EVENT MANAGEMENT

Event Management



Event Management

Part 1

Client: Stardust Ltd

Trial Balance

TRIAL BALANCE

 

Dr.

Cr.

Debtors

30776

 

Printing & Stationary

10161

 

Heat & Light

9572

 

Drawings

 

35000

Cash Account

100

 

Land & Buildings

60106

 

Wages & Salaries

50677

 

Purchases

270514

 

Capital Account

 

116500

Stock

19739

 

Accountancy

1040

 

Bank Overdraft

 

1023

Loan

 

10000

Equipment

97677

 

Sales Revenue

 

405926

Telephones

2606

 

Motor Expenses

3687

 

VAT

1351

 

Loan Interest

637

 

Marketing

15259

 

Maintenance & Repairs

875

 

Creditors

 

23600

Vehicles

17272

 

 

592049

592049

Income Statement

INCOME STATEMENT

 

Dr.

Cr.

Sales Revenue

 

405926

Less: Expenses

 

 

Heat & Light

9572

 

Wages & Salaries

50677

 

Equipment

97677

 

Telephones

2606

 

Motor Expenses

3687

 

VAT

1351

 

Loan Interest

637

 

Accountancy

1040

 

Marketing

15259

 

Maintenance & Repairs

875

 

 

183381

 

Net Income

 

222545

Balance Sheet

BALANCE SHEET

 

Dr.

Cr.

Debtors

30776

 

Printing & Stationary

10161

 

Drawings

 

35000

Cash Account

100

 

Land & Buildings

60106

 

Purchases

270514

 

Capital Account

 

116500

Stock

19739

 

Bank Overdraft

 

1023

Loan

 

100000

Equipment

97677

 

Creditors

 

31277

Vehicles

17272

 

Retained Earnings

 

222545

 

506345

506345



Part 2

Client: Food Delicious

Sources of Finance

Money is needed to establish grow and operate business. A business faces three major issues when selecting an appropriate source of finance for a new project(Fabozzi, 2001, pp.78-81,):

1. Can the finance be raised from internal resources or will new finance have to be raised outside the business?

2. If finance needs to be raised externally, should it be debt or equity?

3. If external debt or equity is to be used, where should it be raised from and in which form?

Sources of Funds

Sources of Funds for a business is divided into 2 categories, internal sources such as equity finance and external sources such as debt finance

Internal sources/Equity finance

The money the owner has provided to the business comes from owner's equity/retained profits owner's equity is the owner's contribution retained profits is the money kept by the business after it has paid off its taxes

External sources/Debt finance

Money obtained from people other than the owners. it is divided into short term/long term/other sources of fundsa) (Emery, Finnerty, 1991, pp.34-69)

Short term borrowings

Debts that will be repaid within a year overdraft - an agreement between a commercial bank and business that allows a business's cheque account to go into a deficit to a limit bank bill - simply a written instruction to repay a sum of money by a certain date. The bank does not provide the money, the investors provide the money to the business and the bank is the guarantor whom provides security that the money will be repaid(Fabozzi, 2001, pp.78-81,).

Long term borrowings

Debts that will take between 5-25 years to repay

Mortgage

A secured loan used to fund the purchase of property. Property cannot be sold until all borrowings are repaid

Debentures

Finance supplied by the general public for a fixed interest rate. Debentures are subject to government regulationc)

Other sources of funds

Leasing

The payment of money for the use of equipment owned by another party. It is divided into 2 categories, operational lease and financial lease.

Factoring

Sale of customer debt/accounts receivable to a financier at a discounted rate

Venture capital

Finance supplied by private investors/venture companies for a risky business that has potential

Grants

Non-repayable financial benefits supplied by government agencies or private businesses.

Gearing

The mix of debt and equity finance to fund the asset of the business it is the proportion of debt finance compared to equity finance debt finance should be 66% of equity finance if ratio is too high, the bank will be concerned whether the business can pay its debts on time if ratio is too low, the business would be seen as a takeover target(Bowlin, Scott, 1990, pp.90-109).

Sole or partnership

Food Delicious is a business owned by one person, Mr. Green, who is entitled to all of its profits and ...