Plot Overview

Nick Carraway, a young man from Minnesota, moves to New York in the summer of 1922 to learn about the bond business. He rents a house in the West Egg district of Long Island, a wealthy but Unfashionable area populated by the new rich, a group who has mad

e their fortunes too recently to have established social connections. Nick’s next-door neighbor in West Egg is a mysterious man named Jay Gatsby, who lives in a gigantic Gothic mansion and throws big parties every Saturday night.

Nick is unlike the other inhabitants of West Egg. He was educated at Yale and has social connections in East Egg, a fashionable area of Long Island home to the established upper class. Nick drives out to East Egg one evening dinner with his cousin, Daisy Buchanan, and her husband, Tom, a classmate of Nick’s at Yale. Daisy and Tom introduce Nick to Jordan Baker, a beautiful, cynical young woman with whom Nick begins a romantic relationship. Nick also learns a bit about Daisy and Tom’s marriage: Jordan tells him that Tom has lover, Myrtle Wilson, who lives in the valley of ashes, a gray industrial dumping ground between West Egg and New York City. Not long after this revelation, Nick travels to New York City with Tom and Myrtle. At a vulgar, gaudy party in the apartment that Tom keeps for the affair, Myrtle begins to wound Tom about Daisy, and Tom responds by breaking her nose.

As the summer progresses, Nick eventully accepts an invitation to one of Gatsby’s legendary parties. He encounters Jordan Baker at the party, and they meet Gatsby himself, a surprisingly young man who affects an English accent, has remarkable smile , and calls everyone more about his mysterious neighbor. Gatsby tells Jordan that he knew Daisy in Louisville in 1917 and is deeply in love with her. He spends many nights staring at the green light at the end of her dock, across the bay form his mansion. Gatsby’s extravagant lifestyle and wild parties are simply an attempt to impress Daisy. Gatsby now wants Nick to arrange a reunion between himself and Daisy, but he is afraid that Daisy will refuse to see him if she knows that he still loves her. Nick invites Daisy to have tea at his house, without telling her that Gatsby will also be there. After an initially awkward reunion, Gatsby and Daisy reestablish their connection. Their love rekindled, they begin an affair.

After a short time, Tom grows increasingly suspicious of his wife’s relationship with Gatsby. At a luncheon at the Buchanans’ house, Gatsby stares at Daisy with such undisguised passion that Tom realizes Gatsby is in love with her. Thought Tom is himself involved in an extramarital affair, he is deeply outraged by the thought that his wife could be unfaithful to him. He forces the group to drive into New York City, where he confronts Gatsby in a suite at the plaza Hotel. Tom asserts that he and Daisy have a history that Gatsby could never understand, and he announces to his wife that Gatsby is a criminal. His fortune comes from bootlegging alcohol and other illegal activities. Daisy realizes that her loyalty is to Tom, and Tom contemptuously sends her back to East Egg with Gatsby, attempting to prove that Gatsby cannot hurt him.

When Nick, Jordan, and Tom drive through the valley of ashes, however, they discover that Gatsby’s car has struck and killed Myrtle, Tom’s lover. They rush back to long Island, where Nick learns from Gatsby that Daisy was driving the car when it struck Myrtle, but that Gatsby intends to take the blame. The next day, Tom tells Myrtle’s husband, George, that Gatsby was the driver of the car. George, who has reached to the conclusion that the driver of the car that killed Myrtle must have been her lover, finds Gatsby in the pool at his mansion and shoots him dead. He then fatally shoots himself.

Nick stages a small funeral for Gatsby, ends his relationship with Jordan. He moves back to the Midwest to escape the disgust he feels for the people surrounding Gatsby’s life and for the emptiness and moral decay of life among the wealthy on the East Coast. Nick reflects that just as Gatsby’s dream of Daisy way corrupted by money and dishonesty, the American dream of happiness and individualism has disintegrated into the mere pursuit of wealth. Though Gatsby’s power to transform his dreams into reality is what makes him great, Nick reflects that the era of dreaming both Gatsby’s dream and the American dream is over. 

