Odaine Crossman Sba Final accounts

8/19/2019 Odaine Crossman Sba Final accounts

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Big League Auto Supply is a sole proprietorship that is owned and operated

by Odaine Crossman . Big League Auto Supply specializes in the selling of a

wide range of Audi, Nissan, oyota, and !ange !o"er cars as well as

accessories at an a#ordable cost. Big League Auto supply is intended to be in

operation for $fteen years where transaction will be recorded only for the

months of %ay and &une in the year '(().

he business*s $nancial records will be +ept in ournals and ledgers.

he accounting process will commence at ournalizing the di#erent

information from "arious source documents -such as, the sales in"oice,

purchases in"oice, credit and debit note into their respecti"e boo+s of

original entry -which include, the sales and purchases ournal, return inwards

and return outwards ournal, general ournal. /rom these boo+s, transactions

will then be posted in their speci$c ledgers -the sales, purchases and general

ledgers. Afterwards a rial Balance will then be prepared, and then

adustments will be made to the $nal account, from which the $nal accounts

will be constructed.


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Big league Auto Supply’s aim is to provide our customers with durable and exquisite motor

vehicles at an affordable cost. The business also aims to show great interest in manufacturing

quality cars which can compete on the world market and thus become acquainted with partners

in neighbouring countries. This SBA was carried out with the aim of expanding my knowledge

and providing a better understanding of accounting principles and to become aware of the

various accounting procedures which is essential in my long term career of becoming an

entrepreneur.


3/59

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The business will be manage by !eneral "anager #$onavan $ean%& after which three managers

will be used to oversee the activities carried out in the organi'ation. These managers will be

placed in different categories #"arketing (roduction and Sales%. Supervisors will be placed to

watch over the work carried out by workers.


4/59

Period 1

"ay)* Assets* (remises +,---- truck +)--- fixtures +--- stock +/----. $ebtors* S.

0omrie +1--- 2. Sadar +3-- ". 4ontana +5--. 0ash at bank +)5---- 0ash in

hand +)---. 6iabilities* 0reditors* 0. 7ke +1--.

The following are transaction for Big 6eague Auto supply for the month of "ay*

"ay )* 0ash sales +/----.

"ay 1*Sold goods on credit to B. Afflick +----.

"ay ,* Bought goods by cheque +,--- from ". Sennett

"ay ,* Bought goods on credit from ". Sennett

"ay 5* Took +)---- from the cash till and placed into the bank.

"ay * Bought office furniture +)1--- from 89B 6td. on credit.

"ay 3* B. Afflick paid +--- to his account by cheque receiving a )-: discount.

"ay /* Bought goods on credit from T. 0obourne +;---.

"ay ;*!oods returned to ". Sennett +15--.

"ay )-* 0ash sales +;----.

"ay ))* (aid rates +--- by cash.


5/59

"ay )1* Sold goods on credit to


6/59

Period 2

Transactions for the month of 2une 1--5*

2une )* 0ash sales + /5---.

2une =* Bought office equipment from 2. 6td. on credit.

2une ,* Sold goods on credit to (. 0loonis +=5--.

2une 5* Bought goods on credit from 2. Silvera +)5--.

2une * (aid insurance +=5-- by cash.

2une 3* @ithdrew +)1--- from the bank account and placed in the cash till.

2une /* !oods return to 2. Silvera valued +)---.

2une ;* (. 0loonis paid his account by cheque +=5-- receiving a )-: discount.

2une )-* 0ash sales +5----.

2une ))* Bought goods by cheque +5---.

2une )1* Took +1---- from the cash till and place in the bank.

2une )=* Bought goods on credit from . (almer + ;---.

2une ),* Bought goods on credit from B. yatt +3---.

2une )5* @e paid . (almer her account receiving a 5: discount by cash.

2une )* (aid rates + 3--- by cash.

2une )3* !oods return to B. yatt +3--.


7/59

2une )/* 0ash sales + ,----

2une );* Sold goods on credit to T.


8/59


9/59


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Big 6eague Auto Supply

INVOICE

)5 8ing Street


11/59

T. 0obourne

INVOICE

), ohampton Avenue


12/59

No. 1 %ay '2, '((2

Received from 33333 3S.

