Entrepreneurship services. ii) Purchase journal: A purchase journal also







Amisha Acharya

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Bus 305 Fundamental
Accounting Principles

Presidential Business

Westcliff University

Mr. Birendra Mahatto

Professor: Dr. Yvan

January 28, 2018





This analysis will highlights on to an Entrepreneurship




An individual who starts a business prepared to risk loss in
order to make money is Entrepreneur. They are innovator, procedures, and source
of new ideas. They have skills to anticipate current and future needs forming new
ideas (Entrepreneur, n.d.). Entrepreneur plays
a key role in an economy.

An Entrepreneur comes with a host of challenges- trying to
establish a brand, adjust to match and keep the business profitable. An Entrepreneur
faces obstacles when they first build their company (Alton, 2016). Financial issues,
building a team, making important decisions, answering bug questions,
rule-making, decision making are the challenges and are difficult to overcome.

The benefits that entrepreneur gain are: – personal
financial gain, self-employment, developing more industries, self-motivation.

According to the question, this chapter is related to the
topic “Happy Family” who supply organic food dealing with numerous suppliers
and customers establishing their own company.

1.Identify the special journals that Happy Family would be
likely to use in its operation. Also, identify any subsidiary ledgers that it
would likely use.

Ans: Happy Family has used both special journals and
subsidiary ledgers in its operation. The company is likely to use the following
special journal.

i)Sales journal: A sales journal is the accounting journal
used to record all credit sales of a company. It records the revenue generated
by the sales of goods or services.

ii) Purchase journal: A purchase journal also known as
purchase day book is a special journal used to record all the purchase made on
credit during a period.

iii) Cash receipts journal: A cash receipt journal is a special
accounting journal used for all receipts of cash or record cash collection. It
records the cash inflow of the company.

iv)Cash disbursements journal: A cash disbursement journal
also known as cash payment journal is a journal by accountants to record all
the payment and expenses made by a company. It records the cash outflows of the

v) General journal: The general journal is the master
journal to record all company transactions but not in special journals. It is
the book of original entry that requires both accounts debited and credited be
listed along with their balance amounts.

The company also is likely to use the following subsidiary

i)Account receivable subsidiary ledger: An account
receivable subsidiary ledger is an accounting ledger to tracks the amounts owed
by individual customers. It is a list of clients who are the debt to the

ii) Account payable subsidiary ledger: An account payable
subsidiary ledger is an accounting ledger to track the amounts owed to
individual vendors. It is also known as creditor’s ledger and the lists of

iii) Inventory ledger: Inventory ledger is the ledger that
shows all different inventory items like inventory ready to sell, in process of
being completed and materials to be used in production.

2. Happy Family hopes to double yearly sales within five
years hence from its current $100 million annual amount. Assume that its sales
growth projections are as follows:


One year    Two years   Three years    Fourth years   Fifth years
Hence         Hence           Hence            Hence            Hence

Projected growth in sales      
   (from the preceding year)…..     0%             20%             15%                 25%               20%


Ans: The current annual amount of Happy Family is $100
million. The double yearly sales in five years are known with the help of


Year 1: $100000

Year 2: $100000*20% = $120000

Year 3: $120000*15% = $138000

Year 4: $138000*25% = $172500

Year 5: $172500*20% = $207000

Year           One Year           Two Years          Three Years           Fourth Years         Fifth Years
                      Hence                 Hence                  Hence                      Hence                 Hence

Sales….      $100.0 mil         $120.0mil             $138.0 mil              $172.5 mil           $207.0 mil


The above table explains if sales follow the growth
projected, the company will have more than doubled the current $100 million in
annual sales to $207 million annually.



Alton, L. (2016, January 07). The 8 biggest
challenges for new entrepreneurs. Retrieved from Entrepreneur:
Entrepreneur. (n.d.). Retrieved January 28, 2018, from Investopedia:






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