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The Great Gatsby

Francis Scott key Fitzgerald was born on September 24, 1896, and named after his ancestor Francis Scott key. Fitzgerald was raised in St. Paul, Minnesota. Though an intelligent child, he did poorly in school and was sent to New Jersey boarding school in 1911. Despite being a mediocre student there, he managed to enroll at Princeton in 1913. Academic troubles and apathy plagued him throughout his time at a college, and he never graduated, instead joined the army in 1917, as World War I neared its end.

Fitzgerald became a second lieutenant, and was stationed at Camp Sheridan, in Montgomery, Alabama. There he met and fell in love with a wild seventeen-years-old beauty named Zelda Sayre. Zelda finally agreed to marry him, but her overpowering desire for wealth, fun, and leisure led her to delay their wedding until he could prove a success. With the publication of this side of paradise in 1920, Fitzgerald became a literary sensation, earning enough money and fame to convince Zelda to marry him.

Many of these events from Fitzgerald's early life appear in his most famous novel, The Great Gatsby, published in 1925. Like Fitzgerald, Nick Caraway is a thoughtful young man from Minnesota, educated at an Ivy League school, who moves to New York after the war. Also similar to Fitzgerald is Jay Gatsby, a sensitive young man who idolizes wealth and luxury and who falls in love with a beautiful young woman while stationed at a military camp in the south.

Having become a celebrity, Fitzgerald fell into a wild, reckless life-style of parties, while desperately trying to please Zelda by writing to earn money. Similarly, Gatsby amasses a great deal of wealth at a relatively young age, and devotes himself to acquiring possessions and throwing parties that he believes will enable him to win Daisy's love. Depression, however, Zelda suffered a nervous breakdown and Fitzgerald battled alcoholism, which hampered his writing. He published tender is the night in 1934, and sold short stories to the Saturday evening post to support his lavish lifestyle. In 1937, he left for Hollywood to write screenplays, and in 1940 while working on his novel the love of the last tycoon, died of a heart attack at the age of forty-four.

Fitzgerald was the most famous chronicler of 1920s America, an era that he explained Jazz Age. Written in 1925, The Great Gatsby is one of the greatest literary documents of this period, in which the American economy soared, bringing unparalleled levels of prosperity to the nation. Prohibition, the ban on the sale and consumption of alcohol mandated by the Eighteenth Amendment to the Constitution (1919), made millionaires out of bootleggers, and an underground culture of having a good time sprang up. The chaos and violence of World War I left America in a state of shock, and the generation that fought the war wild and extravagant living to compensate.

Like Nick in The Great Gatsby, Fitzgerald found this new lifestyle seductive and exciting, and, like Gatsby, he had always idolized the very rich. Now he found himself in an era in which materialism set the tone of society, particularly in the large cities of the East. Even so, like Nick, Fitzgerald saw through the glitter of the Jazz Age to the moral emptiness and hypocrisy beneath, and part of him longed for this absent moral center. In many ways, the Great Gatsby represents

Fitzgerald’s attempt to confront his conflicting feelings about the Jazz Age. Like Gatsby, Fitzgerald was driven by his love for woman who symbolized everything he wanted, even as she led him toward everything he found worthless.

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CHAPTER-FOUR Profit and Loss Analysis of Kanchanjangha Business

CHAPTER-FOUR

4.1       Summary and Conclusion

Depending upon the KBC data and above analysis, in brief we can say that the KBC is a nice and popular firm and will provide different modern types clothes to the consumer at reasonable price.

Keeping above mentioned facts into consideration, KBC has situated in Khairahani VDC, Ward No.4 at Parsa Bazar. The firm area is situated in the eastern part of Chitwan district, Narayani zone in the central development region of Nepal. KBC was established on 1^st Ashoj 2058 B.S.. It is one the retailer of clothes in eastern chitwan. There are so many retailers relating to clothes in parsa Bazar. Among them KBC Pvt. Ltd. is one-step ahead. In the present time its transaction is about 1 cores in a fiscal year.

