Final Project

Submitted By:
ILYAS AHMAD (L1F10MCOM0155)
JAVARIA NAVEED (L1F10MCOM0154)
ADNAN AFZAL (L1F10BCOM00 )
AYSHA SHAIED (L110MCOM00 )

Submitted To:
PROF. GHULAM MUSTAFA

Section:
M.COM (D)

INTRODUCTION OF SUPERIOR GARMENTS:

COMPANY NAME:
Open Garments
BUSINESS TYPE:
Trading Business
BRANDS:
Prada, Adidas, Nike, Lee, Levies
ADDRESS:
Johor town Lahore
TARGET MARKET:
Local & Foreign Market
INTRODUCTION TO INTERNATIONAL TRADING IN GARMENTS:
International trading in garments has undergoing substantial changes in recent years.
Traditionally, developing countries were suppliers of raw materials like Cotton and Silk to
developed countries and the factories in developed countries used to make fabrics and garments
for their home market as well as for export.
Due to labor intensive nature of the Industry and high labor costs, during last thirty years the
pattern of international trading in garments has changed. In developed nations, the firms could
not sustain the competitive pressure from imports and had to resort to tariff and non-tariff
barriers to protect their domestic industry. Later on, the garments manufacturers in developed
countries had to invest abroad for overseas production to serve their home markets. Indonesia
has benefited a lot from this phenomenon of overseas production by foreign firms through joint
ventures. Under WTO legal framework, the dynamics of garments industry will undergo further
substantial changes. As per WTO agreement on textiles and clothing (ATC) the quota restrictions
will be phased out. It will create tremendous growth opportunities for developing countries. To
be precise, garments in developed countries is a dying industry. This death has been delayed by
quantitative restrictions on imports imposed by most developed countries where labor cost are
much higher.
PERSON RESPONSIBLE FOR RECORDING TRANSACTIONS:
ILyas Ahmad

(Financial Manager of Superior Garments)

Javaria Naveed

(Financial Advisor of Superior Garments)

PROCEDURE OF RECORDING TRANSASCTIONS:

1)

Set up New Company:

First page that appear after opening peach tree to create a new company or select existing
company. Select option of set Open Garments to create and maintain a new company record
and daily transactions. New company setup shows information like company name and
address ,charts of accounts, accounting method through which company maintain his accounts,
posting methods and period of accounting. Next window contain company name, address, city,
country, telephone and fax number, on this window select type of business and companys web
site and email address.
Then window shows several charts of accounts for setting up a new company. Like retail up a
new company, build up a new company, convert a company on Peachtree accounting program or
concert accounts from Peachtree accounting program to another program. Then select methods of
accounting. Select one type of accounting which is followed by company during one financial
year. Two methods are ACCURALS AND CASH method.
After that company selects the posting methods of their transactions whether it is posted through
real time or batch. In real time every transaction recorded at the occurrence of transaction but in
batch a bundle of transactions is recorded at a time it is usually data of all transactions held in
whole day. After that select accounting period. It can be change according to the nature of
business. It may be annually, semi annually, quarterly.
Next Window provides the option of selecting the accounting period according to business need
and nature. Window contain option of starting of fiscal year, month from company will be start
to enter data. After all this window information selected and completed software appear a
window that conform you to that your new company is setting up. After check the button of
finish you begin working on your companies accounts.
2)

Companys Accounts:

To create or maintain charts of accounts select option of G/L (general ledger) and after that check
the option of deters and creditors to open a window of creating accounts.
Maintain Chart of Accounts:
Than appear a window in which enter the account ID and description to begin to create a new
chart of account. Account ID must be in numerical values and description must be in alphabets.
To enter the data in chart of account check the option of beginning balances. After check the
option of beginning balances software show the chart to select the last month from which
company start the business operations.

After select the month a window appears to enter the data of

account. It consists on account ID, account description, account
type, assets, expenses, liabilities, equity, or income. After entering data check the option of OK
to save data entering in chart. Close window of chart of accounts and check option SAVE to store
the chart of account.
After saving chart of account check option NEW to create a new chart of account. Check option
box of inactive to stop to enter data in charts of accounts.
3)

Vendor:

Go to main window and select option PURCHASE. Then page shows option VENDOR select
this option to create and maintain charts of accounts of vendor. Maintain vendor window appear
after selecting VENDOR option. Enter vendor ID and name of vendor. Select purchase account
from which account is debited. Check option of beginning balances to enter data in chart of
account.
Vendor beginning balance window appear to enter information regarding invoice number, date,
purchase order number, amount, A/P account. After entering data check option SAVE to store the
information of vendor. Check option box of inactive to stop to enter data in charts of accounts.
After all the process and entering data select option of SAVE to maintain and store data of
vendor. NEW this option selects to create a new chart of vendor.
4)

Event:

EVENT this option is use to memorize a specific task or work related to vendor and companys
operations. CREAT EVENT window shows option of type of vendor, vendor id, event type, date
of occurring event, or extra information type in NOTE window. After entering data select option
SAVE to store all information which is entered
5)

Log:

LOG this option is use to check the events and schedule of events. VENDOR EVENT LOG
shows all events related to specific vendor. If any event is complete then check the box of event
which shows the occurrence of event. After all the process and entering data select option of
SAVE to maintain and store data of vendor.

