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Transcript of Jareth SBA Complete
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PRINCIPLES OF ACCOUNTS
SCHOOL BASED ASSESSMENT
Name: Jareth Moreira
Submitted To: Ms. F. Usher
Student Number: 0400210509
School: n!lican "athedral "olle!e
Sub#ect: $rinci%les o& ccounts
Territor': (eli)e
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TABLE OF CONTENT
ims *******************.*********.$!1
(usiness +escri%tion***********.********.$!2
Sales ,n-oice ****.**********.*********.$!
$urchase /rder *************.*********$!4
ecei%t*********.*********..********.$!5
"heue***..***.********************.$!
Transaction Sheet********************...$!3
"ash boo ***..*******************...*.$!
Sales +a' (oo *..********************..$!9610
Trial (alance ******..***************......$!11
Tradin! $ro7t and 8oss ccount .************.$!12
(alance Sheet ****.******************..$!1
+ouble ntries*..***************..***.**.$!14615
$ro7tabilit' atios*******************.*..$!1613
8iuidit' atios*********************.*.$!1619
"om%arison***********************.*.$!20
ecommendation*********************.$!21
"onclusion*********************.****$!22
%%endices
+ouble ntries ************************i6-
(oos o& /ri!inal ntries****************......-i6i
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AIMS
1. To learn more in accounting specifically, in preparing financial statement and ratios.
2. To prepare myself for the Caribbean Secondary Education Certificate (CSEC) examination.
. To further my studies in !ccounting.
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BUSINESS DESCRIPTION
The business "#$ %&'S CE&&'&! sells *ide +ariety electronic products under one roof the
main target mar-et for the business is the general public of #elie. This is a sole proprietor business
managed by /r. 0areth /oreira. The capital contributed in the business *as 2,. Some of the
items that are on sale in the store are3
1. i%ad2. &aptops4 Computers. i%hone5. Cameras
6. Cell phones7. 8 #ox 7
%rice ranges for the electronic items ranges from 2,6 to 1 #elie 9ollars.
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,N;/," Jul 1< 201
,n-oice = >100?
>(@ $8US "88U8?
>21 +ol%hin Street?
>(eli)e "it'< (eli)e?
>226010?
Fa >5016226209?
cell%lusb)A'ahoo.com
T/: S. ,baa
;,$ $lus?
>45 (annoc Street?
>(eli)e "it'< (eli)e
>226109?
"ustomer ,+ >("1245?
S8S$
S/N J/(
$BMNT
TMS+U +T
+ue on
ecei%t
CUNT,TB +S",$T,/N UN,T $," 8,N T/T8
10 ,$hone< ,$ad screen %rotector and cases 25 250.00
S u b t o t a l
S a l e s Ta
To t a l 250.00
[Your company slogan]
Mae all checs %a'able to >Bour "om%an' Name?
TDNE B/U F/ B/U (US,NSS
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$U"DS /+
E. (r'antGStri-e &or the (estH
%.o. = >No.?
+ate:
(eli)e "it'< (eli)e$hone 22635 Fa 2246135li&A'ahoo.com
;N+/
J. M/,(@ $8US "88U821 +/8$D,N STT(8,@ ",TB< (8,@226010"ustomer ,+ 12
SD,
$
T/
J. M/,(@ $8US "88U821 +/8$D,N STT(8,@ ",TB< (8,@226010"ustomer ,+ 12
SHIPPING METHOD SHIPPING TERMS DELIVERY DATE
QTY ITEM # DESCRIPTION JOBUNIT
PRICELINE TOTAL
4 0o2 Samsun! char!er 5 13.50 30.00
SUBTOTAL
SALES TAX
TOTAL 30.00
1. $lease send tIo co%ies o& 'our in-oice.
2. nter this order in accordance Iith the %rices< terms<
deli-er' method< and s%eci7cations listed abo-e.
. $lease noti&' us immediatel' i& 'ou are unable to shi%
as s%eci7ed.
4. Send all corres%ondence to:
>Name?
>Street ddress?
>"it'< ST @,$ "ode?
$hone >%hone? Fa >&a?
Authori!" $ D%t!
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CHEQUE
TRANSACTIONS FOR “BZ PLUS CELLULAR”
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201
Jul 02 Started business Iith 20<000 in ban.