When we give focus in economic status of this orgⁿ, the Net profit is Rs 250,490, Rs. 231,540 and Rs. 340,642 respectively in fiscal year 2067/068, 068/069 and 069/70. It shows that profit is high there when there is higher sales and profit is less there when there is less sales. In trading A/C also same condition. It means there is higher gross profit in fiscal year 069/70 i.e. Rs.1,052,496 where the sales is Rs.4,800,953. There is less gross profit in fiscal year 068/069 i.e. Rs. 820,321 where the sales is Rs.3,740,599. It is less amount of sales than other two fiscal years.

The KBC appropriates it net profit to different headings. At first it pays tax to the government as per rules under income Tax act 2058 and separates 25% amount of remaining profit for General reserve. After Separating general reserve it distributes remaining profit for employee bonus 10%, capital reserve 50%, reserve for future loss 20% and reserve for doubtful debt 20%.

In the fiscal year 2067/068 the G.P. ratio is 18.07% and it increases by 3.86% in the fiscal year 068/069 and again it decreases by 0.01% in the fiscal year 069/70 but net profit ratio increases by 1.04% in the fiscal year 068/069 and it increases by 0.91% in the fiscal year 069/70. The fiscal year 069/70 is good for KBC because in this year its Net profit, gross profit and sales all are higher than previous two years.

Any way this orgⁿ is running nicely. It is due to well management made by the promoter better purchasing policy and selling different modern clothes at reasonable price to costumers. At last, I am very grateful for the progress of this organization and it is hoped from this report that in coming days it will run better.

4.2          Recommendation

After the through study of profit & loss analysis of KBC, the performance of this firm is satisfactory. Over stocking always badly affects to the profit. So, the KBC should try to sell the all purchasing clothes and decrease its closing stock. However, certain exception relation to its effectiveness was observed that the salary and other facilities given by this orgⁿ to its employees is not satisfactory. So, it is better to increase the salary of its staffs.

BIBLOGRAPHY

Ø  Company Act 2053

Ø  R.M Dangol (2061- A Basic Course in Accountancy)

Ø  M. R. Koirala (2062- An Introduction to Accountancy and Auditing)

Ø  D. L. Pandey (2064- Principles of Accounting)

ACRONYMS

KBC         Ü        Kanchanjanga Business Circle

Pvt.           Ü        Private

Ltd.           Ü        Limited

NCC          Ü        New Capital College

A/C           Ü        Account

Dr.             Ü        Debit

Cr.             Ü        Credit

T.U            Ü        Tribhuvan University

G.P            Ü        Gross Profit

exp.           Ü        Expenditure

depⁿ          Ü        Depreciation

&               Ü        and

orgⁿ              Ü        organization

G.R.          Ü        General Reserve

APPENDIX

1.            Why you established the KBC?

2.            When the KBC registered?

3.            For what purpose do you run the firm?

4.            How many founders are there?

5.            How many VDC area do you take as transaction area?

6.            How the incomes are used ?

7.            What is its motto?

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CHAPTER-THREE Profit and Loss Analysis of Kanchanjangha Business

CHAPTER-THREE

3.1       Presentation and Analysis of Data:

For the preparation of report, the presentation of data plays the vital role. It must be able to show overall genuine activities of the orgⁿ clearly. According to distribution report, the table and bar. Diagram is presented below of Trading A/C, profit and loss A/C, profit and loss appropriation A/C, gross profit ratio with its total sale and net profit ratio with its total sales of fiscal years 2067/068, 068/069 and 069/70 of KBC.

3.1.1 Presentation and analysis of trading A/C.

Trading A/C of KBC can be presented and analyzed with the help of table and figure which are presented below:

Table No.1   Kanchanjunga Business Circle Pvt. Ltd.

