POA SBA

PRINCPLES OF ACCOUNTS SCHOOL BASED ASSESSMENT

TEACHER:MR.SYLVA

NAME:Chaze DaCosta

General Ledger

Date Details Folio Debit CreditJuly 1,2010 Motor Van GL 200,000

Stock:20 boxes Flash Drives GL 100,000 10 boxes of IPods GL 200,100 20 boxes USB speakers GL 100,000Debtors: M.Stamp SL 40,000 E.Boyd SL 35,000Cash at bank CB 300,00Cash in Hand CB 80,000 Loan: Royal Bank of Canada GL 100,000 Creditors : M.Brown PL 15,000 C.Steadman PL 20,000 Capital GL 1,020,000

1,155,000 1,155,000

JOURNALS

Purchases JournalDate Details Folio Amount

July 4 A.Roland GL 310,000July 4 S.Blackwood GL 375.000July 31 Transfer to Purchases a/c in the GL 683.5000

Sales JournalDate Details Folio Amount

July 8 P.Hinds SL 445,000July 10 C.Barret SL 490,000July 22 L.Richards SL 360,000July 23 M.Stamp SL 160,000July 27 R.Mair SL 228,500July 30 Transfer to the sales a/c in the GL 1,684,000

Return Inward JournalDate Details Folio Amount

July 30 R.Mair SL 32500July 31 Transfer to Return inwards a/c in the GL 32500

Return Outwards JournalDate Details Folio Amount

July 31 S.Blackwood PL 5000July 31 GL 5000

TRIAL BALANCE

Details Dr CrCapital 1,020,000

Purchases 685,000Sales 2,834,000

Return Inwards 32500Return Outwards 5000

Loan RBC 100,000Cleaning 15,000

Water 40,000Return Received 100,000

Electricity 60,000Stationery 42,000

Motor Expenses 90,000Insurance 40,000Telephone 45,000Salaries 160,000Stocks 400,000

Equipment 100,000Motor Van 200,000Creditors 560,000Debitors 1,046,500

Cash 1,003,000Bank 660,000

4,619,000 4,619,000

Computers & Accessories limitedTrading and profit and loss accountFor the month ending July 31, 2013

Sales 28340000Less Return Inwards 32500

Net Sales 2801500Less Cost Of Goods Sold

Opening Stock 400,000Add Purchases 685,000

Less Return Outwards <5000>Net Purchases 680,000

cost of goods available for resale

1,080,000

<49,6500><58,3500>

Gross Profit 2,21,8000Add Income: Rent Received 100,000

Total Income 2,318,000Less Expenses

Cleaning 15,000Electricity 60,000Stationery 42,000

Motor Expenses 90,000Insurance 40,000Telephone 45,000Salaries 160,000Water 40,000 <492,000>

Net profit 1,826,000

Computer & Accessories LTDBalance Sheet As at July 31,2013

Fixed AssetsEquipment 100,00Motor Van 200,000

300,000Current Assets

Stock 496,500Debtors 1,046,500

Cash At Bank 660,000Cash In Hand 1,003,000

3,206,000Less Current Liabilities

Creditors <560,000>Working Capital 2646000

2,946,000Less Long Term Liability

Loan RBC <100,000>2,846,000

Financed By:Capital 1,020,000

Add Net Profit 1,826,0002,846,000

Items July 1,2013 July 31,2013 ChangeClosing Stock 400,000 496,000 96,500

Debtors 75,000 1,046,000 971,00Creditors 15,000 560,000 545,000

Bank 300,000 660,000 360,000Cash 80,000 1,003,000 923,000

Ratios

Current Ratios = Current Assets/Current Liabilites =3,206,000/560,000

=5.7:1

Acid Test Raito = Current Assets-Stock/Current Liabilities =3,206,000-496,500/560,000 =4.8:1

Margin = Gross Profit/Sales * 100 =2,218,000/2,801,500 * 100 =79%

Net Profit Percentage = Net Profit/Net Sales * 100 = 1,826,000/2,801,500 * 100 = 65%

Return on Capital Employed = Net Profit/Capital Employed * 100= 1,826,000/2,846,000 * 100= 64.1%

Expenses:Net Profit = Expenses/Net Profit * 100 = 492,000/1,826,000 *100 = 26.9%

Introduction.

