You are on page 1of 35

Candidate Name:

School: Registration #:
Centre #:
Territory: Jamaica
Date: February 12, 2013
Teacher:

This SBA is mainly about a project done at Green Pond High School BAS snack
counter. The project tells the different varieties of product sold at the school and
how the business was successfully run.

The project could not be completed without the help of my friends and family. I
indeed acknowledge my teacher Mr. Montaque for guiding and helping me with
adequate information to complete it also.

To record each transaction incurred for the business accurately, using


Standard Accounting Procedures.
To use those accounting records to provide clear financial and accounting
information on the performance of the business.
To use the accounting information to assess the performance of the business.

The BAS Snack Corner is named after the three classes which are doing this SBA.
The classes are called Business, Arts and Science (BAS).
The business was started on September of 2011 and is located at the Green Pond
High School underneath the staircase on the lower block.

Sales Invoice: used for recording sales made. It is given to the customer
showing details of the goods sold and their prices.
Cheque: this is given to us by the buyer cost of covering goods purchased.
Receipt: this is given to the customer showing that payment has been made
for good purchased.
Petty Cash Voucher: this document gives details of how the petty cash was
spent including the amount.
Lodgment Slip: used for making cash or cheque deposits to the bank
account.
Sales Journal: used to record all goods sold on credit.
Purchases Journal: used to record all credit purchases.
Return Outwards Journal: used to record all credit purchases returned to
the supplier.
Return Inwards Journal: used to record all credit sales returned to us.
General Journal: used to record all other transactions which are not in the
other journals.
Cash Book: records all receipts and payments made by cash or cheques.
Sales Ledger: used to record customers personal accounts.
Purchases Ledger: used to record suppliers personal accounts.
General Ledger: used for recording a complete collection of all the
accounts of the business.
Trading Profit and Loss Account: gives a report of whether the business
has made a profit or loss for a period of time.
Balance Sheet: a financial statement that lists the assets, liabilities an
owners equity of the business as at a specific period of time.

The business made a sale of $102 for the first which was the lowest; however for
the second week a grater sale was made of $2,655 which was the highest and in
week three sales was at $1,110 which showed a decrease. Week four was $2,097
which showed a moderate increase over week three.
The purchases for the month of September we bought most of the goods valued at
$4,405, which is the highest.
For the second and fourth week there were no purchasing of goods from the
previous week and for the third week we bought a small quantity of goods valued
at $1, 000.
A lot was paid on expense in the third week of September valued at $1,650 and the
second week valued at $1,500. In the fourth week we spent $650 which was
average and in the second week we did not spend any amount on expenses.
The business was successfully run for the rest of the period at Green Pond High
School. The students benefited from the snack corner and the school because the
supplies was sold at a reasonable price.

Sales for the Month


3000
2500
2000
1500
1000
500
0

Week 1

Week 2

Week 3

Week 4

This is a graph showing the weekly sales for the month of September 2011
This is a graph showing the weekly sales made of $102 in week one, which was the
lowest, because we had just started out and sales were slow. However, in week two
we made $2,655 which was the highest and in week three sales was at $1,110
which showed a decrease. Week four was $2,097 which showed a moderate
increase over week three.

Purchases for the Month


5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0

Week 1

week 2

Week 3

week 4

This is a graph showing purchases for the month of September 2011


This graph shows purchases for the month. It is showing that for the first week of
September we bought most of the goods valued at $4,405, which is the highest.
For the second and fourth week there were no purchasing of goods from the
previous week and for the third week we bought a small quantity of goods valued
at $1, 000.

10

Expenses for the Month

week 4; 650
week 1; 1500

week 3; 1650

This chart shows the expenses for the month of September 2012
This chart shows that we paid a lot on expense in the third week of September
valued at $1,650 and the second week valued at $1,500. In the fourth week we
spent $650 which was average and in the second week we did not spend any
amount on expenses.

11

12

Profitability Ratios
Gross profit as percentage of sales
Gross profit 100 2462 100

=41 per annum


Sales
1
5964
1

A gross profit of $41 is obtained on every $100 of sales for the year, before any expenses
were paid. The Sales mix could have contributed to this because of the difference in how
much has been sold of each type of goods and in particular those that have a higher cost
price. Also the selling price of the goods was not increased or adjusted to the same extent of
the cost price of the goods.
Net profit percentage of sales
Net loss 100 1518 100 151800

=
=25 per annum
Sales
1
5964
1
5964

A net loss of $25 is suffered on every $100 of sales for the year. This is a reflection of the
Gross Profit Percentage of sales ratio, with a lower percentage ratio, as it includes the
expenses. This would be due to more expenses incurred for each $100 of sales.
Liquidity Ratios
Current ratio
Current asset
42577
=
=2 per annum
Current liability 21565

There is $2 of current assets for every $1 of current liabilities. Therefore the assets can be
turned into cash within the year to pay the current liabilities for the same period and therefore
the business will be able to pay its creditors and expenses when they become due.
Acid test ratio
Quick asset
40633
=
=1time
Current liability 21565

13

This shows that the business has enough assets (cash, bank, debtors paying up) that will
overall, quickly convert into cash to pay its Creditors and expenses timely. Also the ratio
figure reported is not strong and therefore the business needs to improve in order to show a
better position in this ratio and strengthen its ability to pay its short term debts.

