JENS 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, Jens

Supermarket, under review for December 2009
pg. 1

Table of Contents
Opening
remarks
...3-6
Acknowledgement..
....3
Aim of
project
..4
Description and
overview..
.5- 6
Accounting procedures used and records kept:
...........7
Opening journal entries..
.8
The General
Journal......9
Sales Journal...
...15
Purchases Journal...
......15
Return Inwards
Journal...16
Return Outwards Journal.
.....16
Three Column Cash
Book...17
Sales
Ledger
....18-19
Purchases ledger...
..20
General Ledgers..
....21-23
The Trial Balance..
...24
Trading and Profit and Loss..
...25
Balance Sheet..
.....26

pg. 2

Performance Evaluation and interpretation of

results......27-29
Ratios
...27-29
Comparison..
.....30
Suggestion..
..31
Conclusion
...32
Appendices:
The List of the
Transactions....1011
Source
documents..
.12-14
The accounting
cycle....7
Pie charts ..
..28
Doughnut
chart.
..29

Acknowledgement

pg. 3

I would like to thank family and friends for all they

contributed towards taking Jens 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 Jens
Supermarket a success.

Aim of the Project

pg. 4

The aim of my project is for me to arrive at a

comprehensive understanding of the financial sector of the
business world. To draw up the financial records for the year
2009 for Jens Supermarket and to comment on the entitys
performance using appropriate tools of Analysis

Description and Overview

pg. 5

Jens Supermarket is a developed and simulated entity

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

The lines of authority within the business a shown below

Owner/Manager

pg. 6

Supervisor
Supervisor

Supervisor

General Workers

The accounting records are kept on double entry principles, with

all the necessary journals, ledgers, a cash book, a petty cash
book and a payroll to record the cash and credit transactions of
the entity. Jens Supermarket allows some of their costumers to
buy on credit and they also buy from many retailers on credit.
The period under review is Dec 2009

Accounting procedures used and records

kept

pg. 7

Jens Supermarket keeps records according to the standard form

of double entry principles and in keeping with the accounting
cycle shown below.
The accounting Cycle

1.
Journalising/
Books of
original
entry

5. Final
Accounts

4.Adjustmen
ts and
closing
entries

2. Posting
to the ledger

3.Trial
Balance

pg. 8

Opening Journal Entries

Assets
Cash
Bank
Premises
Motor Van
Stock

1000
50000
100000
1500
50000

Debtors
C. Harris
S. Clarke
T. Thomas

1000
5000
300

Creditors
M. Song
D. Call

5000
1000

pg. 9

The General Journal

The General Journal
Date

Details

2009

Assets

1st Jan

Premises
Motor Van
Stock

Folio

Gl
64
Gl
63
Gl
55

p.5
Debit

Credit

100000
1500
50000

Debtors:
C. Harris
S. Clarke
T. Thomas

Bank
Cash

Sl
44
Sl
42
Sl
50
CB
10
CB
10

1000
5000
300

50000
1000

Liabilities:
Creditors
M. Song
P. Call
Capital
208800

5000
1000
202800
208800

pg. 10

List of Transactions
December 2009
Dec 1. Purchased goods on credit from U. Ulrich $50,000
2. Sold goods on credit to H. Hoyte costing 600
3. Cash Sales $100,000
4. Cash Drawings $1,000
5. Paid Rent and Rates by cheque $1,000
6. Credit Sales to M. Lung $450
9. H. Hung lent us $600 by cheque
12. M. Lung paid us by cheque $450
13. Repaid H. Hung $600 by cheque
14. Sold goods on credit to F. Frank $2000
15. Bought goods from R. Reid 1500
16. Paid insurance by cheque for $300
17. Paid wages by cheque $1,000
19. Paid for motor expenses $300 by cash
21. Sales on credit to G. Gooding $2,000
22. Goods returned from F. Frank $200
pg. 11

24. Returned faulty stock to U. Ulrich $100

26. Credit purchases from M. Thomas $ 1000
28. Bought goods from I. Irish for $45
29. Paid R. Reid his account by cheque having a discount of
5%
30. H. Hoyte paid his account by cheque having a discount of
5%

