $18,288.00
Equity
Capital (970) $0.00 $7,48,519.9
7
Total $7,48,381.
99
$7,48,381.
99
$23,96,353.
06
$23,96,353.
06
2. Journal Report 30th September:
Journal Report
19250946 Jaisimran Singh
From 30 Sep 2019 to 30 Sep 2019
ID 165 Insurance expense, Fire insurance (Manual Journal: Posted by Jaisimran Singh on
12 Oct 2019)
30 Sep
2019
Account Debit Credit
Fire Insurance expense (433) $1,500.00
Prepaid Fire insurance (601) $1,500.00
$1,500.00 $1,500.00
ID 164 Telecommunication accrued for September (Manual Journal: Posted by Jaisimran
Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Telecommunication expense (489) $340.00
Telecommunication payable (811) $340.00
$340.00 $340.00
ID 163 40% of deliveries are performed during September (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
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4
BACHELOR OF BUSINESS
Unearned delivery revenue (802) $9,920.00
Sales revenue (200) $9,920.00
$9,920.00 $9,920.00
ID 162 Interest expense accrued on the loan for Building of the Head Office (Manual
Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Interest expense – 8% annually (437) $392.02
Interest payable Northern Bank (809) $392.02
$392.02 $392.02
ID 161 Depreciation expense – computer (Manual Journal: Posted by Jaisimran Singh on
12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $67.87
Less Accumulated Depreciation on Computer Equipment (721) $67.87
$67.87 $67.87
ID 160 Reversed: Depreciation expense – computer (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019) Reversal of #144
30 Sep
2019
Account Debit Credit
Depreciation (416) $76.42
Less Accumulated Depreciation on Computer Equipment (721) $76.42
$76.42 $76.42
ID 159 Depreciation expense – plastic welding machinery (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $200.00
Less Accumulated Depreciation on Plastic welding machinery (711) $200.00
$200.00 $200.00
ID 158 Reversed: Depreciation expense – plastic welding machinery (Manual Journal:
Posted by Jaisimran Singh on 12 Oct 2019) Reversal of #143
30 Sep
2019
Account Debit Credit
Depreciation (416) $223.38
Less Accumulated Depreciation on Plastic welding machinery (711) $223.38
$223.38 $223.38
BACHELOR OF BUSINESS
Unearned delivery revenue (802) $9,920.00
Sales revenue (200) $9,920.00
$9,920.00 $9,920.00
ID 162 Interest expense accrued on the loan for Building of the Head Office (Manual
Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Interest expense – 8% annually (437) $392.02
Interest payable Northern Bank (809) $392.02
$392.02 $392.02
ID 161 Depreciation expense – computer (Manual Journal: Posted by Jaisimran Singh on
12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $67.87
Less Accumulated Depreciation on Computer Equipment (721) $67.87
$67.87 $67.87
ID 160 Reversed: Depreciation expense – computer (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019) Reversal of #144
30 Sep
2019
Account Debit Credit
Depreciation (416) $76.42
Less Accumulated Depreciation on Computer Equipment (721) $76.42
$76.42 $76.42
ID 159 Depreciation expense – plastic welding machinery (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $200.00
Less Accumulated Depreciation on Plastic welding machinery (711) $200.00
$200.00 $200.00
ID 158 Reversed: Depreciation expense – plastic welding machinery (Manual Journal:
Posted by Jaisimran Singh on 12 Oct 2019) Reversal of #143
30 Sep
2019
Account Debit Credit
Depreciation (416) $223.38
Less Accumulated Depreciation on Plastic welding machinery (711) $223.38
$223.38 $223.38

5
BACHELOR OF BUSINESS
ID 157 Depreciation expense Delivery Van (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $600.00
Accumulated Depreciation – Delivery Van (741) $600.00
$600.00 $600.00
ID 156 Reversed: Depreciation expense Delivery Van (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019) Reversal of #154
30 Sep
2019
Account Debit Credit
Depreciation (416) $666.67
Accumulated Depreciation – Delivery Van (741) $666.67
$666.67 $666.67
