Nuwa Trading LLC — the running case study
This page is your reference for the whole course. Come back to it whenever you need a number. Do not memorise it — use it.
Company profile
| Item | Detail |
|---|---|
| Name | Nuwa Trading LLC |
| Legal form | Limited liability company, economic licence — Abu Dhabi (outside the free zones) |
| Activity | Importing and retailing coffee brewing equipment online |
| Sales channels | Own Shopify store · Amazon.ae · Instagram orders (cash on delivery) |
| Payment gateway | A local gateway — a fee of 3% of the sale value + VAT on the fee |
| Delivery | A local courier company — 15 dirhams per order + VAT, and it collects the cash-on-delivery amounts |
| Financial year | 1 January — 31 December |
| Incorporation date | 1 January 2026 |
| Employees | Two (customer service + packing and shipping) |
| Founder | One person, who injected the capital and lent the company an interest-free amount |
The product
A single item at the start, to keep the learning simple: the complete V60 pour-over kit.
| Item | Value |
|---|---|
| Purchase price from the Turkish supplier (FOB) | 60 dirhams per unit |
| Quantity in the first shipment | 1,000 units |
| International freight and clearance | 6,000 dirhams per shipment |
| Customs duty | 3,000 dirhams per shipment |
| Landed cost per unit | 69 dirhams |
| Retail selling price (VAT inclusive) | 208.95 dirhams |
| Selling price before VAT | 199 dirhams |
January 2026 transactions (the first month)
These are the transactions you will journalise in Module 2, post in Module 3, and close in Modules 4 and 5.
| # | Date | Transaction | Amount (dirhams) |
|---|---|---|---|
| 1 | 1 January | Paid-in capital deposited in the bank account | 150,000 |
| 2 | 1 January | Loan from the founder (long-term, interest-free) | 50,000 |
| 3 | 3 January | Import of 1,000 units from the Turkish supplier — on 30-day credit | 60,000 |
| 4 | 5 January | International freight 6,000 + customs duty 3,000 — cash from the bank | 9,000 |
| 5 | 6 January | Warehouse rent paid 6 months in advance + 5% VAT | 18,000 + 900 |
| 6 | 8 January | Purchase of equipment, a computer and packing machines + 5% VAT (4-year life) | 24,000 + 1,200 |
| 7 | 10 January | Store platform and software subscription for the month + VAT | 1,200 + 60 |
| 8 | During the month | Card sales: 400 units × 199 (250 orders) + VAT | 79,600 + 3,980 |
| 9 | During the month | Cash-on-delivery sales: 100 units × 199 (100 orders) + VAT | 19,900 + 995 |
| 10 | During the month | Returns: 20 units (undamaged, put back into inventory) + VAT | 3,980 + 199 |
| 11 | 28 January | Payment gateway settlement: it transfers the net after deducting its fees and the returns | net 76,893.60 |
| 12 | 30 January | Courier company settlement: it transfers the cash-on-delivery amounts after deducting its charge | net 19,320 |
| 13 | During the month | Meta and Google advertising (non-resident supplier — reverse charge) | 15,000 |
| 14 | 28 January | January salaries | 12,000 |
| 15 | 30 January | Payment on account to the Turkish supplier | 30,000 |
Adjusting entries on 31 January
| # | Adjustment | Amount |
|---|---|---|
| A1 | Depreciation of the equipment for one month (24,000 ÷ 4 years ÷ 12) | 500 |
| A2 | Charging the month's rent out of the amount paid in advance (18,000 ÷ 6) | 3,000 |
| A3 | Professional fees for January whose invoice has not arrived yet | 2,500 |
Note: the cost of goods sold is recorded with every sale (the perpetual inventory system), and needs no separate adjusting entry — the detail is in Module 6.
Reference results for January 2026
Do not look at these before you finish Module 5. Use them to check your work, not to copy it.
Click to reveal the reference figures
| Indicator | Value (dirhams) | |--------|---------------| | Trial balance total (each side) | 341,026.00 | | Net revenue (after returns) | 95,520.00 | | Cost of goods sold | 33,120.00 | | Gross profit | 62,400.00 (65.3%) | | Total operating expenses | 38,088.00 | | **Net profit** | **24,312.00** | | Total assets | 259,233.60 | | Total liabilities | 84,921.60 | | Equity | 174,312.00 | | Bank balance at 31 January | 184,853.60 | | Net VAT payable | 2,421.60 | | Inventory remaining | 520 units = 35,880.00 |Operating metrics for January (for Module 10)
| Metric | Value |
|---|---|
| Number of orders | 350 |
| Units sold (net of returns) | 480 |
| Average order value (before VAT) | 284.29 dirhams |
| Return rate (by units) | 4% |
| Marketing spend | 15,000 dirhams |
| Customer acquisition cost per order | 42.86 dirhams |
Assumed 2026 growth (for Module 9 and the final project)
| Quarter | Net revenue (dirhams) |
|---|---|
| Q1 (actual — the final project) | 381,682 |
| Q2 | 560,000 |
| Q3 | 740,000 |
| Q4 | 918,318 |
| Full year | 2,600,000 |
Expected accounting net profit for the year: 620,000 dirhams.