COMPANY PROFILE

YEAR OF ESTABLISHMENT:
1990.
PRODUCTS:
QKL has a diversified product range. It manufactures Polo, Henley, Rugby, Crew, Mock and V-neck, Vests, Frocks,
Skirts, Rompers, Dresses and Sleepwear. QKL has experience of working in 100% Cotton, as well as blended
Single Jersey, Pique, Terry, Ottoman, French terry, Fleece, Rib with lycra, Drop needle, Flat back Jersey, Crinkle
knit, Popcorn, Pointel, Thermal and Interlock in solid as well as Yarn-dyed Feeder stripe fabric.
ANNUAL SALES:
US$ 4.000 million.
ANNUAL EXPORT:
75,000 Dozens.
CAPACITY:
9,000 dozens per month.
QUOTA HOLDING:
336 338 339 352 351 in USA, 4 & 6 in EEC, and 8A in Canada.
CUSTOMERS:
QKL supplies its products to some of the best brand names in the world. Its long list of satisfied customers include:
Dimensions Corporatewear, JUBA, Midera, Levis, Gap, Sara Lee, Wal-Mart, The Childrens Place, M. Hidary,
Beeswift, Vivo kids, Steve & Barry, Clyde Knitwear, Polo Ralph Lauren, Puma, Drummer Boy, Regatta, Time Out,
Cadre Athletics, Rocky Mountain, New Wave Group, J. D. Williams, Les Complices, and Tri-Trade Spol SRA.
MINIMUMS:
500 Dozens in maximum 4 colors.
LEAD TIME:
90 days after receipt of confirmed letter of credit and complete order details. For repeat order, we require 60 days
after receipt of L/C and order detail.
AWARDS:
The performance of QKL has been appreciated by all of its customers. Levis has awarded Best Performance
Award to QKL for four consecutive years.
QKL recognizes the efforts of its team members in its growth and achievement. To appreciate their efforts, best
performing workers in different categories are awarded twice a year.

Accounting Cycle:

Identification of transaction -> General Journal / Purchases\Purchase Return\payment\Sales\sales

return\Revenue\All Expenses\All assets\Capital\Liabilities -> General Ledger -> Trial Balance ->
Adjustment -> Adjusted Trial Balance -> Financial Statement /Income Statement\Balance Sheet

Purchases
Company is purchasing the product from Hancole group by two means:

PURCHASES

Purchase on Credit:
Company purchase goods on credit from Clothes Manufacturer. When the company makes the purchases on
credit the entries are recorded in the following manner in general journal. It includes the item that is
purchased, its quantity, unit price and date of purchase.

Date

Serial
number

Item Description

29/10/2013

xxx

65% Polyester 35%

cotton fabric
Clothes
Manufacturer

Quantity
(in
meters)
13692

Unit
Price

Amount
Debit (PKR)

1.71

23413.32

Amount
Credit (PKR)

23413.32

Purchase Day Book:

After the entry has made the company records data of purchase in purchase day book. It includes item date
of purchase, description, invoice number and its amount.

Purchase Day Book

Supplier Name
Invoice Number
Clothes Manufacturer FKZ056

Date
Serial number
29/10/2013 xxx

Amount
23413.32

Purchase on Cash
The company does not purchase stock on cash because it is not in their companys policies but they
purchase different assets. For Example: Machinery, Van, Office Supplies, Equipments etc on cash. They
recorded these transactions in general journal
Date

29/10/2013

Serial
number
xxx

Item
Description
Office Supplies

Quantity
50

Unit
Price
120

Amount Debit
Pkr
6000

Cash

Amount Credit
Pkr

6000

Purchase Return
The company has returned some of the fabric like 300 meters less from the original one and it will
reduce to 13392 meters in total. Following table will explain the purchase return entries in detail which
includes date, serial number, item description, quantity and etc.

Date

Serial
number

02/11/2013

xxx

Invoice
Number
FKZ056

Item
Description

Quantity
(in
meters)

Unit
Price

Amount
Debit
(PKR)

65% Polyester
35% cotton
fabric
Clothes
Manufacturer

13692

1.71

23413.32

Amount
Credit
(PKR)

23413.32

Sale
Company is selling the product from HanCole group by two means:

Sale

Sale

Sale

On credit

On cash

Sales on credit
Following is recording of sales on credit in book:
Date

Serial
number

Item
Description

Quantity

Unit
Price

Amount
excluding
Sales Tax.

Rate of Sales
Tax

Amount
of Sales
Tax

Amount
including
Sales Tax

30/10/2013

Xxx

30x30/76x68

13692

170

232764

2%

46553

2374193

92 width
Sales

8550

Sales on cash
They sales the inventory on 15 day credit but not on cash. Therefore we didnt find any entries related
to sales on cash thats why we cannot make entries of sales on cash

SALES DAY BOOK

Date
30/10/2013

Serial number

Purchase Day Book

Customer Name
Invoice Number

xxx

Mr. X

SSK991

Description

Debit

Credit

Balance from
previous record

100000

Office Supplies

Amount
2374193

CASH BOOK
Date
30/09/2013

29/10/2013

Recommendations:

Balance
-

6000

100000
96000