6)

Customer:

Go to main window and select the option SALES. Then page shows option CUSTOMER select
this option to create and maintain charts of accounts of customer.

Maintain customer window appear after selecting CUSTOMER

option. Enter customer id and name of customer. Choose option
SALES DEFAULTS and select GL sales account by which the account of customer is debit.
After check the option of beginning balance appear customer beginning balances sheet and enter
information about invoice number, date, purchase order number, amount of order and account
receivable from which the account of customer is credited.
7)

Prospect Customer:

Check option PROSPECT this option is use to make an early account of potential customer of
company.
8)

Inactive:

Check option INACTIVE is use to stop entering data in chart of account of specific customer.
EVENT this option is use to memorize a specific task or work related to vendor and companys
operations. CREAT EVENT window shows option of type of customer, customer id, event type,
date of occurring event, or extra information type in note window. After entering data select
option SAVE to store all information which is entered.
CUSTOMER EVENT LOG shows all events related to specific vendor. If any event is complete
then check the box of event which shows the occurrence of event.
After all the process and entering data select option of save to maintain and store data of
customer.
9)

Inventory:

Go to main window and select the option INVENTORY. Then page shows option INVENTORY
ITEMS select this option to create and maintain accounts of INVENTORY. Check the option
INVENTORY ITEMS a window appear of maintaining inventory items type the item ID and
description of inventory .choose the sales account, inventory account and cost of sales account.
i. Stock Item:
To enter data of individual item select option of stock item.
ii. Master Stock Item:
If finish product of company demand more than one stock item then record raw material under
option of master stock item.
iii. Assembly:
Assembly is use to record quantity and size of individual raw material use to make final product.

Select item class in which company deals. Select option inventory

beginning balances a chart is appear to record the quantity, unit
cost and total cost of inventory. After entering data check the box OK to save all the record
entered. Check multiple price level to maintain the different price levels for different customers
according to demand to inventory.
After all the process and entering data select option of SAVE to maintain and store data of
vendor.
10) Sales:
Go to main window and select the option SALES. To maintain all type of record regarding sales
are enter in this window.
a) Sales Quotes:
Sales quotation which first step in sales of product of company. Select customer ID, customer
post order, date of sales order made, date of sales order delivery, serial number of receipt. Then
record quantity of items shipped with per unit and total price of units. CONVERT is use to
convert sales quote to sales order etc.
b) Sales Order:
The sales order where you can enter sales request. After selecting the sales order menu then there
is window show up. In which we give a customer ID to which the sales order received. Then
select the date of order and also Good Thro in which mention the date you willing to shipped
the order. After selecting the date of order we select the number of quentity that you required
and select item that you send to cusstomer. than you give sales order number ,select the unit
price the pechtree auomatically calculate the total price .There is also and option of Drop
Shipin which customer specify the units directly to your customer after that we save the
window.
c) Receipts:
You can apply receipts in mood of cash and bank account. You can also receiving payments from
this window. In which we receive the amount of order those we sales on credit we receive the
amount in installment or lumsum basis.
1st select the customer and then click the baton if receive all the amount if not then select
Amount receive enter the amount that you were ready to receive and then select the mod of
receipts Bank or Cash after selecting you can check your cash account balance if we select
Bank as payment mood then inter the check number and date and then save the window.
d) Credit Memos:

Use the customer Credit Memos window to enter credit memos

for returns from customer credits from a customer you can apply
credit memos to any existing customer invoices that have not been receive. In which you can
return from customer the units to customer .Select the customer id then inter the units that you
are ready to return, credit No, and then save the window.
11)

Purchase:

Purchases are made to maintain minimum stock of raw material which is necessary to work
snootily and not affecting the production process.
a. Purchase Order:
The purchase order where you can enter purchase request. After selecting the purchase order
menu then there is window show up. In which we give a vendor id to which the purchase order
received. Then select the date of order and also Good Thro in which mention the date you
willing to receive the order. After selecting the date of order we select the number of quentity
that you required and select item that you needed. than you give purchase order number ,select
the unit price the pechtree auomatically calculate the total price .There is also and option of
Drop Shipin which vemdpr sipy the units directly to your customer after that we save the
window.
b. Receiving Inventory:
You can apply inventory received from purchase order and enter purchase invoice. Select the
purchase/ receive inventory button there is show a new window in which we inter the vendor
from the good where received. After the select the vendor the widow show in two color of show
the white color then there is no order against that vendor if show dark black window than thats
show there is an order against this vendor. Then select the order number and proceed further.
Select the purchase order and inter the receive units thats you were required type invoice
number and pay the purchase amount give reference number and then mod of payment select.
This is a Apply to purchase in which there is no purchase order given but we can receive the
units.
c. Payments:
You can apply payments in mood of cash and bank account. You can also receiving payments
from this window. In which we pay the amount of order those we purchase on credit we pay the
amount in installment or lumsum basis.
1st select the vendor and then click the baton if pay all the amount if not then select Amount
Pay enter the amount that you were ready to pay and then select the mod of payments Bank or
Cash after selecting you can check your cash account balance if we select Bank as payment
mood then inter the check number and date and then save the window.

d. Credit Memos:
Use the Vendor Credit Memos window to enter credit memos for returns to and credits from a
vendor you can apply credit memos to any existing vendor invoices that have not been paid. In
which you can return the units to vendor .Select the vendor id then inter the units that you are
ready to return, credit No, and then save the window.
e. Void Checks:
First you prompted to select a cash account then Peachtree build a list of check and display the
void existing checks window. Only checks that have posted and not cleared in account
reconciliation can be void.

Company Name: Open Garments

Start of Fiscal Year: January
Starting Month for Entering Data: March
Chart of Account
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Account
Code
1001
1002
10001
20002
30003
40004
50005
2001
2002
2003
3001
3002
3003
3004
3005
3006

Account Title

Account Type
Cash
Cash
Income
Cost of good sales
Inventory
Other Current Assets
Inventory
Fixed Assets
Fixed Assets
Fixed Assets
Expense
Expense
Expense
Expense
Expense
Expense

Opening
Balance
900000
500000
1500000
100000
50000
20000
60000
100000
50000
50000
40000
100000
10000
20000
10000
5000

Expense

5000

Accumulated
depreciation
Accumulated
depreciation
Accumulated
depreciation
Equity does not
closed
Equity retained
earnings
Equity gets closed
Accounts payable
Account receivable
Income
Expense

10000

17

3007

18

4001

19

4002

20

4003

21

5001

Cash in hand
Allied bank
Sales
Cost of good sold
Inventory
Prepaid Expense
Supplies
Machinery
Furniture & Fixture
Computer Accessories
Salaries
Rent
Electricity charges
Telephone charges
Depreciation: Machinery
Depreciation: Furniture &
Fixture
Depreciation: Computer
Accessories
Accumulated depreciation:
Machinery
Accumulated depreciation:
Furniture & Fixture
Accumulated depreciation:
Computer Accessories
Capital Account

22

5002

Accumulated Profits

23
24
25
26
27

5003
6001
6002
6003
6004

Drawings
Accounts Payable
Account Receivable
Discount Received
Discount Paid

Venders Information

5000
5000
500000
400000
100000
100000
100000
50000
50000

Sr.
No.

Vendor
ID

V-101

V-102

V-103

V-104

V-105

V-106

V-107

V-108

9
10

Vendor
Name

Invoice
No.

Date

Purchase
Order No.

PO No.
111
PO No.
222

AMOUN
T
25000

A/P
Account
Accounts
Payable
Accounts
Payable

Default
Purchases
Inventory

X-101

3/03/2011

X-102

4/06/2011

X-103

4/05/2011

PO No.
333

5000

Accounts
Payable

Supplies

X-104

5/25/2011

PO No.
444

4000

Accounts
Payable

Inventory

X-105

5/12/2011

PO No.
555

12000

Accounts
Payable

Inventory

X-106

5/07/2011
6/08/2011

X-108

6/22/2011

X-109

7/09/2011

V-110

Ptcl

X-110

7/15/2011

Accounts
Payable
Accounts
Payable
Accounts
Payable
Accounts
Payable
Accounts
Payable

Inventory

X-107

PO No.
666
PO No.
777
PO No.
888
PO No.
999
PO No.
101

6000

V-109

XYZ
Traders
ABC
Compan
y
AA
Compan
y
EE
Corporat
ion
C
Corporat
ion
XYZ
Traders
D
Traders
F
Traders
Wapda

Cutomers Information

10

10000

7000
8000
9000
3000

Supplies

Inventory
Inventory
Electricity
Charges
Telephone
Charges

Sr.
No.

Customer
ID

Customer
Name

Invoice
No.

