Candidate Name: School: Registration #:Centre #:Territory: JamaicaDate: February 12, 2013Teacher:

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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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Week 1 Week 2 Week 3 Week 40

500

1000

1500

2000

2500

3000

Sales for the Month

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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Week 1 week 2 Week 3 week 40

50010001500

200025003000

3500400045005000

Purchases for the Month

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 1; 1500

week 3; 1650

week 4; 650

Expenses for the Month

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 profitSales

×100

1=2462

5964×

1001

=41×per annum

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 lossSales

×100

1=−1518

5964×

1001

=−1518005964

=−25×per annum

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 assetCurrent liability

=4257721565

=2×per annum

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 assetCurrent liability

=4063321565

=1 time

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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Source Documents

Original Entry

Double Entry

Profit and Loss

Account

Balance Sheet

Receipts, invoices, Cheque

Cash bookJournals

T-AccountsLedgers

Where the profit and loss of the business is calculated.

Financial statement

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

Cheque

15

Invoice

16

Receipts

17

Lodgment Slip

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2011 $Sept 1 Cash 100,000

CAPITAL

CASH

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

103838 103838Aug 1 Balance b/d 19183

RENT

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

COMPUTER

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

INC

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

OFFICE EQUIPMENT

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

PURCHASES

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

5735 5735Aug 1 Balance b/d 5735

DEEP FREEZE

2011 $ 2011 $Sept 5 Singer Ltd 20000 Sept 30 Balance c/d 20000Aug 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

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Sept 30 Balance c/d 1565 1580 1580

Aug 1 Balance b/d 1565

BANK

2011 $ 2011 $Sept 5 Cash 75000 Sept 20 Carriage 150Sept 8 Sales 510 Sept 21 Wages 1500Sept 14 Sales 786 Sept 25 Drawings 1500Sept 17 Deedo Brown 126 Sept 27 Motor Cycle 1300Sept 22 Sales 432 Sept 29 Super plus 850

Sept 30 Telephone 500Sept 30 Electricity 150Sep 30 INC 50000Sept 30 Balance c/d 20904

76854 76854Aug 1 Balance b/d 20904

SALES

2011 $Sept 7 Cash 102Sept 8 Bank 510Sept 9 Cash 450Sept 10 Deedo Brown 162Sept 11 Cash 747Sept 14 Bank 786Sept 18 Cash 678Sept 22 Bank 432Sept 23 Cash 390Sept 24 Cash 771

Sept 30 Balance c/d 5964 Sept 28 John Doe 936 5964 5964

Aug 1 Balance b/d 5964

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DEEDO BROWN

2011 $ 2011 $Sept 10 Sales 162 Sept 13 Return Inward 36

Sept 17 Bank 126 162 162

RETURN INWARD

2011 $ 2011 $Sept 13 Deedo Brown 36 Sept 30 Balance c/d 36Aug 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 1500Aug 1 Balance b/d 1500

SUPER PLUS

2011 $ 2011 $Sept 29 Cheque 850 Sept 19 Purchases 1000Sept 30 Balance c/d 150

1000 1000Aug 1 Balance b/d 150

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CARRIAGE OUTWARD

2011 $ 2011 $Sept 30 Balance c/d 150 Sept 20 Bank 150

Aug 1 Balance b/d 150

WAGES

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

MOTOR CYCLE

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

JON DOE

2011 $ 2011 $Sept 28 Sales 936 Sept 30 Cash 700

Sept 30 Balance c/d 236 936 936Aug 1 Balance b/d 236

TELEPHONE

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

ELECTRICITY

2011 $ 2011 $

Sept 30 Bank 150 Sept 30 Balance c/d 150Aug 1 Balance b/d 150

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Sales Journal

Date DescriptionInvoice

no.Amount

2012Sept 10 Deedo Brown Sl 3531 162Sept 28 John Doe Sl 3532 936Sept 30 Transfer to sales account Gl 3533 1098

Purchases Journal

Date DescriptionInvoice

no.Amount

2012Sept 6 Joe’s Wholesale Pl 3144 1580Sept 19 Super Plus Sl 3145 1000Sept 30 Transfer to purchases account Gl 3146 2580

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Return Outward Journal

Date DescriptionInvoice

no.Amount

2012Sept 16 Joe’s Wholesale Pl 15Sept 30 Transfer to Purchases account Gl 15

Return Inward Journal

Date DescriptionInvoice

no.Amount

2012Sept 13 Deeds Brown Sl 3301 36Sept 30 Transfer to sales account Gl 36

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General Journal

Date Description Debit Credit2012Sept 2 Computer 50000 50000

INCSept 5 Deep Freezer 20000

Singer 2000070000 70000

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Purchases LedgerJoe’s Wholesale

2012Sept 6 Purchases PJ 1580

Super Plus2012Sept 19 Purchases PJ 1000

Joe’s Wholesale2012Sept 16 Return

OutwardROJ 15

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General LedgerComputer

2012Sept 30 INC 50000

Deep Freezer

Sept 30 Singer 20000

Purchases2012Sept 30 Credit purchases

for monthPl 2580

Sales2012Sept 30 Credit sales for

monthSl 1098

Return Outward2012Sept 16 Returns for the

monthROJ 15

Return Inward2012

Sept30 Returns for the

monthRIJ 36

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BAS Snack BarTrial 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 CornerTrading Profit and Loss Account for the period ended

September 30, 2012SalesReturn InwardNet Sales

Cost of Goods SoldOpening StockPurchasesCarriage Inward

Return Outward

Closing Stock

Gross ProfitDiscount Received

ExpensesRentCarriage Outward WagesTelephone Electricity

Net Loss

5405

540515

5720(1924)

5964(36)

15001501500150500

5928

379621321502282

38001518

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BAS Snack BarBalance Sheet as at September 30, 2012

Fixed AssetOffice EquipmentMotor CycleDeep FreezerComputer

Current AssetClosing StockBank CashDebtors

Current LiabilitiesCreditor

Financed by:CapitalNet Loss

Drawings

At Cost50001300200005000076300

Depreciation

19242090419183236

42247

(21565)

N.B.V50001300200005000076300

2068296982

100000151898482150096982

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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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