FINANCIAL

ACCOUNTING

FOR MANAGERS

Under the guidance of

Dr. Aparna R Hawaldar

Associate Professor

Submitted by

Abil M S (2027317)

Rajasree Rajan (2027349)

Akhila K Sunil (2027350)

INTRODUCTION

Tony and Thomas were school friends. Tony is working in an MNC, and Thomas is
working in a bakery. Both are hardworking. Tony is having a stressful work life and wishes
to leave his career to fulfill his dreams of entering into business. Thomas also wishes to start
a bakery of his own someday, but he did not have enough funds in hand.

When both friends met after six years, they discussed their ideas about putting up a
business. Tony was pleased to hear Thomas’s plan. He agreed to invest in his friend’s bakery.
They made it clear that they wouldn’t give up on quality and hygiene. They planned on
taking place for their bakery on rent. They also decided to focus on digital marketing to
extend their sales.

The following transactions occurred in the business:-

Particulars Amount

1 Commenced business with cash 10,000

2 Issued shares to a friend for cash 50,000
3 Leased a Computer on a monthly basis 1,250
4 Received Bank Loan 1,00,000
5 Paid Rent Deposit 16,000
6 Purchased Machinery for cash :
Convection oven 30,000
Refrigerator 22,500
Dough Mixers 23,500 76,000
7 Purchased furniture and fittings for cash :
Display cases 3,500
Tiltered Shelfs 3,942
Storage racks 4,500
Utensils 3,500
Chairs, tables and decorative materials 4,500 19,942
8 Safety measures and hygiene equipment :
masks, gloves, sponges, scrubs 900
Sanitisers 1,000
Thermometers 1,200
Cleaning chemicals 900 4,000

9 Purchased Supplies from vendor; Received a Trade discount of 10%, 6,740

paid 4,500 674.0 6,066
10 Received an advance for an order of a wedding cake due in April 3,500
11 Sale of confectionaries - pasta, pizza and breads 35,000
12 Rented an Online site for the bakery on a monthly basis 1,200
13 Drawings for personal use 1,500
14 Advertisement expenses 900
15 Received cash for a party order via online site 7,750
16 Paid rent 8,000
17 Paid interest on Bank loan 750
18 Salaries paid to Staff
Part-time Waiter 4,000
Rachel 7,000 11,000
19 Paid for Utilities
Electricity 1,300
Gas 1,100
Telephone 300 2,700
20 Paid Dividend 1,300

Note: Closing stock of supplies 3,615

Tax at 25%