Date

Purchase
Order No.

C-101

T
Company

Z-101

3/3/2011

PO No. 101

AMOUN
T
20000

C-102

ZY
Traders

Z-102

4/6/2011

PO No. 202

10000

C-103

AA
Company

Z-103

4/11/2011

PO No. 303

6000

C-104

Z-104

5/25/2011

PO No. 404

4000

C-105

Z-105

5/12/2011

PO No. 505

1000

C-106

BB
Corporatio
n
CC
Corporatio
n
XYZ
Traders

Z-106

5/7/2011

PO No. 606

6000

C-107

D
Company

Z-107

6/8/2011

PO No. 707

7000

C-108

F
Company

Z-108

6/22/2011

PO No. 808

3000

C-109

W
Traders

Z-109

7/9/2011

PO No. 909

9000

10

C-110

P
Company

Z-110

7/15/2011

PO No. 121

2000

Inventory Items Class: Stock Items

11

A/P
Account
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le
Accounts
Receivab
le

Default
Purchases
Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

Sales

GL Sales Account: Sales

GL Inventory Account: Inventory
GL Cost of Sales Account: Cost of Goods Sold

Quantit
y On
Hand
15

Prada

Last
Unit
Cost
25

Price Level
2

50

60

80

10

15

102

Adidas

60

25

90

50

60

30

40

103

Nike

36

65

20

25

104

Lee

75

105

Cost
+25%
65

Cost
+ 15
25

35

15

20

105

LEVI

75

95

45

(price
level
1)-5

(price
level
1)*15%

25

30

Sr.
No.

ID

Name

101

Unit/Measure Minimum Reorder

Stock
Quantity

Inventory Items Class: Master Stock

12

Item ID: 106

Name: NIKE
GL Sales Account: Sales
GL Inventory Account: Inventory
GL Cost of Sales Account: Cost of Goods Sold
Primary Attribute: Colour
Secondary Attribute: Quantity
Sr.
Name
1
2
3
4
5

13

Primary Attribute
ID
Description
101
Black
102
Grey
103
White
104
Blue
105
Brown

Secondary Attribute
ID
Description
201
25
202
50
203
65

Open Garmends
Balance Sheet
31-Mar-11
ASSETS
Current Assets
CASH IN HAND
ALLIED BANK
INVENTORY
PREPAID EXPENCE
SUPPLIES
ACCOUNTS RECEIVABLE

$
$900,000.00
500,000.00
50,000.00
20,000.00
60,000.00
100,000.00

Total Current Assets

Property and Equipment
MACHINERY
FURNITURE & FIXTURE
COMPUTER ACCESSERIES
ACCUMULATED DEP: MACHINERY
ACCUMULATED DEP: FUR & FIX
ACCUMULATED DEP: COM ACC

1,630,000.00
100,000.00
50,000.00
50,000.00
(10,000.00)
(5,000.00)
(5,000.00)

Total Property and Equipment

180,000.00

Other Assets
Total Other Assets

0.00

Total Assets

$1,810,000.00

LIABILITIES AND CAPITAL

Current Liabilities
ACCOUNTS PAYABLE

$100,000.00

Total Current Liabilities

100,000.00

Long-Term Liabilities
Total Long-Term Liabilities

0.00

Total Liabilities
Capital
Beginning Balance Equity
CAPITAL ACCOUNT
ACCUMULATED PROFITS

14

100,000.00
400,000.00
500,000.00
400,000.00

DRAWINGS
Net Income

100,000.00
310,000.00

Total Capital

1,710,000.00

Total Liabilities & Capital

$1,810,000.00

Current Month
Revenues
SALES
DISCOUNT RECEIVED

Year to Date

$0.00
0.00

0.00
0.00

$1,500,000.00
50,000.00

96.77
3.23

Total Revenues

0.00

0.00

1,550,000.00

100.00

Cost of Sales
COST OF GOODS SOLD

0.00

0.00

1,000,000.00

64.52

Total Cost of Sales

0.00

0.00

1,000,000.00

64.52

Gross Profit

0.00

0.00

550,000.00

35.48

Expenses
SALARIES
RENT
ELECTRICITY CHARGES
TELEPHONE CHARGES
DEP: MACHINERY
DEP: FURNITURE & FIXTURE
DEP: COMPUTER ACCESSERIES
DISCOUNT PAID

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

40,000.00
100,000.00
10,000.00
20,000.00
10,000.00
5,000.00
5,000.00
50,000.00

2.58
6.45
0.65
1.29
0.65
0.32
0.32
3.23

Total Expenses

0.00

0.00

240,000.00

15.48

$0.00

0.00

$310,000.00

20.00

Net Income

15