1.

0 INTRODUCTION

Figure 1 shows the G Coffee Cafe from the front

The owner which is Mr Hadfiz bin Sulaiman had open the G Coffee Café since 2015 after
Hari Raya. The reason why the owner starts this business is because he wants to make his
product to be unique unlike the others that people that have tasted before. Furthermore, he
started the business with only RM800 for the purchase of inventories before finding the
suitable place for conducting his business.

Figure 2 shows the flavours drinking beverage available in G Coffee Cafe

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 Figure 3 shows another flavour of drinking beverage available in G Coffee Cafe

The main product that the owner sell to the customer is beverage. These beverages have a
lot of flavours. They are grouped into three series of flavours. The first series is coffee series.
In this series, there are cappuccino, tiramisu, mocha, espresso, latte. The second series is
tea series. In this series, there are milky tea and green tea. The third series is G flavour
series. In this series, there are yam, strawberry, vanilla, horlick, chocolate and mango. It
also has their own special edition of their product which is dual layer and the 50G

Besides that, they also have their own secondary product that are sold to their customer
according to their needs and demands. Their secondary product consists of cendawan
goreng, mee jawa and mee kolok.

The price list for their main product and secondary product

Main product

1. First, Second and Third Series

 Hot Cup – Rm 3.00
 Big Cup – Rm 5.00
 Blended – Rm 6.00
2. Special edition
 Dual layer – RM 6.00
 50G – RM 7.00

Secondary product

 Cendawan Goreng – Rm 4.00

 Mee Jawa – RM 5.50
 Mee Kolok – RM 5.50

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 Figure 4 shows the location of G Coffee Café

The owner has chosen 86, Lorong Desa Ilmu 22A, 943000 Kota Samarahan as their
business location. This is because it is near to their house. Plus, it is easy for them to have
electrical facilities since their house is near to their business location. Another reason they
choose this location is because there are a lot of university and school nearby. This can help
them to attract students to their business location.

Furthermore, there are two types of vehicle or transportation that are used by them to deliver
their product which is:

Motorcycle Car

Figure 5 shows the vehicle that being use for delivery services

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The G coffee businesses also provide delivery services. The reason they do this because it
makes their customer especially student easier to purchase their product. They usually use
their deliver service whenever there is a request from the customer with the minimum order
of three item. However, they charge their delivery service differently based on the places
which is at:

 Desa Ilmu Area – Rm 1

 Institut Jantung Negara – Rm 3.00

 Muara Tuang Area – Rm 1

 UiTM/IPGKTAR/UNIMAS – Rm 1.50

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2.0 CLASSIFICATION OF BUSINESS ITEM

Asset can be defined as items of value owned by the business. It can also be defined as
economic resources owned by an entity that possess future economic benefits. Asset can be
classified into two which is non-current asset and current asset. Non-current asset is kept
and used in long term basis. They are categorised into three which is tangible asset,
intangible asset and investment. Tangible asset is asset that have physical substance which
can be seen and touched. In this situation, the tangible asset for this business are seats,
tables and vehicles. Intangible asset is asset which have no physical or tangible
characteristics and they cannot be seen and touched. In this situation, the intangible asset
for this business are trademark and preliminary expenses. Investment is fund placed with the
expectation of receiving income or preserving its value. In this situation, investment for this
business is shares. The owner shares this business with his family. Current asset is either
cash or those that are expected to be converted into cash within a year. In this situation, the
current asset for this business are stock, bank, cash and prepaid expenses.

Liability can be defined as financial obligations of the business to the outsiders, arising from
past transactions and requiring settlement at a future date. These are the amount owing to
creditors for goods or services rendered, or amount owed to the bank for money borrowed.
And generally, they are claims by outsiders against business as a whole. Liability can be
classified into two which is non-current liability and current liability. Non-current liability can
be defined as financial obligations of the business that are not expected to be repaid in a
year period. They usually arise from major expenditures and often involve large amount. In
this situation, there are no non-current liability in this business. Current liability consists of
financial obligations that are expected to repay within a year. In this situation, there are no
current liability in this business.

Owner’s equality can be defined as owner’s claim on the business. In other words, it shows
how much the business owes its owners. It consists of capital, that is, the amount invested
by the owner in the business, plus the profit and loss accumulated in the business, and after
the owner made some withdrawals. In this situation, the capital for this business is car and
motorcycle. Revenue is income earned when the business sells goods or provide services to
customers. In this situation, the revenue for this business is sales. Drawings is withdrawal of
asset. In this situation, there are no drawing in this business. Expenses is cost incurred in
running the business or represent the amount paid or incurred for the purpose of generating
income. In this situation, the expenses for this business are general expenses for buying the
beverages flavours, ice cubes, cups, milk and fuel for the vehicles.