Jul 02 (ou!ht !oods on "redit &rom E. (r'ant 200K E. +urant 150K
$. 8eIis 95K . Jacson 295 and . +a-is 135.
Jul 05 "ash sales 0.
Jul 0 $aid rates b' cash 30.
Jul 1 $aid !eneral e%ense b' "heue190.
Jul 1 Sold !oods on "redit to: . Lestbroo 145K S. ,baa 250K
E. $erins 190.
Jul 1 $aid Ia!es b' cash 150.
Jul 20 Le returned !oods to: E.(r'ant50K E. +urant 110.
Jul 21 (ou!ht !oods on "redit &rom: E. (r'ant 30K E. +urant 20K
. Jacson 550.
Jul 2 oods returned to us b' . Lestbroo 4K S. ,baa
100.
Jul 25 (ou!ht stationer' on "redit &rom $. Jones 120.
Jul 2 $aid the &olloIin! b' cheue and recei-ed a discount 15 E.
(r'ant 220K E.+urant20.
Jul 2 (ou!ht machiner' %a'in! b' cheue 2000.
Jul 29 ecei-ed a loan o& 950 cash &rom J. 8amb.
Jul 0 ecei-ed cash &rom: . Lestbroo< 31 !a-e him a discount o10K S. ,baa 100 !a-e him a 50 discount.
Jul 1 $ro%rietor brin!s &urther 5000 cash into the business.
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&B' PLUS CELLULAR(
(//ES /F /,,N8 NTB
Dr) CASH BOO* Cr)D%t! D!t%i+
Di,-.t C%,h B%/0
D%t! D!t%i+
Di,-.t C%,h B%/0
1234 5 5 5
1234 5 5 5
Jul02 "a%ital
20<000.00
Jul0 ates 30.00
Jul05 Sales
0.00
Jul1
eneral%enses 190.00
Jul29 J. 8amb 950.00
Jul1 La!es
150.00
Jul0
.Lestbroo
10.00 31.00
Jul2
E.(r'ant
.00 13.00
Jul0 S. ,baa
50.00 100.00
Jul2
E.+urant
4.00 232.00
Jul1 "a%ital
5<000.00
Jul2
Machiner'
2<000.00
Jul1
(alancecOd
<53.00
13<51.00
0.00 <501.00 20<000.00 1.00 <21.00 20<000.00u!01
(alancebOd
<21.00
13<51.00
+r. +iscount ecei-ed"r.201
201
Jul 1 (alance cOd1.00
Jul 2 E. (r'ant.00 Jul 2 E. +urant4.00
PPPPPPPP PPPPPPPP
1.00
1.00
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u! 01
(alance bOd 1.00
+r. +iscount lloIed"r.
201 201 Jul 0 . Lestbroo10.00 Jul 0 S. ,baa50.00
Jul1 (alance cOd0.00
PPPPPPPP PPPPPPPP
0.00
0.00u! 01 (alance bOd 0.00
SALES DAY BOO* P) 14
D%t! D!t%i+, Fo+io I/6oi-! No) A7ou/t
201
Jul' 5
Jul'1
Jul' 1
Jul' 1
"ash
. Lestbroo
S. ,baa
E. $erins
Trans&erred to Sales
ccount
S821
S822
S82
S824
89
102
1024
1025
102
0.00
145.00
250.00
190.00
95.00
SALES JOURNAL
+r. "SD $21
"r.201
Jul 5
Folio
S Sales
S+(2
0.00
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+r. . LST(//E $22
"r.201
Jul1
Folio
S Sales
S+(2
145.00
+r. S. ,(E $2
"r.201
Jul1
Folio
S Sales
S+(2
250.00
+r. E. $E,NS $24
"r.201
Jul1
Folio
S Sales
S+(2
190.00
GENERAL LEDGER
+r. S8S ""/UNT
$9 "r.201
Jul 1
Folio
Total Sales
S+(2
95.0
0
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&or the
month
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&B' P+u, C!++u+%r(
TRIAL BALANCE AS AT JULY 438 1234 +.
".