The business Computers & Accessories Limited is a sole proprietor business. They are located at 99 heroes circle Kingston, Jamaica. The accounting period of this sole proprietorship is July 1,2013 – July 3,.2013.. They distribute IPods, Flash Drives & USB Speakers.

SOURCE DOCUMENTS

Cheque

July 19,2013

Payee:Blackwood

Creditor ForGoods

$60,000

67439

National CommercialBank

24 Cross Roads Branch105 Slipe RoadKingston 4

Jul 19,2013

Pay: Blackwood

Sixty Thousand Dollars $60,000

Signature: O.Farr

67439

Cash Receipt

Cash Receipt

Date:July 1,2013Receive From: Boyd Fifteen Thousand Dollars $ 15,000 For Item # 467

$15,000Thank You

566468

BANK STATEMENT.

Bank Statement as at July 31,2013Date Details Dr Cr Balance

July 1,2013 Balance B/F 300,000 CrJuly 1 Boyd 15,000 450,000 CrJuly 7 Cleaning 15,000 300,000 CrJuly 14 Cash Deposit 100,000 400,000 CrJuly 16 Rent 100,000 300,000 CrJuly 17 Electricity 60,00 240,000 CrJuly 19 Barret 200,000 440,000 CrJuly 19 Roland 80,000 360,000 CrJuly 19 cheque 67439 60,000 300,000 CrJuly 21 Hinds 500,000 800,000 CrJuly 24 Insurance 40,000 760,000 CrJuly 25 Salaries 160,000 600,000 CrJuly 29 Cash Deposit 60,000 660,000 Cr

Sales Invoice

O.Farr4 heroes Circle

Kingston 4Your Purchase order 11/B/981Invoice No.74669

July 10,2013

C.Barret43 Black LaneKingstonJamaica

Per Unit Total

60 IPods30 Flash Drives35 USB Speakers

6500 1000 2000

390,00030,000 70,000 490,000

Purchases Invoice

S.Blackwood8 Atlantis Dr

Kingston 3Your invoice 12/C/982/Invoice No. 12982

July 9,2013

Computer & Accessories LTD4 Heroes CircleKingston 4Jamaica. Per Unit Total

20 Boxes Of IPods15 Boxes Of USB Speakers10 Boxes Of Flash Drive

10,0005,00010,000

200,00075,000100,000490,000

PAY ADVICE

Computers & Accessories Limited.Emp No.

482Dept06

Employee NameJames,Aldomen

NIS No. P694364

TRN-No.646-988-182

Per End31/7/2013

Description Unit Rate Amount Gross Pay

Tx-Reg PayN-TravelingNt-Meals

160 250.000 40,000.000

Net Pay $40,000.000

AIMS

1. Firstly I would like to get exposed to the accounting basis of a business 2.Another aim is to achieve pure accounts knowledge from this project..

3. I would also like to gain experience on the accounting cycle

4.i am also in the aim to achieve the best grade possible in my CSEC.

Liquidity Ratios – Comparison – Beginning With End.

Ratios July 1 July 31A) Current Raito =

Current Assets/Current Liability

855000/35000=24.4:1

3206000/560,000=5.7:1

B) Acid test Raito = Current Assets –

Stock/Current Liabilities

855000-400,000/350,00

=13:1

3206000-49600/569000

=4.8:1

Capital Employed 1.020.000 2,846,000

Ratio Analysis.

