JEN S SUPERMARKET

CXC Principles of Accounts General Level
SBA Assignment Summer 2010

Name: Jenevonne Kirton Registration number: School: The Lodge School School code: 030016 Territory: Barbados

This project is about develop and promising entity, Jen s Supermarket, under review for December 2009 pg. 1

Table of Contents Opening remarks Acknowledgement Aim of project Description and overview Accounting procedures used and records kept: Opening journal entries The General Journal Sales Journal .. Purchases Journal . Return Inwards Journal Return Outwards Journal Three Column Cash Book Sales Ledger Purchases ledger .. General Ledgers .. The Trial Balance .. Trading and Profit and Loss .. Balance Sheet .. Performance Evaluation and interpretation of results Ratios Comparison .. Suggestion .. Conclusion Appendices: The List of the Transactions Source documents The accounting cycle Pie charts .. Doughnut chart .. .. . .. . . .. .3-6 .. .3 .. 4 .5- 6 .........7

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.8 . .. ... 9 . .. .15 .. . .. .15 ...16 .. . .. 16 . ..17 . ...18-19 . . .20 . . ..21-23 . ..24 ...25 .. .. .26 .. . .. .27-29 . .. 27-29 . . ...30 . . 31 . . . 32 .. ..10-11 . . .12-14 .. ..7 ..28 . ..29

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Acknowledgement

I would like to thank family and friends for all they contributed towards taking Jen s Supermarket from an idea and making it into an innovation. Thank you to all who contributed money or any fixed assets into the entity to make Jen s Supermarket a success.

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Aim of the Project The aim of my project is for me to arrive at a comprehensive understanding of the financial sector of the business world. 4 . To draw up the financial records for the year 2009 for Jen s Supermarket and to comment on the entity s performance using appropriate tools of Analysis pg.

cashiers. as assistance and security pg. 5 . Kirton acting as owner/manager. Jen s Supermarket is a developed supermarket which sells a variety of food items and miscellaneous goods. who is the sole proprietor.Description and Overview Jen s Supermarket is a developed and simulated entity owned by Jenevonne Kirton. There are three supervisors and twelve general workers who act as shelf stackers. The supermarket employ fifteen staff along with Ms. serving most of the island in its convenient location.

Jen s Supermarket allows some of their costumers to buy on credit and they also buy from many retailers on credit. ledgers. 6 . with all the necessary journals. The period under review is Dec 2009 pg. a cash book. a petty cash book and a payroll to record the cash and credit transactions of the entity.The lines of authority within the business a shown below Owner/Manager Supervisor Supervisor Supervisor General Workers The accounting records are kept on double entry principles.

Trial Balance pg.Adjustments and closing entries 3. 7 . Final Accounts 2. The accounting Cycle 1. Journalising/ Books of original entry 5.Accounting procedures used and records kept Jen s Supermarket keeps records according to the standard form of double entry principles and in keeping with the accounting cycle shown below. Posting to the ledger 4.

Clarke T.Opening Journal Entries Assets Cash Bank Premises Motor Van Stock Debtors C. Thomas Creditors M. Song D. Call 5000 1000 1000 5000 300 1000 50000 100000 1500 50000 pg. Harris S. 8 .

Song P. Harris S.5 Credit 2009 1st Jan Assets Premises Motor Van Stock Debtors: C. Clarke T. Call Capital 50000 1000 208800 5000 1000 202800 208800 pg.The General Journal The General Journal Date Details Folio Debit p. Thomas Gl 64 Gl 63 Gl 55 100000 1500 50000 Sl 44 Sl 42 Sl 50 CB 10 CB 10 1000 5000 300 Bank Cash Liabilities: Creditors M. 9 .

Purchased goods on credit from U. 10 .List of Transactions December 2009 Dec 1. Hung lent us $600 by cheque 12. Lung $450 9. Reid 1500 16. Ulrich $50. Sold goods on credit to F. Hung $600 by cheque 14. M. Cash Drawings $1. Bought goods from R. H. Credit Sales to M.000 2. Paid insurance by cheque for $300 pg. Repaid H. Sold goods on credit to H. Cash Sales $100.000 4. Hoyte costing 600 3.000 6. Frank $2000 15. Paid Rent and Rates by cheque $1. Lung paid us by cheque $450 13.000 5.

