FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONOURS.)

RETAIL MANAGEMENT

ACC 406

INTERMEDIATE FINANCIAL ACCOUNTING AND REPORTING

GROUP PROJECT

(REPORT OF FINANCIAL STATEMENT OF PARTNERSHIP: SYARIKAT ZAM ZAMI)

SEPTEMBER 2018 – JANUARY 2019

LECTURER’S NAME:

MADAM ROSLINA BINTI RAHIM

PREPARED BY:

1. MUHD IZZUL HAFIZ BIN JAMALIE

2. MUHAMMAD FAKHRUL EZZAT BIN MUSTAPAH
3. KHAIRUL FAIZIE BIN MOHD ARSAD
4. ARMIN BIN MANDANGAN

SUBMISSION DATE:

12 DECEMBER 2018

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TABLE OF CONTENT

NO. CONTENT PAGE

1.0 Acknowledgement 3

2.0 Introduction 4

3.0 Organizations Background 5

4.0 Classification of Business Item 6-9

4.1 Explanation on Business Item
5.0 Business characteristics 10-11

6.0 Recording Process of Business 12-13

7.0 The Strength and Weaknesses of Visited Business 14-15

7.1 Business Strength
7.2 Business Weaknesses
8.0 Conclusion 16

9.0 References 17

10.0 Appendices 18-22

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1.0 ACKNOWLEDGEMENT

Assalamualaikum, first of all we want to say that we are deeply indebted to many people
who provide outstanding guidance and support along the journey to complete our assignment.
It is such an honour to get involve in many setting and situation with all. Special thanks to our
beloved lecturer Madam Roslina Abdul Rahim for the opportunity to complete the task given
by preparing the guideline to make us more clearly in our assignment.

We also not forget to thank to our parents for encouragement and support to complete
our assignment. Without their support and dua’, we might unable to complete the task within
the time given. Furthermore, thanks to my teammate, Muhd Izzul Hafiz Bin Jamalie, Fakhrul
Ezzat Bin Mustapah, Khairul Faizie Bin Mohd Arsad and Armin Bin Mandangan. Who help
to assemble the parts and gave suggestion about the task and very cooperative in helping to
prepare the group assignment project .We would also like to acknowledge with much
appreciation to the owner of Company Zam Zami, Mrs Norafizah Binti Tambee Kasa who gave
us permission to interview and visit their site.

Last but not least, many thanks go to all my friends who is involved whose have
invested their full effort in guiding the team in achieving the goals of our group assignment.

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2.0 INTRODUCTION

Syarikat Zam Zami, A shop that sell clothes as a based item and many other. The aim
of the shop is to deliver an Islamic version of clothes to the muslim at that particular area while
selling other clothes as well. Syarikat Zam Zami is the sole proprietorship company. The owner
is Norafizah Binti Tambee Kasa. The business was established on June 25, 2011 with a
RM10000 as a capital. They offer different varieties of item in their shop such as clothes,
handbag, scarves, cosmetic item and Quran verse.

The operating location of Syarikat Zam Zami located in the Emart Batu Kawa, Shop
No.86B, Lot 6369, Block 225, KNLD, 93250 Kuching,Sarawak. They also have another branch
of shop at Majma Mall located at the centre of Kuching City. The owner opened the shop at
that area to deliver their based item, it is Islamic version of clothes to the muslim community
at that area. The aim of the company is to help the muslim at that area to get an Islamic version
of clothes. In addition, they express their promotion by using social media such as Whats App,
Facebook, and Instagram. This is because people nowadays usually use social media to find
information especially about item like clothes.

They service for the customer is the most important thing for them. They also have
cash-on-delivery service for the customer that buys more than 15 pairs of clothes from them.
It is to gain a convenience service of the company to attract people from other region of the
state to buy from them.

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3.0 ORGANIZATION BACKGROUND

Name of Business Syarikat Zam Zami

Owner Norafizah Binti Tambee Kasa

Location Emart Batu Kawa, Shop No.86B, Lot 6369,

Block 225, KNLD, 93250 Kuching,
Sarawak
Syarikat Zam Zami
Owner’s Capital

Type of Business Sole Proprietorship

Sells Item:
 Clothes
Business Activity  Scarves
 Bag
 Framed Quran verse
 Cosmetic item
There are two (2) branches of this shop:
Branches  Emart
 Majma Mall

Number of employee 3 persons

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4.0 CLASSIFICATION OF BUSINESS ITEM

Assets Liabilities Drawing Capital Revenue Expenses

Cash in Account RM 10,000 Sales Electricity

bank payable and water

Cash in Salary
hand expenses

Furniture

Vehicle

Account
receivable

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4.1 EXPLANATION ON BUSINESS ITEMS

Assets
Assets are sometimes defined as resources or things of value that are owned by a
company. Some examples of assets which are obvious and will be reported on a company's
balance sheet such as cash, accounts receivable, inventory, investments, land, buildings, and
equipment. In addition, a company's balance sheet will also report prepaid expenses as an asset.