14

The aims of the project were achieved as standard accounting procedures were
used to properly record all the transactions for the business.
As a result of keeping proper bookkeeping records, financial statements were
prepared showing clear and correct accounting information of the financial status
of the business.
The accounting information provided was used to assess the performance of the
business if it is making a loss and identifying areas for improvement. The
information was also useful in providing suggestions and recommendation to
improve the business.

15

In order for the business to make a profit there should be:


An increase in sales prices. This would increase the sales figure so that we
can make more profit.
Owner should restrict himself to less drawing until the business shows
better improvement.
Should not purchase any additional fixed asset until the financial position of
the business shows improvement.

16

Financial statement
showing the liabilities,
assets and capital at the
end of a period.

Receipts, invoices, Cheque

Source
Documents

Cash book
Journals

Original
Entry

Balance
Sheet
Where the profit
and loss of the
business is
calculated.

T-Accounts
Ledgers

Profit
and Loss
Account

Double
Entry

17

Cheque

18

InvoiceReceipts

19

Lodgment Slip

20

2011
Sept 1
CAPITAL

Cash

$
100,000

CASH
2011
Sept 1
Sept 7
Sept 9
Sept 11
Sept 18
Sept 23
Sept 24
Sept 30

Capital
Sales
Sales
Sales
Sales
Sales
Sales
J. Doe

Aug 1

Balance b/d

$
100000
102
450
747
678
390
771
700
103838
19183

2011
Sept 2
Sept 2
Sept 3
Sept3
Sept 5
Sept 30

$
Rent
1500
Office Equipment
5000
Purchases
870
Purchases
2285
Bank
75000
Balance c/d

19183
103838

RENT
2011
Sept 2
Aug 1

Cash
Balance b/d

$
1500
1500

2011
Sept 30

Balance c/d

$
1500

Balance c/d

$
50000

COMPUTER
2011
Sept 2
Aug 1

INC
Balance b/d

$
50000
50000

2011
Sept 30

21

INC
2011
Sept 30

Bank

$
50000

2011
Sept 2

Computer

$
50000

OFFICE EQUIPMENT
2011
Sept 2
Aug 1

Cash
Balance b/d

$
5000
5000

2011
Sept 30

Balance c/d

$
5000

PURCHASES
2011
Sept 3
Sept 3
Sept 6
Sept 19
Aug 1

Cash
Cash
Cash
Super Plus
Balance b/d

$
870
2285
1580
1000
5735
5735

2011

Sept 30

Balance c/d

5735
5735

DEEP FREEZE
2011
Sept 5
Aug 1

Singer Ltd
Balance b/d

$
20000
20000

2011
Sept 30

Balance c/d

$
20000

SINGER LTD
2011
Sept 30

Balance c/d

$
20000

2011
Sept 5
Aug 1

Deep Freezer
Balance b/d

$
20000
20000

JOES WHOLESALE
2011

2011
22

Sept 16
Sept 30

Return Outward
Balance c/d

15
1565
1580

Sept 6
Aug 1

Purchases

1580

Balance b/d

1580
1565

BANK
2011
Sept 5
Sept 8
Sept 14
Sept 17
Sept 22

Aug 1

Cash
Sales
Sales
Deedo Brown
Sales

Balance b/d

$
75000
510
786
126
432

2011
Sept 20
Sept 21
Sept 25
Sept 27
Sept 29
Sept 30
Sept 30
Sep 30
Sept 30

Carriage
Wages
Drawings
Motor Cycle
Super plus
Telephone
Electricity
INC
Balance c/d

