STARTING UP A BUSINESS 2
A hobby is a great source of a business idea. Therefore, it would be simpler for one to turn such a hobby into a business venture. This paper will elaborate on such a business idea and how it will be operated.
I’ve always had an interest in selling sunglasses and have made a decision to turn this into a business venture. This is due to a gap in the current market such that it is hard to get a store that sells a variety of sunglasses for all ages, designs and even custom-made designs. Hence, it would be good to specialise in this product line. I purpose to ...view middle of the document...
STARTING UP A BUSINESS 3
Chart of Account
To easily define each entry items, I designed the following chart of accounts for the business. Having a chart of accounts will assistance in organizing each financial entry and interested parties will have a better understanding the financial health of the business.
|SEE B’YOND THE SUN |
|CHART OF ACCOUNTS |
| | | |
|ASSETS | |EQUITY |
|Account number 001-020 | |Account number 021-030 |
|001 Furniture and fittings | |021 Owners capital |
|002 Motor cycle | |022 Retained earnings |
|003 Cash balance | | |
|004 Inventory balance | |REVNUE |
| | |Account number 051-100 |
|005 Debtors | |051 Sales of product no. 100 |
| | |052 Sales of product no. 200 |
|LIABILITIES | |053 Sales of product no. 300 |
|Account number 031-050 | | |
|031 Bank loan | | |
|032 Creditors | |EXPENSES |
| | |Account number101-150 |
| | |101 Office rent expense |