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Don Manuel García Ferrer Business Accounting & Taxation Assessment

 

Evaluation Guidelines

 

The final work will be evaluated based on the following criteria:

  • Acquired knowledge (25%): the knowledge acquired throughout the course of the subject will be evaluated through the analysis of the theoretical data shown in the project presented by the student.
  • Development of the Subject (25 %): the interpretation of the thesis subject by the student and its development will be evaluated in a coherent and analytical manner.
  • Final result (25%): the final evaluation is based on coherent solutions applied to solve objectives set out in the paper. The presentation must be conclusive and formatting must meet established parameters.
  • Additional information and bibliography (25%): additional information regarding the research and subject matter will be evaluated and taken into consideration as a bonus. This consist of: bibliography, visual graphics, charts, independent studies carried out by the student, external academic sources, articles of opinion, etc. All sources, both printed and online, must be referenced according to the APA regulations.

 

BACKGROUND

 

 

Don Manuel García Ferrer is self-employed and is dedicated to installing air conditioners. His friend, Mr. Antonio López Hernández, has decided to set up a Business Accounting and Taxation business.

 

For this he he needs to make an initial investment of .40,000. As his friend Manuel is doing very well, he has chosen to borrow from him instead of going to a bank. Don Manuel will give Don Antonio the amount of $40,000 by bank transfer on September 15, 2016.

 

They have agreed that Don Antonio will return the amount in four annual payments. The payment of each annual fee will be made at the end of each year with an annual interest of 4%. To document the payments, four bills of exchange corresponding to each annuity will be issued.

 

To make sure of the collection of the amounts, Don Manuel has requested that the payment of the letters be guaranteed by the father of his friend, Mr. Luis López Pérez.

 

Don Manuel has decided to buy a new second-hand vehicle. To pay for this acquisition, he endorses the first letter to Doña Alicia Martínez Castro on October 01, 2016.

 

DEVELOP

 

1. Draft the Commercial Loan Agreement detailing the form of payment and including all data that is not provided and it is necessary.

 

2. Determine the total amount to be paid at the expiration of each installment with the detail of interest calculation, as well as the total amount that Mr. Antonio will end up paying for the loan received.

 

3. Fill in the official models the four bills of exchange with all its clauses. By being present all parties are accepted at the time of signing the contract.

 

 

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