C%9it%+ 25<000.00
Pur-h%,!, 1<15.00
C%,h <21.00
B%/0 13<51.00
P) L!:i, ;Cr!"itor< 95.00
R) J%-0,o/ ;Cr!"itor< 45.00
A) D%6i, ;Cr!"itor< 135.00 J) L%7 ;Cr!"itor< 950.00
S%+!, 95.00
R%t!, 30.00
G!/!r%+ E=9!/,!, 190.00
*) P!r0i/, ;"!tor< 190.00
>%?!, 150.00
R!tur/ Out:%r", 10.00
R!tur/ I/:%r", 14.00
St%tio/!r$ 120.00
P) Jo/!, ;Cr!"itor< 120.00M%-hi/!r$ 2000.00
Di,-ou/t A++o:!" 0.00
Di,-ou/t R!-!i6!" 1.00
2<91.00 2<91.00
"losin! stoc 1<500.00
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&B' PLUS CELLULAR(
TRADING AND PROFIT AND LOSS ACCOUNT FOR YEARENDED JULY 438 1234
5 5
S%+!, 95.00
L!,,@ R!tur/ I/:%r", 14.00
N!t S%+!, 01.00
L!,,@ Co,t o ?oo", ,o+"
Pur-h%,!, 1<15.00
L!,,@ R!tur/ Out:%r", 10.00
1<55.00
L!,,@ C+o,i/? Sto-0 1<500.00
Co,t O Goo", A6%i+%+! ForS%+! 155.00
Gro,, Prot 4.00
A"" Di,-ou/t, R!-!i6!" 1.00
323.00
L!,,@ E=9!/,!
R%t!, 30.00
G!/!r%+ E=9!/,! 190.00
>%?!, 150.00
St%tio/%r$ 120.00
Di,-ou/t A++o:!" 0.00
Tot%+ E=9!/,! 590.00
N!t Prot 13.00
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&B' PLUS CELLULAR(
BALANCE SHEET AS AT JULY 438 1234
Fi=!" A,,!t,@
Machiner' 2<000.00
Curr!/t A,,!t,@
Stoc 1<500.00+ebtors 190.00
"ash <21.00
(an 13<51.00
Total "urrent ssets 25<22.00
Curr!/t Li%i+it$@
"reditors 2<15.00
Lorin! "a%ital 2<13.00
N!t A,,!t, 25<13.00
C%9it%+ A--ou/t@
"a%ital 1.03.12 20<000.00
dd: "ash ,ntroduced 5<000.00
dd: Net $ro7t PPPPPP13.00
Net "a%ital 25<13.00
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DOUBLE ENTRIES
+r. "$,T8
"r.201
201
Jul 1 (alance cOd25<000.00
Jul 02 (an20<000.00
25<000.00
Jul 1 "ash5<000.00 25<000.00u! 01 (alance bOd25<000.00
+r. $U"DSS"r.201
201
Jul 02 E. (r'ant200.00
Jul 1 (alance cOd1<15.00
Jul 02 E. +urant150.00 Jul 02 $. 8eIis
95.00 Jul 02 . Jacson295.00 Jul 02 . +a-is135.00 Jul 21 E. (r'ant30.00 Jul 21 E. +urant20.00 Jul 21 . Jacson550.00
PPPP PPP
1<15.00 1<
15.00u! 01 (alance bOd1<15.00
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+r. "SD"r.201
201
Jul 05 Sales
0.00
Jul 0 ates
30.00 Jul 29 J. 8amb950.00 Jul 0 . Lestbroo31.00
Jul 1 La!es150.00 Jul 1 (alance cOd<21.00
Jul 0 S. ,baa100.00 Jul 1 "a%ital5<000.00 PPPPPPPP
<501.00 <501.00
u! 01 (alance bOd <21.00
+r. (NE"r.201
201
Jul 02 "a%ital20<000.00
Jul 1 eneral %enses190.00 Jul 2 E. (r'ant13.00 Jul 2 E. +urant232.00 Jul 2 Machiner'2<000.00
20<000.00
Jul 1 (alance cOd13<51.00
20<000.00
u! 01 (alance bOd13<51.00
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+r. E. (BNT"r.201
201
Jul 20 eturn /utIards
50.00
Jul 02 $urchases
200.00 Jul 2 (an13.00
Jul 21 $urchases30.00
Jul 2 +iscount ecei-ed.00
PPPPPPP
230.00
230.00
Furth!r I/t!r9r!t%tio/, o R!,u+t,
Prot%i+it$
1. /SS $/F,T S $"NT /F S8S
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Usin! the !ross %ro7t o& 4.00 and the net %ro7t o&
95.00K the !ross %ro7t as a %ercenta!e o& sales is .94.