There are two types of assets:

 Non-current assets
 Current assets

 Non-current assets divided into three categories:

a) Tangible non-current assets: have physical substance such as Land and Building,
Machinery, Office Equipment, Furniture, etc
b) Intangible non-current assets: with no physical substance such as Franchise, Goodwill,
Patent, Trademark, etc
c) Investment: sum of money placed in other organisations in hope to get more money in
returns. Example, Quoted and Unquoted Investment and Fixed Deposit (More Than 1
Year)

 Current assets
Assets that are either cash or can be converted into cash within one year. These assets
constantly change their form during an accounting period. Example, Inventory or Stock,
Accounts Receivable or Debtors, Cash at Bank and Cash in Hand

Liabilities

Defined as funds supplied by external parties to the business of the acquisition of assets.
It is therefore the financial obligations of the business to external parties. There are 2 types of
abilities:

 Non-current liabilities
Amount owed by the business that are not repaid within one year. Examples, long term
loans, mortgages on premises and debentures.

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  Current liabilities
Amount owed by the business that are to be paid within a year. Examples, short-term
loans, bank Overdrafts, creditors or accounts payable.

THE FORMULA

ASSETS = EQUITIES
ASSETS = CAPITAL + LIABILITIES

A=C+L
C=A–L
L=A–C

Drawing

Drawings can occur by withdrawing cash from a business account, but can also include
anything that is considered a business asset, such as products or equipment that is removed
from the business for personal use by the owners.

Any type of drawings reduces the capital or owner’s equity of a business, so it is

important to keep track of these drawings and manage them within your accounts. However,
drawings are not considered a business expense.

Capital

Also known as net assets or equity, capital refers to what is left to the owners after all
liabilities are settled. Simply stated, capital is equal to total assets minus total liabilities. Capital
is affected by the following:

1. Initial and additional contributions of owner/s (investments),

2. Withdrawals made by owner/s (dividends for corporations),

3. Income, and

4. Expenses.

Owner contributions and income increase capital. Withdrawals and

expenses decrease it.

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 The terms used to refer to a company's capital portion varies according to the form of
ownership.

Revenues

Defined as fees earned from providing services and the amounts of merchandise sold.
Under the accrual basis of accounting, revenues are recorded at the time of delivering the
service or the merchandise, even if cash is not received at the time of delivery. Often the term
income is used instead of revenues.

Examples of revenue accounts include sales, service revenues, fees earned, interest
revenue, interest income. Revenue accounts are credited when services are performed/billed
and therefore will usually have credit balances. At the time that a revenue account is credited,
the account debited might be cash, accounts receivable, or unearned revenue depending if cash
was received at the time of the service, if the customer was billed at the time of the service and
will pay later, or if the customer had paid in advance of the service being performed.

Expense

Expenses are decreases in economic benefit during the accounting period in the form
of a decrease in asset or an increase in liability that result in decrease in equity, other than
distribution to owners.

Expenses include ordinary expenses such as Cost of Sales, Advertising Expense, Rent
Expense, Salaries Expense, Income Tax, Repairs Expense, etc.; and losses such as Loss from
Fire, Typhoon Loss, and Loss from Theft. Like income, expenses are also measured every
period and then closed as part of capital. Net income refers to all income minus all expenses.

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5.0 BUSINESS CHARACTERISTICS

Syarikat Zam Zami is one of the company that were forms as a sole proprietorship
company. A sole proprietorship is also known as sole trader or a proprietorship, is an
unincorporated business with a single owner who pays personal income tax on profits earned
from the business. A sole proprietorship is the simplest business to set up or take apart. Many
of sole proprietor do business under their own names because creating a separate business or
trade name isn’t necessary. The capital was contributed by the owner and one of the owner has
completely control and manage for the business. Puan Norafizah Binti Tambee Kasa and his
husband use his own to open this company. The amount of capital that they spent starting up
this company is about RM10,000.

