School

based

ASSESSMENT
T
U
R
N
B
Candidate Name: Adrian Turnbull
Candidate #:
Centre Number: 100033
School: Excelsior High School
Territory: Jamaica

PRINCIPLES OF ACCOUNTS

School

based

ASSESSMENT

TURNBULLS WHOLESALE
Candidate Name: Adrian Turnbull
Candidate #:
Centre Number: 100033
School: Excelsior High School
Territory: Jamaica

TABLE OF CONTENT

AIMS OF THE PROJECT1

DESCRIPTION OF BUSINESS.2
LIST OF TRANSACTIONS..3-4
PURCHASE
ORDER..5
CREDIT
NOTE6
BANK STATEMENT
7
CASH
DEPOSIT.8
CASH
RECEIPT.9
STATEMENT OF AFFAIRS.10
BOOKS OF ORIGINAL ENTRY
OPENING JOURNAL ENTRIES11
SALES
JOURNAL.12
PURCHASE JOURNAL.13
RETURN INWARDS JOURNAL...14
RETURN OUTWARDS JOURNAL..15
GENERAL JOURANL.16

SALES
JOURNAL.17
CASHBOOK..
18
UPDATED CASHBOOK.19
LEDGERS
SALES LEDGER
20
PURCHASE LEDGER21
GENERAL LEDGER.22-24
SALES & PURCHASE CONTROL A/C25
TRIAL
BALANCE..26
BANK RECONSILIATION27
TRADING PROFIT AND LOSS A/C..28
BALANCESHEET.2
9
PERFORMANCE OF BUSINESS.30
RATIOS.31
-35
GRAPHS AND CHARTS.36-38
RECOMMENDATON.39
CONCLUSION..4
0

AIMS OF THE PROJECT

The aim of this Principles of accounts
School assessment is to improve and get a
better understanding of making use of
analytical skills and working with figures
and making comparisons.
To receive a thorough manipulation of an
actual business, by applying accounting
principles.
To manage a more practical usage of the
accounts that we would normally apply
theatrically.

Descriptions of Business
Turnbulls Wholesale is located at 169
Bedward Garden, Kingston 7. Turnbulls
Wholesale is a sole trader business, owned
operated by Adrian Turnbull consisting of 7
employees. This business will be retailing Tin
foods, Beverages, Kitchen supplies, meat
kinds, Hair products, school items, Dry goods
such as rice, flour, sugar etc. Turnbulls
Wholesale will be opened from 8 am to 7 pm
on Mondays to Saturdays while on Sundays it
will opened from 7 am to 4 pm. The business

will be started off with a capital of $180610,

stock of $12000, cash in hand and bank $510
and $9000 respectively. This business will
start operating on January 1 2014 to January
31 2014.

List of Transactions
On January 1, 2014
started a grocery business
employing shop assistance with the following list of balance
Assets and liabilities.
Assets
Stock $12,000

Premises $130,000, Fixtures and fittings $25,000,

Debtors:
M. Lyn $3,000, James $2,600
Creditors: R. Graham $1,500

Cash at Bank: $9000, Cash in hand: $510

During January the following transactions took place:
January

1. Sold goods to M. Lane on credit $2,700

3. Purchase on credit from R. Graham goods $1800

less 10% trade discount
6. Cash sales $1504
7. Paid R. Graham the amount due on January 1, by
cheque, less 5%
cash discount
9. Paid sundry expense in cash $290
10. Purchased goods on credit from R. Gordon
$5720 less 5% Trade discount
11. Receive a credit note from R. Gordon for goods
returned with
value of $452
13. Purchased by cheque a refrigerator for
business use $7000
15. Paid wages and salaries by cheque $2000

3
17. Sent Credit Note to M. Lane for goods returned
with value of $300
18. Cash sales $4664
24.
till for is personal use $400

Withdraw cash from

26. Receive cheque for $2500 from M. Lyn less %5

cash discount
28. Paid sundry expense $850 in cash
29. Sold goods to C. Browne on credit on credit $4900.
Paid Transportation cost $450 by cheque
30. J. James is bankrupt. He can pay only 0.70 cents of
every dollar by cheque. Write off the rest as bad debt