/ung3333333333333333333333333333333333

The sum of Se"en 4undred333333333333333333333

Dollars 333333333

333333333333 Cents for 5oods33333333333333333333333

No. ' %ay 17, '((2

Received from 3333AL89 0arts

Ltd.333333333333333333333333333333333

The sum of Se"en housand 333333333333333333

Dollars 333333333

333333333333 Cents for 5oods333333333333333333333333

Credit Note

Supplier* Big 6eague Auto Supply

Address* )5 8ings Street

8ingston

0ustomer*


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E

0eriod 1

he 5eneral &ournal

$AT> $>TAF6S 4olio

+

$

G +

0

G


19/59

1--5

"ay ) (remises !6 ,---- H

) Truck !6 )---- H

) 4ixtures !6 --- H

) Bank 0B )5---- H

) 0ash 0B )--- H

) Stock !6 /---- H

) $ebtors* S.0omrie S6 1--- H

) 2. Sadar S6 5-- H

) ". 4ontana S6 5-- H

) 0reditors* 0. 7ke (6 1--

) 0apital !6 1;----

1;-1-- H 1;-1--

Assets and 6iabilities use to open books at

this date.

"arch 7ffice 4urniture !6 )--- H

8 9B 6td. (6 )--- H

7ffice furniture bought from 89B 6td.

0eriod '

he 5eneral &ournal

$AT> $>TAF6S 4olio

+

$

G +

0

G

1--5

2une ) (remises !6 ,---- H


20/59

) Truck !6 )---- H

) 4ixtures !6 --- H

) 7ffice >quipment !6 )1--- H

) Bank 0B )33,-- H

) 0ash 0B )5)/-- H

) Stock !6 3--- H

) $ebtors* S. 0omrie S6 1--- H

2. Sadar S6 3-- H

". 4ontana S6 5-- H


21/59

0eriod 1

Sales &ournal

$AT> $>TAF6S 4oli

o

F J

+

A"7D


22/59

0eriod 1

0urchases &ournal


23/59

$AT> $>TAF6S 4oli

o

F

J

+

A"7D<

T

G

1--5

"ay , ". Senneth (6 --) =--- H"ay / T. 0obourne (6 --1 ;--- H

"ay ); A6>? (arts 6td. (6 --, 3--- H

"ay 15 S. 4ung (6 --; 3-- H

"ay =) Transfer to Sales aKc !6 );3-- H

0eriod '

0urchases &ournal

$AT> $>TAF6S 4 F

J

+

A"7D<

T

G

1--5

2une 5 2. Silvera (6 -=, )5--

2une )= . (almer (6 -3 ;---

2une ), B. yatt (6 -55 3---

2une =- Transfer to (urchases aKc !6 )35--


24/59

0eriod 1

!eturn Outwards &ournal


25/59

$AT> $>TAF6S 4olio $>BFT

J

+

A"7D


26/59

0eriod 1

!eturn :nwards &ournal


27/59

$AT> $>TAF6S 4oli

o

0>$FT

J

+

A"7D


28/59

0eriod 1


29/59

0urchases Ledger

C. Oke

$ate $etails 4 Amount

+

G $ate $etails 4 Amount

+

G

1--5 1--5

"ay ) Balance

cKd

1-- "ay ) Balance bKd !2 1--

Apr ) Balance bKd 1--

M. Senneth"ay ; eturn

7utwars

72 15-- "ay , (urchases (2 =---

"ay =) Balance

cKd

5--

=--- =---

Apr ) Balance bKd 5--

T. Coborne"ay )= 0ash 0B 31-- "ay / (urchases (2 ;---

"ay )) $iscount

eceived

!6 )/--

;--- ;---

ALE! "#rts Ltd."ay 1) 0ash 0B 3--- "ay ); (urchases (2 3---

S. ng"ay =) Balance

cKd

3-- "ay 15 (urchases (6 3--

2une ) Balance bKd 3--

C. Oke

$ate $etails 4olio Amount

+

G $ate $etails 4olio Amoun

t

+

G

1--5 1--5

2une

r

=- Balance cKd 1-- 2une ) Balance bKd 1--


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2uly ) Balance bKd 1--

M. Senneth

2une =- Balance cKd 5-- 2une ) Balance bKd 5--

"ay ) Balance bKd 5--

S. ng2une =- Balance

cKd

3-- 2une ) Balance bKd 3--

"ay ) Balance bKd 3--

%. Sil&er#2une / eturn

7utwards

72 )--- 2une 5 (urchases (6 )5--

2une =- Balance

cKd

5--

)5-- )5--"ay ) Balance bKd 5--

B. '(#tt2une )3 eturn

Fnwards

72 3-- 2une ), (urchases (6 3---

2une =- Balance

cKd

=--

3--- 3---

). "#lmer

2une )5 0ash 0B /55- 2une )= (urchases (6 ;---2une )5 $iscount

received

!6 ,5-

;--- ;---


31/59

0eriod 1


32/59

Sales Ledger

S. Comrie

$ate $etails 4olio Amount +

G $ate $etails 4olio

Amount +

G

1--5 1--5

"ay ) Balance bKd 1--- "ay =) Balance cKd 1---

2une ) Balance bKd 1---

%. S#d#r"ay ) Balance bKd 3-- "ay =) Balance bKd 3--

2une ) Balance bKd 3--

M. ont#n#"ay ) Balance bKd 5-- "ay =) Balance cKd 5--

2une ) Balance bKd 5-- B. Afflick

"ay 1 Sales S2 --- "ay 3 Bank 0B 5,--

"ay 3 $iscount Alw !6 --

--- ---

N. Armstrong

"a

y

)1 Sales S2 3--- "ay ) eturn Fnward F2 --

"ay =) Balance cKd ,--

3--- 3---

Apr ) Balance bKd ,--

0eriod '

