ACCOUNTING, BUSINESS AND SOCIETY ASSIGNMENT

Students will create their own business and account for their business operations. Business ideas and accounting knowledge for a partnership business is the fundamental part of the assessment. In addition, students are required to use the set of technical skills including the use of accounting application MYOB to record for their business transactions and Excel spreadsheet to prepare for NCA’ s Depreciation Schedule. The successful completion of this task will demonstrate that students have a strong understanding of business concepts and accounting principles applied in real business context, as well as the ability to use the computer accounting system.

1.Demonstrate the process of recording economic events in accounting information system

2.Identify and address the practical issues in accounting for assets.

PART A:Introducing Business and Partners

ABOUT BUSINESS                                                  

• What is the name of the business & where is it located?
• Describe the business in E.g.: What is the business engaged in? Are you selling a product or providing a service? What product/s or what services?
• Who are its expected customers or clients? (Target market).
• What strategies would you do to attract customers to your business?
• What strengths do you have over your competition? Why would potential clients or customers choose your business instead of one of your competitors?
• What are major plans for business development in future?

 ABOUT PARTNERS                                                

• Introduce the partner: Who are they? What were they doing before forming the partnership?
• Why/How did you come up with this business idea?
• What are partners’ capital contributions (Cash/Car/Equipment/etc...)? (using a table)
• Recording Each partner’s capital contribution (a table for journal entries)
• What else can they contribute into the business apart from their Capital? How will they use their knowledge/background/experience to help the business?
• Partnership How are profits and losses to be shared etc.?

(Partnership agreement template may be downloaded from the Internet. Just change names etc. and delete unwanted sections. Using Referencing & Keep it short with 2 pages only.)

 Commencement of Business                                       

• Write a narrative: What date did business commence? (It will be at least a month after the partnership agreement is signed). Anything interesting at start?
• Prepare a trial balance showing all accounts & their beginning balance on the day of business commencement (using the format given below & make up different amount & more accounts to be used in your business).