Rolando Has Just Completed a Course in Accounting Principles and Has

question 9

Essay

Rolando has just completed a course in accounting principles and has designed a Chart of Accounts for a small sole trader business,Barry's Bike Sales,which Barry has handed to you for comment.Barry also informs you that:
• he expects the business to expand,but still wants expense accounts listed in alphabetical order within each sub-category wherever possible
• he also intends to buy shares in Genesis Energy in the near future,but has no intention of Barry's Bike Sales becoming a limited company.
Barry has begun repairing and servicing bikes,as well as selling them.
a Look over the chart (below)and point out any errors or omissions.
b State 3 improvements that can be made to this chart.
c Explain 3 ways in which a Chart of Accounts may act as an internal control mechanism for a business.

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Definitions:

Afro-Caribbean Migration

The movement of people from the Caribbean region to other countries, notably those of African descent seeking better economic opportunities or fleeing from political turmoil.

Sugar

A sweet-tasting, soluble carbohydrate used widely as a sweetener in food and drink, derived from sugarcane and sugar beet plants.

Early Twentieth Century

The period from 1901 to 1940, a time of significant industrial, social, and political change worldwide.

Black Female Suffrage

The right of Black women to vote, a milestone achieved through the broader women's suffrage movement and civil rights struggles.