The paper "Business In The City Of Madinat Zayed" proposes to consider the theoretical establishing a new business in the city of Madinat Zayed, United Arab Emirates. The business is named "Solutions Tech" and provides the services of repair and maintenance of computer systems…
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The rent for the first month was paid in cash at that date. The partners also got one year insurance policy for the business and paid AED 7,500 in advance for the policy. On March 03, 2014, the partners purchased some stationery items required for running the business amounting AED 730 in cash. The stationery items include pens, pencils, diaries, customers’ registers etc. On March 05, 2014, the partners bought furniture for the business amounting AED 3,600 from Woodies Inc. on credit. The useful life of the furniture is estimated to be six (6) years. The partners also purchased a car for the school costing AED 24,000 from Mania Motors on the same date. AED 15,000 was paid at the time of purchase while the remaining balance is agreed to be settled in twenty (20) equal monthly installments. The useful life of car is estimated to be ten (10) years. All fixed assets are agreed to be depreciated on a straight-line basis. The Solutions Tech. has policy of charging full period depreciation in the period of purchase. The business received AED 6,000 from different customers for the services provided in the first month. AED 4,000 was received on March 03, 2014, while AED 1,150 was received on March 12, 2014 and AED 850 was received on March 25, 2014. AED 600 and AED 1,200 were outstanding on account of Mr. Yaqoob and Mr. Williams in respect of services rendered on March 16, 2014 and March 19, 2014 respectively. However, Mr. Yaqoob had settled his account by the end of the month. The business paid AED 2,000 to Woodies Inc on March 28, 2014 on account of the furniture purchased. The Solutions Tech. also received an amount of AED 1,200 on March 31, 2014 in advance on account of development of Internal Network of “Ziad Consultants & Co.”. The work will be performed in April 2014. The business also purchased the advertisement services of “Metro Media” for advertising the newly established business at a cost of AED 2,000 on March 13, 2013. The partners paid only AED 800 on March 18, 2013 for the services rendered. The remaining amount is outstanding till the period end. Mr. [Your/ Partner’s Name] has withdrawn an amount of AED 1,400 for personal use on March 31, 2014.
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