31. Put $3000 in the bank from cash received

Note:
Closing stock in hand at January 3, 2014 was
valued at $10,400
Additional:
- Sundry expense owing $150
- Wages paid in advance $250
Decide to make a provision for bad
debt of 5% on debtors per annum
- Provision for Depreciation to be charged
i.
Fixtures and fittings 5% (per annum)
ii.
Refrigerator 10%(per annum)

TURNBULLS WHOLESALE
Purchase Order
Name: Turnbulls
wholesale
Address: 169 Bedward Garden Kgn 7
Tel: 856-5078
Fax: 188-4321
Supplier: R. Gordon
Address: 2 short road

No.
1

Description
Crate of Red Stripe
Bear

Less 5% Trade
Discount

Quantity
2

Unit Price
2860

Total Cost
$5720.00

$286.00
$5434.00

R. Gordon
Authorised Signature

TURNBULLS WHOLESALE
Credit Note
Name: R. Gordon
wholesale

Customer Name: Turnbulls

Address: 2 Shortroad

Address: 169 Bedward Garden

123-4567
Kgn 7
1800-611

Tel:
Fax:

Our Invoice No.:

2014.

No.

Date of Invoice: Jan. 11,

Description

Quantity

Unit Price

Bag of Banana Chips

$226

Total:

Total

$452

A. Gordon
Authorised Signature
Finance Department

TURNBULLS WHOLSESALE
NATIONAL COMMERCIAL BANK
OLD HOPE ROAD

CROSS ROADS. KINGSTON

Address: 169 Bedward Garden
Kingston 7.
DATE
Jan 1
Jan 7
Jan 13
Jan 10
Jan 12
Jan
Jan
Jan
Jan
Jan
Jan

15
20
26
28
31
31

PARTICULARS
Balance c/d
Cheque
Cheque
Credit Transfer R. Binns
Standing Order
Insurance
Cheque
Interest Earned
Deposit
Stamp duty
Deposit
Bank Charges

DR

CR

1425
7000
750

BALANCE
9000
7575
575
1325

500

825

2000

-1175
-1025
1350
1300
4300
3960

150
2375
50
3000
340

TURNBULLS WHOLESALE

TURNBULLS WHOLESALE
Statement of Affairs as at December 2014

$
Non-current assets
Premises
Fixtures & Fittings

130,000
25,000

155000

Current assets
Stock of Goods
Debtors
Bank
Cash

12000
5600
9000
510
27110

Less-current liabilities
Creditors
Working Capital
Financed By:
Capital

1500
25610
180610
180610

10

BOOKS

OF
ORIGINAL
ENTRY
TURNBULLS WHOLESALE

Opening journal entries

Date

Details

Folio

Debit

Jan 1

Premises

GL

$130,000

Credit

Fixtures & Fittings

Stock of Goods
Debtors
-M. Lyn
-James
Cash at Bank
Cash in Hand
Creditors
Capital

GL
GL

$25,000
$12,000

GL
GL
GL
GL
GL
GL

$3,000
$2,600
$9,000
$510
$182,110

$1,500
$180,610
$182,110

11

TURNBULLS WHOLESALE

Sales Journal
Date

Details

foli
o

Debit

Credit

Jan 1
Jan 29
Jan 31

M. Lane
C. Brown
Transfer to Sales
a/c

SL
SL
GL

$2700
$4900
$7600

12

TURNBULLS WHOLESALE

Purchases Journal

Date

Details

Folio

Debit

Credit

Jan 3
Jan 10
Jan 31

R. Graham
R. Gordon
Transfer to
Purchases a/c

PL
Pl
GL

$1620
$5434
$7054

13

TURNBULLS WHOLESALE
Return Outwards Journal

Date

Details

Folio

Jan 11

R. Gordon

PL

Debit

Credit
$452

Jan 31

Transfer to
Return Outwars
a/l

GL

$452

14

TURNBULLS WHOLESALE
Return Inwards Journal

Dates

Details

Folio

Jan 17
Jan 31

M. Lane
Transfer to Return
Inwards a/c

SL
GL

Debit

Credit
$300

$452

15

TURNBULLS WHOLSESALE

General Journal

Dat
e

Fol
io

Debit($)

