West Demerara Secondary School
Year of Examination: 2017
Subject: Principles of Accounts
Proficiency: General
Candidate’s Number: 090056
Candidate’s Name: Nirmala Somnath
Name of Teacher: Sir Ramlall Motilall
SBA Score:
West Demerara Secondary School
Year of Examination: 2017
Subject: Principles of Accounts
Proficiency: General
Candidate’s Number: 090056
Candidate’s Name: Nirmala Somnath
Name of Teacher: Sir Ramlall Motilall
SBA Score:
TABLE OF CONTENTS
Contents Pages
Acknowledgement 1
Aims of Study 2
Description of the Business 3
Business Transactions 4-5
Day Books 6
Legers 7-9
Trial Balance 10
Three Column Cash Book 11
Calculation of Closing Stock 12
Specified Period Under Reviewed 13
Trading and Profit and Loss Account 14
Balance Sheet 15
Accounting Ratios 16
Performance of the Business 17
Comparison Made 18
Suggestion and Recommendation 19
Conclusion 20
Appendix 21-28
ACKNOWLEDGEMENT
The researcher would love to express her gratitude to those who assist her to
completed this School Based Assessment (S.B.A.). She would first love to thank
God for guiding her to completed this School Based Assessment (S.B.A.). She
would also love to acknowledge her parents for financial support, reassurance and
guidance. She would also like to show appreciativeness to her teacher Sir Motilall
Ramlall for supervision and encouragement.
1
AIMS OF STUDY
The aims of this study are:
To interpret and analyse accounting information accurately.
To gain a better understanding to prepare accounting records.
To understand the role of an entrepreneur in a business with financial
matters.
To highlight the strength and weakness of the business.
2
DESCRIPTION OF THE BUSINESS
A’s Stationary operates as a wholesaler business i.e. located in 17 Good Hope,
Canal #1 on the West Bank of Demerara. The business sells stationary at low
prices to individuals or businesses that wishes to make a purchase. Being the only
business that is in this area helps the entrepreneur earn high profits and in return
the business owner provides reliable service for its customer.
3
BUSINESS TRANSACTION
January 1st Started business with cash $300000
January 2nd Bank Cash $50000
January 2nd Purchased from A. Persaud on credit:
70 boxes of markers @ $650 per box
90 boxes of pens @750 per box
60 boxes of pencils @520 per box
January 4th Cash sales:
40 boxes of markers @ $910 per box
50 boxes of pens @1000 per box
15 boxes of pencils @750 per box
January 7th Paid insurance $2500
January 9th Paid wages $2000
January 10th Sold on credit to M. Hammichand:
20 boxes of markers @ $910 per box
25 boxes of pens @1000 per box
10 boxes of pencils @750 per box
January 12th Cash purchases:
30 boxes of markers @ $620 per box
10 boxes of pencils @500 per box
15 boxes of pens @700 per box
January 14th Cash drawings $1500
January 16th Purchased furniture $2000
January 18th Purchased from S. Dass on credit:
25 boxes of markers @ $610 per box
20 boxes of pens @450 per box
10 boxes of pencils @650 per box
4
January 20th Cash sales:
20 boxes of markers @ $910 per box
25 boxes of pens @$1000 per box
15 boxes of pencils @$750 per box
January 21st Return goods to A. Persaud:
10 boxes of markers @$650 per box
January 22nd M. Hammichand return goods to us:
2 boxes of pens @$1000 per box
January 24th Cash purchases:
5 boxes of markers @ $620 per box
10 boxes of pencils @500 per box
20 boxes of pens @700 per box
January 25th Sold on credit to J. Harack:
30 boxes of markers @ $910 per box
15 boxes of pens @1000 per box
20 boxes of pencils @750 per box
January 27th M. Hammichand paid us their account after a discount of $1000
January 28th Paid A. Persaud their account after a discount of $1200