ID 155 Depreciation expense Store Building (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $1,250.00
Accumulated Depreciation – Store building (731) $1,250.00
$1,250.00 $1,250.00
ID 154 Depreciation expense Delivery Van (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $666.67
Accumulated Depreciation – Delivery Van (741) $666.67
$666.67 $666.67
ID 153 Warehouse rent expense accrued for September (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Warehouse rent expense (469) $1,100.00
Warehouse rent payable (810) $1,100.00
$1,100.00 $1,100.00
ID 152 Salaries expense accrued for September (Manual Journal: Posted by Jaisimran
Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Salaries expense (477) $12,500.00
Wages Payable - Payroll (804) $12,500.0
BACHELOR OF BUSINESS
ID 157 Depreciation expense Delivery Van (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $600.00
Accumulated Depreciation – Delivery Van (741) $600.00
$600.00 $600.00
ID 156 Reversed: Depreciation expense Delivery Van (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019) Reversal of #154
30 Sep
2019
Account Debit Credit
Depreciation (416) $666.67
Accumulated Depreciation – Delivery Van (741) $666.67
$666.67 $666.67
ID 155 Depreciation expense Store Building (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $1,250.00
Accumulated Depreciation – Store building (731) $1,250.00
$1,250.00 $1,250.00
ID 154 Depreciation expense Delivery Van (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $666.67
Accumulated Depreciation – Delivery Van (741) $666.67
$666.67 $666.67
ID 153 Warehouse rent expense accrued for September (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Warehouse rent expense (469) $1,100.00
Warehouse rent payable (810) $1,100.00
$1,100.00 $1,100.00
ID 152 Salaries expense accrued for September (Manual Journal: Posted by Jaisimran
Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Salaries expense (477) $12,500.00
Wages Payable - Payroll (804) $12,500.0
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BACHELOR OF BUSINESS
0
$12,500.00 $12,500.0
0
ID 151 Estimate of doubtful debts is 10% of Accounts Receivable as at 30th September
(Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Sales revenue (200) $15,165.45
Allowance for Doubtful Debts – 10% (602) $15,165.4
5
$15,165.45 $15,165.4
5
ID 150 Reversed: Estimate of doubtful debts is 10% of Accounts Receivable as at 30th
September (Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019) Reversal of #149
30 Sep
2019
Account Debit Credit
Allowance for Doubtful Debts – 10% (602) $15,165.4
5
Sales revenue (200) $15,165.45
$15,165.45 $15,165.4
5
ID 149 Estimate of doubtful debts is 10% of Accounts Receivable as at 30th September
(Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Allowance for Doubtful Debts – 10% (602) $15,165.45
Sales revenue (200) $15,165.4
5
$15,165.45 $15,165.4
5
ID 148 Provision for warranties is equal to 5% of sales. (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Provision for warranty – 5% (803) $5,358.97
Sales revenue (200) $5,358.97
$5,358.97 $5,358.97
ID 147 Advertising expense amount for the month of September (Manual Journal: Posted
by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Advertising (400) $1,206.00
BACHELOR OF BUSINESS
0
$12,500.00 $12,500.0
0
ID 151 Estimate of doubtful debts is 10% of Accounts Receivable as at 30th September
(Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Sales revenue (200) $15,165.45
Allowance for Doubtful Debts – 10% (602) $15,165.4
5
$15,165.45 $15,165.4
5
ID 150 Reversed: Estimate of doubtful debts is 10% of Accounts Receivable as at 30th
September (Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019) Reversal of #149
30 Sep
2019
Account Debit Credit
Allowance for Doubtful Debts – 10% (602) $15,165.4
5
Sales revenue (200) $15,165.45
$15,165.45 $15,165.4
5
ID 149 Estimate of doubtful debts is 10% of Accounts Receivable as at 30th September
(Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Allowance for Doubtful Debts – 10% (602) $15,165.45