Invoice

Invoice
no:
Date:
From:

001
14th/12/2009
Jen's
Supermarket
Haggat Hall

To: Frank
Turning
St.

pg. 12

QTY
25
Cases
10
crates
50
boxes

St.Michael

Michael

DESCRIPTION

UNIT
PRICE($)

PHD: Milk
Sun flower:
Eggs
Pampers:
Pampers

$
40

1000

15

150

17

850

Total

2000

Debit Note:
DEBIT NOTE
To:

Date
:

QTY
5
case
s

Jen's
Supermarket
Haggat Hall
St. Michael.
Barbados

From
:

Ref
No:

24th December 2009

UNIT PRICE
DESCRIPTION ($)
BBC: Pep
drinks

20

U. Ulrich
Hinds Bury
St. James
Barbados

Invoice No:005
TOTAL
AMOUNT($)
100

Credit Note:

Credit
Note
pg. 13

Jen's
Supermarket
Haggat Hall,
St. Michael,
Barbados.

From:

Date:

22nd December 2009

QTY
5 buckets( 1
Gallon each)

DESCRIPTION
Bico: Ice
Cream

To:

F. Frank
Turning ,
St. Michael,
Barbados.

Ref
No:
Date
d

Invoice
No:010
22nd Dec,
2009

UNIT
PRICE ($)

TOTAL
AMOUNT($)

40

200

Recei
pt:
Receipt

Date:30th Dec
2009

Received from:

H. Hoyte

the sum of

Five hundred and forty

dollars

For:

wholesale
goods

001

$540.00
Per:

H. Hoyte

Cheque:

pg. 14

J
e

Barbados National
Bank
BRIDGETOWN, ST. MICHAEL

312086
2009/12/1
3

BARBADOS.

YR/MO/DA
Y

s
Super

pay to the
order of

Market

$
H. Hung
bds 600.00
Six
hundred--------------------- DOLLA
-RS

Jks
BNB ACCOUNT

Jenevonne Kirton
Owner/General
Manager

The Sales Journal

pg. 15

Sales Journal
p.17
Date
2009
2nd
Dec
6th
Dec
14th
Dec
21st
Dec

Details

Invoice
No

Folio

Amou
nt
$

H. Hoyte

001

SL 3

2000

M. Lung

002

SL 4

2000

F. Frank

003

SL 2

600

G. Gooding
Transferred to
sales a/c

004

SL 1
GL
21

450
5050

The Purchases Journal

Purchases Journal
p.5
Date
Details
2009
1st Dec
15th
Dec
26th
Dec
28th
Dec

U. Ulrich
R. Reid
M. Thomas
I. Irish
Transferred to
purchases a/c

Invoice
No

Foli
o

PL
001 5
PL
004 7
PL
002 1
PL
003 2

GL3

Amou
nt
$
5000
0
1500
1000
45

52545

pg. 16

The Return Inwards Journal

Return Inwards Journal

p.12
Date
Details
2009
22nd
Dec
F. Frank
Transferred to Return
Inwards a/c

Invoice
No

Foli
o

SL
004 3
GL
21

Amou
nt
$
200

The Return Outwards Journal

Return Outwards Journal

p.10
Date
Details
2009
24tn
Dec
U. Ulrich
Transferred to return
outwards a/c

Invoice
No

Foli
o

PL
001 5
GL
23

Amou
nt
$
100

pg. 17

The Cash Book

Dat
e

Details

2009
Dec
1st
bal b/d
3rd

Sales

9th
12t
h
30t
h

loan
M.
Lung
H.
Hoyte

1st
Jan

Jen's Supermarket
Three column Cash Book
Dat
Folio Dis
Cash
Bank
e
Details
200
9
$
$
$
Dec
GJ 1
1000 50000
4th Drawings
GL
1000
Rent and
10
00
5th Rates
GL
16t
16
600
h
Insurance
17t
SL 1
450
h
Wages
19t Motor
SL 7
60
540
h
expenses
29t
h
R. Reid
31s
t
bal c/d
1010
60
00
51590
GL
9970
40
0
43865

