Candidate Name:

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

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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.

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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.

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 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.

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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.

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 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

owner’s equity of the business as at a specific period of time.

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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.

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 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.

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 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.

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 week 4, 650

week 1, 1500

week 3, 1650

week 2, 0

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.

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 Profitability Ratios
Gross profit as percentage of sales
Gross profit 100 2462 100
× = × = 41 times 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 times 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 times 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
= = 1 time
Current liability 21565
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.
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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.

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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.

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 Receipts, invoices,
Financial Cheque
statement
showing the
liabilities, assets
and capital at the Source Cash book
end of a period. Documents Journals

Balance Original
Sheet Entry

Where the
profit and loss T-Accounts
of the Profit Ledgers
business is Double
and Loss
calculated. Entry
Account

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Cheque

15
Invoice

16
Receipts

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Lodgment Slip

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 CAPITAL
2011 $
Sept 1 Cash 100,000

CASH
2011 $ 2011 $
Sept 1 Capital 100000 Sept 2 Rent 1500
Sept 7 Sales 102 Sept 2 Office Equipment 5000
Sept 9 Sales 450 Sept 3 Purchases 870
Sept 11 Sales 747 Sept3 Purchases 2285
Sept 18 Sales 678 Sept 5 Bank 75000
Sept 23 Sales 390
Sept 24 Sales 771
Sept 30 J. Doe 700 Sept 30 Balance c/d 19183
103838 103838
Aug 1 Balance b/d 19183

RENT
2011 $ 2011 $
Sept 2 Cash 1500 Sept 30 Balance c/d 1500
Aug 1 Balance b/d 1500

COMPUTER
2011 $ 2011 $
Sept 2 INC 50000 Sept 30 Balance c/d 50000
Aug 1 Balance b/d 50000

INC
2011 $ 2011 $
Sept 30 Bank 50000 Sept 2 Computer 50000

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 OFFICE EQUIPMENT
2011 $ 2011 $
Sept 2 Cash 5000 Sept 30 Balance c/d 5000
Aug 1 Balance b/d 5000

PURCHASES
2011 $ 2011 $
Sept 3 Cash 870
Sept 3 Cash 2285
Sept 6 Cash 1580
Sept 19 Super Plus 1000 Sept 30 Balance c/d 5735
5735 5735
Aug 1 Balance b/d 5735

DEEP FREEZE
2011 $ 2011 $
Sept 5 Singer Ltd 20000 Sept 30 Balance c/d 20000
Aug 1 Balance b/d 20000

SINGER LTD
2011 $ 2011 $
Sept 30 Balance c/d 20000 Sept 5 Deep Freezer 20000
Aug 1 Balance b/d 20000

JOE’S WHOLESALE
2011 $ 2011 $
Sept 16 Return Outward 15 Sept 6 Purchases 1580
Sept 30 Balance c/d 1565
1580 1580
Aug 1 Balance b/d 1565

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 BANK
2011 $ 2011 $
Sept 5 Cash 75000 Sept 20 Carriage 150
Sept 8 Sales 510 Sept 21 Wages 1500
Sept 14 Sales 786 Sept 25 Drawings 1500
Sept 17 Deedo Brown 126 Sept 27 Motor Cycle 1300
Sept 22 Sales 432 Sept 29 Super plus 850
Sept 30 Telephone 500
Sept 30 Electricity 150
Sep 30 INC 50000
Sept 30 Balance c/d 20904
76854 76854
Aug 1 Balance b/d 20904

SALES
2011 $
Sept 7 Cash 102
Sept 8 Bank 510
Sept 9 Cash 450
Sept 10 Deedo Brown 162
Sept 11 Cash 747
Sept 14 Bank 786
Sept 18 Cash 678
Sept 22 Bank 432
Sept 23 Cash 390
Sept 24 Cash 771
Sept 30 Balance c/d 5964 Sept 28 John Doe 936
5964 5964
Aug 1 Balance b/d 5964

DEEDO BROWN
2011 $ 2011 $
Sept 10 Sales 162 Sept 13 Return Inward 36
Sept 17 Bank 126
162 162

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 RETURN INWARD
2011 $ 2011 $
Sept 13 Deedo Brown 36 Sept 30 Balance c/d 36
Aug 1 Balance b/d 36

RETURN OUTWARD
2011 $ 2011 $
Sept 30 Balance c/d 15 Sept 16 Joe’s Wholesale 15
Aug 1 Balance b/d 15