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This product is special than the other product by other company mainly because of its
cheaper price. For example, their big cup only cost RM5. Other company would have sold it
at RM7 or RM8. Besides, their beverages are tastier than other company. They also got their
beverage flavours from Thailand. This company also provides delivery services. They will
charge the customers from RM1 to RM3 for delivery services depending on how far the
customers’ place is from this business location. In a day, they do at least 10 delivery
services for customers.

This company doesn’t have any shareholder to conduct this business together. Although this
business is run together with the owner’s family.

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3.0 CHARACTERISTIC OF VISITED BUSINESS

Based on the interview that we conducted with our selected business, the G Coffee is a sole
proprietorship business. This is because its only owned by one person which is Mr. Hadfiz
bin Sulaiman handles his business by delegating the works between the worker such as as
an operation manager for handling the purchasing of the business item such as fixture and
fittings. Furthermore, this business must register with the Registrar of Business in the
Companies Commission of Malaysia (CCM) to prevent any problems occur in the future.
This business also has full entitlement towards the profit and loss and unlimited liability.

Besides, this business also classified as the going concern concept business. Going concern
concept can be defined as final account of the business that are prepared on the business
that the business are likely to continue it operation indefinitely and not likely to be closed in
the future. This is because the owner of G Coffee business is expecting her business to run
continuously through the future. This can be seen when her company still a demand over
their product have especially the student that can makes her business continuously running
from one time to another due to high demand from their loyal customer. Therefore, it makes
the G Coffee not likely to be closed in the future for a certain reason.

Lastly, this business is more likely to adopt the business entity concept within their daily life.
Business entity or separate entity can be defined as business entity that is seen as a
separate entity that have a distinction from the owner of the business. For example, Encik
Hadfiz bin Sulaiman has brought his own car and motorcycle to be used for the delivery
service for this business. Therefore, they have their own separated entity for their business
purposes to go through to their daily routine.

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4.0 COMMENT ON THE RECORDING PROCESS OF THE BUSINESS

SOURCE DOCUMENT

BOOKS OF ORIGINAL ENTRIES (JOURNAL)

LEDGERS

TRIAL BALANCE

FINANCIAL STATEMENTS

ADJUSTMENTS

ADJUSTED TRIAL BALANCED & FINANCIAL STATEMENTS

Figure 6 shows the diagrams of accounting cycle for recording the business process

The G Coffee Café has their accounting cycle for keeping their financial record in track. Even
though the owner only shows us their purchase of inventories receipt, they do records other
types of sources document from their business within their book of prime entries. In order to
record the transaction that occurs within their business, they will identify each and every
sources of document such as purchase invoice, receipt and many more that has been made
within transaction. Every transaction that has been made and identified must be separated.
For example, any purchase of their inventories in a form of receipts will be recorded within
their book whereas their non-current assets such as car and motorcycle will not recorded will
not record within their book of original entries.

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Besides that, they will do the process of journalizing their own document accordingly in
chronological order. After they are journalizing it within the book of original entry, the
journal entries then will be posted to general ledger where all transaction that has been made
within their business will be recorded for the future use.

Apart from that, the trial balance for the G Coffee will be settled at the end of accounting
period in one month. The total balanced from their book of original entries and ledger will be
calculated for their financial statement. After they done calculating their total balanced from
the business, the trial balanced that have been adjusted including income statement, balanced
sheet and many more will be prepared while preparing their own financial statement for one
year.

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5.0 STRENGTH OF THE VISITED BUSINESS

 The Design
This is because the design of the shop or its café is unique if compared to the others
café. For example, it uses the contenna as the main material to make the interior and
exterior more attractive. Furthermore, majority of the lights that have in the café also
use the recycle material such as cup, cardboard and many more that makes the café
more unique than the other places. This shows that their business revenue is unique
compare to the others.

 Cheaper business product than the other places

This is because its product never exceeds its prices above RM 10. Furthermore, they
provide this kind of price range to helps student to buy the product easier than
before. Therefore, the reasonable price of their products attracts its customer which
is student for buying their business product.

 Known by student
The G Coffee business are well known among people that lives within Samarahan
area. This is because people especially student from UiTM, UNIMAS, IPGKTAR are
well known as a loyal customer for the business especially when it comes for
purchasing the star of their product which is

 Delivery services
The G coffee business company also provide delivery services. The reason they do
this because it makes their customer especially student easier to purchase their
product. For example, they use car which is Perodua Kancil and also motorcycle
which is Yamaha Ego S to deliver their product towards their customer. They usually
use their deliver service whenever there is a request from the customer with the
minimum order of three item.

