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PRINCPLES OF ACCOUNTS

SCHOOL BASED ASSESSMENT

TEACHER:MR.SYLVA
NAME:Chaze DaCosta

General Ledger
Date
July 1,2010

Details
Motor Van
Stock:20 boxes Flash Drives
10 boxes of IPods
20 boxes USB speakers
Debtors: M.Stamp
E.Boyd
Cash at bank
Cash in Hand
Loan: Royal Bank of Canada
Creditors : M.Brown
C.Steadman
Capital

Folio
GL
GL
GL
GL
SL
SL
CB
CB
GL
PL
PL
GL

Debit
200,000
100,000
200,100
100,000
40,000
35,000
300,00
80,000

1,155,000

Credit

100,000
15,000
20,000
1,020,00
0
1,155,00
0

JOURNALS

Date
July 4
July 4
July 31

Purchases Journal
Details
A.Roland
S.Blackwood
Transfer to Purchases a/c in the

Folio
GL
GL
GL

Amount
310,000
375.000
683.5000

Date
July 8
July 10
July 22
July 23
July 27
July 30

Sales Journal
Details
P.Hinds
C.Barret
L.Richards
M.Stamp
R.Mair
Transfer to the sales a/c in the

Folio
SL
SL
SL
SL
SL
GL

Amount
445,000
490,000
360,000
160,000
228,500
1,684,000

Date
July 30
July 31

Date
July 31
July 31

Return Inward Journal


Details
R.Mair
Transfer to Return inwards a/c in the

Folio
SL
GL

Return Outwards Journal


Details
Folio
S.Blackwood
PL
GL

Amount
32500
32500

Amount
5000
5000

TRIAL BALANCE

Details
Capital

Dr

Purchases
Sales

685,000

Return Inwards
Return Outwards
Loan RBC
Cleaning
Water
Return Received
Electricity
Stationery
Motor Expenses
Insurance
Telephone
Salaries
Stocks
Equipment
Motor Van
Creditors
Debitors

32500

Cash
Bank

Cr
1,020,00
0
2,834,00
0
5000
100,000

15,000
40,000
100,000
60,000
42,000
90,000
40,000
45,000
160,000
400,000
100,000
200,000
560,000
1,046,50
0
1,003,00
0
660,000
4,619,00
0

4,619,00
0

Computers & Accessories limited


Trading and profit and loss account
For the month ending July 31, 2013
Sales
Less Return Inwards
Net Sales
Less Cost Of Goods Sold
Opening Stock
Add Purchases
Less Return Outwards
Net Purchases
cost of goods available for
resale

28340000
32500
2801500
400,000
685,00
0
<5000
>
680,000
1,080,000
<49,6500
>

Gross Profit
Add Income: Rent Received
Total Income
Less Expenses
Cleaning
Electricity
Stationery
Motor Expenses
Insurance
Telephone
Salaries
Water
Net profit

<58,3500>
2,21,8000
100,000
2,318,000
15,000
60,000
42,000
90,000
40,000
45,000
160,000
40,000

<492,000>
1,826,000

Computer & Accessories LTD


Balance Sheet As at July 31,2013
Fixed Assets
Equipment
Motor Van

100,00
200,000
300,000

Current Assets
Stock
Debtors
Cash At Bank
Cash In Hand
Less Current Liabilities
Creditors
Working Capital
Less Long Term Liability
Loan RBC

Financed By:
Capital
Add Net Profit

496,500
1,046,500
660,000
1,003,000
3,206,000
<560,000
>
2646000
2,946,000
<100,000>
2,846,000

1,020,000
1,826,000
2,846,000

Items
Closing Stock
Debtors
Creditors
Bank
Cash

July 1,2013
400,000
75,000
15,000
300,000
80,000

July 31,2013
496,000
1,046,000
560,000
660,000
1,003,000

Change
96,500
971,00
545,000
360,000
923,000

Ratios

Current Ratios = Current Assets/Current Liabilites


=3,206,000/560,000
=5.7:1
Acid Test Raito = Current Assets-Stock/Current Liabilities
=3,206,000-496,500/560,000
=4.8:1
Margin = Gross Profit/Sales * 100
=2,218,000/2,801,500 * 100
=79%
Net Profit Percentage = Net Profit/Net Sales * 100
= 1,826,000/2,801,500 * 100
= 65%
Return on Capital Employed = Net Profit/Capital Employed * 100
= 1,826,000/2,846,000 * 100
= 64.1%
Expenses:Net Profit = Expenses/Net Profit * 100
= 492,000/1,826,000 *100
= 26.9%

Introduction.
The business Computers & Accessories Limited is a sole proprietor
business. They are located at 99 heroes circle Kingston, Jamaica. The
accounting period of this sole proprietorship is July 1,2013 July
3,.2013.. They distribute IPods, Flash Drives & USB Speakers.