(p.10)
Folio

Dis

Cash

Bank

$
1000

GL 12
GL 14

1000

GL 17

300

GL 18

5000

GL 20
PL 7

300
75

75
GL
39

1425
99
700
1010
00

pg. 18

43865
51590

Sales Ledgers
C. Harris
2009
1st
Dec

bal b/d

GJ 1

p.44

100
0

S. Clarke
2009
1st
Dec

bal b/d

GJ 1

p.22

500
0

T. Thomas
2009
1st
Dec

2009
14th
Dec

1st
Jan

bal b/d

Sales

GJ 1

SJ 17

bal b/d

300

F. Frank
2009
200 22nd
0
Dec
31st Dec
200
0
180
0
G. Gooding

2009
21st
Dec

Sales

SJ 17

p.11

p.3
Return
Inwards
bal c/d

RIJ 12

200
1800
2000

p.4

200
0

pg. 19

2009
2nd
Dec

H. Hoyte
2009
Sales

SJ 17

600

30th Dec
30th Dec

p.7

Bank
Dis

CB 10
CB 10

600

2009
6th Dec

Sales

SJ 17

M Lung
2009
450 12th Dec

540
60
600

p.1
Bank

CB 10

450

N.B Debtors=10100

pg. 20

Purchases Ledger
2009
24th
Return
Dec
Outwards
31st
Dec
bal c/d

ROH
10

U. Ulrich
2009
2nd
100
Dec
4990
0
5000
0
1st Jan
D. Call
1st Dec
M. Thomas
26th
Dec

p.5
Purchas
es

PJ 5

bal b/d

50000
50000

bal b/d

p.50
1000

GJ 1

p.1
Purchas
es

PJ 5

I.
Irish
Purchas
es

PJ 5

R.
Reid

Bank

CB 10

1425

Dis

CB 10

75
1500

1000

p.2
2009
28th
Dec

2009
29th
Dec
29th
Dec

50000

45

p.7
2009
15th
Dec

Purchas
es

PJ 5

1500

1500

pg. 21

N.B Creditors=56945

General Ledgers
Premises
2009
1st
Dec
bal b/d

Gl 42

p.31

1000
00

Motor Van
2009
1st
Dec
bal b/d

Gl 41

1500

Sales
2009
31st
Dec

2009

31st
Dec

bal c/d

p.32

1050
50
1050
50

p.10

Total sales
for the
month

SJ 17

3rd
Dec

Cash

CB 10

1st Jan

bal b/d

Loan
2009
9th
Dec
Bank

5050
10000
0
10505
0
10505
0
p.16

CB 10

600

pg. 22

Discount
Allowed
2009
30th
Dec

Total
discount
for the
month

CB 10

p.62

60

Discount
Received
2009
29th
Total
Dec
discount
for the
month

p.61

CB 10

Purchases
2009
31st
Dec

Total credit
for the
month

PJ 5

75

p.3

5254
5

Return
Outwards
2009
31st
Dec
Total Returns
for the
ROJ
month
10

Return Inwards

p.23

100

p.21

pg. 23

2009
31st
Dec
Total Returns
for the
month
RIJ 12

200

Drawings
2009
4th
Dec
Cash

CB 10

1000

Rent and Rates

2009
5th
Dec
Bank

Cb 10

CB 10

CB 10

CB 10

p.18

5000

Motor
Expenses
2009
19th
Dec
Cash

p.17

300

Wages
2009
17th
Dec
Bank

p.14

1000

Insurance
2009
16th
Dec
Bank

p.12

p.20

300

Capital

p.101

pg. 24

2009
1st Dec

Stock
10th
Dec

bal b/d

GJ 1

bal b/d

GJ 1

20280
0

P.55

500
00

The Trial Balance

Date
2009
31st
Dec

Jen's Supermarket
Trial Balance
as at 31st Dec 2009
Details
Debit
$
Capital
Cash
Bank
Premises
Motor Van
Sales
Loan
Purchases
Return
Outwards
Return Inwards
Drawings
Rent and Rates
Insurance