Khairahani-4, Chitwan

Trading A/C

Dr.                                                                                                                     Cr.

Particulars	Fiscal years			Particular	Fiscal years
	2067/068	068/069	069/70		2067/068	068/069	069/70
To opening stock	2758500	2308400	2808400	By Sales	4867850	3740599	4800953
To purchase	3050000	2925600	3455684	By Closing stock	2308400	2808400	3023348
To carriage	383504	395805	401184
To wages	104525	98873	106537
To Gross profit	879721	820321	1052496
Total	7176250	6548999	7824301	Total	7176250	6548999	7824301

Above Table No.1 shows the Trading A/C of KBC for the last three fiscal year i.e. 2067/068, 068/069 & 069/70 in 2067/068  the total income of Rs.7176250 with the closing stock of Rs. 2308400. There is gross profit of Rs. 879721  but in fiscal year 068/069 the G.P. decreased to Rs. 820,321 and the total exp. is Rs. 5,728,678 in 069/70, the  G.P. has increase to Rs. 1,052,496 due to increase in sales.

We can show the above table in bar diagram which is given below:

Figure No.1

Gross Profit

The above fig 1, shows the gross profit of three fiscal year i.e. 2067/068, 068/069 & 069/70. In fiscal year 2067/068, the gross profit is Rs. 879721 but in fiscal, year 2068/069, the G.P. has decrease to Rs. 820,321. Finally, in the fiscal year 2069/70, the G.P. has increased to Rs. 1,052,496.

3.1.2 Presentation and Analysis of Profit and Loss A/C.

Profit and Loss A/C of KBC can be presented and analyzed with the help of table and figure which are presented below:

Table No.2

Kanchanjunga Business Circle Pvt. Ltd. 

Khairahani-4, Chitwan

Profit & Loss A/C

Dr.                                                                                                                     Cr.

Particulars	Fiscal years			Particular	Fiscal years
	2067/068	068/069	069/70		2067/068	068/069	069/70
To salary	305000	310000	325000	By gross profit	879721	820321	1052496
To Depn	8330	7497	6747
To stationery	19323	22830	25128
To electrical charge	28360	25220	29779
To telephone charge	37309	34212	41320
To Advertisement	30909	5122	70900
To Rent	150000	150000	150000
To other exp.	30000	15900	34680
To bad debts	20000	18000	28300
To Net profit	250490	231540	340642
Total	879721	820321	1052496	Total	879721	820321	1052496

Table No.2 shows us the Net Profit and Loss A/C of KBC for last three fiscal year i.e. 2067/068, 2068/069 & 2069/70. This table not only shows us the net profit of different fiscal year, it also shows the indirect expenses of the firm. In fiscal year 2067/068, there is net profit of Rs. 250,490. To run the orgⁿ it has spend its income in different heading like salaries, depⁿ, stationery, electrical charge, telephone change and so on. Such expenditures decrease the net profit. There is inverse relationship between expenditure & net profit.

In fiscal year 068/069, the firm had earned net profit of Rs.231,540. This net profit is slightly fewer than previous years. The net profit is less here because the gross profit is also less. This year is relatively not good year for the firm.

In fiscal year 2069/70, the net profit of the firm had increased to Rs. 340,642. The net profit in this fiscal year is increased due to the increase in gross profit. This year net profit is higher by Rs 109,102. The main reason that the profit of this year had increased due to increase in advertisement and publicity. Thus, this year is quite better year regarding the net profit.

The fact revealed from the above table can be presented in diagrammatic form which is given below.

Figure No. 2

Profit & Loss

Figure No.2 shows the trend of net profit of different fiscal years. In fiscal year 2067/068, the net profit amount to Rs. 250,490. But in fiscal year 068/069, the net profit of KBC had decreased to Rs.231,540 the net profit of this fiscal year had decreased due to the lack of sufficient advertisement. But in fiscal year 2069/70, the net profit of KBC had increased to Rs.340,642. This amount is higher by Rs.109,102. The net profit in fiscal year 2069/70 had increased due to heavy advertisement of the firm. So many customers are attracted towards this firm. So, the net profit had increased.