SOURCE DOCUMENTS

Cheque

July 19,2013
Payee:Blackwood
Creditor For
Goods

National Commercial
Bank
24 Cross Roads Branch
105 Slipe Road
Kingston 4
Jul 19,2013
Pay: Blackwood

$60,000

Sixty Thousand Dollars


Signature: O.Farr

67439

67439

$60,000

Cash Receipt
Cash Receipt
Date:July 1,2013
Receive From: Boyd
Fifteen Thousand Dollars $ 15,000

For Item # 467


$15,000
Thank You

566468

BANK STATEMENT.
Date
July 1,2013

Bank Statement as at July 31,2013


Details
Dr
Cr
Balance B/F

July 1

Boyd

15,000

July 7

Cleaning

July 14

Cash Deposit

July 16

Rent

100,000

July 17

Electricity

60,00

July 19

Barret

July 19

Roland

80,000

July 19

cheque 67439

60,000

July 21

Hinds

July 24

Insurance

40,000

July 25

Salaries

160,000

July 29

Cash Deposit

15,000
100,00
0

200,00
0

500,00
0

60,000

Balance
300,000
Cr
450,000
Cr
300,000
Cr
400,000
Cr
300,000
Cr
240,000
Cr
440,000
Cr
360,000
Cr
300,000
Cr
800,000
Cr
760,000
Cr
600,000
Cr
660,000
Cr

Sales Invoice
O.Farr
4 heroes Circle
Kingston 4
Your Purchase order 11/B/981
Invoice No.74669
July 10,2013
C.Barret
43 Black Lane
Kingston
Jamaica

Per Unit
60 IPods
30 Flash Drives
35 USB Speakers

6500
1000
2000

Total

390,000
30,000
70,000
490,000

Purchases Invoice
S.Blackwood
8 Atlantis Dr
Kingston 3
Your invoice 12/C/982/
Invoice No. 12982
July 9,2013
Computer & Accessories LTD
4 Heroes Circle
Kingston 4
Jamaica.
Per Unit
20 Boxes Of IPods
15 Boxes Of USB Speakers
10 Boxes Of Flash Drive

10,000
5,000
10,000

Total
200,000
75,000
100,000
490,000

PAY ADVICE
Emp No.
482

Computers & Accessories Limited.


Dep
Employee Name
t
James,Aldomen
06

Description

Tx-Reg Pay
N-Traveling
Nt-Meals

Unit

NIS No.
P69436
4

Rate

160

250.000

TRN-No.
646-988-182
Amount

Per End
31/7/201
3
Gross Pay

40,000.000

Net Pay

$40,000.000

AIMS
1. Firstly I would like to get exposed to the accounting basis of a
business
2.Another aim is to achieve pure accounts knowledge from this project..
3. I would also like to gain experience on the accounting cycle
4.i am also in the aim to achieve the best grade possible in my CSEC.

Liquidity Ratios Comparison Beginning With


End.
Ratios
A) Current Raito =
Current Assets/Current
Liability
B) Acid test Raito =
Current Assets
Stock/Current
Liabilities
Capital Employed

July 1
855000/35000
=24.4:1

July 31
3206000/560,000
=5.7:1

855000400,000/350,00
=13:1

320600049600/569000
=4.8:1

1.020.000

2,846,000

Ratio Analysis.

A)

At the Beginning of the accounting period the Current Ratios was


24.4:1. On the other hand at the end of the accounting period July 31
the current assets could only cover the current liabilities 5.7 times.
comparing the Current Ratios at the beginning and the end of the
accounting period it can be said that the businesss is failing financially
B) At the beginning of the accounting period July 1 the acid test ratio
was 13:1,meaning that the current assets less stock divided by Current
liabilities shows how much times the remaining current assets could
cover the current liabilities. On the other hand at the end of the
accounting period the Acid Test Ratio was 4,8:1 meaning that the
current assets less stock divided by current liabilities shows how much
times the remaining current assets could cover the Current liabilities.
The findings support that
the Acid test ratio at the beginning of the period is far more than what
it was at the end of the period.