January 29th J. Harack paid us $34380
January 31st Paid S. Dass $18450
5
DAYBOOKS
SALES DAYBOOK
Date Particulars Folio Invoice # Amount
January 10th M. Hammichand S.L. $50700
January 25th J. Harack S.L. $57300
$108000
PURCHASES DAYBOOK
Date Particulars Folio Invoice # Amount
Jan 2nd A. Persaud P.L. $144200
Jan 18th S. Dass P.L. $30750
$174950
RETURN INWARDS DAYBOOK
Date Particulars Folio Invoice # Amount
January 22nd M. Hammichand S.L. $2000
$2000
RETURN OUTWARDS DAYBOOK
Date Particulars Folio Invoice # Amount
Jan 21st A. Persaud P.L. $6500
$6500
6
LEDGERS
Capital a/c
Jan 1st Cash $300000
Cash a/c
Jan 1st Capital $300000 Jan 2nd Bank $50000
Jan 4th Sales $97650 Jan 7th Insurance $2500
Jan 20th Sales $54450 Jan 9th Wages $2000
Jan 27th M. Hammichand $47700 Jan 12th Purchases $34100
Jan 29th J. Harack $34380 Jan 14th Drawings $1500
Jan 16th Furniture $2000
Jan 24th Purchase $22100
Jan 28th A. Persaud $136500
Jan 31st S. Dass $18450
Bal c/d $265030
$534180 $534180
Bal b/d $265030
Bank a/c
Jan 2nd Cash $50000
Purchase a/c
Jan 2nd A. Persaud $144200
Jan 12th Cash $34100
Jan 18th S. Dass $30750
Jan 24th Cash $22100
Bal c/d $231150
$231150 $231150
Bal b/d $231150
7
A. Persaud a/c
st
Jan 21 Return Outwards $6500 Jan 2nd Purchase $144200
Jan 28th Discount Received $1200
Jan 28th Cash $136500
$144200 $144200
Sales a/c
Jan 4th Cash $97650
Jan 10th M. Hammichand $50700
Jan 20th Cash $54450
Jan 25th J. Harack $57300
Bal c/d $144200
$144200 $144200
Bal b/d $144200
Insurance a/c
Jan 7th Cash $2500
Wages a/c
Jan 9th Cash $2000
Drawings a/c
Jan 14th Cash $1500
M. Hammichand a/c
Jan 10th Sales $50700 Jan 22nd Return Inwards $2000
Jan 27th Discount Allowed $1000
Jan 27th Cash $47700
$50700 $50700
8
Furniture a/c
Jan 16th Cash $2000
S. Dass a/c
Jan 31st Cash $18450 Jan 15th Purchases $30750
Bal c/d $12300
$30750 $30750
Bal b/d $12300
Return Outwards a/c
Jan 21st A. Persaud $6500
Return Inwards a/c
Jan 22nd S. Dass $2000
J. Harack a/c
Jan 25th Sales $57300 Jan 29th Cash $34380
Bal c/d $22920
$57300 $57300
Bal b/d $22920
Discount Received a/c
Jan 28th A. Persaud $1200
Discount Allowed a/c
Jan 27th S. Dass $1000
9
TRIAL BALANCE
Particulars Debit Credit
Capital $300000
Cash $265030
Bank $50000
A. Persaud $0
Sales $260100
Insurance $2500
Wages $2000
M. Hammichand $0
Drawings $1500
Furniture $2000
S. Dass $12300
Purchases $231150
Return Outwards $6500
Return Inwards $2000
J. Harack $22920
Discount Received $1200
Discount Allowed $1000
$280100 $280100
10
THREE COLUMN CASH BOOK
Date Particulars Folio Dis Cash Bank Date Particulars Folio Dis Cash Bank
All Rec
Jan 1st Capital 300000 Jan 1st Bank C 50000
Jan 1st Cash 97650 50000 Jan 7th Insurance 2500
Jan 4th Sales 54450 Jan 9th Wages 2000
Jan 20th Sales 47700 Jan 12th Purchases 34100
Jan 27th M. Hammichand 1000 34380 Jan 14th Drawings 1500
Jan 29th J. Harack C Jan 16th Furniture 2000
Jan 24th Purchase 22100
Jan 28th A. Persaud 1200 136500
Jan 31st S. Dass 18450
Bal c/d 265030 50000
1000 534180 50000 1200 534180 50000
Bal b/d 265030 50000
11
CALCULATION OF CLOSING STOCK
MARKERS PENS PENCILS
Purchases Sales Purchases Sales Purchases Sales
70 40 90 50 60 15
30 20 15 25 10 10
25 20 20 25 10 15
5 30 20 15 10 20
130 110 145 115 90 60
Difference between: Difference between: Difference between:
130-110 145-115 90-60
=20 =30 =30
Selling Price: $910 Selling Price: $1000 Selling Price: $750
20*$910= $18200 30*$1000= $30000 30*$750= $22500
Addition:
Markers-$18200
Pens-$30000
Pencils-$22500
Closing Stock=$70700
12
SPECIFIED PERIOD UNDER REVIEWED
The specified period that was chosen to be reviewed was the month ‘January’ from
January 1st, 2016 to January 31st 2016.
