CHAPTER-ONE
1.1 Introduction and Background of KBC Pvt.
Ltd.
Kanchanjunga
Business Circle Pvt. Ltd. was established in 1st Ashoj, 2058 B.S..
It is registered to Private Company. It is located in Parsa Bazar in eastern
part of Chitwan. It is one the retailer of clothes in eastern Chitwan.
There are so
many retailers relating to clothes in Parsa Bazar. Among them Kanchanjunga Business
Circle Pvt. Ltd. is one-step ahead. It was the demand of the time. The
consumers of eastern chitwan were in need of a good and consumer welfare
orientated business house. This company was able to meet the desire of the
consumers. So, now it is a well established business in the world of clothes in
Eastern Chitwan. So to give satisfaction to the farmers and earn suitable
profit for orgn Mr. Prakash Upreti, the owner of KBC Pvt. Ltd.
invest his money by loaning from Bank. Firstly, he invested Rs. 30,00,000 for
it. Now it is a famous business house in Chitwan district and its transaction
is about 1 crores annually.
Its main
objective is to provide different modern types of clothes to the consumer at
reasonable price as well as to earn good profit with its customer's
satisfaction. It also pays tax to the government as per rule of income Tax Act
2058 in Nepal. I hope Mr. P. Uprety will flower it and supply the good things
for all the customers.
1.2 Literature Survey
"The Profit and loss
account of the company can be defined as a final account which summarizes the
incomes and gains earned and expenses incurred during the financial year and
the results thereof."
-
M.R. Koirala (et.al.) (2062) - An Introduction to Accountancy
and Auditing
"Each company must
prepare Trading Account, Profit and Loss Account, Profit and Loss Appropriation
Account and Balance Sheet at the end of each financial year to show its
operating results of the period."
- Company
Act 2053
"Profit and loss
appropriation A/C is a major part of profit and loss A/C of a company. It shows
the distribution of net profit of a company. It is prepared after the
preparation of profit and loss A/C to show the distribution of available profit
in the way of dividend and creation of reserve."
- D.L.
Pandey (et.al.) (2064) - Principles of Accounting
"Trading A/C is the
document of direct income and expenditure It reveals the difference between
sales revenue and cost of goods sold and termed as gross profit. It is prepared
by Trading company & doesn't include any item of operation
expenditure."
-
R.M. Dangol (2061) - A Basic Course in Accountancy
1.3 Objective of Fieldwork Report
The main objective of this
project work is to analyse financial status of KBC. Specific objectives of this
field work are:
a.
To show the actual profit and loss position of KBC.
b.
To analyze the gross profit of different three fiscal years.
c.
To analyze the net profit of different three fiscal years.
d.
To analyze the gross profit ratio with its total sales.
e.
To analyze the net profit ratio with its total sales.
f.
To analyze the profit appropriation of different three fiscal
years.
1.4 Importance of
Study
Fieldwork study is a fact
study which helps to know more about the related organization. Such study
provides the chances to the ordinary people to know the real status of the
organization. It also helps to the students, owners of firm etc. from different
sectors. We can list out its some important points which are as follows:
a] Fieldwork study provides some valuable
experiences to the students which they would not learnt by reading any books.
b] It helps the ordinary people to know the
real status of related orgn.
c] It controls the negligent working
system of the orgn.
d] It is the golden chance for the orgn
to show their positive views in the society.
e] It increases the goodwill of the firm.
1.5 Limitation
of Study
ü This report is prepared
under the prescribed format by T.U for the purpose of fieldwork report at
bachelor degree.
ü This fieldwork report was
prepared with in short time period. Therefore it was difficult to collect
adequate information from different sources.
ü While calculation the
annual net income on by the orgn, various product source taken into
consideration, which might not only belong to the particular year. Even though
maximum attention was paid to minimize the fact as much as possible.
ü The study had belongs
particularly to KBC. So the result derived from the study might not be
applicable to any other project.