Premises

GL

130000

Fixtures and Fittings

GL

25000

Stock of Goods

GL

12,000

M. Lyn

SL

3000

J. James

SL

2600

Cash at Bank

CB

9000

Cash in Hand

CB

510

R. Graham

PL

1500

Capital

PL

18610
182110

Details

Credit ($)

Debtors:

182110
Assets and Liabilities at
this date entered to
open the books

GL

16

TURNBULLS WHOLESALE
Sales Invoices

Name:
Turnbulls wholesale
Address: 169 Bedward Garden

Customer: M. Lane

Kingston 7
Tel:
856-5078 Fax: 1800-119
Invoice
No.: 1
Date: 1
Jan 2014

No.

Description

Quantity

Unit Price

Total

Banana Chips

$250

$1,000

1 Case of soda

$850

$1,700
$2,700

17

TURNBULLS WHOLESALE
Cashbook
Date

Details

Jan. 1
Jan. 6

Balance
B/F
Sales

Jan.18

Foli
o

D.
A

Bank

Cash

Date

Details

Foli D. Bank Cash

o
R

$9,000

$510

Jan. 7

GL

GL

$1,504

Jan. 7

Carriage
Inwards
R. Graham

Sales

GL

$4,664

Jan. 9

GL

Jan. 26

M. Lyn

SL

Jan. 31

Cash

Jan. 31

J. James

PL

Jan. 13

$12 $2,375
5
$3,000

Sundry
Expense
Refrigerator

Jan. 15

Wages

GL

SL

$1,820

Jan. 24
Jan. 28

Drawings
Sundry
Expense
Carriage
Inwards
Bank

GL
GL

Jan. 29
Jan. 31

GL

GL
C

$350
$7
5

$1,42
5
$290
$7,00
0
$2,00
0
$400
$850
$450
$3,00

Jan. 31

Feb. 1

Balance c/d

$12 $16,19 $6,678

5
5
$5,320 $1,788

Balance
b/d

$7
5

$5,32
0
$16,1
95

0
$1,78
8
$6,67
8

18

TURNBULLS WHOLESALE
Updated cash book as at 1 January 2014
Dat
e
Jan.
1
Jan.

Details

Amoun Dat
t
e

Balance

$5,320

Jan.

Credit
Transfer

$750

Jan.