Bought goods from I. Hoyte paid his account by cheque having a discount of 5% pg.000 19. Paid R. 11 . Reid his account by cheque having a discount of 5% 30. Sales on credit to G.17. Goods returned from F. Paid wages by cheque $1. Paid for motor expenses $300 by cash 21. Frank $200 24. Returned faulty stock to U. Thomas $ 1000 28.000 22. Irish for $45 29. Credit purchases from M. H. Ulrich $100 26. Gooding $2.

Invoice Invoice no: Date: From: QTY 25 Cases 10 crates 50 boxes 001 14th/12/2009 Jen's Supermarket Haggat Hall St. Barbados From: U. Ulrich Hinds Bury St. Michael UNIT PRICE($) 40 15 17 $ 1000 150 850 2000 Debit Note: DEBIT NOTE To: Jen's Supermarket Haggat Hall St. Michael.Michael DESCRIPTION PHD: Milk Sun flower: Eggs Pampers: Pampers Total To: Frank Turning St. 12 . James Barbados Date: QTY 5 cases 24th December 2009 DESCRIPTION BBC: Pep drinks UNIT PRICE ($) 20 Ref No: Invoice No:005 TOTAL AMOUNT($) 100 pg.

Barbados. Hoyte Five hundred and forty dollars wholesale goods $540.Credit Note: Credit Note From: Jen's Supermarket Haggat Hall. Michael. St.00 H. Frank Turning . Michael. Barbados. Date: 22nd December 2009 Ref No: Dated Invoice No:010 22nd Dec. To: F. Hoyte # 001 pg. St. 2009 TOTAL AMOUNT($) 200 QTY 5 buckets( 1 Gallon each) DESCRIPTION Bico: Ice Cream UNIT PRICE ($) 40 Receipt: Receipt Date:30th Dec 2009 Received from: the sum of For: Per: H. 13 .

Hung bds Six hundred----------------------- $ 600. ST. pay to the 312086 2009/12/13 YR/MO/DAY s Super Market order of H. 14 .00 DOLLARS Jks BNB ACCOUNT Jenevonne Kirton Owner/General Manager pg.Cheque: J e n Barbados National Bank BRIDGETOWN. MICHAEL BARBADOS.

Reid M. Ulrich R. Thomas I.17 Amount $ 2000 2000 600 450 5050 H. 15 . Gooding Transferred to sales a/c 001 002 003 004 SL 3 SL 4 SL 2 SL 1 GL 21 The Purchases Journal Purchases Journal Date 2009 1st Dec 15th Dec 26th Dec 28th Dec Details U. Lung F.The Sales Journal Sales Journal Date 2009 2nd Dec 6th Dec 14th Dec 21st Dec Details Invoice No Folio p. Hoyte M.5 Folio Amount $ PL 5 50000 PL 7 1500 PL 1 1000 PL 2 45 GL3 52545 pg. Frank G. Irish Transferred to purchases a/c Invoice No 001 004 002 003 p.

16 .10 Folio Amount $ 100 001 PL 5 GL 23 pg. Ulrich Dec Transferred to return outwards a/c Invoice No p. Frank Dec Transferred to Return Inwards a/c Invoice No p.The Return Inwards Journal Return Inwards Journal Date Details 2009 22nd F.12 Folio Amount $ SL 3 GL 21 200 004 The Return Outwards Journal Return Outwards Journal Date Details 2009 24tn U.

The Cash Book Date 2009 Dec 1st 3rd 9th 12th 30th Details Folio Dis $ Cash $ 1000 100000 bal b/d Sales loan M. Reid 31st bal c/d 51590 43865 Folio Dis $ Cash $ 1000 (p. 17 . Lung H. Hoyte GJ 1 GL 10 GL 16 SL 1 SL 7 60 60 1st Jan GL 40 101000 99700 Jen's Supermarket Three column Cash Book Bank Date Details 2009 Dec $ 50000 4th Drawings 5th Rent and Rates 600 16th Insurance 450 17th Wages 540 19th Motor expenses 29th R.10) Bank $ 1000 300 5000 GL 12 GL 14 GL 17 GL 18 GL 20 PL 7 300 75 75 GL 39 99 700 101000 1425 43865 51590 pg.

