Professional Documents
Culture Documents
Teacher: Ms Coke
School: Mona High School
Year: 2011
Title
Page
Introduction..
Aim...
Criteria 3.
[Name of business]
[Location of business]
[Justification of Location]
[Description of business]
Accounting Procedures...
Interpretation of business financial performance
Criteria 1
Invoice and petty cash
voucher...
Receipts..
Cash book and petty cash book...
Journals and Ledger....
[Purchase Journal]
[Return Outwards Journal]
[Purchase Ledger]
General Ledger (Purchases).......
Journals and Ledgers..
[Sales Journal]
[Return Inwards Journal]
[Sales Ledger]
[General Ledger (Sales)]
Criteria 2
Trial Balance..
Trading and Profit and Loss Account.
Balance Sheet.....
Recommendations.
Conclusion.
This project shows an accounting cycle for one month at a computer store. The project is
divided into 3 sections; criteria 1, criteria 2 and criteria 3.
Criteria 1
Criteria 1 consist of all the source documents and the accounts that are posted to journals
and the ledger.
Criteria 2
Criteria 2 consist of the trial balance, Trading and Profit and Loss account and the
balance sheet.
Criteria 3
Criteria 3 consist of information of the business, including financial plan, source
documents, etc.
Aim
1. To find out if the business made a profit or a loss and what are the
causes.
2. To ascertain if the business has made its target profit
Details
Jan 1 bal
Foli
o
b/d
Discoun
t
8,000
Jan 1
T.Thomas
Jan 11
SL
Sales
Jan 13
SL
Sales
Jan 13
C
Bank
Jan 15
P.Douglas
Jan 26
S.Coke
Jan 29
L.Young
Raymond White
Cash Book
Cash Bank
Details
64,000
250,00
0
11,00
0
3,500
6,000
150,00
0
3,200
SL
2,240
2,240
Feb 1
balance
b/d
2,240
Amount
Date
Detail
1000
Jan 1
Jan 1
Jan
12
Jan
14
Jan
15
Jan
26
Jan
30
imprest
25,00
0
15,60
0
20,160
522,36
0
Jan 1
Petty
Cashier
Jan 13
cash
Jan 14
Rent
Jan 18
Rates
Jan 18
Purchase
Jan 20
telephon
e bill
Jan 29
Cheque
Jan 31
balance
Foli
o
PCB
Discoun
t
Cash
Bank
1,000
6,000
GL
3,500
GL
700
PL
20,500
GL
4,200
6,800
c/d
2,240
2,240
15,60
0
25,00
0
48,960
522,36
0
48,960
______
Jan
31
Voucher
Total
Traveling
Postage
Sundry
expense
Taxi fare
12
80
Cleaners
80
80
Detergent
100
100
Repairs
60
60
60
____
392
608
____
60
Air
freshener
Bal c/d
12
80
80
12
300
Folio
Ledger
1000
608
392
1000
Feb1
Restore
imprest
Date
January 9
January 22
Bal b/d
Details
P.Swaby
Less 20%
R.Wilson
Total debited to
the Purchase
account in the
general ledger
Date
January 27
Date
January2
7
January3
1
Details
Return
outwards
Balance
R. White
Purchase Journal
Folio
PL
Amount
616,000
(123,200)
c/d
492,800
450,000
PL
GL
492,800
Folio
R.O J
Total
Purchase Ledger
P.Swaby
Amount
Date
800 January1
502,400
January9
Amount
800
800
Details
Balance
Folio
b/d
Amount
10,400
Purchase
s
PJ
492,800
503,200
Date
January3
1
Details
Balance
Folio
c/d
503,200
R.Wilson
Amount
Date
483,600 January1
Details
Balance
Folio
b/d
Amount
33,600
January2
2
Purchase
s
PJ
450,000
483,600
Date
January3
1
Details
Balance
Folio
c/d
483,600
Details
Purchase
Folio
PJ
Amount
150,000
Date
January3
1
Details
Total
debited
for the
month
of
January
Folio
PJ
General ledger
Purchase Account
Amount
Date
1,136,80
Total
0
credited
for the
month
of
January
Details
PJ
Folio
800
Amount
Date
January 10
