CIA-1

FINANCIAL ACCOUNTING FOR MANAGERS

Here is the complete conversation that we had with the owner of the CHIRST BOOK STORE.

Transcript
Anto: Hello everyone we are here to do the business transaction analysis, myself Anto, Anju and
Anushka are here and we have come to Christ Book Shop, which is renowned shop in Christ
University. I am sure every student here would be knowing this. Let’s get start it.
Anto: Hello Sir nice to meet you, Your name?
Shopkeeper: Myself Harsha.
Anto: What kind of business is this? Are you a sole owner or you have a partner also?
Shopkeeper: No, we are solo.
Anto: What was a capital that you invested when you started the business?
Shopkeeper: We started this shop 30 year back. My father started it. I am just carying on and the
same thing.
Anto: Any other worker working with you?
Shopkeeper: NO its just me.
Anto: He is going enjoy all profit by himself and then, What was the expense when you bought
all the table, chair and other stuff?
Shopkeeper: If I put all the together it would be close to like 10 lakhs.
Anto: Just for the furniture?
Shopkeeper: No not for the furniture, even the items like records, books, textbooks and
everything. Furniture we don’t have much, so these are all metal racks, these are from ages may
be at that time we might have invested somewhere around 1 lakh rupees.
Anto: Any specific idea like how much for books and how much materials?
Shopkeeper: We have lot of items and now if I have to tell you precisely, I myself will have to
calculate that so you can roughly keep it as 10 lakhs and this will be split in to textbooks,
notebooks, records and stationary.
Anto: What about furniture?
Shopkeeper: Furniture we don’t have much, so these are all metal racks and these are from ages
and at that time we might have invested around 1 lakh rupees.
Anto: Is there any rent that you are paying to college?
Shopkeeper: Yes, I am not sure that I can disclose that or not.
Anto: Can you tell the approximate amount?
Shopkeeper: Looking it would be around 20K per month.
Anto: Did you get any bank loan?
Shopkeeper: May be at that part of time it was started my father might have taken it but at least
not me.
Anushka: What was an amount?
Shopkeeper: I am not sure.
Anushka: Have you taken any insurance like something for the shop?
Shopkeeper: No.
Anushka: Do you provide any discount as such?
Shopkeeper: Yes, if they buy more quantity you know, of course we do provide them, again base
on what would be the percent its depend on each product to product.
Anushka: Like if a person purchases for Rs.1000 then what discount will you provide?
Shopkeeper: Almost 5%.
Anushka: Whatever goods you purchase do you purchase some of them on credit or something
like that.
Shopkeeper: Certain time it be happens but credit time line will be from 30 to 60 days.
Anushka: What is that like on the round off what an amount you have to pay creditors.
Shopkeeper: Keep it as a Lakh.
Anushka: 1Lakh ok.
Shopkeeper: Yeah!
Anushka: And like to student also do you provide like that they pay you later is it so?
Shopkeeper: Normally we don’t recommend that but if they are in very argent situation or
something like that if they need certain item for the class. We do give it to them and tell them to
pay later.
Anushka: And like till today itself like how much you have to take from students on in average?
Shopkeeper: Per day we would give somewhere around some Rs.300 to Rs.500 like that.
Anushka: On the monthly bases it will be calculated then Rs.15,000.
Shopkeeper: Yes.
Anushka: I also want to ask about the income. What is the monthly income overall?
Shopkeeper: Monthly income overall initial days it is will be per month Rs.60,000 to Rs.90,000.
Anushka: After reducing the profit or profits are including in that?
Shopkeeper: I am speaking about profit.
Anushka: Actually, I am asking total earning excluding tax and expenses.
Shopkeeper: Per year we would do somewhere around Rs.6,00,000 so you can keep it Rs.50,000
per month.
Anushka: What are the expenses per month?
Shopkeeper: Around Rs.20,000.
Anto: Any information about income tax?
Shopkeeper: We have listed on GST also so we would be being GST whenever items come and
whenever we give to the students also.
Anushka: How much GST return did you file?
Shopkeeper: That is somewhere around Rs.10 Lakh to Rs.12 Lakh.
Anto: If college conduct particular events and something supply more stationary other any event
that you have supply a lot?
Shopkeeper: Yes, normally for department of commerce we supply a lot of items, when fests
come they would require a letter from HOD and we start giving them items and later on we send
the bill to the department.
Anto: Any rough value you billed?
Anushka: Any latest event you did?
Shopkeeper: That was in the month of February or March and it was close to aroundRs.60,000
to Rs.80,000.
Anushka: What is the transportation cost that you pay?
Shopkeeper: Transportation is already included in it, separately they do noy charge for it as we
buy in bulk you know so they provide transportation from there side itself.
Anto: Are you importing something?
Shopkeeper: No importing we do not do.
Anushka: From where you buy your material?
Shopkeeper: See there are different items we buy from different people, there is no one particular
source as such. Records and all we print by ourselves that’s a maturity and books we buy from
all brands like Classmate, Papergrade and Upgrade.
Anju: How much do you pay for electricity?
Shopkeeper: Electricity would be Rs.1500 to Rs.1800.
Anju: How much maintenance cost do you pay?
Shopkeeper: Maintenance cost Rs.2800 something.
Anto: Thankyou so much sir for giving us your time.
Anushka: Thankyou sir.