accounts sba
TRANSCRIPT
Candidate Name: Jamie Drummond
Candidates No:
Teacher: Miss Coote
School: Frome Technical High School
Centre No:
Year: 2014-2015
IntroductionThis project is based on the operation of a sole trader type of business, which is owned by Alecia McNeil. The business specializes in selling pastries, and frozen products to local school tuck shops.
This entails all the business transactions and accounting transactions, aims and objectives about the business.
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AcknowledgementFirst I would like to thank my teacher Mrs.coote for walking me through this project.
Special thanks to my family for assisting me in the way they did and also my friends who assisted me in completing this SBA.
Thanks everyone your help was highly appreciated
Again many thanks.
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Content page
Description of business.................................................................................... 5
Actual accounting records....................................................................................6
Aims of project.....................................................................................................7
Books of origins..............................................................................................8-14
List of transaction..........................................................................................15-19
Trading profit and loss accounts..........................................................................20
Balance sheet.......................................................................................................21
Trial Balance………………………………………………..……….………….22
Interpretation of results...................................................................................23-24
Comparison.....................................................................................................25-26
Source documents...........................................................................................27-28
Performance of business.......................................................................................29
Conclusion............................................................................................................30
Recommendation..................................................................................................31
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Description of the Venture
The name of the business will be Alecia Enterprise. It’s located at Grange Hill square in Westmoreland. Alecia Enterprise is a sole trader type of business owned by Alecia; all the finances needed will be provided by Jamie. The business will be employing four individuals to carry out the daily functions of the business. Alecia offer a wide verity of frozen products and pastries. They provide excellent customer services and affordable prices; they are opened from 8:00 am – 8:30 pm on Mondays to Fridays.
Her aim is to provide the most delicious meals at the most affordable prices, they also provides clean spacious air condition environment for the comfort of their employees and customers.
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Actual Accounting RecordsThe actual accounting records kept were as follows:
The Ledger; the ledger is used to record the day to day transaction of the business.
The Trial Balance; the trial balance is used to check the arithmetically accuracy of the book keeping entries.
Trading and Profit loss account; is used to calculate the profit or loss made over a period of time.
Balance Sheet; this is a financial statement showing liabilities, assets and capital at the end of the accounting period.
Journal; a book of account used to record rare or exceptional transactions that should not appear in any other books of original entry in use.
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AIMS/OBJECTIVES
The aim of the project is to help me to fully develop my understanding and skills with the accounting ratios.
The objectives of this project are to: To have a better understanding of the book keeping in the records
management department. To have a vivid knowledge of the accounting equations and ratios.
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DR CR
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Date
Details
F Discount
Bank Cash
Date
Details F Discount
Bank Cash
May 1 Capital
GL
- 450,000
50,000
May1 Rent GL - 8,000 -
May6 Sales GL
- - 4,600 May2 Fixtures GL - 25,000 -
May 9
Sales GL
- 8,750 - May 14
Cremo ltd PL 3,975 11,925 -
May 26
Sa Primary
SL 100 1900 - May 17
Freezer GL - 15,000 -
May 21
Insurance GL - 25,000 -
May 24
Wages GL - 7,500 -
May 25
Electricity
GL - - 2,500
May 31
Crozy Jim
PL 1180 10,620 -
May 31
Toyota Ltd
GL - 2500 -
54,600
May 13
Balance C/D _______
332,650______
52,100
June 1
Balance b/d 100 52,100
5155 460,650
54600
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DR CR
Date Detail F Amount Date Detail F Amount
The general Ledger
Rent