13
TRADING AND PROFIT AND LOSS ACCOUNT
A’s Stationary
Trading and Profit and Loss Account for the month ended at
31st January, 2017
Sales $260100
Return Inwards $200 $258100
Cost of Sales
Purchases $231150
Return Outwards $6500
Stock Available $224650
Closing Stock $70700 $153950
Gross Profit $104150
Income:
Discount Received $1200
105350
Expenses:
Discount Allowed $1000
Insurance $2500
Wages $2000
A. Persaud $0
J. Harack $22920 $28420
Net Profit $76930
14
BALANCE SHEET
A’s Stationary
Balance Sheet as at 31st January, 2017
Fixed Asset
Furniture $2000
Current Asset
Closing Stock $70700
Debtors $0
Bank $50000
Cash $265030
$385730
Current Liability
Creditors $12300 $373430
$375430
Finance by: $300000
Capital $76930 $376930
Net Profit $1500
Drawings $375430
15
ACCOUNTING RATIO
CURRENT RATIO
Current Assets
Current Ratio =
Current Liability
385730
=
12300
= 31.36:1
WORKING CAPITAL
Working Capital = Current Assets- Current Liability
= 385730-12300
= 373430
GROSS PROFIT MARKUP
Gross Profit
Gross Profit Markup = * 100
Cost of Sales
104150
= *100
153950
= 67.652%
GROSS PROFIT MARGIN
Gross Profit
Gross Profit Margin = * 100
Sales
104150
= * 100
260100
= 40.042%
16
PERFORMANCE OF THE BUSINESS
In the month of January, the business made a net profit of $76230 along with a gross
profit of $ 104150. The business also made a gross profit percentage of 40.042%.
the business earned $97650 from the first sale in the month of January and earned $
50700 from the second sale of the month. The business also earned $54450 on the
third sale of the month and on the fourth sale of the month the business earned
$57300.
17
COMPARISON MADE
CASH STARTING AND CASH ENDING
A comparison between cashing starting and cash ending was done to show what
the business has earned. At the beginning of the month, cash used at the starting of
the month was three hundred dollars ($300000). Following the ending of the
month, cash used was two hundred and sixty-five thousand thirty dollars. There
was a decrease in the amount of money used to start the business compared to the
ending of the business.
OPENING CAPITAL AND CLOSING CAPITAL
A comparison between opening capital and closing capital was done to show what
the business has earned. At the beginning of the month, the opening capital was
three hundred dollars ($300000). Following the ending of the month, the closing
capital was three hundred and seventy-five thousand four hundred and thirty
dollars ($375430). There is an increase of seventy-five thousand four hundred and
thirty dollars ($75430) meaning a profit was made in the month of January.
18
SUGGESTION AND RECOMMENDATION
As the business progress, the entrepreneur would like to improve the business
performances. Four ways are recommended to enhance that are the following.
Firstly, offer discounts after a certain amount of stationary were sold to other
business. Secondly, expand the options of stationary to choose from to attract
customers. Also, introducing various ways persons can contact the entrepreneur to
purchase goods, such as, email and telephone number. Lastly, entrepreneur can
advertise their product and contact information on business cards.
