INTRODUCTION

Level Up Bookstore Partnership Ltd was established in January 2015.This bookstore

is fully managed andfounded by two local hardworking entrepreneurs, who are Miss
Veronica and Mr Ho Wei Qiang. Level Up Bookstoreis selling a wide range of books such as
fiction, non-fiction as well as revision books and textbooks which are all multi-lingual.
Besides, there are also multiple choices of multi-media products, stationery, newspaper and
also gift items. It is a great spot fully equipped with “essentials” for book-lovers and
schooling needs.

Logo

The logo shown above is the logo of the company. The word “Level Up” means that
the company hopes that this bookstore could “level up” the public’s lifestyle no matter if it is
through books that will widen their knowledge or stationery that can improve their paper
works conveniency. Other than that, the books in the logo reflect that Level UpBookstore is a
one-stop station for the book lovers to step into the unknown fantasy world of books.

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Target Customer

• By Age

IT products like CD, keyboard and earphone are targeted for young customers. Revision
books and school accessories are for schooling students while colouring and bedtime stories
books are for kids.

• By Hobbies and Interest

Travel guide books or map like Lonely Planet and Travel 101 are prepared for those
customers who are going to travel. Photography books like Complete Digital Photography are
suitable for photography lovers to act as a guidance in capturing captivating photos. In
addition, cooking books are for the cooking enthusiasts.

• By Gender

As for female, Level Up Bookstore will be providing make-up tutorial books, romance
storybooks and cooking books. On the other hand, products such as gadgets and graphic
novel are targeted for male customers.

Mission and Vision Statement

• Mission

To be the pioneer settlers of the industry. To offer money valued products and outstanding
services to our consumers, a conducive working space for people, and to be socially
responsible to the community.

• Vision

To serve the customers in the best manner and to constantly improve to follow up with the
fast-paced society.

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SWOT Analysis

Business Strategy

Strength

• It has a bigger platform for stationary and sensational bookselling because it has 4
outlets around Kuala Lumpur and Selangor.
• The Level Up logo is a brand recognition. Level Up Company is one of the most
generally recognized brands across Kuala Lumpur and the state of Selangor. The
signature logo is also famous within bookshop industries.
• The Level Up Company has a strong distribution network. Level Up makes its
products available to individuals in more than 5 countries around the globe through
the international distribution network

Weakness

• Lack of professional human resources in the company to handle complicated task.

• Too focus on traditional advertising strategy like promoting through newspaper and
giving out flyer. This will only give a limited exposure on products.
• Does not provide enough satisfaction for consumer. For example, the company does
not provide a conducive area for the customers to sit down and enjoy the books.

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 Opportunity

• It is located at the centre of the city- Kuala Lumpur that is a high foot traffic area.
• With the help of technology, Level Up can sell E-books online as the physical copy is
limited. This can also bring benefit for those who likes to shop online.
• Diversification in other product segments. The Level Up Company can try to
diversify its business into E-learning or food and snack business. By increasing the
offerings of Level Up to their consumers, the company could get better revenue and
reduce their supply chain costs by sharing the load of the costs with a huge variety of
products.

Threat

• People these days prefer to shop online instead of buying it from the store which will
decrease the company’s sales
• The lack of natural resources is one of the biggest threats. The discretion of trees from
the country that provide the company supplies like Indonesia and China can give the
company a hard time in producing books.
• Strong competitors. There are more bookstore company building up nowadays like
MPH and Popular. All these built up companies will create stronger competition
among bookshop industries.

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Business Organization

Partners
(i) Veronica Yeow
(ii) Ho Wei Qiang

Supervisor
Name: Lim Shen
Jie

Human Resources Marketing Manager

Manager Customer Service
Manager Logistic Manager
Name: Tey Weng
Name: Chang Xiao Hong Name: Lee Shu Qin
Qing Name: Khor Jia Ern

Interior Design of Level Up Book Store

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Location of Business

Level Up
Bookstore

Head Quarter:
• 9 Jalan 7/118B, Bandar Razak, 56000 Kuala Lumpur, Malaysia.

Branches:

• No.125-G-3A 126 Metro Genting Kelang, Jalan Genting Kelang, 53300Setapak,

Kuala Lumpur, Malaysia
• 3A, 1, Jalan Equine 9G, Taman Equine, 43300 Seri Kembangan, Selangor
• 6, 18, Jalan Perbadanan, Seksyen 14, 40000 Shah Alam, Selangor

Working hours, days, contact information

Working hours and days: Every Monday-Sunday 10a.m –10p.m.
Contact Information: 603-2243 5674 (General)
1300 882413 (Customer Service Enquiry Hotline)

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 PARTNERSHIP AGREEMENT

This PARTNERSHIP AGREEMENT was made on the 1st January, 2015 between Miss
Veronica and Mr Ho Wei Qiang.