Sales revenue (200) $15,165.4
5
$15,165.45 $15,165.4
5
ID 148 Provision for warranties is equal to 5% of sales. (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Provision for warranty – 5% (803) $5,358.97
Sales revenue (200) $5,358.97
$5,358.97 $5,358.97
ID 147 Advertising expense amount for the month of September (Manual Journal: Posted
by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Advertising (400) $1,206.00
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BACHELOR OF BUSINESS
Prepaid online advertisements (607) $1,206.00
$1,206.00 $1,206.00
ID 146 pay for an invoice for a week’s fuel bill of $385 incl (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Motor Vehicle Expenses (449) $350.00
Apache Petrol businesses debit card (808) $350.00
$350.00 $350.00
ID 145 Interest earned at month end (Manual Journal: Posted by Jaisimran Singh on 12
Oct 2019)
30 Sep
2019
Account Debit Credit
Interest receivable (421) $104.17
Interest Income (270) $104.17
$104.17 $104.17
ID 144 Depreciation expense – computer (Manual Journal: Posted by Jaisimran Singh on
12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $76.42
Less Accumulated Depreciation on Computer Equipment (721) $76.42
$76.42 $76.42
ID 143 Depreciation expense – plastic welding machinery (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $223.38
Less Accumulated Depreciation on Plastic welding machinery (711) $223.38
$223.38 $223.38
ID 142 Office supplies adjustment (Manual Journal: Posted by Jaisimran Singh on 12 Oct
2019)
30 Sep
2019
Account Debit Credit
Office Expenses (453) $430.00
Prepaid miscellaneous office supplies (604) $430.00
$430.00 $430.00
BACHELOR OF BUSINESS
Prepaid online advertisements (607) $1,206.00
$1,206.00 $1,206.00
ID 146 pay for an invoice for a week’s fuel bill of $385 incl (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Motor Vehicle Expenses (449) $350.00
Apache Petrol businesses debit card (808) $350.00
$350.00 $350.00
ID 145 Interest earned at month end (Manual Journal: Posted by Jaisimran Singh on 12
Oct 2019)
30 Sep
2019
Account Debit Credit
Interest receivable (421) $104.17
Interest Income (270) $104.17
$104.17 $104.17
ID 144 Depreciation expense – computer (Manual Journal: Posted by Jaisimran Singh on
12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $76.42
Less Accumulated Depreciation on Computer Equipment (721) $76.42
$76.42 $76.42
ID 143 Depreciation expense – plastic welding machinery (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $223.38
Less Accumulated Depreciation on Plastic welding machinery (711) $223.38
$223.38 $223.38
ID 142 Office supplies adjustment (Manual Journal: Posted by Jaisimran Singh on 12 Oct
2019)
30 Sep
2019
Account Debit Credit
Office Expenses (453) $430.00
Prepaid miscellaneous office supplies (604) $430.00
$430.00 $430.00

8
BACHELOR OF BUSINESS
ID 141 completed 30% of car seat repairs for OohlaMomma during September (Manual
Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned repair revenue (807) $10,440.00
Other Revenue (260) $10,440.0
0
$10,440.00 $10,440.0
0
ID 140 First month of subscription revenue earned from the company featured magazine,
“Mindful Parenting" (Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned subscription revenue (806) $1,524.00
Other Revenue (260) $1,524.00
$1,524.00 $1,524.00
ID 139 Reversed: First month of subscription revenue earned from the company featured
magazine, “Mindful Parenting" (Manual Journal: Posted by Jaisimran Singh on 12
Oct 2019) Reversal of #138
30 Sep
2019
Account Debit Credit
Other Revenue (260) $1,524.00
Unearned subscription revenue (806) $1,524.00
$1,524.00 $1,524.00
ID 138 First month of subscription revenue earned from the company featured magazine,
“Mindful Parenting" (Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Other Revenue (260) $1,524.00
Unearned subscription revenue (806) $1,524.00
$1,524.00 $1,524.00