Sales Ledger

". Cloonis

$ate $etails 4olio Amount G $ate $etails 4olio Amount G


33/59

+ +

1--5 1--5

2une , Sales S2 =5-- 2une ; Bank 0B =)5-

2une ; $iscount

Alw

!6 =5-

=5-- =5--T. *ill(

2une ); Sales 55-- 2un

e

1= eturn

Fnward

F2 =---

2un

e

=- Balance cKd 15--

55-- 55--


S. Comrie2une ) Sales S2 1--- "ay =- Balance cKd 1---

2uly ) Balance bKd 1---

%. S#d#r

2une ) Sales S2 3-- 2une =- Balance cKd 3--


M. ont#n#

2une ) Sales S2 5-- 2une =- Balance cKd 5--

2uly Balance bKd 5--

N. Armstrong

2une ) Sales S2 ,-- 2une =- Balance cKd ,--

2uly ) Balance bKd S2 ,--


34/59

0eriod 1

he 5eneral Ledger


35/59

$ate $etails 4oli

o

+

Amoun

t

G

$ate $etails 4

+

Amount

G

1--5 1-))

"remises #+c

"ay ) Balance bKd !2 ,---- "ay =) Balance cKd ,- ---

2une ) Balance bKd ,----

Trck #+c

"ay ) Balance bKd !2 )---- "ay =) Balance cKd )----

2une ) Balance bKd )----i,tres #+c

"ar ) Balance bKd !2 --- "ay =) Balance cKd ---

2une ) Balance bKd ---

C#-it#l #+c

"ay =) Balance cKd ,)1,-- "ay ) Balance bKd !2 1;----

"ay =)


36/59

0eriod '

he 5eneral Ledger


37/59

$ate $etails 4oli

o

+

Amoun

t

G

$ate $etails 4oli

o

+

Amount

G

1--5 1-))

"remises #+c

2une ) Balance bKd !2 ,---- 2une =- Balance cKd ,- ---

2uly ) Balance bKd ,----

Trck #+c

2une ) Balance bKd !2 )---- 2une =- Balance cKd )----

2uly ) Balance bKd )----i,tres #+c

2une ) Balance bKd !2 --- 2une =- Balance cKd ---

2uly ) Balance bKd ---

C#-it#l #+c

2une =) Balance cKd 5/;-- 2une ) Balance bKd !2 ,)1,--

2une =-


38/59


39/59

Tri#l B#l#nce of Big Le#ge #s #t the 23 M#(4556$

+

G 0

+

G

(remises ,- ---

Truck )----

4ixtures ---

7ffice 4urniture )1---

89 B 6td. )1---

0apital 1;----

Sales 15=---

0ash )5)/--

Bank )33,--

0. 7ke 1--

". Senneth 5--

S. 4ung 3--

S. 0omrie 1---

2. Sadar 3--

". 4ontana 5--


40/59

eturn Fnwards --

eturn 7utwards 15--

Stock /----

$iscount eceived )/--$iscount Allowed --

5,/3-- 5,/3--

Tri#l B#l#nce of Big Le#ge #s #t the 25 %ne 4556

$

+

G 0

+

G

(remises ,- ---

Truck )----

4ixtures ---

7ffice 4urniture )1---

7ffice >quipment ,5-

2. 6td. ,5-

Salaries )5---

"otor >xpenses )3--

Stock 3---

eturn Fnwards =---

eturn 7utwards )3--

$iscount Allowed ,5-

$iscount eceived =5-

Bank 1-)/5-


41/59

0ash 1;,35-

Fnsurance =5--

ates 3---

(urchases 115--

Sales 1),---

0. 7ke 1--

". Sennneth 5--

S. 4ung 3--

2. Silvera 5--

B. yatt =--

T.