76854
20904

$
150
1500
1500
1300
850
500
150
50000
20904
76854

SALES

Sept 30

Balance c/d

5964
5964

2011
Sept 7
Sept 8
Sept 9
Sept 10
Sept 11
Sept 14
Sept 18
Sept 22
Sept 23
Sept 24
Sept 28
Aug 1

23

Cash
Bank
Cash
Deedo Brown
Cash
Bank
Cash
Bank
Cash
Cash
John Doe
Balance b/d

$
102
510
450
162
747
786
678
432
390
771
936
5964
5964

DEEDO BROWN
2011
Sept 10

Sales

$
162

2011
Sept 13
Sept 17

Return Inward
Bank

162

$
36
126
162

RETURN INWARD
2011
Sept 13
Aug 1

Deedo Brown
Balance b/d

$
36
36

2011
Sept 30

Balance c/d

$
36

RETURN OUTWARD
2011
Sept 30

Balance c/d

$
15

2011
Sept 16
Aug 1

Joes Wholesale
Balance b/d

$
15
15

DRAWINGS
2011
Sept 25
Aug 1

Bank
Balance b/d

$
1500
1500

2011
Sept 30

Balance c/d

$
1500

Purchases

$
1000

SUPER PLUS
2011
Sept 29
Sept 30

Cheque
Balance c/d

$
850
150
1000

2011
Sept 19
Aug 1
24

Balance b/d

1000
150

CARRIAGE OUTWARD
2011
Sept 30

Balance c/d

$
150

2011
Sept 20
Aug 1

Bank
Balance b/d

$
150
150

WAGES
2011
Sept 21
Aug 1

Bank
Balance b/d

$
1500
1500

2011
Sept 30

Balance c/d

$
1500

Balance c/d

$
1300

MOTOR CYCLE
2011
Sept 27
Aug 1

Bank
Balance b/d

$
1300
1300

2011
Sept 30

JON DOE
2011
Sept 28
Aug 1

Sales

$
936

Balance b/d

936
236

2011
Sept 30
Sept 30

TELEPHONE
25

Cash
Balance c/d

$
700
236
936

2011
Sept 30
Aug 1

Bank
Balance b/d

$
500
500

2011
Sept 30

Balance c/d

$
500

Balance c/d

$
150

ELECTRICITY
2011
Sept 30
Aug 1

Bank
Balance b/d

$
150
150

2011
Sept 30

26

Sales Journal
Date
2012
Sept
Sept
Sept

Invoice
no.

Description
10 Deedo Brown
28 John Doe
30 Transfer to sales account

Sl 3531
Sl 3532
Gl 3533

Amount
162
936
1098

Purchases Journal
Date
2012
Sept
Sept
Sept

Description
6 Joes Wholesale
Pl
19 Super Plus
Sl
30 Transfer to purchases account Gl

27

Invoice
no.

Amount

3144
3145
3146

1580
1000
2580

Return Outward Journal


Date
2012
Sept
Sept

Invoice
no.

Description
16 Joes Wholesale
Pl
30 Transfer to Purchases account Gl

Amount
15
15

Return Inward Journal


Date
2012
Sept
Sept

Description
13 Deeds Brown
30 Transfer to sales account

28

Invoice
no.
Sl 3301
Gl

Amount
36
36

General Journal
Date
2012
Sept

Description
2

Sept

Computer
INC
Deep Freezer
Singer

Debit
50000

Credit
50000

20000
70000

29

20000
70000

Purchases Ledger
Joes Wholesale
2012
Sept
Super Plus
2012
Sept
Joes Wholesale
201
2
Sept 16 Return
Outward

RO
J

15

30

Purchases

PJ

1580

19 Purchases

PJ

1000

General Ledger
Computer
2012
Sept 30 INC
Sept

30 Singer

50000
Deep Freezer
20000
Purchases

2012
Sept 30 Credit purchases Pl 2580
for month
Sales
2012
Sept
Return Outward
2012
Sept

30 Credit sales for


month

Sl

1098

16 Returns for the


month

ROJ 15

30 Returns for the


month

RIJ

Return Inward
2012
Sept

31

36

BAS Snack Bar


Trial Balance as at September 30, 2012
DEBIT
CREDIT
Cash

19183

Bank

20904

Debtors

236

Rent

1500

Office Equipment

5000

Purchases

5735

Return Inward
Carriage Outward

36
150

Wages

1500

Drawings

1500

Motor Cycle

1300

Telephone

500

Electricity

150

Deep Freezer

20000

Computer

50000

Creditor
Capital

21565
100000

Sales

5964

Return Outward

15

Discount Received

150
127694

Note:
Closing Stock $1924

32

127694

BAS Snack Corner


Trading Profit and Loss Account for the period ended
September 30, 2012
Sales
Return Inward
Net Sales
Cost of Goods Sold
Opening Stock
Purchases
Carriage Inward
Return Outward
Closing Stock

5964
(36)
5928

5405

5405
15
5720
(1924)

3796
2132
150
2282

Gross Profit
Discount Received
Expenses
Rent
Carriage Outward
Wages
Telephone
Electricity

1500
150
1500
150
500

Net Loss

33

3800
1518

BAS Snack Bar


Balance Sheet as at September 30, 2012

Fixed Asset
Office Equipment
Motor Cycle
Deep Freezer
Computer

At Cost
5000
1300
20000
50000
76300

Current Asset
Closing Stock
Bank
Cash
Debtors

Depreciation

N.B.V
5000
1300
20000
50000
76300

1924
20904
19183
236
42247

Current Liabilities
Creditor

(21565)

Financed by:
Capital
Net Loss

20682
96982

100000
1518
98482
1500
96982

Drawings

34

Wood, F. & Robinson, S. (2002) Principles of Accounts, Fourth Edition.


Longman Publishers

Maher, M &Edwards, J. (1992) Accounting Principles, Fifth Edition.


Richard D. Irwin Publishers

35