ID 137 Insurance expense – product liability insurance policy (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Insurance expense – product liability insurance policy (407) $1,733.34
Prepaid product liability insurance policy (603) $1,733.34
$1,733.34 $1,733.34
ID 136 Interest expense – short-term loan (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
BACHELOR OF BUSINESS
ID 141 completed 30% of car seat repairs for OohlaMomma during September (Manual
Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned repair revenue (807) $10,440.00
Other Revenue (260) $10,440.0
0
$10,440.00 $10,440.0
0
ID 140 First month of subscription revenue earned from the company featured magazine,
“Mindful Parenting" (Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned subscription revenue (806) $1,524.00
Other Revenue (260) $1,524.00
$1,524.00 $1,524.00
ID 139 Reversed: First month of subscription revenue earned from the company featured
magazine, “Mindful Parenting" (Manual Journal: Posted by Jaisimran Singh on 12
Oct 2019) Reversal of #138
30 Sep
2019
Account Debit Credit
Other Revenue (260) $1,524.00
Unearned subscription revenue (806) $1,524.00
$1,524.00 $1,524.00
ID 138 First month of subscription revenue earned from the company featured magazine,
“Mindful Parenting" (Manual Journal: Posted by Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Other Revenue (260) $1,524.00
Unearned subscription revenue (806) $1,524.00
$1,524.00 $1,524.00
ID 137 Insurance expense – product liability insurance policy (Manual Journal: Posted by
Jaisimran Singh on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
Insurance expense – product liability insurance policy (407) $1,733.34
Prepaid product liability insurance policy (603) $1,733.34
$1,733.34 $1,733.34
ID 136 Interest expense – short-term loan (Manual Journal: Posted by Jaisimran Singh
on 12 Oct 2019)
30 Sep
2019
Account Debit Credit
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BACHELOR OF BUSINESS
Interest expense (403) $325.00
Interest payable Northern Bank (809) $325.00
$325.00 $325.00
3. Profit and Loss report 1st September 2019 to 30th September 2019:
Profit and Loss
19250946 Jaisimran Singh
1 September 2019 to 30 September 2019
30 Sep 19
Income
Interest Income $104.17
Other Revenue $11,964.00
Sales revenue $4,14,833.3
0
Total Income $4,26,901.4
7
Less Cost of Sales
Cost of Goods Sold $2,08,764.5
1
Total Cost of Sales $2,08,764.5
1
Gross Profit $2,18,136.9
6
Less Operating Expenses
Advertising $1,206.00
Bank Fees $7.00
Depreciation $2,117.87
Fire Insurance expense $1,500.00
Freight & Courier $230.00
Insurance expense – product liability
insurance policy $1,733.34
Interest expense $325.00
Interest expense – 8% annually $392.02
Motor Vehicle Expenses $1,050.00
Office Expenses $430.00
Salaries expense $12,500.00
Telecommunication expense $340.00
Warehouse rent expense $1,100.00
Warranty claims expense $3,850.00
BACHELOR OF BUSINESS
Interest expense (403) $325.00
Interest payable Northern Bank (809) $325.00
$325.00 $325.00
3. Profit and Loss report 1st September 2019 to 30th September 2019:
Profit and Loss
19250946 Jaisimran Singh
1 September 2019 to 30 September 2019
30 Sep 19
Income
Interest Income $104.17
Other Revenue $11,964.00
Sales revenue $4,14,833.3
0
Total Income $4,26,901.4
7
Less Cost of Sales
Cost of Goods Sold $2,08,764.5
1
Total Cost of Sales $2,08,764.5
1
Gross Profit $2,18,136.9
6
Less Operating Expenses
Advertising $1,206.00
Bank Fees $7.00
Depreciation $2,117.87
Fire Insurance expense $1,500.00
Freight & Courier $230.00
Insurance expense – product liability
insurance policy $1,733.34
Interest expense $325.00
Interest expense – 8% annually $392.02
Motor Vehicle Expenses $1,050.00
Office Expenses $430.00
Salaries expense $12,500.00
Telecommunication expense $340.00
Warehouse rent expense $1,100.00
Warranty claims expense $3,850.00
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10
BACHELOR OF BUSINESS
Total Operating Expenses $26,781.23
Net Profit $1,91,355.7
3
4. Balance Sheet Report 30th September:
Balance Sheet
19250946 Jaisimran Singh
