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Errol Anderson is going to set up a business repairing and servicing cars. However, he’s uncertain whether to choose: Business Case Study, AU, UK
University | Arden University (AU) |
Subject | Business |
Part A
Errol Anderson is going to set up a business repairing and servicing cars. However, he’s uncertain whether to choose a sole trader business or a partnership, also, he does not know about the steps for starting a business. He wants you to consult him on the following matters.
- Explain the advantages and disadvantages of each type in detail
- Provide 5 steps for starting a new business.
Part B
Kavan is a trader dealing in electronic goods who commenced his business in 2018. For the following transactions that took place in the month of March 2021, pass journal entries.
- 01/03 – Purchased goods from Y and Co. on credit £60,000
- 02/03 – Sold goods to D and Co. on credit £30,000
- 03/03 – Paid Y and Co. through a bank. £58,000
- 04/03 – D and Co. accepted a bill drawn by Kavan £30,000
- 05/03 – Sold goods to L on credit £20,000
- 06/03 – Sold goods to M on credit £40,000
- 07/03 – Received a cheque from M and deposited the same to the bank £39,000
- 08/03 – Goods returned to Y and Co. £2,000
- 09/03 – L became insolvent and only 90p per pound is received by cash in the final settlement
- 10/03 – Goods returned by M £1,000
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