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FINC101 Assignment 1
FINC101 Assignment 1
Group 17
Viraj Sheth
Sanchit Khanna
Brand: - Sneak Store
Type of business: - Trading business
What we are selling and purchasing: - Sneakers
Part- 1
Justification for selecting this business- Sneakers in the current times is one of
the most trending things in the Gen-z. It is turning out to be a profitable
business in the current times and it also requires less amount of money to start
the business compared to manufacturing and service type of business.
We plan to start this business in a metropolitan city like Mumbai as the demand
of sneakers is more there. Then we also plan to sell and purchase sneakers
online as well by developing a website and a social media profile.
The ways we plan to raise funds for starting our business are: -
Self-Finance and Loans from Bank.
Funding Plans
Requirements Amount (Rs)
1. 50% partnership from both partners. 6,00,000
(3,00,000+ 3,00,000)
2. Mall rent for a showroom per month 1,25,000
3. Initial Sneaker purchase amount 1,00,000
4. Showroom Expenses 2,00,000
5. Employee (2 people) 20,000
6. Bank Loan required 10,00,000
7. Website charges and IT handler 5,000
The ground work to be kept ready before beginning the business is showroom
and sneakers.
Part-2
Positional Statement of Sneak Store on the first day of starting business
(1/12/2021)
Positional Statement
Source of Funds Amount (Rs.)
Capital A/c 6,00,000
Loan from Bank 10,00,000
Total 16,00,000
Assets
Bank A/c 16,00,000
Cash A/c 10,00,000
Total 16,00,000
Date Transactions
1st Business started with a capital of 6,00,000 from the owners and loan
of 10,00,000 from HDFC bank.
3rd Initial Sneaker purchase 1,00,000 with Cheque
5th Mall rent paid 1,25,000 with Cash
7th Paid Showroom Expenses 2,00,000 with Cheque
25th Paid salary to employees 20,000 with Cash
29th Paid to IT handler and Website charges 5,000 with Cash
Journal
Journal of Sneak Store for December 2021
Date Particulars L.F Amount(Dr.) Amount(Cr.)
Dec2021
1st Cash A/c..........................Dr. 6,00,000
To Viraj’s Capital A/c 3,00,000
To Sanchit’s Capital A/c 3,00,000
(Being business commenced)
Rent A/c
5th To cash A/c 1,25,000 5th By bal c/d 1,25,000
Salary A/c
25th To cash a/c 25,000 25th By bal c/d 25,000
Profit & Loss A/c for period ended 31st December 2021
Particulars Amount Particulars Amount
To Gross Loss 1,00,000 By Gross Loss 1,00,000
To Rent A/c 1,25,000
To Salary A/c 25,000
To Showroom 2,00,000
Expenses
Balance Sheet
Particulars Amount Particulars Amount
Current Liabilities Current Assets
Cash A/c 4,50,000
Bank A/c 7,00,000
Long Term Borrowing
Loan From HDFC Bank 10,00,000
Fixed Assets
Showroom Expenses 2,00,000
Capital A/c
Viraj’s Capital A/c 3,00,000
Sanchit’s Capital A/c 3,00,000
Less Net Loss -1,00,000
1,50,000 1,50,000