Introduction
Findme.org is the name of the business. The name of this business was influenced by the rampant loss of phones, ipads, and laptops within the schools premises. Many cases of stolen items have been left unresolved due to lack of the adequate technology to track their location. Like-minded partners therefore decide to come together to build a product that would solve this problem forever. The business is located in Sidney, Austria where most of the administrative functions are done.
Our business is responsible for tracking and monitoring the location of our clients’ electronic gadgets. The highest percentage of our clientele is students in colleges and teachers. Our target market is highly the students and young people in the estate although some young adults seem to be interested in our product.
This business is security-oriented firm since the functions within out mandate revolve around securing our clients’ property. With the high levels of theft cases within campuses, it became necessary to come up with ways to deal with the vice. That is how the company was formed. At Findme.org, we offer services as well as goods.
Our products are in both categories because we sell our software and tracking devices, while we still offer tracking services. Our software is known as Hidden-eye. This software can be installed in both phones and laptops or any other computing device. After the purchase of the device and successful installation on one’s device, it immediately shows up in our tracking systems.
The company was formed through a partnership of four members, Charles Gary, Mathew West, John piper and Melvin Grey. All of us were classmates in campus and we formed the business immediately after our graduation. We formed together due to a common problem. We had all been victims of the looming theft in our campus.
Charles and Mathew had lost their Apple Ipads while I had lost a laptop. John Piper was the least affected because his only loss was Samsung smart phone. Nonetheless, the circumstances under which our gadgets where stolen remain a mystery to each one of us. His set back brought us together to fight a common enemy, theft.
Our partnership agreement
- Name and products: Our Company’s name shall be Findme.org and our products include a security software, Hidden-eye, and tracking services.
- Term: The partnership shall begin on 12 July 2013 and the term of service shall continue until terminated.
- Capital: Capital shall be through contribution of the partners in cash as well as in kind.
- Profits and losses sharing: All partners shall receive an equal share of the profits made from sales and borne the losses.
- Salaries: Services render by the associates to the company shall not be compensated. The preliminary investment contributions shall not attract any interest.
- Management: Management responsibilities shall be shared equally among partners and there shall be no superiority.
- Banking: all finances shall be put in a bank account where all the four associates have to sign the withdrawal checks.
- Termination: The business shall be dissolved upon an accord of the associates to do so and the insolvency of the company shall comprise selling of the business’s name.
- Death: upon death of a partner, the rest of the partners in equal distribution shall purchase his /her interest. However, the surviving partners can choose to terminate the partnership.
- Arbitration: incase of any arising dispute or breach of the above agreements, the matter shall be solved through arbitration as provided for by the law.
Implemented this __12th___ Â__day of ____July_____, 2013
_________ __________ _________ _________
Signature 1 Signature 2 Signature 3 Signature 4
Date of commencement and contribution narration
The business commenced on July 12, 2013. Raising the capital was a challenge since none of us was working in any formal employment. However, through borrowing from family and friends, we were able to raise enough money to begin our operation. Due to the high level of technology required, we were forced to go for the latest computers and software’s in the market.
This was to cost us more than $A 80,000.this money was not sufficient but it was enough for a start. Most of us contributed our capital share in cash but one of the partners contributed other assets that were vital for our business. Each partners had to contribute $A 20,000.
Only one of the partners contributed some assets other than money. This included a workshop, furniture, and two computers. The workshop was valued at $A 2,000 while the computers were each $A 500. An average value of the furniture in the workshop was placed at $A 3,000. Due to his assets contribution, John was supposed to contribute $A 14,000.
The workshop that john contributed for our business as capital was his elder brother’s former barbershop. We collectively agreed to take a loan worth $A 4000 to meet our total contribution. The two computers he had purchased from his brother when he closed the barbershop. The computers were used at the reception in the barbershop.
The rest of us simply contributed money for capital. Since we did not have a regular source of income or a formal employment, we greatly depended on well-wishers. These included family members and friends. This was not an easy task to get people believing in your project, which by that time seemed like a teenage over-ambitious endeavor. Nonetheless, we made it and each one of us was able to meet his contribution threshold.
Below is a general journal entry to account for our capital contribution.
Statement of Financial position
This table represents the financial position of the business when it started. The table shoes all the details of the business’s financial position and the very first financial report of the business. In the table, the financial capital is well displayed in terms of current assets and non-current assets to clear show the financial strength of the business. A financial position statement helps a business to display information about its financial position. This very vital for effective management of the business because it possible to assess its financial performance in the future.
Manager requires statements of financial position in order to make important decisions based on what they have analyzed. When a business is successful, shareholders may require financial statements to evaluate the risks and opportunities that can be achieved in future. Financial statements can also be used to woe investors hence increasing the business’ capital base. The importance of financial statements cannot be overlooked under any circumstances.
Supposing the business wants to access a loan from the financial institutions for expansion or any other reason, a financial statement will help getting an approval. This is what the banks will use to justify that a business is capable of repaying its loan in the stipulated time. Just in case this is not possible, the banks will also know the business’s financial position in case an auction is inevitable.
Through financial statements, suppliers are able to evaluate the ability of the business in paying for goods and services supplied. This is a vital document for any business whether it is a small business entity or a multibillion empire. Financial records also help the business to keep track of its performance and compare with the competition.
Through our financial statement, we hope to achieve all these advantage. Our financial statement shows that we are financial stable with capital base that can support our activities. We hope to keep improving our financial performance therefore making huge steps towards successes. Through this financial statement, we also hope to attract sponsors and convince the financial institutions to lend us money for expansion and development.