Introduction
Mukesh grew up in pune, helping his father at their Small neighborhood
grocery store after School. The store was opened in 2002 Serving the local
community with fresh produce and daily essentials. Mukesh often watched
his father intract warmly with customers, earning their trust over the years.
Mukesh decided to take over the family business after completing his class
12th. He stepped in to the business full time with the knowledge he gained
during his education and by observing his father. Mukesh introduced new
ideas to the business by buying new inventories, machines and adding new
capital. He added home delivery. Services and stocked trending items.
Objectives of the Project
7 Understanding Sole Proprietorship – To Learn the concept, features. And
Legal Structure of a sole proprietorship business.
2) Financial Management – To study how finances, including profits, expenses
and investments are managed by the proprietor
3) Identifying challenges.
To explore the challenges faced by Sale proprietors, Such as competition,
resources limitations and operational workload.
Learning Practical applications – To connect theoretical knowledge of
accountancy with real world business practices.
Need and Purpose
To learn the fundamental structure and functioning of a Sole proprietorship
business.
To apply the critical accounting concepts to real life business operations.
- To Understand the financial and operational challenges faced by Sole
proprietors.
To Understand how a sole proprietor make decisions related to investments
and pricing.
To know how a sole proprietor manages finances, inventory and Customers.
Questionnaire
What inspired you to start your grocery store as a Proprietor?
I continued the business as a sole proprietor for Independence and direct
control over decisions. It allows me to work closely with the customers.
How do you manage day to day operations of your grocery store?
I look after inventory, Check Stock levels, placing orders Updating prices and
ensuring cleanliness. I also intract and resolve customer complaints to
ensure smooth operations.
What are the key challenges you face in ruming business 2 The biggest
challenges are managing competition from Large Supermakets, fluctuating
market prices and rising Operational costs.
What strategies do you use to attract and retain customers?
To attract customers, I focus on affordable pricing, offering discounts,
maintain cleanliness and hired friendly staff. We keep fresh produce as our
priority. In order to retain customers.
Sole Proprietorship
A Sole proprietorship is a types of business structure that is owned, managed
and operated by a single individual. It is one of the simplest and most
common forms of business ownership. This type of business is not a
Separate legal entity meaning the owner and the business are considered as
same entity for legal purpose.
Features
Single Ownership – The business is fully owned by one person.
No Separate Legal entity – Legally the owner and the business are the
same and owner is hence liable for all debts.
• Unlimited liability
The Owner is liable for all debts and obligation of business. If business incurs
losses, creditors can Claim the owner’s personal assets.
Journal
A Journal is the primary book of accounting where business transactions are
recorded in chronological order. Each entry includes the date, accounts
involved, amount debited and credited and a brief description of the
transactions. The journal also known as the “book of original entry” ensures
every financial event is systematically documented before. Being posted to
the ledger. Journals are essential for maintaining accurate records,
identifying errors. Financial Statements.
Features
Provides Accounting data in chronological order
2 Reduces the possibility of errors
3) It records both aspects of a transaction
“ Simple Summarization of transactions.
And
Preparing
Trial Balance of Mukesh as on 30 April 2023
Name of Accounts
Cash A/c
60000
Capital A/c
1500000
Bank A/c
101000
Machinery A/c
1025000
Furniture A/c
250000
Purchases A/c
237500
Sales A/c
250000
Naresh [Creditor]
45000
Rebate Allowed A/c
1500
Garg Bros [Debtor]
73500
Return outwards A/C
5000
Drawings A/C
25000
Salaries A/c
25000
Interest Received A/C
1000
Stationery a/c
2500
