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



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

1



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.

2



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.

2



,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



$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!

4



5

",$T.



CHEQUE

TRANSACTIONS FOR “BZ PLUS CELLULAR”



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.

3



&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



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

9



+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

10



&or the

month

11



&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

12



&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

1



&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

14



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 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

15



+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


20<000.00

u! 01 (alance bOd13<51.00

1



+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

13



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

1



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$

19



. "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,/

20



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

21



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

22



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

2



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.

Jareth SBA Complete

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