DRAWINGS
2011 $ 2011 $
Sept 25 Bank 1500 Sept 30 Balance c/d 1500
Aug 1 Balance b/d 1500

SUPER PLUS
2011 $ 2011 $
Sept 29 Cheque 850 Sept 19 Purchases 1000
Sept 30 Balance c/d 150
1000 1000
Aug 1 Balance b/d 150

CARRIAGE OUTWARD
2011 $ 2011 $
Sept 30 Balance c/d 150 Sept 20 Bank 150
Aug 1 Balance b/d 150

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 WAGES
2011 $ 2011 $
Sept 21 Bank 1500 Sept 30 Balance c/d 1500
Aug 1 Balance b/d 1500

MOTOR CYCLE
2011 $ 2011 $
Sept 27 Bank 1300 Sept 30 Balance c/d 1300
Aug 1 Balance b/d 1300

JON DOE
2011 $ 2011 $
Sept 28 Sales 936 Sept 30 Cash 700
Sept 30 Balance c/d 236
936 936
Aug 1 Balance b/d 236

TELEPHONE
2011 $ 2011 $
Sept 30 Bank 500 Sept 30 Balance c/d 500
Aug 1 Balance b/d 500

ELECTRICITY
2011 $ 2011 $
Sept 30 Bank 150 Sept 30 Balance c/d 150
Aug 1 Balance b/d 150

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 Sales Journal

Invoice
Date Description Amount
no.
2012
Sept 10 Deedo Brown Sl 3531 162
Sept 28 John Doe Sl 3532 936
Sept 30 Transfer to sales account Gl 3533 1098

Purchases Journal

Invoice
Date Description Amount
no.
2012
Sept 6 Joe’s Wholesale Pl 3144 1580
Sept 19 Super Plus Sl 3145 1000
Sept 30 Transfer to purchases account Gl 3146 2580

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 Return Outward Journal

Invoice
Date Description Amount
no.
2012
Sept 16 Joe’s Wholesale Pl 15
Sept 30 Transfer to Purchases account Gl 15

Return Inward Journal

Invoice
Date Description Amount
no.
2012
Sept 13 Deeds Brown Sl 3301 36
Sept 30 Transfer to sales account Gl 36

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 General Journal

Date Description Debit Credit

2012
Sept 2 Computer 50000 50000
INC
Sept 5 Deep Freezer 20000
Singer 20000
70000 70000

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 Purchases Ledger
Joe’s Wholesale
2012
Sept 6 Purchases PJ 1580

Super Plus
2012
Sept 19 Purchases PJ 1000

Joe’s Wholesale
2012

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Sept 16 Return ROJ 15
Outward

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 General Ledger
Computer
2012
Sept 30 INC 50000
Deep Freezer

Sept 30 Singer 20000

Purchases
2012
Sept 30 Credit purchases Pl 2580
for month

Sales
2012
Sept 30 Credit sales for Sl 1098
month

Return Outward
2012
Sept 16 Returns for the ROJ 15
month

Return Inward
2012
30 Returns for the RIJ 36
Sept
month

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 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 36
Carriage Outward 150
Wages 1500
Drawings 1500
Motor Cycle 1300
Telephone 500
Electricity 150
Deep Freezer 20000
Computer 50000
Creditor 21565
Capital 100000
Sales 5964
Return Outward 15
Discount Received 150
127694 127694

Note:
Closing Stock $1924

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 BAS Snack Corner
Trading Profit and Loss Account for the period ended
September 30, 2012
Sales 5964
Return Inward (36)
Net Sales 5928

Cost of Goods Sold

Opening Stock 
Purchases 5405
Carriage Inward 
5405
Return Outward 15
5720
Closing Stock (1924)
3796
2132
Gross Profit 150
Discount Received 2282

Expenses
Rent 1500
Carriage Outward 150
Wages 1500
Telephone 150
Electricity 500
3800
Net Loss 1518

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 BAS Snack Bar
Balance Sheet as at September 30, 2012

Fixed Asset At Cost Depreciation N.B.V

Office Equipment 5000  5000
Motor Cycle 1300  1300
Deep Freezer 20000  20000
Computer 50000  50000
76300  76300

Current Asset
Closing Stock 1924
Bank 20904
Cash 19183
Debtors 236
42247

Current Liabilities
Creditor (21565)
20682
96982

Financed by:
Capital 100000
Net Loss 1518
98482
Drawings 1500
96982

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 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

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