Business Performance.
The business Computers and Accessories LTD made a net profit
of 1,826,000 for the .The expenses took 27% of the total net profit.. The
business is performing well . In Addition the businesss capital employed
was 2,846,000 for the accounting period.The business as mention
previously made a Net Profit of1,826,000.The Net profit took 64% of
the capital employed. This can be rephrased as saying that the Net profit
took $641 for every $1000 of the capital employed. Based on this
information I can say that the business is performing well.

Purchases Ledger.
Dr
Date
Jul 2

Detail
s
Cash

Foli
o
GL

Amoun
t
6,000

Jul 2

Cash

Gl

9,000
15,000

Dr
Cr

Details
Balanc
e b/d

Cr
Foli
o
Gl

Amount
15,000
15,000

C.Steadman

Date

Details

Jul 31

Balanc
e B/d

Foli
o
Gl

Dr
Date

Details

Jul 19

Bank

Jul 31

Balanc
e c/d

Foli
o
Gl
Gl

Dr
Cr

Amoun
t
20,000

Dat
e
Jul
1
Aug
1

A.Roland
Amount
Dat
e
80,000
Jul
4
230,00
0
310,00
0
Aug
1

Details
Balanc
e B/d
Balanc
e B/d

Details
Purchase
s

Foli
o
GL

Amount

Gl

20,000

Cr
Foli
o
Gl

20,000

Amount
310,000

310,000
Balance
B/d

Gl

230,000

Foli
o
Gl

Amount

S.Blackwood

Date

Details

Jul
19
Jul
31

Bank

Jul
31

M.Brown
Dat
e
Jul1

Return
Outward
s
Balance
B/d

Foli
o
Gl

Amount

Gl

5000

Gl

315,00
0
375,00
0

60,000

Dat
e
Jul
19

Details
Purchase
s

375,000

375,000
Aug
1

Balance
b/d

Gl

310,000

Sales Ledger.
Dr
Date

Details

Jul 1

Balanc
e b/d
Sale

Jul 23

Aug 1

Foli
o
Gl
Gl

Balanc
e c/d

Gl

M.Stamp
Dat
e
40,000
Jul
1
160,00
Jul
0
31
200,00
0
180,00
0

Amount

Dr
Cr

Cr
Foli
o
Gl

Details
Cash
Balanc
e c/d

Gl

Details

July 1

Balanc
e b/d

180,000
200,000

Foli
o
Gl

Amoun
t
35,000

Dat
e
Jul
1
Jul
31

Details
Bank
Balanc
e c/d

Foli
o
Gl

Amount

Gl

20,000

15,000

35,000

35,000

Balanc
e B/d
Dr

Date

Detail
s
Sales

Jul 8

Foli
o
Gl

Amount
445,00
0

P.Hinds
Dat
e
Jul
19
Jul
31

Cr
Detail
s
Cash

Foli
o
Gl

Amount
145,000

Bank

Gl

300,000

445,00
0
Dr
Date

20,000

E.Boyd

Date

Aug 1

Amount

Details

Foli
o

Amount

445,000

C.Barrett
Dat
e

Cr
Details

Foli
o

Amount

Jul 10

Sales

Aug 1

Balance
B/d

Gl

Gl

490,00
0

July
19
Jul
31

Bank

Gl

200,000

Balanc
e c/d

Gl

290,000

490,00
0
290,00
0

490,000

Sales Ledger Contd

Dr
Date

Details

Jul
22

Sales

Aug
1

Balanc
e b/d

Foli
o
Gl

Gl

Dr
Date

Details

Jul 24

Sales

Foli
o
Gl

L.Richards
Amount
Dat
e
360,50
Jul
0
19
360,50
0
360,50
0

R.Mair
Amount
Dat
e
228,50
Jul
0
30
Jul
31

Aug 1

Balanc
e b/d

Gl

228,50
0
196,00
0

Cr
Detail
s
Bank

Foli
o
Gl

Amount
360,500
360,500

Details
Return
Inward
s
Balanc
e c/d

Cr
Foli
o
Gl
Gl

Amount
32,500
196,000
228,500

General Ledger
Dr
Cr

Purchases

Date

Details

Jul 31

Total
credit
purchase
s for the
month

Foli
o

Amount

Dat
e
Jul
31

685,00
0

Details

Foli
o

Amount

Transfe
r to
Tradinc
a/c

685,000

685,00
0

Dr
Cr

685,000

Sales

Date

Details

Jul 31

Transfe
r to
Trading
a/c

Foli
o

Amount
2,834,00
0

Dat
e
Jul
3

Detail
s
Cash

Foli
o

Amount

Jul
5
Jul
26
Jul
31

Cash

550,000

Cash

390,000

Total
credit
sales
for the
month

1,684,000

210,000

