Please answer all question. Treat all questions differently.

Part A: Practical Exercise This part has been divided into 3 parts. Make sure all group members contribute equally to the work. A1: Setting up your business Imagine that you have a business of your own. It should be a merchandising business. You will be generating transactions for the business that you create. Describe your business in a short (maximum 1 page) report. You should include details like: what is the name of the business; when was it started; what is the main business activity; where is it located; who are the main customers (for example, if you buy and sell tires, your main customer will be the automobile industry); what assets do you own. Add any other relevant detail. You can use the book problems as a guide, for ideas, but do not use any business given in the book, as that will be counted as cheating. State all your assumptions clearly, such as whether you follow perpetual or periodic inventory system, net cost or gross invoice method. Also state the accounting period followed, and the six months you are assuming. A2: Reporting business transactions - Create 20 UNIQUE transactions for your business, over a span of six months. - Make sure the transactions show the nature of the business, and reflect enough activity of all types (such as: issue of capital, buying of assets, recording expenses and revenue, purchase and sale of inventories, transactions related to sales and purchases). - Make sure clear dates for each transaction is mentioned. - Repetitive transactions will not gain marks. - Try to be creative in the transactions, but make sure they are realistic. - In a table similar to the one given below, give a brief description of all the 20 transactions, including details of dates, customers, suppliers etc. involved. A3: Journal Entries, posting and extracting a trial balance - Journalize each transaction listed above. Follow the correct journal format, being careful about neatness. - Make sure you give workings as narrations, if required. - Post the above entries to individual ledgers, and extract the balances at the end of the six months. - Prepare a trial balance, to ensure your double entries are correct. Part B: Analysis - Write a short note on what you learned from this project, or found difficult. - Also include how responsibilities were shared amongst group members