As at 30 September 2019
30 Sep 2019
Assets
Current Assets
Accounts Receivable $6,73,553.55
Allowance for Doubtful Debts – 10% -$67,355.36
Cash at bank $4,06,241.43
Higher interest-bearing account $50,000.00
Interest receivable $104.17
Inventory $4,91,439.97
Prepaid Fire insurance $13,500.00
Prepaid miscellaneous office supplies $250.00
Prepaid online advertisements $6,030.00
Prepaid product liability insurance policy $3,466.66
Total Current Assets $15,77,230.4
2
Fixed Assets
Accumulated Depreciation – Delivery Van -$9,000.00
Accumulated Depreciation – Store building -$63,750.00
Computer Equipment $2,500.00
Less Accumulated Depreciation on
Computer Equipment -$67.87
Delivery Van $40,000.00
Plastic welding machinery $46,750.00
Less Accumulated Depreciation on Plastic
welding machinery -$200.00
Store Building $3,50,000.00
Total Fixed Assets $3,66,232.13
Total Assets $19,43,462.5
5
BACHELOR OF BUSINESS
Total Operating Expenses $26,781.23
Net Profit $1,91,355.7
3
4. Balance Sheet Report 30th September:
Balance Sheet
19250946 Jaisimran Singh
As at 30 September 2019
30 Sep 2019
Assets
Current Assets
Accounts Receivable $6,73,553.55
Allowance for Doubtful Debts – 10% -$67,355.36
Cash at bank $4,06,241.43
Higher interest-bearing account $50,000.00
Interest receivable $104.17
Inventory $4,91,439.97
Prepaid Fire insurance $13,500.00
Prepaid miscellaneous office supplies $250.00
Prepaid online advertisements $6,030.00
Prepaid product liability insurance policy $3,466.66
Total Current Assets $15,77,230.4
2
Fixed Assets
Accumulated Depreciation – Delivery Van -$9,000.00
Accumulated Depreciation – Store building -$63,750.00
Computer Equipment $2,500.00
Less Accumulated Depreciation on
Computer Equipment -$67.87
Delivery Van $40,000.00
Plastic welding machinery $46,750.00
Less Accumulated Depreciation on Plastic
welding machinery -$200.00
Store Building $3,50,000.00
Total Fixed Assets $3,66,232.13
Total Assets $19,43,462.5
5

11
BACHELOR OF BUSINESS
Liabilities
Current Liabilities
Accounts Payable $3,72,561.20
Apache Petrol businesses debit card $1,127.70
GST -$62,536.57
Interest payable Northern Bank $717.02
Northern Bank on a short-term loan $52,000.00
Provision for warranty – 5% $20,735.99
Telecommunication payable $340.00
Unearned delivery revenue $14,880.00
Unearned repair revenue $24,360.00
Unearned subscription revenue $16,764.00
Wages Payable - Payroll $12,500.00
Warehouse rent payable $1,100.00
Total Current Liabilities $4,54,549.34
Non-Current Liabilities
Loan payable – Building Head Office $58,802.44
Total Non-Current Liabilities $58,802.44
Total Liabilities $5,13,351.78
Net Assets $14,30,110.7
7
Equity
Capital $7,48,519.97
Current Year Earnings $6,81,590.80
Total Equity $14,30,110.7
7
5. Analysing the financial performance factors:
Particulars Baby products Wesfarmers
Current ratio 3.47 0.87
Quick ratio 2.39 0.27
Debt ratio 0.26 0.38
Net profit margin 44.82% 1.79%
Gross profit
margin 51.10% 31.64%
BACHELOR OF BUSINESS
Liabilities
Current Liabilities
Accounts Payable $3,72,561.20
Apache Petrol businesses debit card $1,127.70
GST -$62,536.57
Interest payable Northern Bank $717.02
Northern Bank on a short-term loan $52,000.00
Provision for warranty – 5% $20,735.99
Telecommunication payable $340.00
Unearned delivery revenue $14,880.00
Unearned repair revenue $24,360.00
Unearned subscription revenue $16,764.00
Wages Payable - Payroll $12,500.00
Warehouse rent payable $1,100.00
Total Current Liabilities $4,54,549.34
Non-Current Liabilities
Loan payable – Building Head Office $58,802.44
Total Non-Current Liabilities $58,802.44
Total Liabilities $5,13,351.78
Net Assets $14,30,110.7
7
Equity
Capital $7,48,519.97
Current Year Earnings $6,81,590.80
Total Equity $14,30,110.7
7
5. Analysing the financial performance factors:
Particulars Baby products Wesfarmers
Current ratio 3.47 0.87
Quick ratio 2.39 0.27
Debt ratio 0.26 0.38
Net profit margin 44.82% 1.79%
Gross profit
margin 51.10% 31.64%
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