42/59


43/59

08!:O; 1

+ + +

Sales 15=---

6ess eturn Fnwards -- 151,--

6ess 0ost of goods sold*

7pening Stock /----

Add (urchases 1=3--

6ess eturn 7utwards 15-- 1)1--

0ost of goods available for sale )-)1--

6ess 0losing Stock 3--- ;,1--

!ross (rofit )5/1--

Add $iscount eceive )/--

)----

6ess >xpenses*

$iscount Allowed --

ates ---

ent ;---

Fnsurance --

"otor >xpenses

)---

Salaries )5--- =3--


44/59

08!:O; '

+ + +

Sales 1),---

6ess eturn Fnwards =--- 1))---

6ess 0ost of goods sold*

7pening Stock 3---

Add (urchases 115--

6ess eturn 7utwards )3-- 1-/--

0ost of goods available for sale 13/--

6ess 0losing Stock )--- 1/--

!ross (rofit )/,1--

Add $iscount eceive =5-

)/,55-

6ess >xpenses*

$iscount Allowed ,5-

ates 3---

Fnsurance =5--

"otor >xpenses

)3--

Salaries )5--- 135-


45/59

08!:O; 1

+

+

i,ed Asset

(remises ,- ---

Truck ) ----

4ixtures ---

7ffice 4urniture )1--- /---

Crrent Assets7

Stock 3---

$ebtors ;--

0ash )5)/--

Bank )33,--

=,5/--

Less Crrent Li#bilities

0reditors ),--

@orking 0apital =,,,--


46/59

Add fixed assets ,)1,--

0apital 1;----

Add


47/59

Bank 1-)/5-

5)13--

Less Crrent Li#bilities

0reditors /1--

@orking 0apital 5-,5--

Add fixed assets 53/;5-

0apital ,)1,--

Add


48/59

Big league has made a net profit during the two month period that it has been operating for. Fn

period one +1'''(( in period

one.

Although Big league made a profit they would hope to increase sales in the near future.


49/59


50/59


51/59


52/59

8ross "rofit #s # "ercent#ge of S#les

Period 1

!ross (rofit M )--

Sales

)5/1-- M )-- N 1.5:

15=---

The above illustrates Big league’s gross profit as a percentage of sales for the first period to be

1.5.:. 4or every +)-- sales +1.5- gross profit was made before any expenses deducted.

Period 2

!ross (rofit M )--

Sales

)/,1-- M )-- N /:

1),---

The above illustrates Big league’s gross profit as a percentage of sales for the second period to be

/:. 4or every +)-- sales +/ gross profit was made before any expenses deducted.


53/59

Crrent )#tio

Period 1

0urrent Assets

0urrent 6iabilities

=,5/--

1;---- N ).1* )

The current ratio for the first period is ).1*). This means that the potential ability of this business

to meet it current liabilities as they become due is ).1 times.

Period 2

0urrent Assets

0urrent 6iabilities

5)13--

,)1,-- N ).1* )

The current ratio for the second period is ).1*). This means that the potential ability of this

business to meet it current liabilities as they become due is ).1 times.


54/59

Stock Trno&er )#tio

Period 1

0ost of goods sold

Average Stock #opening Oclosing stock P1%

;,1--

,---

N 1=. times

The above illustrates Big league’s stock turnover to be 1=*). This states that the business

was able to replenish the stock that was sold 1= times during the month of "ay which was the

first period.

0ost of goods sold

Average Stock #opening Oclosing stock P1%

1/--

,--- N .3 times

The above illustrates Big league’s stock turnover to be .3*). This states that the business

was able to replenish the stock that was sold .3 times during the month of 2une which was its

second period of operation.


55/59

4ig ) showing the capital figure for both period ) and period 1

capital

%ay

&une

The bar graph above illustrates that the capital figure for period one is +1;---- while for

period two it is +,)1,--. The capital has increase in period two by much and this says that the

owner has invested more money in the business during the second period of the business.


56/59


57/59

%ay

&une

( 1((( '((( =((( (((

%ay? 6(((

&une? 1(((

Closing Stock

4ig 1 showing the closing stock for both periods

The area chart above illustrates that at the end of period one the closing stock was

calculated at +3--- while in period 1 it was +)---. The stock figure has decrease drastically with

+--- and implies that sales were raised in the second period that causes it to have less stock in

possession than that of the first period.


58/59

Big league has been as successful as the owner would have wanted it to be. After analysing the

performance of the business by preparing the necessary final accounts and using accounting

ratios it can be concluded that this business has been profitable and has incurred a net profit in

both periods. owever most of the aims of the business were met& as it has offer car supplies at

an affordable price had a good relationship with its customers and has administer questionnaires

on a weekly basis. Fn regard to the researchers’ obQectives they were all achieved and the

researcher is more so thankful for the experience gained.


59/59

The researcher recommends the following for the improvement of the performance of Big

6eague Auto Supplies

>ven though Big league made a gross profit of 5.5: his expenses were below this and

thus allowed him to make a huge net profit the researcher recommends that he engage in

advertising his productsKbusiness more so that his sales figure will increase and as a result

generate more profit which is one of the business’s main obQectives.

The owner is been recommended to invest more capital in the business so that the current

liabilities can be cleared.

Documents

Odaine Crossman Sba Final accounts