3.1.3      Presentation and analysis of Profit and Loss appropriation A/C

We can present and analyze the profit and loss appropriation A/C of KBC with the help of table and figure which are presented below.

Table No.3

Kanchanjunga Business Circle Pvt. Ltd. 

Khairahani-4, Chitwan

Profit and loss appropriation A/C

Particulars	Fiscal years			Particular	Fiscal years
	2067/068	068/069	069/70		2067/068	068/069	069/70
Taxation (26.5%)	66380	61358	90270	Net profit (before tax)	250490	231540	340642
Remaining profit (after tax)	184110	170182	250372
	250490	231540	340642		250490	231540	340642
General reserve (25%) net profit	46028	42546	62593	Remaining Profit (after tax)	184110	170182	250372
Net profit(after GR)	138082	127636	187779
	184110	170182	250372		184110	170182	250372
Employee bonus(10%)	13808	12764	18778	Net profit (after general reserve)	138082	127636	187779
Capital reserve (50%)	69042	63818	93890
Reserve for future loss (20%)	27616	25527	37556
Reserve for doubtful debt (20%)	27616	25527	37556
	138082	127636	187779		138082	127636	187779

Table No.3 is a table of profit and loss appropriation of KBC. The KBC has same rules to appropriation the profit and loss in every year. It pays Tax to the government as per rules from its Net profit. After paying tax it keeps 25% of Net profit after tax as general reserve and after general reserve it distributes remaining profit. The KBC distributes 10% for employee bonus, 50% for capital reserve, 20% for reserve for future loss and 20% for doubtful debt. In above table the employers get higher bonus in fiscal year 069/70. i.e Rs 18,778 and less bonus in fiscal year 068/069. i.e. Rs. 12,764 than other years. Due to less profit the employers are badly affected in this year. The capital reserve, Reserve for future loss and reserve for doubtful debt also higher in fiscal year 069/70 and less in fiscal year 068/069 than other years. 

We can show the above table in bar diagram which is as follow:

Figure No.3

Figure No. 3 is the figure of profit and loss appropriation of net profit after tax and general reserve. At the KBC pays tax out of its net profit and again it keeps 25% of remaining profit as general reserve. Then it distributes the remaining profit for Employee bonus (10%), Capital reserve (50%), Reserve for future loss (20%) and reserve for doubtful debt (20%). It never changes its appropriation rule. It is not good system for good orgⁿ. So, it has to change its rule to distribute the profit to different points. We know well that the time is changeable and the rules of orgⁿ should be change with changing time. If the orgⁿ do so it can earn its more profit and good will than it is having now.

3.1.4      Presentation and analysis of G.P. ratio with total sales

We can present and analyze the G.P ratio with total sales of KBC. The table and figure help us to analyze G.P. ratio with sales of KBC which are listed below:

Table No.4

Kanchanjunga Business Circle Pvt. Ltd. 

Khairahani-4, Chitwan

Gross Profit ratio with sales

Fiscal years	Sales	Gross profit	G.P. ratio	Direct exp. ratio
2067/068	4,867,850	879,721	18.07	81.93%
068/069	3,740,599	820,321	21.93%	78.07%
069/70	4,800,953	1,052,490	21.92%	78.08%

We can show the above table as bar-diagram which is as follow:

Figure No.4

Gross Profit ratio with sales

The Table and Figure No.4 show the G.P. ratio with sales of KBC. There is G.P. ratio 18.07% in fiscal year 2067/068. In the same year the total direct exp. ratio is 81.93%. But in fiscal year 068/069 the G.P. ratio increase to 21.93%. In this year the total sales fall down to Rs. 3740599 from Rs. 4867850 of previous sales. We can say that sales directly effects to the G.P.

