(SBA)

CSEC GENERAL PROFICIENCY

NAME OF CANDIDATE: Elsworth Gordon, Jovane Carter & Ravaughn Miller

CANDIDATE NUMBERS: 1001500463, 1001500250 ,1001500820

SUBJECT: Principles of Accounts

CENTER #: 10050

TERRITORY: Jamaica

TEACHER: Mrs. Small

YEAR OF SUBMISSION: 2018

NAME OF CANDIDATE: Elsworth Gordon, Jovane Carter & Ravaughn Miller

CANDIDATE NUMBERS: 1001500463, 1001500250 ,1001500820

SUBJECT: Principles of Accounts

SCHOOL: Tacky High

CENTER #: 10050

TERRITORY: Jamaica

TEACHER: Mrs. Small

YEAR OF SUBMISSION: 2018

Page
Acknowledgement
Introduction
Aims of the project
Description of the business
- Name
- Actual Accounting Procedures
- Accounting records kept

Performance of the business

Opening Entries
Transactions
Journals
- Sales
- Purchases
- General
- Return Inwards
- Return Outwards

Cashbook
Ledgers
- General
- Sales
- Purchases

Trial Balance
Trading Profit And Loss A/C
Balance Sheet
The successfully completion of this Principles of Accounts School Based Assessment project

was made possible with the assistance and help of a number of persons and so I wish to express

my sincere gratitude to all those who have assisted and guided me in the preparation and

completion of this project. I would like to thank God first and foremost for sparing my life and

for giving me strength to complete this project.

Thanks to a hard working and dedicated teacher Mrs. L. Small for her guidance throughout this

project. Finally, thanks to my group members who gave me your full support, without you all

the completion of this project would not have been possible.

Thanks a lot.
This SBA is mainly about a project done at ‘Cartmill Pastry Shop’. The project tells the different
types of pastries sold at the shop and how the business was run successfully for the month.
The aims of the Project are to monitor the accomplishments of a business as it relates to:

 Interpreting and analyzing accounting information accurately

 Preparing the trading and profit and loss account and balance sheet
 Organizing different ledgers
 Determining the profitability of the business
The name of the business is “Cartmill Pastry Shop”. The type of business is one of partnership.
Activities that take place in this business is the purchasing and selling of pastries such as: cakes,
bread, buns and other grocery products. The market population is Jamaican customers. The
business allows limited credit to customers.

The business is located at 26 Martin Street, Lucky Hill, St. Mary, Jamaica. The period of
operation for the business is from March 1 - 30, 2017.

In order to complete this task, the following documents were prepared:

Ledgers

 The sales ledger

 The purchases ledger
 The general ledger

Books of Original Entry

 The sales journal

 The cash book
 The general journal
 The purchases journal
 The returns inwards journal
 The return outwards journal

Final Accounts

 Trading and profit and loss account

 Trial balance

Balance Sheet

Actual Accounting Procedures Used:

The business of Cartmill Pasty shop did not use the accounting cycle in recording transactions.
Only source documents were used as records thus the researcher had to prepare the other
documents needed to complete this task.

Accounting Records Kept:

Records kept by Cartmill Pastry Shop are listed below:

  Purchases and sales invoices
 Cash receipts
 Cash and debit notes
 Deposit slips
 Cheque counterfoil
 Bank statements

To carry out this analysis I prepared the following important documents:

Books of Original Entry

 The sales journal

 The purchases journal
 The general journal
The business made a sale of $49,579 for the first week, for the second week no sale was made,
$31,000.00 was made in the third week, for the fourth week $38,040.00 was made and for the
fifth week no sale was made. Goods sold on credit to Jovane Carter and Ravaughn Miller
amounted to $6,930.00.

Purchases made for the first week amounted to $26, 800.00, no purchases was made for the
second week, purchases for the third week was $45,200.00, no purchases was made during the
fourth week and in the fifth week purchases amounted to $25,600.00. Goods valued at $16,900
were also bought on credit.

No expenses were paid for in the first week of business, expenses in the second week valued at
$2,500.00, in the third, fourth and fifth week no expenses were paid.

The business was run successfully for the month. The customers benefited from the stationery
shop because the pastries were of various sizes and of the highest quality and were sold at
reasonable prices.

N.B. Week 1 - March 1-6

Week 2 - March 7-11

Week 3 - March 13-17

Week 4 - March 18-22

Week 5 - March 23-30

 Comparison in sales for the month

week 1
week 2
$38,040 $49,579 week 3
week 4
week 5
$31,000

This chart shows the amount of sales for the month of March 2017

This chart shows that we made a sale of $49,579 for the first week, no sale was made in the
second week, we saw a decrease of sale valued at $31,000 in the third week, sale in the fourth
week valued at $38,040 and for the fifth week no sale was made. Goods valued at $6930 were
also sold on credit to Jovane Carter and Ravaughn Miller
 Purchases for the month

week 1
week 2
25,600 $26,800
week 3

$45,200 week 4
week 5

This chart shows purchases for the month of March 2017

This chart shows that purchases made for the first week was $26, 800.00, no purchases was
made for the second week, purchases for the third week increased to $45,200.00, no purchases
was made during the fourth week and in the fifth week purchases went down to $25,600.00.
Goods valued at $16,900 were also bought on credit.
 Expenses for the month

week 1
week 2
week 3
week 4
$2,500
week 5

This chart shows the expenses for the month of March 2017

This chart shows that no expenses were paid for in the first week of business, expenses in
the second week valued at $2,500.00, in the third, fourth and fifth week no expenses were
paid.
 Interpretation of Results

The ratios used include:

 Net Profit as a percentage of Sales
 Rate of Return on Net Profit or Capital Employed
 Acid test ratio
 Current Ratio
 Margin

Net Profit as a percentage of Sales:

= Net Profit x 100

Sales 1
= 3,499 x 100
125,549 1
= 2.79%

Rate of Return on Capital Employed:

= Net Profit x 100 (N.B: Capital Employed = All Assets- Current Liabilities)
Capital Employed 1
= 3,499 x 100
67,850- 10,300 1
= 3,499 x 100
57,550 1
= 6.08%
Acid Test Ratio:

= Current Assets – Stock

Current Liabilities
= 67,850 – 5,250
10,300
= 62,600
10,300
= 1.67: 1
Current Test Ratio:
= Current Assets
Current Liabilities
= 67,850
10,300
= 1.6: 1
Margin:

= Gross Profit x 100

Sales
= 5,999 x 100
125,549

= 4.78%
The aims of the project were accomplished using standard accounting principles to record the
transactions of the business. The performance of the business was assessed using the records of
the accounting information that was provided, which gave comprehensible and precise
accounting information of the business position.

The accounting information that was provided was also used to show if the business was making
a profit and was used to recognize areas in the business which needed enhancement in order for
the business to grow.
In order for the business to increase its profit margin

 The selling price of the goods should be increased, this will increase the sales
figures and much more profit will be made.
 The owner of the business should introduce new pastries to attract more customers
 There should be less purchasing of goods unless really necessary until the business
financial status improves.
 Wood F. & Robinson, S (2002) Principles of Accounts Fourth Edition.
Longman Publishers

Balance Sheet
 Cart mill
Balance Sheet as at 31 March 2017

$ $ $
Fixed Assets :
Motor Van 15 300

Current Assets :
Inventory 5250
Debtors:
Tom Miller 2400
Robert Sang 6700
9100
Bank 45 000
Cash 8500
67 850
Current Liabilities :
Creditor:
Jovane Carter 5800
Ravaughn Miller 4500
10,300
57,550
72,850

Financed By:
Capital 72 ,850