May 1 Bank CB 8000 May 31 Transfer to purchase GL 8000
Fixtures
May 2 Bank CB 25000 May 31 Transfer to Balance Sheet
25000
PurchaseMay 31 Sundry PJ 40700 May 31 Transfer to trading
A/C40700
Return outwards
May 31 Sundry RIJ 200 May 31 Transfer to trading 200Sales
May 31 Transfer to trading A/C
57150 May 6 Cash to CB 4600
May 9 Bank to CB 8750May 31 Sundry to SJ 43800
57150 57150Discount allowed
May 31 Sundry CB 100 May 31 Transfer to PL 100Discount Received
Transfer to PL 5155 Transfer to BS 5155Freezer
May 17 Bank to CB 1500 May 31 Transfer to BC 1500Insurance
May 31 Bank to CB 25000 May 31 Transfer to PL 25000Wages
May 24 Bank CB 25000 May 31 Transfer to PL 25000Electricity
May 25 Cash CB 2500 May 31 Transfer to PL 2500Toyota LTD
May 31 Bank CB 25000 May 17 Motor Van GL 100,000
May 31 Balance c/d 75000100,000 100,00
0June 1 Balance b/d 75,000
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DR CRDate Details Amount Date Details F Amount
Sales LedgerSav Primary Tuck
ShopMay 15 Sales SJ 2200 May 16 Return inwards RIJ 200
May 26 Discount CB 100May 24 Bank CB 10,000
2200 2200Godfery Stewart High
School Tuck ShopMay 23 Sales SJ 21,600 May 31 Balance c/d 21600June 1 Balance b/d 21,600
Frome Tuck ShopMay 8 Sales SJ 10,000 May 31 Balance c/d 10,000June 1 Balance b/d 10,000
Sav InfantMay 11 Sales SJ 10,000 May 31 Balance c/d 10,000June 1 Balance b/d 10,000
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Purchase Ledger
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Cremo LTDMay 14 Bank CB 11,925 May 6 Purchase PJ 15,900May Discount CB 3975
15,900 15,900
Crozy JimMay 30 Discount CB 1180 May 7 Purchase PJ 11800May 30 Bank CB 10,620 May 23 Purchase PJ 1,400May 31 Balance c/d 1,400
13,200 13200June 1 Balance b/d 1,400
Road RunnerMay 12 Return Outward
ROJ600 May 10 Purchase PJ 11600
May 31 Balance c/d 1100011600 11600
June 1 Balance b/d 11000
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Date Details Invoice Invoice AmountPurchase Journal
May 4 Cremo ltd. PL - 15,900May 7 Crozy Jim PL - 11,800May 1
0Road Runner PL - 11,600
May 28
Crozy Jim PL 1,400
May 31
Transfer to purchase GL - 40,700
Return Outwards JournalMay 1
2Road Runner PL - 600
May 31
Transfer to return outwards A/C GL - 600
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Date
Details Folio Invoice # Amount
Sales Journal
May 8 Frome Tech SL - 10,000
May 11 Sav Infant SL - 10,000
May 15 Sav Primary SL - 2,200
May 23 Godfery Stewart SL - 21,600
May 31 Transfer to sales A/C GL - 43,800
Return Inwards
May 16 Sav Primary SL - 200
May 31 Transfer A/C 200
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May 17, 2014
One hundred thousand dollars to Toyota ltd for100,000.00-------
the purchase of a motor van.
Toyota Ltd Alecia McNeil
Date : May 30, 2014To : Crazy Jim LTDFor : Frozen Novelties
Amount: $10620Acc No : 611230
Signature_________________________________
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Lodgement Form
Cash onlyNotes*1000*500*100*50Coins (s)
Cash total $
Cheque Only
Cheque total
Alecia Pastries
Date______________
National Commercial Bank
Name_________________________
From__________________________
Address_______________________
_____________________________
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Payments Must Be made by Certified Cheque Or cash only
Paid In by________________________________
Name_____________________________________
BANK COPY
`:0006 `:...077`:57*9990977
Cash Receipts
May 21,2014 33 23 112
Alecia McNeil 25,000 . Twenty five thousand dollars Payment for insurance Alecia Jamie $
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DEBIT NOTEALECIA’S SCHOOL’S PASTRY AND FROZEN ICECREAM
GRANGE HILL SQURE WESTMORELAND
TELEPHONE:(1876)331-2287 FAX:(1876)332-3190
ROAD RUNNNER INVOIVE NO. 0/38SAVANNALAMAR AMOUNT NO. P/4458
DATE:MAY 12,2014 WESTMORELANDJAMAICA
QUANTITYPER UNIT TOTAL
2 CHEESE CAKE 300 600
600
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CREIT NOTEALECIA’S SCHOOL’S PASTRY AND FROZEN ICECREAM
GRANGE HILL SQUARE WESTMORELAND
TELEPHONE:(1876)331-2287 FAX:(1876)332-3190
SAV PRIMARY INVOIVE NO. 0/37SAVANNALAMAR AMOUNT NO. P/4298
DATE: MAY 16,2014 WESTMORELANDJAMAICA
QUANTITYPER UNIT TOTAL
1 KIMO 200 200
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200
PURCHASE INVOICEALECIA’S SCHOOL’S PASTROY AND FROZNE ICECRAME
GRANGE HILL SQUARE WESTMORELAND
TELEPHONE:(1876)331-2287 FAX: (1876) 332-3190
CREMO LTD SAVNNALAMAR SALES INVOICE NO.. 9/34WESTMORELAND ACCOUNT NO. H/3752JAMAICA DATE: May 4, 2014QUANTITY PER UNIT TOTAL
15 KIMO 100 1500
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24 ICECREAM
12 KARZY
300
600
7200
7200
15900
SALES INVOICEALECIA’S SCHOOL’S PASTRY AND FROZEN ICECREAM
GRANGE HILL SQURE WESTMORELAND
TELEPHONE:(1876)331-22 FAX:(1876)332-3190
SAV PRIMARY TUCK SHOP INVOIVE NO. 0/35SAVANNALAMAR AMOUNT NO. P/3222WESTMORELAND DATE: MAY 15,2014 JAMAICA
1 DIPPER6 KIOM
LESS 5% TRADE DISCOUNT
1000200
100012001200
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As at the 1 of May to May 31 2015
Sales 57150Less Return Inwards 200Net Sales 56,950