2,834,00
0

Dr
Date

Detail
s
Total
Return
for the
month

Jul 31

Dr
Cr

Foli
o

Return Inwards
Amount
Dat
e
325,00
Jul
0
31

Return Outwards

2,834,000

Cr
Details
Transfe
r to
trading
a/c

Foli
o

Amount
325,000

Date

Details

Jul 31

Transfe
r to
trading
A/c

Foli
o

Amoun
t
5,000

Dat
e
Jul
31

Details

Foli
o

Amount

Transfe
r
returns
for the
month

5,000

General Ledger Contd


Dr
Cr
Date
July 7

Cleaning
Detail
s
Bank

Foli
o

Amoun
t
15,000

Dr
Date

Detail
s
Cash

Foli
o

Date

Details

Foli
o

July 31

Transfe
r to
P&L

July 7

Amoun
t
40,000

Dr
Amount
100,00
0

Dr
Date
July 17

Detail
s
Bank

Foli
o

Detail
s
Bank

Foli
o

Amoun
t
60,000

Dr
Date
July 24

Amoun
t
40,000

Dat
e
July
31

Water
Dat
e
July
31

Rent Received
Dat
e
July
31

Electricity
Dat
e
July
31

Insurance
Dat
e
July

Details

Foli
o

Amount

Transfe
r to
P&L

15,000

Cr
Details

Foli
o

Amount

Transfe
r to
P&L

40,000

Cr
Details

Foli
o

Amount

Transfe
r to
P&L

100,000

Cr
Details

Foli
o

Amount

Transfe
r to
P&L

60,000

Cr
Details
Transfe

Foli
o

Amount
40,000

31

Dr
Date

Detail
s
Cash

Foli
o

Detail
s
Bank

Foli
o

Date

Details

Foli
o

July 31

Balanc
e C/d

July 24

Telephone
Dat
e
July
31

Amoun
t
45,000

Dr
Date
July 25

Salaries
Dat
e
July
31

Amount
160,00
0

Dr

Stock
Dat
e
July
31

Amount
400,00
0

r to
P&L
Cr
Details

Foli
o

Amount

Trabsfe
r to
P&L

45,000

Cr
Details

Foli
o

Transfe
r to
P&L

Details

Amount
160,000

Cr
Foli
o

Transfe
r to
trading
a/c

Amount
400,000

General Ledger Contd


Dr
Date

Details

July 1

Balanc
e B/d
Balanc
e b/d

Aug 1

Foli
o

Amount
100,00
0
100,00
0

Dr
Date

Details

July 1

Balanc
e c/d
Balanc
e B/d

Aug 1

Dr

Foli
o

Amount
200,00
0
200,00
0

Equipment
Dat
e
July
31

Motor Van
Dat
e
July
31

Capital

Details

Cr
Foli
o

Balanc
e c/d

Details

Amount
100,000

Cr
Foli
o

Balanc
e b/d

Amount
200,000

Cr

Dat
e
July
31

Detaild

Foli
o

Balanc
e c/d

Amount
2,846,00
0

Dat
e
July
1
Jul
31

Details

Foli
o

Amount

Balanc
e B/d
Net
Profit

1,020,000
1,826,000

2,846,00
0

2,846,000
Jul
31

Balanc
e b/d

2,846,000

OTHER ACCOUNTS
Dr

Debtor

Date

Details

Jul 1

Balanc
e B/f
Sales

Jul 31

Foli
o

Amount
75,000
1,684,00
0

Cr
Dat
e
Jul
31
Jul
31
Jul
31
Jul
31

Details

Foli
o

Amount

Cash

165,000

Bank

515,000

Return
Inward
Balanc
e C/d

32,500
1,046,500

Aug 1

1,759,00
0
1,046,50
0

Balanc
e B/d

Dr
Date

Details

Jul 31

Cash

15,000

Jul 31

Bank

Jul 31

Return
Outwar
d
Balance
C/d

140,00
0
5,000

Jul 31

Foli
o

Amount

1,759,000

Creditors
Dat
e
Jul
1
Jul
31

Cr
Foli
o

Details
Balance
B/f
Purchase
s

Amount
35,000
685,000

560,00
0
685,00
0

695,000
Aug
1

Balance
C/d

560,000

CASH BOOK
Da
te
Jul
1
Jul
1
Jul
1
Jul
5
Jul

Deta
ils
bal
b/d
Stam
p
Boyd

foli
o
GL

cash

bank

80,000

300,00
0

SL

20,000

SL

15,000

Sale
s
Sale

SL

210,00
0
550,00

SL

da
te
Jul
2
Jul
7
Jul
15
Jul
14
Jul

details
Brown

foli
o
PL

Cleanin
g
Water
Rates
Bank

GL

Electrici

GL

Cash

bank

6,000
15,000

GL

40,000

100,00
0
60,000

11
Jul
14
Jul
16

Jul
19
Jul
21
Jul
26

s
Cash

Rent

GL

Barr
ett

SL

Hind
s

SL

145,00
0