4 2009 21st Dec Sales SJ 17 2000 2009 2nd Dec Sales SJ 17 H.Sales Ledgers C.3 200 1800 2000 1st Jan bal b/d 1800 G.11 2009 14th Dec F. Hoyte 2009 600 30th Dec 30th Dec 600 p. 18 . Thomas 2009 1st Dec bal b/d GJ 1 300 p. Harris 2009 1st Dec bal b/d GJ 1 1000 p.44 S. Frank 2009 Sales SJ 17 2000 2000 22nd Dec 31st Dec Return Inwards bal c/d RIJ 12 p.7 Bank Dis CB 10 CB 10 540 60 600 pg. Gooding p. Clarke 2009 1st Dec bal b/d GJ 1 5000 p.22 T.

2009 6th Dec Sales SJ 17 450 M Lung 2009 12th Dec p. 19 .B Debtors=10100 pg.1 Bank CB 10 450 N.

20 .2 45 p.50 1000 p.B Creditors=56945 pg. Call 1st Dec M. Reid 2009 29th Dec 29th Dec 2009 Bank Dis CB 10 CB 10 1425 75 1500 15th Dec Purchases PJ 5 Purchases PJ 5 p. Ulrich 2009 ROH 10 100 49900 50000 1st Jan D.Purchases Ledger 2009 24th Return Dec Outwards 31st Dec bal c/d U. Irish 2009 28th Dec R.1 1000 bal b/d GJ 1 Purchases PJ 5 I. Thomas 26th Dec bal b/d 2nd Dec Purchases PJ 5 p.5 50000 50000 50000 p.7 1500 1500 N.

32 2009 Sales 2009 31st Dec p.62 Total discount for the month CB 10 60 pg.General Ledgers Premises 2009 1st Dec bal b/d Gl 42 100000 p.31 Motor Van 2009 1st Dec bal b/d Gl 41 1500 p.10 Total sales for the month Cash bal b/d SJ 17 5050 31st Dec bal c/d 105050 105050 3rd Dec 1st Jan CB 10 100000 105050 105050 p.16 Loan 2009 9th Dec Bank CB 10 600 Discount Allowed 2009 30th Dec p. 21 .

21 RIJ 12 200 Drawings 2009 4th Dec Cash CB 10 1000 p.23 100 Return Inwards 2009 31st Dec Total Returns for the month p.Discount Received 2009 29th Dec Total discount for the month CB 10 p. 22 .12 pg.61 75 Purchases 2009 31st Dec p.3 Total credit for the month PJ 5 52545 Return Outwards 2009 31st Dec Total Returns for the ROJ 10 month p.

17 CB 10 300 Wages 2009 17th Dec Bank p.101 202800 Stock 10th Dec bal b/d GJ 1 50000 P.20 CB 10 300 Capital 2009 1st Dec bal b/d GJ 1 p.18 CB 10 5000 Motor Expenses 2009 19th Cash Dec p.55 pg. 23 .14 Insurance 2009 16th Dec Bank p.Rent and Rates 2009 5th Dec Bank Cb 10 1000 p.

10% Insurance owing. 24 .The Trial Balance Date 2009 31st Dec Jen's Supermarket Trial Balance as at 31st Dec 2009 Details Debit Credit $ $ Capital 202800 Cash 99700 Bank 43865 Premises 100000 Motor Van 1500 Sales 105050 Loan 600 Purchases 52545 Return Outwards 100 Return Inwards 200 Drawings 1000 Rent and Rates 1000 Insurance 300 Wages 5000 Motor Expenses 300 Creditors 56945 Debtors 10100 Stock 50000 Discount allowed 60 Discount received 75 365570 365570 Adjustments Closing Stock.$10245 Depreciation on Motor Van.$50 Rent and Rates paid in advance.$50 pg.

