TRANSACTION CYCLE OF MOUNTAIN
VIEW RETAIL STORE
ACC 114 ASSIGNMENT PRESENTATION
BY OGWUEGBU CRISPINO IFEANYICHUKWU
19AA025026
BUSINESS DESCRIPTION
•
MOUNTAIN VIEW RETAIL STORE IS A SOLE
PROPRIETORSHIP BUSINESS AND A RETAIL
STORE FOUNDED BY MRS. ROSEMARY
OGWUEGBU IN THE YEAR, 2015. IT IS WELL
SUPPORTED BY HER LOVELY HUSBAND, MR.
CHARLES OGWUEGBU. IT IS LOCATED AT OPIC
ESTATE, AGBARA, OGUN STATE. IT SELLS A
VARIETY OF GOODS RANGING FROM CHILLED
SOFT DRINKS TO TOILETRIES TO FOOD STUFFS
LIKE TOMATO, SPAGHETTI AND SO ON TO A
VARIETY OF SNACKS WHICH SATISFIES ITS
CONSUMERS’ WANTS. IT IS REALLY GAINING
POPULARITY AND SALES FIGURES ARE
INCREASING AT AN ALARMING RATE DUE TO
ITS INFRASTRUCTURE, ITS RAPID SALES
SERVICE AND MOST ESPECIALLY, THE SPECIAL
GRACE OF GOD. IN THIS REPORT, WE WOULD
BE TAKING A LOOK AT ITS TRANSACTION
CYCLE FOR TWO DAYS IN THE MONTH OF
JANUARY IN THE YEAR, 2017.
page 2
•
TRANSACTION CYCLE OVERVIEW
A transaction cycle is an interlocking set of
business transactions
•
Revenue cycle is a recurring set of business
activities and information processing operations
involved in the process of delivering goods and
services to customers and receiving payments for
the sales
•
The expenditure cycle is the set of activities
related to the acquisition of and payment for
goods and services. These activities include the
determination of what needs to be purchased,
purchasing activities, the receipt of goods, and
payments to suppliers
•
The conversion cycle is the crux of each business;
daily transactions from normal operations include
pieces from the expenditure and payroll cycle to
make up the conversion process. The goods
purchased for the business are used by the
personnel from payroll to earn the business cash.
page 3
TRANSACTION CYCLE OF MOUNTAIN VIEW RETAIL STORE
REVENUE/ SALES CYCLE
ORDER PLACEMENT
STOCK CHECK
CASH/CREDIT
TOTAL AMOUNT
MTN - N 1000 X 2
MTN - N 200 X 2
MTN - N 200 X 1
IN STOCK
IN STOCK
IN STOCK
CASH
CASH
CASH
N2,020.00
N420.00
N230.00
BREAD - N 100 X 1
SODA KING - N 100 X 2
IN STOCK
IN STOCK
CASH
CASH
N 100.00
N 200.00
SODA KING – 100 X 1
IN STOCK
CASH
N 110.00
SACHET WATER - N 10 X 1
IN STOCK
CASH
N 10.00
AIRTEL – N 1000 X 1
IN STOCK
CASH
N 1,500.00
IN STOCK
CASH
N 230.00
SUGAR – N 10 X 2
COCONUT BISCUIT - N 25 X 2
IN STOCK
CASH
N 50.00
OLE BISCUIT - N 20 X 1
IN STOCK
CASH
N 30.00
ETISALAT – N 200 X 1
IN STOCK
CASH
N 200.00
TISSUE – N 70 X 1
SACHET WATER - N 10 X 3
IN STOCK
IN STOCK
CASH
CASH
N 70.00
N 30.00
OLE BISCUIT – N 20 X1
SACHET WATER - N 10 X 1
• The sales/revenue cycle of Mountain View
Retail Store involves the consumers coming
to the shop to place their orders, the
carrying of a stock check to ascertain the
availability of the requested goods, the
satisfaction of the orders of the consumers
and the receipt of cash immediately.
AIRTEL – N 500 X 1
BREAD – N 100 X 1
MILO – N 50 X 1
MILK – N 30 X 2
GROUNDNUT - N 10 X 1
page 4
TRANSACTION CYCLE OF MOUNTAIN VIEW RETAIL STORE
EXPENDITURE CYCLE
• This cycle begins with the checking of the current stock of
goods to find out the goods that need to be restocked. After
this has been done, a purchase order is sent to various
retailers. When she receives the goods, she pays immediately
for some goods but some retailers allow her to carry it on
credit basis. This is usually carried out within the interval of 2
days or 3 days depending on how urgent it is to get the goods
restocked.
page 5
TRANSACTION CYCLE OF MOUNTAIN VIEW RETAIL STORE
COMBINATION OF ALL CYCLES
GOODS
CASH
RESTOCKED GOODS AND SERVICES
CASH
page 6