Sale
s

SL

390,00
0

Cash

100,00
0
100,00
0

17
Jul
17
Jul
17

200,00
0

Jul
19

500,00
0

Jul
19

60,000

Jul
29

Au
g1

Bal
b/d

1,395,
000
1,003,
000

1,075,
000
660,00
0

ty
Station
ery
Motor
Expens
es
Roland

GL

42,000

GL

90,000

PL

80,000

Blackw
ood

PL

60,000

Jul
24

Insuran
ce

GL

40,000

Jul
24

Telepho
ne
Charges

GL

Jul
25
Jul
28
Jul
29
Jul
31

Salaries

GL

Brown

PL

9,000

Bank

60,000

Bal c/d

45,000

160,00
0

1,003,
000
1,395,
000

660,00
0
1,075,
000

Recommendations For The Improvement Of The


Business.
- A recommendation to improve the performance of the business is
to reduce the amount of credit sales that occurred within the
accounting period.This in turn would reduce the amount the
business stands to lose in the case of a bad debt.

- To increase sales I recommend a 9% price decrease on USB


speakers.
Bringing the price from $2000 to 1820, with this price reduction,
customers will be encouraged to buy more of this product.

To compliment the selling of IPods I recommend the


implementation of earphones in The line of products offered. The
reason behind this is because of the increasing demand for earphones.

Conclusion.
This project took me out of me a lot of time and energy but I was
persistent to pull through with help from my teachers and family .After
completeion of this SBA I am satisfied with the knowledge and
experience gained in the accounting I will then utilize this knowledge in
achieving a distinction in my final accounting examination.

STOCK EVALUATION
Flash Drive
Date

Details

Jul 1
Jul 4

Bal b/d
Purchas
es
Sales
Sales
Purchas
es
Sales

Jul 5
Jul 8
Jul 9
Jul
10
Jul
11
Jul
22
Jul
26
Jul
27

Date

Amount in
unit
400
300

Unit
cost
500
500

Total
value
200,000
150,000

Amount in
unit
-

Unit cost

Amount in
unit
400
700

Unit
cost
500
500

Total value

Total
value
-

200

500

100,000

30
40
-

500
500
-

15,000
20,000
-

670
630
830

500
500
500

335,000
315,000
415,000

30

500

15,000

800

500

400,000

Sales

80

500

40,000

720

500

360,000

Sales

30

500

15,000

690

500

345,000

Sales

60

500

30,000

600

500

300,000

Sales

20

500

10,000

580

500

290,000

Details

Amount in
unit

Total
value

Amount in
unit

Unit cost

Total
value

Amount in
unit

Unit
cost

Unit
cost

200,000
350,000

Total Value

Jul 1
Jul 4
Jul 5
Jul 8
Jul 9
Jul
10
Jul
11
Jul
22
Jul
23
Jul
26
Jul
27
Jul
30
Jul
31

Bacl c/d
Purchas
es
Sales
Sales
Purchas
es
Sales

100
100

1000
1000

100,000
100,000

100
200

1000
1000

100,000
200,000

200

1000

200,000

20
50
-

1000
1000
-

20,000
50,000
-

180
130
330

1000
1000
1000

180,000
130,000
330,000

60

1000

60,000

270

1000

270,000

Sales

60

1000

60,000

210

1000

210,000

Sales

45

1000

45,000

165

1000

165,000

Sales

20

1000

20,000

145

1000

145,000

Sales

40

1000

40,000

105

1000

105,000

Sales

25

1000

25,000

80

1000

80,000

Purchas
es
Sales

1000

5000

85

1000

85,000

1000

5000

80

1000

80,000

Comparison of Ratio-Begining of accounting period with end-Liquidity ratio


31-Jul Column1

5.7
Current ratio
24.4

4.8
Acid test ratio
13