Liquidity and Profitability Business Management †MyAssignmenthelp.com

Question: Discuss about the Liquidity and Profitability Business Management. Answer: Introduction In the given case, there is a sole proprietorship business at Kota Kinabalu area. The business is dealing in the groceries item. As an owner, different business requirements and the source of business is required. The bried description of the business, its products/services, location/address has been given. Besides that, the manpower it employs and the detailed source and types of documentation that is required in cost of goods sold, sales, payment and receipts have been shown. A detailed report of these have been given below(Alexander, 2016). The name of the grocery store will be A Z Grocery Store and the main reason for selecting such a name for the business is that all the types of the grocery material would be available at the store be it food material or fruits or vegetables. It also consists of frozen food, stationery, bakery items, health and beauty products, beer, wine and liquor, baby care products, dried food items, cosmetics, diet foods, etc(Goldmann, 2016). The business is located in Kota Kinabalu area of Malaysia. It is the capital of Sabah state which is the northern part of Borneo Island. The shop is situated in the middle of the market which is assessible to the people residing all around the city. The shop is open 6 days a week from Thursday to Tuesday and half a day on Wednesday. Full address of the shop is mentioned below: Payment to workers: Documentation There are 2 workers who are being employed in the shop. They are being paid RM 1200 per month towards the end of every month. The main documentation which is required at the point of time of payment of salaries is the Salary slip, the format of which is mentioned below. Besides this, all the details pertaining to a particular employee is already being maintained in the master file as to the no. of days of attendance, the salary package, the family details, the identity card, etc. The payment is done through cash or bank as per the convenience. There are various types of transactions which happen during the course of the business. Some of these are cash or credit prurchases, return outwards and inwards, carriage inwards and outwards, insurance, cash and credit sales, payment to creditors and other 3rd party vendors, receipts from the debtors and revenue recognition. There are numerous other transactions which cannot be limited to a fixed number. The documentation required for the following mainly include the invoices for sale to customers, credit and debit notes, bills for all the types of expenses, payment voucher for vendors, bill of entry in the of imports and exports, etc. Some of these are shown below. The month which has been considered here for the purpose of the documentation is March. References Alexander, F. (2016). The Changing Face of Accountability. The Journal of Higher Education, 71(4), 411-431. Goldmann, K. (2016). Financial Liquidity and Profitability Management in Practice of Polish Business. Financial Environment and Business Development, 4, 103-112. Retrieved from https://doi.org/10.1007/978-3-319-39919-5_9