Details
Standing
Order
Stamp Duty

Amoun
t
$500
$50

Jan.
Jan.
31
Feb.
1

Balance b/d

$6,220
$5,330

Bank Charges
Balance c/d

$340
$5,330
$$6,220

19

LEDGERS

TURNBULLS WHOLESALE
Sales Ledger
Date

Details

amount

Date

Details

Amou
nt

M. Lane a/c
Jan. 1

Sales

$2,700

Jan. 7

Jan.31

Return
Inwards

Balance
c/d

$2,400
$2,700

$2,700
Feb. 1

$300

Balance b/d $2,400

M. Lyn A/c
Jan. 1

Balance b/d $3000

Jan. 26
Jan. 26

Bank
Discount

$2375
$125

Jan. 31

Balance c/d

$3,000
Feb. 1

$500
$3,000

Balance b/d $502

C. Brown a/c
Jan. 29
Feb. 1

Sales

$4,900
$4,900

Jan. 31

Balance c/d

$4,900
$4,900

Bank

$1820

Balance b/d $4,900

J. James a/c
Jan. 1

Balance
b/d

$2,600

Jan. 30

$780
$2,600

$2,600

20

TURNBULLS WHOLESALE
Purchases Ledgers

Dat
e

Details

Amount Date

Details

Amount

R. Graham a/c
Jan. 7
Jan. 7
Jan.3
1

Bank
Discount
Balance c/d

$1,425
$75
$1,620

Jan. 3
Jan. 3

Balance b/d
Purchases

$1,500
$1,620

Balance b/d

$3,120
$1,620

$3,120
Feb. 1

R. Gordon a/c
Jan.
11
Jan.
31

Return
Outwards
Balance c/d

$452

Jan. 10

Purchase

$5,434

Balance b/d

$5,434
$4,982

$4,982
$5,434
Feb. 1

21

TURNBULLS WHOLESALE
General Ledger
Date

Details

Jan. 3

Cash

Feb. 1

Balance b/d

Jan. 31

Transfer to
trading A/c

Jan. 29

Bank

Amount
Date
Details
Carriage Inwards a/c
$350
Jan. 31
Balance c/d
$350
$350
Sales a/c
$13,768
Jan. 6
Cash

Amount

Jan. 18
Jan. 31

$4,664
$7,600

Cash
Total credit sale
for the month

$350
$350
$1,504

$13,768

$13,768

Carriage Outwards a/c

$450
Jan. 31
Transfer to P&L

$450

A/c
$450
Jan. 31

Transfer to
trading A/c

Jan. 31

Bank

Feb. 1

Balance b/d

$450

Return Outwards a/c

$452
Jan. 31
Total return
outwards for the
month
$452
$7,000
$7,000
$7,000

Refrigerator a/c
Jan. 31

Balance c/d

$452

$452
$7,000
$7,000

22

TURNBULLS WHOLESALE
General Ledger
Date
Jan. 31

Details
Total return
inwards for the

Amount
Date
Return Inwards a/c
$300
Jan. 31

Details
Balance c/d

Amount
$300

month
$300
Jan. 1

Balance B/F

Stock a/c
$12,000
Jan. 31

$300
Balance c/d

$12,00
0
$12,00
0

Transfer to
P&L A/c

$1,140

$12,000
Feb. 1

Balance b/d

Jan. 9

Cash

Jan. 28

Cash

Jan. 1

Balance B/F

$12,000
Sundry Expense a/c
$290
Jan. 31
$850
$1,140
Premises a/c
$130,000 Jan. 31

$1,140
Balance c/d

$130,0
00
$130,0
00

Transfer to
P&L A/c

$125

$130,000
Feb. 1

Balance b/b

Jan. 31

Total Discount
allowed for the
month

$130,000
Discount Allowed a/c
$125
Jan. 31

$125

$125

23

TURNBULLS WHOLESALE
General ledger
Date

Details

Amount

Date

Details

Amount

Balance c/d

$25,000
$25,000

Transfer to
P&L A/c

$2,000

Fixtures & Fittings a/c

Jan. 1

Balance B/F

Feb. 1

Balance b/d

Jan.
15

Bank

$25,000
Jan. 31
$25,000
$25,000
Wages & Salaries a/c
$2,000

Jan. 31

$2,000
Drawings a/c
Jan.
24

Cash

$400

Jan. 31

Feb. 1

Balance b/d

$400
$400
Bad Debt a/c

Jan.
30

J. James

$780

Jan. 31

$780
Purchases a/c

$2,000
Balance c/d

$400
$400

Transfer to
P&L A/c

$780
$780

Jan.
31

Total credit
purchases for the
month

$7,054

Jan. 31

Transfer to
trading A/c

$7,054

$7,054

$7,054

Capital a/c
Jan.
31

Balance c/d

$180,610

Jan. 1

Balance B/F

Feb. 1

Balance b/d

$180,610

$180,00
0
$180,00
0
$180,00
0

24

TURNBULLS WHOLESALE
Control Accounts

Dat
e

Details

Amou Date
Details
nt
Sales Legers Control a/c

Amou
nt

Jan. 1

Balance B/F $5,600

Jan.

Jan.

Sales

Jan.
Jan.

$7,600

Jan.
Jan. 31
Feb. 1 Balance

Return
Inwards
Bank
Discount
allowed
Bad Debt
Balance c/d

$13,200
$7,800

$300
$4,195
$125
$780
$7,800
$13,200

Purchases Ledger Control a/c

Jan.
Jan.
Jan.
Jan.
31

Bank
Return
Outwards
Discount
Received
Balance c/d

$1,425
$452

Jan. 1
Jan.

