Book Keeping Systems And Profit Levels: Case Study Of Dag + Clinic & Pharmacy Uganda

ABSTRACT

Chapter one represents! the research study focusing on book keeping systems and profit levels, carried out in DAG + Clinic & Pharmacy.

Chapter two represents a view of the selected existing, knowledge from literature on book keeping and profit levels. Therefore the subject of inquiry

was extracted in light with the previously conducted research and the scholarly work.

Chapter three presents the research methods used in the study. It describes the research design, sampling design, data collection, data

analysis and anticipated problems of the study.

Chapter four presents and interprets findings accordingly as per the questionnaires; pie charts, bar charts and tables were used to analyze the

data. Chapter five presents a summary of the major findings, conclusion and recommendations. DAG+ Clinic and Pharmacy Uganda began its operations in 1999 with the sole objective of treating people, importing and selling branded pharmaceutical

products. According to the Finance Manager of DAG+ Clinic and Pharmacy "the book keeper did not record all transactions made in the year 2005.

Budgeted profits were 1 0,000,000/=" and actual profits were 4,200,000/= which was 42% of the targeted profits that year and the difference being 58%. In 2006 transactions recording was slightly improved with better book keeping

systems and the profit level increased by only 2% making 44% with a

difference of 56°/o. In 2007, the book keeper still misplaced record while others were posted wrongly and there was a great decline in profit level attained that year only 20,1 00,000/= was attained of the budgeted 45,000,000/= that is only

45% attained that year. 1.2 Statement of the ProbJem Due to poor book keeping systems, DAG+ Clinic and Pharmacy had failed to attain the budgeted profit levels.

1.3 Purpose of the Study

The purpose of the study was to establish the reasons for poor book keeping systems in relation to profit levels in DAG+ Clinic and Pharmacy.

TABLE OF CONTENTS

Declaration ......................................................................... i

Approval ......................................................................... ii

D d. t' ... e ICa IOn ..................................................................................... Ill

Acknowledgement. ...... : ..... ; ............................................................. iv

Table of Contents ............................................................................. v

List of Tables ..................................................................... ix

List of Figures ..................................................................... x

Abstract. ......................................................................... .

CHAPTER ONE ............................................................................... 1

1.0 INTRODUCTION ....... ~ .............................................................. 1

1.1 Background ........................................................................... 1

1.2 Problem Statement. ................................................................... 2

(

1.3 Purpose of the Study ................................................................. 2

1.4 Research Objectives .................................................................. 3

1.5 Research Questions ................................................................... 3

1.6 Scope of the Study ..................................................................... 3

1. 7 Conceptual Frame work ............................................................. .4

1.8 Significance of the Study ........................................................... .

v

CHAPTER TWO .............................................................................. 5

2.0 LITERATURE REVIEW ................................................................ 5

2.1 Introduction ........................................................................ 5

2.2 Book Keeping Systems .............................................................. 5

2.3 Books of Accounts kept in Book Keeping Systems ................................ 7

2.4 Procedures in Book Keeping systems ............................................... 8

2.5 Thematic areas in Book Keeping Systems ..................................... 12

2.6 Profit Levels ............................................................................. 12

2.7 Relationship between Book Keeping Systems and Profit Levels ......... "'i2

2.8 Conclusions ........................................................................ 14

CHAPTER THREE ........................................................................... 15

METHODOLOGY ............................................................................. 15

3.0 Research introduction ............................................................... 15

3.1 Research Design ...................................................................... 15

3.2 Research Area .......................................................................... 15

3.3 Research Instruments., .............................................................. 16

3.4 Research Population ................................................................. 17

3.5 Sample Design ........................................................................ 17

VI

3.6 Sampling Method ..................................................................... 18

3. 7 Data Collection Method ........................................................................ 19

3.8 Data Processing and Analysis .............................................................. 20

3.9 Limitations of the Study .............................................................. 20

CHAPTER FOUR ............................................................................. 22

PRESENTATION AND INTERPRETATION OF FINDINGS ....................... 22

4.0 Introduction ........................................................................................... 22

4.1· General Findings ..................................................................... 22

CHAPTER FI.VE ................... : .......................................................................... 33

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION OF

THE STUDY ....................................................................... 33

5.1 Introduction ........................................................................ 33

5.2 Discussion of findings ................................................................ 33

5.3 Summary of major findings ......................................................... 34

5.4 To establish profit levels in DAG+ Clinic & Pharmacy ........................... 34

)

5.5 Relationship between book keeping and profit levels ............................ 35

5.6 Conclusion ....................................................................... 35

5. 7 Recommendations ..................................................................... 36

Vll

5.8 Areas of further study ............................................................................. 37

REFERENCES ................................................................... 38

AP.PENDICES .................................................................. .... 40

Appendix 1: Questionnaire .................................................................... .40

Appendix II: Introductory Letter