Less Cost Of Goods SoldPurchase 40,700
- Return Outwards -60040,100
- Closing stock -23,400 16,70040,250
+ Discount Received 5155Gross Profit 45,405
Less ExpensesRent 8,000Discount Allowed 100Insurance 25000Wages 7500
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Electricity 2500 43,100Net Profit 2,305
Fixed AssetsFixtures 25,000Freezer 15,000Motor Van 100,000
140,000Current AssetsStock 23400 Debtors 41600Bank 332,605Cash 52,100
449,705Less Current LiabilitiesCreditor 12,400Toyota LTD 75,000 87,400
362,306
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Working Capital 502,305Financed byCapital 500,000+Net profit 2,305Working capital 502,305
DR CRCapital 500,000Rent 8,000Fixture 25,000Purchase 40,7 00Return Outwards 600Return Inwards 200Scales 57,150Discount Allowed 100Discount Receiver 5,155Freezer 15,000Motor Van 100,00
0Insurance 25,000Wages 7,500Electricity 2,500Toyota LTD 75,000Credit Crozy Jim & Road Runner 12,400
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Debtor (Frome, Sav Infant & Godfery Stewart) 41, 600Cash 52,100Bank 332,60
5_______
650,305
650,305
Alecia’s Enterprises started with 500,000 capital, 450,000 was place in the bank and the remainder kept as cash on hand
Net Profit as a percentage
¿ Net profitsales * 1000
p= 230557150 *100
=4.033%
For this period the business made a small profit.
Every business starts with an intention to make a profit, how well the business does depending the marketing of the products, getting customers to buy the
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product and keeping expenses at a low rate. We will no analyze how well School’s Pastry and Frozen Novelties is doing.
Gross Profit_* 100
Sales
45405 * 100__
557150
=8.16%
Gross profit as a percentage of sales ,this shows the gross profit made for every $100 of sales.
Working Capital= Fixed Assets +Current Asset – Current Liabilities
= $140000+49705-87400
= $502,305
This shows that the business has made back the money spent, however, this is the first year of the business it will improve for the other years.
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SALES VS PURCHASE
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40700
57150
PurchaseSales
This Graph shows that Alecia purchase is lower than her purchase this means that she made a profit for this period.
GROSS PROFIT AND NET PROFIT
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gross Profit Net Profit0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Series 1
Graph showing gross profit and net proft
PRO
FIT
MAD
E
This shows that the gross profit is higher than the net profit because most of the business profits are in its stock.
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The business makes a profit even though a significant proportion of its money is in stock. The overall performance of the business was fair because the business manage to make a profit.
The aim of the project were achieved as standard accounting procedures were used to properly record all the transaction for the business. The accounting information
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provided was used to assess the performance of the business if it is making loss and indentifying areas for improvement. The information was also use full in recommendation to improve the business.
Alecia Should cut down on it purchase an sell of its stock before purchasing more. It is also recommended that Alecia should ensure that her selling prices are not too high but reasonable.
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May 1. Capital of $500,000. $450,000 bank, $50,000 cashMay 1. Paid rent by cheque $8000.May 2. Bought fixtures by cheque $25000.May 4. Bought the following items from Cremo Ltd. On credit: 15 Kimos, 24 Crazy, 24 ice cream cakes.May 6. Sold for cash 5 Kimo, 8 ice cream cakes.May 7. Bought from Crazy Jim on credit 4 Dipper and 12 Pizza.
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May 8.Sold to Frome Tech $10,000.May 9.Sold to Frome tuck shop by cheque 2 dipper and 6 pizzas.May 10. Bought on credit from road runner ltd 8 kimo, 36 cheese cakes.May 11. Sold on credit to Sav Infant, $10,000.May 12. Returned 2 cheese cakes to road runner.May 14. Paid Cremo Ltd for items supplied on May 4. We received 25% discount by cheque.May 15. Sold on credit to Sav primary tuck shop 1 dipper, 6 kimo.May 16.Sav Primary returned to us 1 Kimo.May 17. Bought freezer by cheque $15000.May 17. Bought a Motor Van on credit from Toyota $100000.May 21. Paid insurance for the year by cheque 25000.May 23. Sold on credit to Godfrey Stewart High tuck shop 10 Krozy, 18 Cheese Cake and Ice Cream Cake.May 24. Paid staff by cheque $7500.May 25. Paid electricity by cash $2500.May 26. Sav Primary tuck shop paid their account by cheque less 5% cash discount.May 28. Bought two Dipper from Crazy Jim on credit.May 30. Paid Crazy Jim by cheque for items received on May 7. We got a 10% discount.May 31. Paid Toyota Ltd. by cheque $25000.
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