Accounting Theory Issues – Cahaya Ilmu Enterprise
Company Background
Cahaya Ilmu Enterprise is a enterprise business which established since 2006 located at Bukit Kayu Hitam. But the business had moved to Changlun on December 2010. Mr. Abdul Razak bin Mahamud is the owner of Cahaya Ilmu Enterprise and he is also a teacher at Sekolah Kebangsaan Bukit Tangga. Cahaya Ilmu Enterprise main activity is selling Islamic products such as Al-quran, Tafsir, CD of Islamic talk and Islamic children, minyak ‘atar, buah tin dates, air syifa’ and etc. All of the products are Halal. Besides, there also provide Photostat service. Furthermore, the business opens a tuition centre and Al-quran class there. Mr. Abdul Razak starts his business by using his own saving and also gets a loan from Amanah Ikhtiar. Mr. Abdul Razak started his business at Bukit Kayu Hitam since 2006 but he faced with a tight competition there. From the failure of choosing the right place for business, Mr. Abdul Razak had done a survey among the Changlun residents before he moved his business to Changlun. Mr. Abdul Razak found that Changlun is more suitable for his business as compare at Bukit Kayu Hitam because there have a lot of opportunity. Cahaya Ilmu Enterprise has a lot of advantages operation at Changlun since it is the only business who sells the Islamic product around the area. Operation at Changlun, Cahaya Ilmu Enterprise face with fewer competitors and most of the Changlun residents will buy the Islamic products from them. Cahaya Ilmu Enterprise operations at Changlun make the residents there convince with the service provided.
Operations
Cahaya Ilmu Enterprise business durations are from 10 a.m until 6 p.m daily except Friday. Cahaya Ilmu Enterprise only has 2 full time workers and 3 part time teachers. Cahaya Ilmu Enterprise sells Islamic products and conducts a tuition class for school student at their shop. Besides that, Cahaya Ilmu Enterprise also conducts a KAFA class for the muslims in Changlun. Cahaya Ilmu Enterprise keep the sales receipts for the whole day and record in into the book at the end of the day. The sales are record according to the date and types of accounts. For example, if it is a sale of books transaction it will be recorded as sales in book’s file as well as in sales ledger. The same thing goes to inventory. Each and every inventory that arrived and had been taken out will be updated in the same book.
At the end of the day, the owner will come to the shop and review the accounts of the day. It is to make sure that the workers record transactions properly. After all the transactions had been recorded manually in the book, it will be transferred into computer system. The shop used Microsoft Excel to record their accounts. They create a template for each book, for instance, all transactions that they record in CD file they will create a template for that particular file in the Excel.
In addition,