19
CONCLUSION
The entrepreneur has benefited greatly from the establishment of the business. Not
only profits but also useful experience on ways to transact business. She gained
knowledge on ways to plan, manage, and analyze business strategies. These
experiences made the entrepreneur familiar with what they should do to make a
business more productive. The aims for establishing the business were achieved.
20
APPENDIX
PURCHASE INVOICE
Date: 02nd January, 2016
Name: A. Persaud
Address: 16 Harlem, West Coast Demerara NO.: 190
To: A’s Stationary Telephone: 2635680
Date Particulars Unit Cost Amount
January 2nd 2016 70 boxes of markers $650 $45500
90 boxes of pens $750 $67500
60 boxes of pencils $520 $31200
Total $144200
Delivered by: A. Persaud
Received by: A’s Stationary
21
SALES INVOICE
Date: 10th January, 2016
Name: A’s Stationary
Address: 29 Crane Village, West Coast Demerara NO.: 316
To: M. Hammichand Telephone: 2540852
Date Particulars Unit Cost Amount
January 10th 2016 20 boxes of markers $910 $18200
25 boxes of pens $1000 $25000
10 boxes of pencils $750 $7500
Total $50700
Delivered by: A’s Stationary
Received by: M. Hammichand
22
CREDIT NOTE
Date: 22nd January, 2016
Name: M. Hammichand
Address: 19 La Grange, West Bank Demerara NO.: 107
To: A’s Stationary Telephone: 2763720
Date Particulars Unit Cost Amount
January 2nd 2016 2 boxes of pens $1000 $2000
Total $2000
Delivered by: M. Hammichand
Received by: A’s Stationary
23
CASH BILL
Date: 04th January, 2016
Name: A’s Stationary
Address: 29 Crane Village, West Coast Demerara NO.: 241
To: Melessia Hammichand Telephone: 2635680
Date Particulars Unit Cost Amount
January 4th 2016 40 boxes of markers $910 $36400
50 boxes of pens $1000 $50000
15 boxes of pencils $750 $11250
Total $97650
Delivered by: A’s Stationary
Received by: Melessia Hammichand
24
CASH RECEIPT
CASH NO. 996 Date 04/01/2016
RECEIPT
Received From Melessia Hammichand
the sum of Ninety- Seven Thousand, Six Hundred and Fifty dollars
being paid for 40 boxes of markers, 50 boxes of pens, and 15 boxes of pencils
$ 97650 Thank You Signature Nirmala Somnath
25
BANK DEPOSIT SLIP
GUYANA BANK FOR TRADE AND INDUSTRY LTD. Branch Vreed-en-Hoop
Date 2016-01- 02nd
SAVINGS ACCOUNT NUMBER
CREDIT Nirmala Somnath
NOTES $ 5000 10 $ 50000
$ 1000
Authorized $ 500
$ 50
By $ 20
COINS $ 10
$ 5
CASHIER’S $ 1
TOTAL CASH $ 50000
STAMPS
Postal and Money Orders… …
Customers are advised that the Bank reserves the right CHEQUES (list on reverse if necessary)
at its discretion to postpone payment of withdrawals
against uncleared effects which may have been ………
credited to the account. ………
TOTAL CREDIT G$ $50000
SA002
Signature of
Person paying
to the Cashier N. Somnath
26
SALES FOR THE MONTH OF JANUARY
Total
Cash Sales $97650 $152100
$54450
Credit Sales S. Dass $50700 $108000
M. Hammichand $57300
TOTAL SALES $260100
CASH SALES
Calculation for the Percentage of Cash Sales: 152100/260100*100= 58.48%
Calculation for the Degrees of Cash Sales: 152100/260100*360= 210.52o
CREDIT SALES
Calculation for the Percentage of Credit Sales: 108000/260100*100= 41.52%
Calculation for the Degrees of Credit Sales: 108000/260100*360= 149.48o
27
THE FIGURE BELOW IS A PIE CHART
ILLUSTRATING THE COMPARSION OF CREDIT
SALES AND CASH SALES FOR THE MONTH OF
JANUARY.
42% Cash Sales
Credit Sales
58%
28