Balance B/F
Purchases

$1,500
$7,054

$75
$6,602
$8,554

$8,554
Feb. 1

Balance b/d

$6,602

25

TURNBULLS WHOLESALE
Trial Balance as at January 2014
Debit

Carriage Inwards
Sales
Carriage Outwards
Return Outwards
Refrigerator
Return Inwards
Stock of Goods
Sundry Expense
Premises
Discount Allowed
Fixtures & Fittings
Wages & Salaries
Drawings
Bad Debt
Purchases
Capital
Bank
Cash
R. Graham

Credit

$350
$13,768
$450
$452
$7,000
$300
$12,000
$1,140
$130,000
$125
$25,000
$2,000
$400
$780
$7,054
$180,610
$5,320
$1,788
$1,620

M. Lane
M. Lyn
R. Gordon
C. Brown
Discount Received

$2,400
$500
$4,982
$4,900
$201,507

$75
$201,507

26

TURNBULLS WHOLESALE
Bank Reconciliation Statement as at January 2014

Details
Balance as per adjusted cashbook
Add un-presented Cheques
Less Late Lodgements
Balance as per updated Bank reconciliation

Amount
$5,330
$450
$5,780
$1,820
$3960

27

TURNBULLS WHOLESALE
Trading Profit & Loss Account as at Jan 31 2014
$
Sales
Return Inwards

$
13,768
300

13,468
Less Cost Of Goods Sold
Opening Stock
Add Purchase
Carriage Inwards
Gross Purchase
Return Outwards
Net Purchase
Cost Of Goods Available For Sale
Closing Stock
Cost Of Goods Sold
Gross Profit
Add Other Income
Discount Received
Less Expense
Provision Bad Debt
Carriage Outwards
Discount Allowed
Bad Debt
Sundry Expense
Wages & Salaries
Depreciation
Fixtures & Fittings
Refrigerator
Net Profit

12,000
7054
350
7,404
452
6,952
18,952
10,400
8,552
4,916
75
4,991
33
450
125
780
1,290
1,750
104
58
4,590
401

28

TURNBULLS WHOLESALE
Balance Sheet as at 31 Jan 2014
Non-Current Assets
Premises

Fixtures & Settings

Less Depreciation

$
130,00
0

25,000
104
24,896

Refrigerator at Cost
Less Depreciation

700
58
6,942
161,83
8

Current Assets
Stock
Trade Debtors
Less Provision for Bad Debt

10,400
7,800
33
7,767
5320
250
1,758
25,525

Cash at Bank
Prepaid Expense
Cash
Less Current Liabilities
Trade Creditor

6,602

Accrued Expense

150
6,752
18,773
180,61
1

Financed By
Capital
Add Net Profit

Less Drawings

180,61
0
401
181,01
1
400
180,61
1

29

Performance of business
The performance of Turnbulls Wholesale was less than the
performance expected of an average firm just starting up in that type
of industry. In the analysing the financial statements of the business it
was evident that the business performed poorly even though it made a

profit and it was only for one month. In the month of January the
business mustered a net profit of $401, this profit may be attributable
to the fact that the business is new, and is expected of a new business
to have some forms of problem. Turnbulls Wholesale sales were more
than the expenses which Is always a good thing as a result the
business had a better chance of making a profit which it did. The
turnover ratio was 0.76 which means the stock is being converted into
sales less than 1 time during the month of January also the gross markup was 57.8% which means the mark up on cost was only enough to
arrive at the selling price which is not adequate to meet Turnbulls
Wholesale expenses. Turnbulls wholesale took 18 days to collect
outstanding funds from credit customers in the month of January.