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 Offer another product besides the main product
Aside from being sold the main product, which is drinking beverage, the G Coffee
Café also sold another product of their own which is Cendawan Goreng, Mee Jawa
and Mee Kolok. This is because they want to sell the variable of their product that
can satisfy the needs of their customer besides their well-known product. Thud, it can
generate additional profit for them to conduct their business more effective and
efficiently than before.

 Have a social media to connect with their customer

Having a social media within the business can gives them advantages for making the
business product to be known widely by the people especially at the Samarahan
area. For example, the G Coffee Café use varieties of social media such as
Facebook and Instagram for promoting their business. It also makes the customer
easy for contacting them especially when purchasing their product. Therefore, social
media helps them to keep in touch with their customer frequently than before.

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6.0 WEAKNESSES OF THE VISITED BUSINESS
 Weather
This type of businesses also suffered problem while conducting the business. This is
because without the good weather condition. They usually receive the least amount
of customer that potentially purchasing their product. For example, the raining that
happens continuously within a week can affect their business profit that can leads
them to not achieve their goals. Thus, the weather itself plays an important role for G
Coffee to conduct their daily routine.

 Student Holiday
This is because during student holiday. It will affect the business activities within the
G Coffee Café. For example, when university such as UiTM and Unimas have their
semester break, their customer which is the student would not visit the café due to
their semester break that has been given by their universities. Thus, student holiday
can affect their business activities.

 Competitor from the other businesses

The G Coffee Café also have the competitor that competes with the other
businesses. For example, The Teh Ais Kebabomm stall that has been opened at the
roadside near the G Coffee Cafe will affecting the customer within the G Coffee due
to their product have same reasonable price. Therefore, other businesses near with
the G Coffee café will affects their loyal customer to try new products from the other
businesses.

 Some people or robber will break into G Coffee Café

Some people from the nearby area might try to break into the café. This is because
while we conduct the interview with the owner itself, his business non-current asset
such as chair and tables are reportedly not found after their working hours on the
next day. Thus, it makes the owner of the business to be more carefully while
conducting the business since his shop are very closed with residential area.

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 Their business places sometimes can be a subject to vandalism
Sometimes, their business places are being vandalized by people especially a group
of teenagers. From this kind of action, their place for them to conducts their business
are suffering major or minor damage that will affect the image of the G Coffee Cafe
businesses. For example, the wall that made from recycle old roof for the business
building has been vandalized by a group of masked teenagers that comes from the
nearby area by spraying with the graffiti patterns. This kind of action can cause
damage towards the G Coffee property. Therefore, their business places do have
weaknesses when it comes to vandalism due to being near with residential area.

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7.0 CONCLUSION

As a conclusion, the G Coffee café are very committed to be one of the successful sole
proprietary trading within the Samarahan, Sarawak. This is because not only they want to be
a successful business company for their own advantages. They also would like to be a role
model for those who are still new on conducting their businesses.

Firstly, we must conduct a business transaction from the first day till the end of our
business time. This is because it can help them record business transactions such as
income and expenses, inventories and assets, payments to a worker and many more.
Besides, it also allows them to manage their resources within the business more effective
and efficient way to achieve their business goals.

Secondly, we must have or adopt the Total Quality Management (TQM). This is because
it helps them to improve the customer satisfaction by having a customer focus and
consistently meets the customer expectation. Besides, it also allows our business to
communicate more clearly to avoid misunderstanding of information. For example, the G
Coffee Café solds not only their main product but also sells other product as well for
maximising their customer needs.Thus, it helps not just the G Coffee Cafe but also the new
business to conduct business activities more effective than before.

Last but not least, we must be humble to ourselves. The words ‘’humble’’ are greatly
emphasized from the owner that we have been interviewed. This is because not all the new
business is straight to being successfully from the started. There must be a difficulty while
conducting the business from the first day. From the difficulties itself, we can improve the
ways we work within our business to be more efficiently than before. Therefore, being
humble while conducting a business not only gives us the advantages in terms of the
management of the business, it also improves the relationship with others such as the owner
and customer.

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8.0 REFERENCES

APA

Hadfiz bin Sulaiman, (2019, April 4) Group project interview. [0168004037]

Muhd Nizal Haniff et al. (2018). Fundamentals of Financial Accounting. Shah Alam, Selangor
Darul Ehsan: Oxford Fajar Sdn Bhd.

Barone, A. (2019, 19 April). Total quality management. Retrieved from

https://www.investopedia.com/terms/t/total-quality-management-tqsm.asp

Dash, S. (2018, 22 April) Why humility plays an important role in an entrepreneur life’s.
Retrieved from https:
www.google.com/amp/s/www.entrepreneur.com/amphtml/31233
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