This is illustrated beloI:
ross %ro7tO SalesQ 100:
4.00O95.00Q100R0.94Q100R.94
23N
..N
Gro,, ProBt %, % P!r-!/t%?! oA S%+!,
R!9orti/? o/ 9!ror7%/-!@
The %ro7tabilit' %ercenta!e o& .94 o& !ross %ro7t si!ni7es that the
business is in a stable %osition because it is main! a%%roimatel' 0.49
cents %ro7t &or e-er' item sold Iithin the business. The business must
ensure that it ee%s its cost o& !oods loI and !oods are sold in order to
maimi)e !ross %ro7t.
2. NT $/F,T S $"NT /F S8S
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Usin! the !i-en net %ro7t o& 13.00 and Sales o& 95.00 the net
%ro7t as a %ercenta!e o& sales is 14.19.
Net %ro7tO SalesQ 100:
13.00O95.00Q100R0.1419Q100R14.19
Net $ro7t Sales0.00
10.00
20.00
0.00
40.00
50.00
0.00
30.00
0.00
90.00
100.00
14.19
5.1
N!t Prot %, % 9!r-!/t%?! o S%+!,
R!9orti/? o/ 9!ror7%/-!@
The hi!her the %ercenta!e o& sales si!ni7es !ood neIs &or the
businessK it also needs to &ocus on its e%enses and ensures that it is
e%t at a minimal. -en thou!h the business sales are hi!h its %ro7ts
are loI because o& the e%ense that has to be %aid.
Liui"it$
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. "UNT T,/
The current ratio &or the 'ear Ias 11.5:1. The current asset
Ias 25<22.00
and the current liabilit' is 2<15.00. "urrent assetsO "urrent liabilities
25<22.00O2<15.00R11.5
"urrent ssets "urrent 8iabilities
0
5<000
10<000
15<000
20<000
25<000
0<000
Curr!/t R%tio
A=i, Tit+!
R!9orti/? o/ P!ror7%/-!@
The current asset ratio o& 11.5: 1 si!ni7es that the business can
co-er its short term debts. The business asset outIei!hs its
liabilitiesK Ihich means that the' can mae !ood on %a'ments. The
business can consider in-estin! sur%lus mone' in a %ro7table
-enture.
4. ",+ TST T,/
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The acid test ratio &or the 'ear Ias 10.90: 1. The current asset Ias
25<22.00 less stoc o& 1<500.00 and the current liabilit' is
2<15.00.
"urrent ssets less stocO current liabilit'
25<22.0061<500.00O2<15.00 R 2<22.00O215.00R10.90
R!9orti/? o/ 9!ror7%/-!@
The liuidit' ratio o& 10.90: 1 si!ni7es that the business has enou!h
liuid assets to be able to %a' current liabilities uicl'. ,t is
recommended &or the business to ee% its current liabilities at a
mar!inal cost.
COMPARISON
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Iee 1 Iee 2 Iee Iee 4
6
50.00
100.00
150.00
200.00
250.0000.00
50.00
400.00
E=9!/,!, or th! 7o/th
R!9orti/? o/ 9!ror7%/-!@
+urin! the 2nd Iee the com%an' %aid the most e%ense o& 40.00<
it &ell in the rd Iee and no e%enses Iere %aid in the 4th Iee.
Lee 1 Lee 2 Lee Lee 4 6
100.00
200.00
00.00
400.00
500.00
00.00
S%+!, or th! 7o/th
R!9orti/? o/ 9!ror7%/-!@
,n Iee 1 there Ias onl' one sale o& 0< in Iee 2 the sales
increased but Iee and 4 there Ias no sale &or the business.
RECOMMENDATION
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The business has to mae sure that Iise %urchases are made and
their !oods are sold at reasonable %rices to increase !ross %ro7t.
The business has to cut doIn on its e%enses in order to increase its
net %ro7t.
CONCLUSION
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Lhen com%letin! the 7nancial statements and ratios o& the business
it Ias learnt that the business is main! a small %ro7t but it needs to
cut doIn on the e%enses the' incur. This S( hel%s me to im%ro-e
on m' critical thinin! and to %re%are &or m' "" eamination. ,
belie-e that , am &ull' %re%ared to sit m' "" eamination.