A) At the Beginning of the accounting period the Current Ratios was

24.4:1. On the other hand at the end of the accounting period July 31 the current assets could only cover the current liabilities 5.7 times.

comparing the Current Ratios at the beginning and the end of the accounting period it can be said that the business’s is failing financially

B) At the beginning of the accounting period July 1 the acid test ratio was 13:1,meaning that the current assets less stock divided by Current liabilities shows how much times the remaining current assets could cover the current liabilities. On the other hand at the end of the accounting period the Acid Test Ratio was 4,8:1 meaning that the current assets less stock divided by current liabilities shows how much times the remaining current assets could cover the Current liabilities.

The findings support that the Acid test ratio at the beginning of the period is far more than what it was at the end of the period.

Business Performance.

The business Computers and Accessories LTD made a net profit of 1,826,000 for the .The expenses took 27% of the total net profit.. The business is performing well . In Addition the business’s capital employed was 2,846,000 for the accounting period.The business as mention previously made a Net Profit of1,826,000.The Net profit took 64% of the capital employed. This can be rephrased as saying that the Net profit took $641 for every $1000 of the capital employed. Based on this information I can say that the business is performing well.

Purchases Ledger.

Dr M.Brown CrDate Detail

sFolio Amoun

tDate Details Folio Amount

Jul 2 Cash GL 6,000 Jul1 Balance b/d

Gl 15,000

Jul 2 Cash Gl 9,00015,000 15,000

Dr C.Steadman CrDate Details Foli

oAmount Dat

eDetails Folio Amount

Jul 31 Balance B/d

Gl 20,000 Jul 1

Balance B/d

GL 20,000

Aug 1

Balance B/d

Gl 20,000

Dr A.Roland CrDate Details Folio Amount Date Details Folio Amount

Jul 19 Bank Gl 80,000 Jul 4

Purchases

Gl 310,000

Jul 31 Balance c/d

Gl 230,000

310,000 310,000Aug

1Balance

B/dGl 230,000

Dr S.Blackwood CrDate Details Folio Amount Date Details Foli

oAmount

Jul 19 Bank Gl 60,000 Jul 19

Purchases Gl 375,000

Jul 31 Return Outward

s

Gl 5000

Jul 31 Balance B/d

Gl 315,000

375,000 375,000Aug

1Balance

b/dGl 310,000

Sales Ledger.