25 .The Trading and Profit and Loss Jen's Supermarket Trading and Profit and Loss for the year ending 31st December 2009 $ $ $ Sales 105050 less Return Inwards (200) Net Sales 104850 Add Opening Stock Purchases less Return Outwards Net Purchases Cost of goods available for sale less closing stock Cost of goods sold Gross Profit Add Discount Received 50000 52545 (100) 52445 102445 (10245) (92200) 12650 75 12725 Less Expenses: Rent and Rates Insurance Wages Motor Expenses Discount Allowed Depreciation for Motor Van Total expenses Net profit 500 350 5000 300 60 150 (6360) 6365 pg.

The Balance Sheet Fixed Assets Premises Motor Van less depreciation Total fixed assets Current Assets Closing Stock Debtors Bank Cash Rent and Rates paid in advance Total current assets Less current liabilities Creditors loan Insurance owing Total current liabilities Working capital Financed by Capital Add Net Profit Less Drawings Capital at end Jen's Supermarket Balance Sheet as at 31st Dec 2009 $ 1500 (150) $ 100000 1350 $ 101350 10245 10100 43865 99700 500 164410 56945 600 50 (57595) 106815 208165 202800 6365 209165 (1000) 208165 pg. 26 .

this indicates that the business was profitable as shown in the following ratios. The business was able to maximize its profitability on the Gross profit/ sales ratio percentage and return on capital employed ratio percentage as indicated by the following: 1. 27 .1 Gross Profit as a percentage of sales Gross Profit Sales *100= 12650 *100= 104850 12% pg. In the close of the financial year for Jen s Supermarket there is an increase of capital.Performance evaluation and interpretation of results In preparing the financial statements for the business Jen s Supermarket . the Trading and profit and Loss account showed a profit of ($6365) six thousand three hundred and sixty five dollars during the month of December in the year 2009. Gross Profit to sales ratio. Gross Profit Sales = 12650 104850 = 0.

Therefore the business made a gross profit of 12 650.50 3. 2.031 Return on capital employed ratio percentage Net Profit capital employed *100= 6365 *100= 205482. Return on capital employed ratio Net Profit capital employed = 6365 = 205482. the cost of goods sold was 92200. Overall the business made ($12) twelve dollars on every ($100) hundred dollars of sales. 28 .1% pg.Gross profit to Sales 12% Gross Profit 88% Sales The sales for the period under review were 104850.50 0.

whilst at close it was 208 165.Return on Capital Employed 3% Net Profit Capital Employed 97% N. These figures show an increase in the net worth of the business of 5365.B Capital Employed= Opening Capital + Closing Capital/2 The capital at start was 202800. 29 . pg.

9 and 1. 2. pg.7 respectively.9:1 Acid test ratio Current assets.9:1 and the acid test ratio was 2. The capital at beginning was 202800 while at end it was 208165 which showed an increase by 5365 at the end of the month.stock current liabilities = 164410-10245 57595 154165 57595 2. Although stock was deducted from the current assets the business was still able to repay its debts.Comparison of figures at start and close The comparison is being done between two liquidity ratios: the current ratio and acid test ratio. 30 . Current ratio Current Assets = Current liabilities = 164410 57595 2.That is an indication that when creditors are paid the remainder of cash is 1. This showed that the current assets did not depend on closing stock to raise its figure.7:1 = = 1. The current ratio was 2.7:1.

Uses the excess money to expand the business by opening another supermarket. Offer new promotions every week and offer the customers raffles at a chance to win prizes at the end of the year. 31 . Introduce new product to the business and purchase new equipment.Suggestions/Recommendations Current Ratio It is recommended that Jen s Supermarket 1. Gross Profit It is suggested that Jen s Supermarket should 1. Source cheaper suppliers to facilitate the demand of goods so profitability would be greater at the end of the month. pg. These are given to help Jen s Supermarket increase gross profit and sales. 2. 2.

Conclusion It is clear that Jen s Supermarket keeps adequate records for the business to demonstrate the profitability over the financial period for the month. pg. 32 . increase the current ratio and gross profit by incorporating the suggestions/recommendations outlined.Overall based on the performance of the business Jen s Supermarket was able to make a profit of 6365 despite the low sales of 104 850. Nevertheless Jen s Supermarket made a good net profit for the month of December in 2009. It could however.