Syarikat Zam Zami is located at 98, Emart Batu Kawa Shopping Mall, 4th Mile, Shop
No.86B, Lot 6369, Block 225, KNLD, Jalan Batu Kawa, Kuching, Sarawak, 93250. Nearby
the Syarikat Zam Zami theres a lot of resources that can be founded such as shopping malls,
banks and also hotels. This company is owned by Puan Norafizah Binti Tambee and her
husband and in my point of view this Syarikat Zam Zami has potrayed a good examples in
entrepreneurship skills. They take a numerous steps to develop the right of combination of
skills, traits, knowledge in order to become a good entrepreneur and also to attract more
customers to know their company as well. As the owner of the company the presence of
entrepreneur is a essential part in any of business as it can help to develop business potential
and also improve the business profit.

This Syarikat Zam Zami also have internet or online business. The rapid evolving world
around us has change the way of business operated as our technology is modern now. Puan
Norafizah told that Syarikat Zam Zami has used this kind of platform to show the customers
that their Syarikat has sell a variety of product. And to make sure all the customers are easy to
find them they also create a facebook page about their company to attract more customers to
know their operated company and using whatsapp app also can contact with their customers
easily and in fastest way. Having this kind of platform making their business going easily and
smoothly as in this era of globalization this kind of platform are very important to further more
their business.

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 Platform use by Syarikat Zam Zami to promote their product or goods

Syarikat Zam Zami also sell a variety type of product. Not just clothes, but also the
owner of this company which is Puan Norafizah also sell scarves, bag, framed quran verse and
also cosmetic item. A variety type of product can attract more her customer to buy her stuff.
Puan Norafizah who also the owner of this company has open another branches at Emart and
also Majma Mall. Open another branches can give more profit to her in other to attract more
customer come to her company’s branches.

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6.0 RECORDING PROCESS

STEP 1
SOURCE
DOCUMENT
STEP 7 STEP 2
FINAL JOURNAL
ACCOUNT ENTRY

STEP 6 STEP 3
CLOSING GENERAL
ENTRIES LEDGER

STEP 5 STEP 4
ACCOUNTING TRIAL
ADJUSTMENT BALANCE

The accounting process is a series of activities that begins with a source document or
transaction and ends with the final account. This process is repeated each reporting period, it
is referred to as the accounting cycle. The steps begins with source document, journal, ledgers,
trial balance adjustment, closing account and final account.

The first process is source document, source documents are the physical basis upon
which business transaction are recorded. Source documents are typically retained for use as
evidence when auditors later review a company’s financial statements, and need to verify that
transactions have, in fact, occurred. The source documents usually records the description of a

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business transaction, the date of the transaction, a specific amount of money, and the
authorizing signature. However nowadays, the source documents can be recorded using an
electronic format. Puan Norafizah the company owner records the transaction using a computer
which is in electronic format. As an example, she records the transaction of buying a furniture
using an electronic format.

The next process, after the recording of all the transactions. Puan Norafizah needs to
transfer the records into a journal entry. Journal entry consists of a several recordings, each of
which is either a debit or a credit. The total debit is need to be equal as the total of the credit.
If the total of debit is not equal to the total of credit, it will be known as ‘unbalanced’

After that, Puan Norafizah posts the journal to a ledge or a general ledger. A Ledger or
a general ledger account is an account or record used to sort and store balance sheet and income
statement transactions. Examples of general ledger accounts include the asset accounts such as
Cash, Account Receivable, Inventory, Investments, Land, and Equipment.

After she posts it into a general ledger, the next step is the trial balance. A trial
balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit
and credit account column totals that are equal. A company prepares atrial balance periodically,
usually at the end of every reporting period. According to Puan Norafizah, the company records
their trial balance monthly.

After the trial balance, an accounting adjustment is a business transaction that has not
yet been included in the accounting records of a business as of a specific date. Most
transactions are recorded through the records of a supplier invoice, a customer billing, or the
receipt of cash.

The sixth process in the accounting process is the closing entries. Closing entries are
journal entries made at the end of an accounting period which transfer the balances of
temporary accounts to permanent accounts. Closing entries are based on the account balances
in an adjusted trial balance. Temporary accounts including the Revenue, Income and
Gain Accounts.

The last process is the final accounting. Final accounts is a somewhat archaic
bookkeeping term that refers to the final trial balance at the end of an accounting period from
which the financial statements are derived. This final trial balance includes all of the journal
entries used to close the books, such as: Wage and payroll tax accruals

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7.0 THE STRENGHT AND WEAKNESSES OF VISITED COMPANY

7.1 COMPANY STRENGHT

This shop is the only shop lot that sell Islamic type of clothes and verse in the building.
This area got a very small population of muslim community. That is the reason why majority
of muslim in this area go to this shop to buy the item that is needed for them to fulfil their
obligation for example buying the scarves and anything needed.