Dr M.Stamp CrDate Details Folio Amount Dat


Jul 1 Balance b/d

Gl 40,000 Jul 1

Cash Gl 20,000

Jul 23 Sale Gl 160,000 Jul 31

Balance c/d

Gl 180,000

200,000 200,000Aug 1 Balanc

e c/dGl 180,000

Dr E.Boyd Cr

Date Details Folio

Amount Date

Details Folio Amount

July 1 Balance b/d

Gl 35,000 Jul 1

Bank Gl 15,000

Jul 31

Balance c/d

Gl 20,000

35,000 35,000Aug 1 Balance

B/d

Dr P.Hinds CrDate Details Foli

oAmount Date Detail

sFolio Amount

Jul 8 Sales Gl 445,000 Jul 19

Cash Gl 145,000

Jul 31

Bank Gl 300,000

445,000 445,000

Dr C.Barrett CrDate Details Foli

oAmount Date Details Folio Amount

Jul 10 Sales Gl 490,000 July 19

Bank Gl 200,000

Jul 31

Balance c/d

Gl 290,000

490,000 490,000Aug 1 Balance

B/dGl 290,000

Sales Ledger Cont’d

Dr L.Richards CrDate Details Foli

oAmount Dat


Jul 22

Sales Gl 360,500 Jul 19

Bank Gl 360,500

360,500 360,500Aug 1 Balance

b/dGl 360,500

Dr R.Mair CrDate Details Folio Amount Dat


Jul 24 Sales Gl 228,500 Jul 30

Return Inwards

Gl 32,500

Jul 31

Balance c/d

Gl 196,000

228,500 228,500Aug 1 Balance

b/dGl 196,000

General Ledger

Dr Purchases CrDate Details Folio Amount Dat


Jul 31 Total credit

purchases for the month

685,000 Jul 31

Transfer to

Tradinc a/c

685,000

685,000 685,000

Dr Sales CrDate Details Foli

oAmount Date Detail

sFolio Amount

Jul 31 Transfer to

Trading a/c

2,834,000 Jul 3

Cash 210,000

Jul 5

Cash 550,000

Jul 26

Cash 390,000

Jul 31

Total credit sales

for the month

1,684,000

2,834,000 2,834,000

Dr Return Inwards CrDate Details Folio Amount Date Details Folio Amount

Jul 31 Total Return for the month

325,000 Jul 31

Transfer to

trading a/c

325,000

Dr Return Outwards Cr

Date Details Folio Amount

Date Details Folio Amount

Jul 31 Transfer to

trading A/c

5,000 Jul 31

Transfer

returns for the

5,000

month

General Ledger Cont’d

Dr Cleaning CrDate Details Folio Amount Date Details Folio AmountJuly 7 Bank 15,000 July