1. NAME AND BUSINESS. The parties hereby form a partnership under the name of Level
Up Bookstore Partnership Ltd to conduct a bookstore. The principal office of the business
shall be in 9 Jalan 7/118B, Bandar Razak, 56000 Kuala Lumpur, Malaysia..

2. TERM. The partnership shall begin on 1st January, 2015, and shall continue until
terminated as herein provided.

3. CAPITAL. The capital of the partnership shall be contributed in cash by the partners as
follows: A separate capital account shall be maintained for each partner. Neither partner shall
withdraw any part of his capital account. Upon the demand of either partner, the capital
accounts of the partners shall be maintained at all times in the proportions in which the
partners share in the profits and losses of the partnership.

4. PROFIT AND LOSS. The net profits of the partnership shall be divided equally between
the partners and the net losses shall be borne equally by them. A separate income account
shall be maintained for each partner. Partnership profits and losses shall be charged or
credited to the separate income account of each partner. If a partner has no credit balance in
his income account, losses shall be charged to his capital account.

5. SALARIES AND DRAWINGS. As compensation for his or her services in and to the
Partnership business, each Partner shall be entitled to a salary RM4000 each month, which
shall be deducted by the Partnership excluding the first month that the firm started. Each
partner may, from time to time, increase or reduce salary by mutual agreement of all the
Partners.

6. INTEREST.5% of interest shall be paid on the initial contributions to the capital of Mr Ho

Wei Qiang and 4% of interest for Miss Veronica. A 10% interest shall be charged on the
amount of drawings of the partner.

7. MANAGEMENT DUTIES AND RESTRICTIONS. The partners shall have equal rights
in the management of the partnership business, and each partner shall devote his entire time
to the conduct of the business. Without the consent of the other partner neither partner shall
on behalf of the partnership borrow or lend money, or make, deliver, or accept any
commercial paper, or execute any mortgage, security agreement, bond, or lease, or purchase

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or contract to purchase, or sell or contract to sell any property for or of the partnership other
than the type of property bought and sold in the regular course of its business.

8. BANKING. All funds of the partnership shall be deposited in its name in such checking
account or accounts as shall be designated by the partners. All withdrawals are to be made
upon checks signed by either partner.

9. BOOKS. The partnership books shall be maintained at the principal office of the
partnership, and each partner shall at all times have access thereto. The books shall be kept on
a fiscal year basis, commencing 1st of January and ending 31st of December and shall be
closed and balanced at the end of each fiscal year. An audit shall be made as of the closing
date.

10. VOLUNTARY TERMINATION. The partnership may be dissolved at any time by

agreement of the partners, in which event the partners shall proceed with reasonable
promptness to liquidate the business of the partnership. The partnership name shall be sold
with the other assets of the business. The assets of the partnership business shall be used and
distributed in the following order: (a) to pay or provide for the payment of all partnership
liabilities and liquidating expenses and obligations; (b) to equalize the income accounts of the
partners; (c) to discharge the balance of the income accounts of the partners; (d) to equalize
the capital accounts of the partners; and (e) to discharge the balance of the capital accounts of
the partners.

11. DEATH. Upon the death of either partner, the surviving partner shall have the right either
to purchase the interest of the decedent in the partnership or to terminate and liquidate the
partnership business. If the surviving partner elects to purchase the decedent's interest, he
shall serve notice in writing of such election, within three months after the death of the
decedent, upon the executor or administrator of the decedent, or, if at the time of such
election no legal representative has been appointed, upon any one of the known legal heirs of
the decedent at the last-known address of such heir. (a) If the surviving partner elects to
purchase the interest of the decedent in the partnership, the purchase price shall be equal to
the decedent's capital account as at the date of his death plus the decedent's income account
as at the end of the prior fiscal year, increased by his share of partnership profits or decreased
by his share of partnership losses for the period from the beginning of the fiscal year in which
his death occurred until the end of the calendar month in which his death occurred, and
decreased by withdrawals charged to his income account during such period. No allowance
shall be made for goodwill, trade name, patents, or other intangible assets, except as those
assets have been reflected on the partnership books immediately prior to the decedent's death;
but the survivor shall nevertheless be entitled to use the trade name of the partnership. (b)

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Except as herein otherwise stated, the procedure as to liquidation and distribution of the
assets of the partnership business shall be the same as stated in paragraph 10 with reference to
voluntary termination.

12. ARBITRATION. Any controversy or claim arising out of or relating to this Agreement,
or the breach hereof, shall be settled by arbitration in accordance with the rules, then
obtaining, of the American Arbitration Association, and judgment upon the award rendered
may be entered in any court having jurisdiction thereof.

