You inet a person who is an entrepreneur and operating some business in Dhaka city including...

   

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You inet a person who is an entrepreneur and operating some business in Dhaka city including grocery, supply construction workers, a repair service workshop for fridges, washing machines. and an air cooler since 2010. He has been doing good and changed his life with a nice car, big flats, and settling his dependents in Canada. After hearing his story, you understand that he does all the accounting works by himself and he is reluctant to hire an accountant to organize his business. To have some insights into his accounting system, you asked him how much profit did you make so far?. He replied that I started the business with TK. 100, 000. Now I have 22500 square feet flat at Aftab Nagar, a car costing Tk. 22,50,000, I settled my dependence in Canada costing 40,00,000, and also I have 50,00,000 cash in the bank. Sum all these up and deduct 1. 00,000 of my initial investment and the difference is my profit. His success makes him blind and he believes that keeping an accountant is just wasting money! Now, you asked him which business is more profitable and which one is the worst performer? How do you pay tax to the government? And, how do you pay your employees' pension? He kept silent and could not answer the questions. As an accounting student, how do you convince him of the need for accounting for his business? If he requests you to design an accounting system for his business, how do you do that? Instruction: 1. You should answer the questions from the view of accounting and must do some research on the uses of accounting. 2. You should develop a chart of accounts assuming the necessary accounts that may be maintained by the business. 3. You should develop a framework for the analysis of accounting information on performance based on different financial statements. You inet a person who is an entrepreneur and operating some business in Dhaka city including grocery, supply construction workers, a repair service workshop for fridges, washing machines. and an air cooler since 2010. He has been doing good and changed his life with a nice car, big flats, and settling his dependents in Canada. After hearing his story, you understand that he does all the accounting works by himself and he is reluctant to hire an accountant to organize his business. To have some insights into his accounting system, you asked him how much profit did you make so far?. He replied that I started the business with TK. 100, 000. Now I have 22500 square feet flat at Aftab Nagar, a car costing Tk. 22,50,000, I settled my dependence in Canada costing 40,00,000, and also I have 50,00,000 cash in the bank. Sum all these up and deduct 1. 00,000 of my initial investment and the difference is my profit. His success makes him blind and he believes that keeping an accountant is just wasting money! Now, you asked him which business is more profitable and which one is the worst performer? How do you pay tax to the government? And, how do you pay your employees' pension? He kept silent and could not answer the questions. As an accounting student, how do you convince him of the need for accounting for his business? If he requests you to design an accounting system for his business, how do you do that? Instruction: 1. You should answer the questions from the view of accounting and must do some research on the uses of accounting. 2. You should develop a chart of accounts assuming the necessary accounts that may be maintained by the business. 3. You should develop a framework for the analysis of accounting information on performance based on different financial statements.

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First of all it is important to stress the importance of accounting for any business no matter how small or large it may be Accounting is essential in order to track the financial performance of a bus... View the full answer