31Transfe

r to P&L

15,000

Dr Water CrDate Details Folio Amoun


July 7 Cash 40,000 July 31

Transfer to

P&L

40,000

Dr Rent Received CrDate Details Folio Amount Date Details Folio Amount

July 31 Transfer to

P&L

100,000 July 31

Transfer to

P&L

100,000

Dr Electricity CrDate Details Folio Amoun


July 17 Bank 60,000 July 31

Transfer to

P&L

60,000

Dr Insurance CrDate Details Folio Amoun



Transfer to

P&L

40,000

Dr Telephone CrDate Details Folio Amoun


July 24 Cash 45,000 July 31

Trabsfer to

P&L

45,000

Dr Salaries CrDate Details Folio Amount Date Details Folio Amount


Transfer to

P&L

160,000

Dr Stock CrDate Details Foli


July 31 Balance C/d

400,000 July 31

Transfer to

trading a/c

400,000

General Ledger Cont’d

Dr Equipment CrDate Details Folio Amount Dat


July 1 Balance B/d

100,000 July 31

Balance c/d

100,000

Aug 1 Balance b/d

100,000

Dr Motor Van CrDate Details Folio Amount Dat

eDetails Foli

oAmount

July 1 Balance c/d

200,000 July 31

Balance b/d

200,000

Aug 1 Balance B/d

200,000

Dr Capital CrDat

eDetaild Foli


July 31

Balance c/d

2,846,000 July 1

Balance B/d

1,020,000

Jul 31

Net Profit

1,826,000

2,846,000 2,846,000Jul 31

Balance b/d

2,846,000

OTHER ACCOUNTS

Dr Debtor CrDate Details Foli


Jul 1 Balance B/f

75,000 Jul 31

Cash 165,000

Jul 31 Sales 1,684,000 Jul 31

Bank 515,000

Jul 31

Return Inward

32,500

Jul 31

Balance C/d

1,046,500

1,759,000 1,759,000Aug 1 Balance

B/d1,046,500

Dr Creditors CrDate Details Folio Amount Dat


Jul 31 Cash 15,000 Jul 1

Balance B/f

35,000

Jul 31 Bank 140,000 Jul 31

Purchases 685,000

Jul 31 Return Outward

5,000

Jul 31 Balance C/d

560,000

685,000 695,000Aug

1Balance

C/d560,000

CASH BOOK

Date

Details

folio

cash bank date

details folio

Cash bank

Jul 1

bal b/d

GL 80,000 300,000 Jul 2

Brown PL 6,000

Jul 1

Stamp SL 20,000 Jul 7

Cleaning GL 15,000

Jul 1

Boyd SL 15,000 Jul 15

Water Rates

GL 40,000

Jul 5

Sales SL 210,000 Jul 14

Bank C 100,000

Jul 11


Electricity GL 60,000

Jul 14

Cash C 100,000 Jul 17

Stationery

GL 42,000

Jul 16

Rent GL 100,000 Jul 17

Motor Expenses

GL 90,000

Jul 19

Barrett

SL 200,000 Jul 19

Roland PL 80,000

Jul 21

Hinds SL 145,000 500,000 Jul 19

Blackwood

PL 60,000

Jul 26


Insurance GL 40,000

Jul

Cash C 60,000 Jul 24

Telephone Charges

GL 45,000

29Jul 25

Salaries GL 160,000

Jul 28

Brown PL 9,000

Jul 29

Bank C 60,000

Jul 31

Bal c/d 1,003,000

660,000

1,395,000

1,075,000

1,395,000

1,075,000

Aug 1

Bal b/d

1,003,000

660,000

Recommendations For The Improvement Of The Business.

- A recommendation to improve the performance of the business is to reduce the amount of credit sales that occurred within the accounting period.This in turn would reduce the amount the business stands to lose in the case of a bad debt.

- To increase sales I recommend a 9% price decrease on USB speakers. Bringing the price from $2000 to 1820, with this price reduction, customers will be encouraged to buy more of this product.

- To compliment the selling of IPods I recommend the implementation of earphones in The line of products offered. The

reason behind this is because of the increasing demand for earphones.

Conclusion.

This project took me out of me a lot of time and energy but I was persistent to pull through with help from my teachers and family .After completeion of this SBA I am satisfied with the knowledge and experience gained in the accounting I will then utilize this knowledge in achieving a distinction in my final accounting examination.

STOCK EVALUATION

Flash Drive

Date Details Amount in unit

Unit cost Total value Amount in unit

Unit cost Total value Amount in unit Unit cost

Total value

Jul 1 Bal b/d 400 500 200,000 - - - 400 500 200,000Jul 4 Purchases 300 500 150,000 - - - 700 500 350,000Jul 5 Sales - - - 30 500 15,000 670 500 335,000Jul 8 Sales - - - 40 500 20,000 630 500 315,000Jul 9 Purchases 200 500 100,000 - - - 830 500 415,000Jul 10 Sales - - - 30 500 15,000 800 500 400,000Jul 11 Sales - - - 80 500 40,000 720 500 360,000Jul 22 Sales - - - 30 500 15,000 690 500 345,000Jul 26 Sales - - - 60 500 30,000 600 500 300,000Jul 27 Sales - - - 20 500 10,000 580 500 290,000

Date Details Amount in unit Unit cost Total value Amount in unit Unit cost Total value Amount in unit Unit cost Total ValueJul 1 Bacl c/d 100 1000 100,000 - - - 100 1000 100,000Jul 4 Purchases 100 1000 100,000 - - - 200 1000 200,000Jul 5 Sales - - - 20 1000 20,000 180 1000 180,000Jul 8 Sales - - - 50 1000 50,000 130 1000 130,000Jul 9 Purchases 200 1000 200,000 - - - 330 1000 330,000Jul 10 Sales - - - 60 1000 60,000 270 1000 270,000Jul 11 Sales - - - 60 1000 60,000 210 1000 210,000Jul 22 Sales - - - 45 1000 45,000 165 1000 165,000Jul 23 Sales - - - 20 1000 20,000 145 1000 145,000Jul 26 Sales - - - 40 1000 40,000 105 1000 105,000Jul 27 Sales - - - 25 1000 25,000 80 1000 80,000Jul 30 Purchases 5 1000 5000 - - - 85 1000 85,000Jul 31 Sales - - - 5 1000 5000 80 1000 80,000

Acid test ratio

Current ratio

13

24.4

4.8

5.7

Comparison of Ratio-Begining of accounting period with end-Liquidity ratio

1-Jul 31-Jul

Documents

POA SBA