Executed this 1st ofJanuary2019 in Bandar Razak, Federal Territory of Kuala Lumpur.

_______________________________________________________

(Signature of Partner 1)

_______________________________________________________

(Signature of Partner 2)

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 Level Up Bookstore
Trial Balance at 31 January 2019

Particulars Debit ( RM ) Credit ( RM )

Vehicles 75,000.00
Furniture 60,000.00
Bank 80,000.00
Cash 60,000.00
Capital :
Miss Veronica 95,000.00
Mr Ho 100,000.00
Purchases 45,000.00
Sales 193,000.00
Sales return 45,000.00
Purchase return 25,000.00
Salaries 88,000.00
Rental 65,000.00
Utilities 35,000.00
Trade receivable 15,000.00
Trade payable 65,000.00
Dividends received 10,000.00
Commission received 80,000.00
Total 568,000.00 568,000.00

Additional information
1. Stock at 31 January 2015 was valued as RM50,000
2. Salaries accrued RM4500
3. Vehicle is depreciated 20% using straight-line method.
4. Miss Veronica withdraw RM8000 of cash and was not recorded.
5. RM3000 of rent was prepaid
6. Interest of drawing is 10%
7. Interest of capital 5%
8. Provision of doubtful debts to be incurred at RM250.

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 Level Up Bookstore
Income Statement for the year ended 31st December 2019
RM RM RM
Sales 193,000.00
Minus : Sales Return 45,000.00
Net Sales 148,000.00

M : Cost of Sales
Opening Stock -
Purchases 45,000.00
Minus :Purchases
Return 25,000.00
Net Purchase 20,000.00
Cost of goods sold 20,000.00
Minus : Closing
Stock 50,000.00
Cost of sales (30,000.00)
Gross Profit 178,000.00
Add : Revenue
Dividends
received 10,000.00
Commission
received 80,000.00 90,000.00
268,000.00
Less : Expenses
Rental(65000-
3000) 62,000.00
Salaries 92,500.00
Provision of
doubtful debts 250.00
Depreciation on
Vehicles 15,000.00
Utilities 35,000.00 204,750.00
Net Profit 63,250.00

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 Level Up Bookstore
Profit Appropriation Account for the year ended 31st December 2019
RM RM RM

Net Profit 63,250.00

Add : Interest On Drawings

Miss Veronica ( 8,000 x 10% ) 800.00

64,050.00
Less : Interest on capital

Miss Veronica ( 95,000 x 4% ) 3,800.00

Mr Ho ( 100,000 x 5% ) 5,000.00 8,800.00

Partnership salary

Miss Veronica ( 4,000x11 ) 40,000.00

Mr Ho ( 4,000x11 ) 40,000.00 80,000.00 88,800.00

(24,750.00)

Residual Loss

Miss Veronica ( 24,750.00/2 ) (12,375.00)

Mr Ho ( 24,750.00/2 ) (12,375.00)

(24,750.00)

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 Current Account

Current Account Miss Veronica

Date Particulars Total Date Particulars Total
2019 RM 2019 RM

Dec 31 Drawings 8,000.00 Dec 31 Partnership salary 44,000.00

Interest on drawings 800.00 Interest on capital 3,800.00

Residual Loss 12,375.00
Balance c/d 26,625.00

47,800.00 47,800.00

2020

Jan 1 Balance b/d 26,625.00

Current account Mr Ho
Date Particulars RM Date Particulars Total
2019 2019 RM

Dec 31 Residual Loss 12,375.00 Dec 31 Partnership salary 44,000.00

Balance c/d 36,625.00 Interest on capital 5,000.00

49,000.00 49,000.00

2020

Jan 1 Balance b/d 36,625.00

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 Level Up Bookstore
Statement of Financial Position at the year ended 31st December 2019
Non-Current Assets

Vehicles 75,000.00

Less: Depreciation of vehicles 15,000.00 60,000.00

Furniture 60,000.00

120,000.00
Current Assets

Closing stocks 50,000.00

Bank 80,000.00

Cash (60000-8000) 52,000.00

Trade Receivables 15,000.00

Less: Provision for Doubtful Debt 250.00 14,750.00

Other Receivable 3,000.00

199,750

Less: Current Liabilities

Trade Payables 65,000.00

Other Payable 4,500.00 69,500.00

Net Current Assets 130,250.00

Net Assets 250,250.00

Capital:

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Miss Veronica 100,000.00

Mr Ho 95,000.00

195,000.00

Add: Current Account

Miss Veronica 26,625.00

Mr Ho 36,625.00 63,250.00

258,250.00

Less: Drawings 8,000 .00

250,250.00

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