The G.P. ratio is 21.92% in fiscal year 069/70. In same year the Gross Profit is more amount than other years. In the Table and figure No.4 we can see that there is more expenditure ratio in fiscal year 2067/068  than other. The expenditure ratio of 068/069. G.P. ratio in fiscal year 2067/068 is less than other but this year sales amount is higher than other fiscal year. But above table we can see that increase in G.P. due to increase in sales.

3.1.5 Presentation and analysis of Net Profit Ratio with total sales

Table No. 5

Kanchanjunga Business Circle Pvt. Ltd. 

Khairahani-4, Chitwan

Net profit ratio with sales

Fiscal years	sales	Net profit	Net profit ratio	indirect exp. ratio
2067/068	4867850	250490	5.15%	94.85%
068/069	3740599	231540	6.19%	93.81%
069/70	4800953	340642	7.1%	92.9%

Above table can be shown as bar-diagram which is as follow:

Figure No.5

Above table and figure No.5 show the relation of Net Profit ratio with total sales. The profit of the firm depends on its sales. If there is more sales there will be more profit and if there is less sales there will be less profit. There is 5.15% profit ratio in fiscal year 2067/068 where the total expenditure is 94.85% in this year. The sales amount is Rs. 4867850 and the Net Profit is Rs. 250490.

There is 6.19% profit ratio in fiscal year 068/069 where the total expenditure is 93.81% in this year. The sales amount is Rs. 3740599 and the net profit is Rs. 231540. In this fiscal year. Net profit ratio increase to 6.19% from 5.15% due to decrease in sales and net profit but direct expenditure ratio decrease.

There is 7.1% profit ratio in fiscal year 069/70 where the total expenditure is 92.9% in this year. The sales amount is Rs. 4800953 and the net profit is Rs. 340642. In this fiscal year Net Profit ratio increases but indirect exp. ratio decrease.

After analysing the above data we can say that increasing sales increases to the Net Profit and decreasing sales decreases to the Net Profit.

3.2          Study Result

By analysing trading A/C, profit and loss A/C, profit and loss appropriation A/C, gross profit ratio with sales and net profit ratio with sales we get the following results:

i.              Gross profit is Rs.879,721 Rs.820,321, Rs.1,052,496 respectively in fiscal year 2067/068, 068/069 and 066/066.

ii.           Net profit is Rs. 250,490  Rs.231,540, Rs. 340,642 respectively in fiscal years 2067/068, 068/069 and 066/066.

iii.         The KBC has followed the same rule and rate for appropriation of profit & loss.

iv.         At first, the KBC pays Tax to the government as per rules from its Net profit and keeps 25% or remaining profit for General reserve. Then, the remaining profit is distributed to Employ bonus (10%), Capital reserve (50%), Reserve for future loss(20%) and Reserve for doubtful debt(20%).

v.            Gross profit ratio with sales is 18.07% in fiscal year 2067/068 and it increases to 21.93% in fiscal year 068/069 and again it decreases to 21.92% in fiscal year 069/70.

vi.         Direct exp. is 81.93% in fiscal year 2067/068 and it decreases to 78.07% in fiscal year 068/069 and again it increases to 78.08% in fiscal year 069/70.

vii.       Net profit ratio with sales is 5.15% in fiscal year 2067/068 but it increases to 6.19% in fiscal year 068/069 and it increases to 7.1 in fiscal year 069/70.

viii.     The total exp.(direct & indirect) is 94.85% in fiscal year 2067/068 and it decreases to 93.81% in fiscal year 068/069.

ix.         By analysis G.P. ratio the  fiscal year 2067/068  is good and the fiscal year 069/70 is bad for KBC.

x.            By analysis Net profit ratio the fiscal year 069/70 is good and the fiscal year 068/069 is bad for KBC.

xi.         It was found that the main objective of the orgⁿ is to earn profit by keeping satisfy to workers, costumers.

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