30

RATIOS

Ratio Analysis and Interpretation of results

Working capital ratio:
Comparison made: Beginning vs ending
Working Capital= CA-Cl=27,110-25,610
This reveals that at the beginning of the month the working capital was $27110, however at the
end it was reduced by $1,500 to $25,610 a decrease of 5.5%.
Ratio: 27,110
25,610
= 1:1

Solvency Ratios:
(a)

Current Ratio = CA
CL
Comparison Made = Beginning vs Ending
CA = 27,110
25,525

CL = 1,500
18:1

6,752
4:1

This means that at the beginning of the month current assets could cover current
liabilities 18 times. However at the end of the month this was reduced to 4 times.

31
Acid-Test of quick ratio:
Comparison being made:

Beginning

Acid-Test Ratio: CA-STOCK

27,110-12,000

CL

vs

ending
25,525-10400

1,500

6,752

10:1

2:1

This means current assets without at the beginning of the month could cover current liabilities 10
times. However at the end of the month it is reduced to 2 times.

Gross Profit % Sales:

GP
Net Sales

100

= 4,916 X 100
13,468
= 36.5%
This means that for every $100 of sales 36.5% or $36.50 goes to cover expenses and
contribute to any net profit.
Net profit % of Sales: Net Profit X 100
Net Sales
= 401

X 100

= 2.9%
This means that for every $100 of sales, the business owner is gaining 2.9% or $2.9.

32
Gross Mark-Up: GP

X 100

COGS
= 4,916
8,552

x 100

=57.8%
This means that the mark up on cost was only enough to arrive at the selling price. This is
definitely not adequate to meet the Turnbulls Wholesale expenses.

Turn Over Ratio: COGS

Average Stock
= 8,552
10400 + 12,000/2
= 0.763 or 0.76
This means that the stock is being converted into sales less than 1 time during the month
of January.

33
Debtors to Creditor Ratio:
This measures the length of time taken for debtors to pay the business and the business in
turn its creditors.
Debtors Sales Ratio = Trade Debtors X 31
Credit Sales
= 7,800 X 31
13,768
= 17.5 days or 18 days
This means that it takes 18 days for the Turnbulls wholesale to collect outstanding funds
from credit customers in the month of January.
Creditors to Debtors Ratio:
This measures the length of time taken for the business to pay its suppliers.

Credit Sales Ratio = Creditors X 31

Purchases
= 6,602 X 31

7,054
= 29 days
This means that it takes Turnbulls Wholesale 29 days to pay the suppliers.

34
Expense as a percentage of Sales:
= Expense X 100
Sales
= 4,590 X 100
13,768
= 33%
This means 33% of sails is an individual expense to Turnbulls Grocery.

Return on Capital Employed Ratio (ROCE)

= Net Profit

X 100

Capital Employed
= 401

X 100

180,610
= 0.22%

This means that Turnbulls Wholesale receives a net profit of only 22c per $100.

35

TURNBULLS WHOLESALE

Area Chart showing Gross profit vs Net Profit

5000
4916

4500

4000

3500

3000

2500

2000

1500

1000

500

0
Gross Profit

401

Net Profit

36

TURNBULLS WHOLESALE

Bar Chart showing Sales vs Purchases

13468

7054

2000

4000

6000
Purchases

8000

10000

12000

14000

Sales

37

TURNBULLS WHOLESALE

Pie Chart showing Sales vs expenses

4,590; 25%

Expenses
Sales

13,768; 75%

38

Recommendations
After all these analysis, I have noticed that the business the
business was not successful even though it made a profit.
In order to improve Turnbulls Wholesale return the business will
maximise the sale of goods by cash as this will and I will lessen
all expenses. By doing this there will a greater chance of the
business being more successful as a result of the business
gaining profit. Turnbulls Wholesale will limit the amount of
credit sale to increase the frequency of earnings on sales and
also provide discount to creditors to less the amount of days it
takes for the business to collect outstanding funds from our
credit customers. The business will also try lessen the expenses
which will help Turnbulls wholesale by increasing the net profit .

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Conclusion
This school based assessment improved and gave me a better
understanding of making use of analytical skills and working
with figures and making comparisons. By applying accounting a
thorough manipulation of an actual business was received and a
more practical usage of the accounts was managed.

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