This shop got a variety of item to sell such as scarves, bag, and cosmetics item. They
not just depend on Islamic item to give them profit. So, the risk of getting loss can be decrease
because there are a lot of other item that can be choose and buy by the consumer to give them
a profit.

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7.0 THE STRENGHT AND WEAKNESSES OF VISITED COMPANY

7.2 WEAKNESSES BUSINESS

They are known to sell an Islamic item but this area is not majority muslim. So, they
need to attract muslim people from outside the area also in order to get a higher profit for the
shop. So they need to have more effort to make their shop popular.

In the building they rent the shop lot, there are many shops that also sell the clothes
and variety thing. There are many competitor need to be compete to survive in this business
especially at this area.

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8.0 CONCLUSION

According to information collected, we believe that Syarikat Zam Zami has a high
potential to expand their market to another state or country. This is because the service and
their product item is good and get high demand in many region.

After assessing the above facts, it is clear that Syarikat Zam Zami possesses good
marketing strategies. This company also has been applying the good strategies to achieve the
consumer wants and needs. Next, it has a good relationship with customer to maintain their
relation with new customer.

To sustain in a very highly competitive marketing world. Syarikat Zam Zami should
continue to keep revising its vision and mission. Manage the strategies and a plan to make a
new product promotion.

We hope that Syarikat Zam Zami can achieve their objective and become the number
one retailing company of Islamic clothes in Malaysia. Last but not least, we wish all the best
to Syarikat Zam Zami to achieve their golas. May their goals comes true one fine day.

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9.0 REFERENCE

1. Fatimah Abd Rauf, Amla Abu, Radziah Mahmud (2017), Financial Accounting
for Non - accounting Student. Kuala Lumpur, Malaysia; McGraw-Hill Education
(Malaysia) Sdn Bhd.

2. Accounting Cycle – 8 steps in the Accounting Cycle |Diagram, Guide, (n.d).

Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/accounting/accounting-
cycle/

3. Syarikat Zam Zami http://www.syarikatzamzami.com/

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10.0 APPENDIX

BAJU YANG DIJUAL OLEH SYARIKAT ZAM ZAMI

BEG YANG DIJUAL OLEH SYARIKAT ZAM ZAMI

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BARANGAN KOSMETIK YANG DIJUAL OLEH SYARIKAT ZAM ZAMI

BAJU YANG DIJUAL OLEH SYARIKAT ZAM ZAMI

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BINGKAI SERTA AYAT SUCI AL-QURAN YANG DIJUAL OLEH SYARIKAT ZAM ZAMI

PINTU DEPAN KEDAI SYARIKAT ZAM ZAMI

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QUESTIONAIRE
Can you briefly explain about your business?

Company’s name : ______________________________________________

Date of incorporation : ______________________________________________
Capital : ______________________________________________
Business Address : ______________________________________________

1. What is your business focus?

_____________________________________________________________________
_____________________________________________________________________

2. How long has you involve in business? And how many employee do you have?
_____________________________________________________________________
_____________________________________________________________________

3. Does your company do online business? Which platform do you use?

_____________________________________________________________________
_____________________________________________________________________

4. What marketing channels do you use to promote your business?

Lazada [ ] Shopee [ ] Facebook [ ]

Instagram [ ] None [ ]

5. Do you buy a cash or loan?

_____________________________________________________________________
_____________________________________________________________________

6. Can you explain on how recording process of your business?

_____________________________________________________________________
_____________________________________________________________________

7. What make your business different from others?

_____________________________________________________________________
_____________________________________________________________________

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8. What kind of account do you maintain in bank?
a) Current [ ]
b) Savings [ ]
c) Loan [ ]
d) Credit card [ ]

9. Which type of account do you have in this particular bank?

a) Saving account [ ] c) Loan account [ ]
b) Fixed account [ ] d) Current account [ ]

10. How much capital is used to open this business?

_____________________________________________________________________
_____________________________________________________________________

11. Do you have a side income

_____________________________________________________________________
_____________________________________________________________________

12. How much assets?

_____________________________________________________________________
_____________________________________________________________________

13. Do you or any of your employee have the basic in accounting?

_____________________________________________________________________
_____________________________________________________________________

14. What the type of business? Sole proprietorship or partnership?

_____________________________________________________________________
_____________________________________________________________________

15. How much is the average profit?

_____________________________________________________________________
_____________________________________________________________________

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