Credit
$
20280
0

99700
43865
10000
0
1500
10505
0
600
52545
100
200
1000
1000
300

pg. 25

Wages
Motor
Expenses
Creditors
Debtors
Stock
Discount allowed
Discount
received

5000
300
56945
10100
50000
60
75
36557 36557
0
0

Adjustments
Closing Stock- $10245
Depreciation on Motor Van- 10%
Insurance owing- $50
Rent and Rates paid in advance- $50

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

50000
52545
(100)
52445
102445
(10245)
(92200)

pg. 26

Gross Profit
Add Discount
Received

Less Expenses:
Rent and Rates
Insurance
Wages
Motor Expenses
Discount Allowed
Depreciation for
Motor Van
Total expenses
Net profit

12650
75
12725

500
350
5000
300
60
150
(6360)
6365

The Balance Sheet

Jen's Supermarket
Balance Sheet
as at 31st Dec 2009
Fixed Assets
$
$
Premises
100000
Motor Van
1500
less depreciation
(150)
1350
Total fixed assets
Current Assets
Closing Stock
Debtors
Bank
Cash
Rent and Rates paid
in advance
Total current assets

101350

10245
10100
43865
99700
500
164410

pg. 27

Less current liabilities

Creditors
loan
Insurance owing
Total current liabilities
Working capital
Financed by
Capital
Add Net Profit
Less Drawings
Capital at end

56945
600
50
(57595)
106815
208165
202800
6365
209165
(1000)
208165

Performance evaluation and interpretation

of results

In preparing the financial statements for the business Jens 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.
In the close of the financial year for Jens Supermarket there is an increase
of capital, 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:

pg. 28

1. Gross Profit to sales

ratio.

Gross
Profit

Sales

1265
0
1048
50

0.1

Gross Profit as a percentage of

sales

Gross
Profit

*100
=

Sales

1265 *100
0 =
1048
50

12%

Gross profit to Sales

11%

Gross Profit
Sales

89%

The sales for the period under review were 104850; the cost of goods sold
was 92200. Therefore the business made a gross profit of 12 650. Overall

pg. 29

the business made ($12) twelve dollars on every ($100) hundred dollars of
sales.

2. Return on capital employed ratio

Net Profit
capital
employed

6365 =
205482
.50

0.031

Return on capital employed ratio percentage

Net Profit
capital
employed

*100
=

*100
6365 =
205482
.50

3.1%

pg. 30

Return on Capital Employed

3%
Net Profit
Capital Employed

97%

N.B Capital Employed= Opening Capital + Closing Capital/2

The capital at start was 202800, whilst at close it was 208 165. These
figures show an increase in the net worth of the business of 5365.

Comparison of figures at start and close

pg. 31

The comparison is being done between two liquidity ratios: the current ratio
and acid test ratio.

Current ratio
Current
Assets
Current
liabilities

164410
57595

2.9:1

Acid test
ratio

Current assetsstock
current liabilities

16441010245
57595

154165
57595

2.7:1

1. The current ratio was 2.9:1 and the acid test ratio was 2.7:1.That is an
indication that when creditors are paid the remainder of cash is 1.9 and 1.7
respectively. Although stock was deducted from the current assets the
business was still able to repay its debts. This showed that the current
assets did not depend on closing stock to raise its figure.
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.

pg. 32

Suggestions/Recommendations
Current Ratio

It is recommended that Jens Supermarket

1. Uses the excess money to expand the business by opening
another supermarket.
2. Introduce new product to the business and purchase new
equipment.

Gross Profit

It is suggested that Jens Supermarket should

1. Source cheaper suppliers to facilitate the demand of goods
so profitability would be greater at the end of the month.
2. Offer new promotions every week and offer the customers
raffles at a chance to win prizes at the end of the year.

These are given to help Jens Supermarket increase gross profit

and sales.

pg. 33

Conclusion
It is clear that Jens Supermarket keeps adequate records
for the business to demonstrate the profitability over the
financial period for the month. It could however, increase the
current ratio and gross profit by incorporating the
suggestions/recommendations outlined.

Nevertheless Jens Supermarket made a good net profit for

the month of December in 2009.Overall based on the
performance of the business Jens Supermarket was able to
make a profit of 6365 despite the low sales of 104 850.

pg. 34