January 24
Less 25%
Details
P.Douglas
S.Cooke
Total credited
to the sales
account in the
general ledger
Date
January 28
Sales Journal
Folio
SL
SL
Amount
Total
293,000
7,650
(1,912.5)
5,737.50
GL
298,737.50
Amount
39,000
Date
January1
Details
Balance
Folio
b/d
January1
0
Sale
SJ
Date
January1
Details
Balance
Jaunary2
4
Sales
Folio
b/d
SJ
Sales Ledger
P.Douglas
Amount
Date
24,000 January1
6
293,000 January2
8
January3
1
317,000
S.Cooke
Amount
Date
30,000
January
26
5,737.50 January
31
35,737.50
General Ledger
Sales Account
39,000
Details
Bank
Folio
Amount
150,000
Return
inwards
Balance
R.O J
39,000
c/d
128,000
317,000
Details
Bank
Folio
Balance
c/d
Amount
3,200
32,537.50
35,737.50
Date
January3
1
Details
Total
debited
for the
month
of
January
Folio
SJ
Amount
192,200
Date
January3
1
Details
Total
credited
for the
month
of
January
Folio
SJ
Amount
615,000
Invoice
Invoice no.10876
Raymonds computer store
40 Long Street Kgn
Tel#: 945-6876
Fax#:947-6875
P.Swaby
Sundown Avenue, Kgn 10
Terms 20%
Otherwise Net
Customer Service
No.PS0171 Date
Quantity
Description
Price
Amount
10
Monitors
40,000
400,000
Mouse
1,000
6,000
Scanner
35,000
210,000
E8OE
Gross invoice
616,000
123,200
Total
492800
RECEIPTS
No.68
321
Jan
1,2011
Received
From:
The sum
of:
$250,000
With
Thanks
Received
From:
The sum
of:
$35,000
With
Thanks
Received
From:
The sum
of:
$3,200
With
Thanks
T.Thompson
Two hundred and
fifty thousand
No.59
431
Jan
Per :Nyoka Gregory
15,201
1
P.Douglas
Thirty five
thousand dollars
NO.00
403
Jan
Per: Nyoka Gregory
26,201
1
S.Coo
ke
Three thousand Two
hundred dollars
Per: Nyoka Gregory
Credit
344,738
800
502,400
483,600
242,800
150,000
250,000
2,240
Sundry Expense
Telephone
60
400
1,974,338
_____
1,974,338
Trading and Profit and Loss Account for the month ending 31 January 2011
$
$
$
Sales
344,738
Less: return inwards
39,000
305,738
Less: cost of goods
sold
Opening stock
Add: Purchases
Less: return
outwards
Gross
Less: expenses
Rate
Rent
Telephone
Sundry expense
Traveling
Cleaning
Postage
Discount allowed
Net loss
26,000
963,300
800
962,500
988,500
(682,762)
700
3,500
4,200
120
80
180
12
2,240
11,032
(693,794)
80,000
32,400
150,000
262,400
Current assets
Debtors
Bank
Petty Balance
Cash
160,538
489,060
608
15,600
665,806
Less Current
liabilities
Creditors
New Line Motors
Working Capital
986,000
150,000
1,136,000
(470,194)
(207,794)
Financed by:
Capital 01.01.11
Add: Net Loss
242,800
(693,794)
Less: Drawings
(450,904)
6,800
Add long-term
(457,794)
(250,000)
liabilities:T.Thompson
(207,794)
1)
2)
3)
4)
CEO
Manager/ Accountant
Cashier
Sales Rep.
Janitor
Businesss Logo:
Mission statement: Camerons electronics aims to be the most affordable and customer
friendly store catering to all your needs and wants.
5. Accounting procedures:
Procedures used for undertaking financial transactions:
Customers who have spent over $10,000 on items are liable to buy goods on credit, but
should not purchase items that are exceed the credit limit which is $8,000. They will be
given a 4 weeks period in which to pay the amount owed. If the amount is not paid within
the 4 week period then it will be entered in our books as provision for bad debt.
The money received from sales will be recorded and stored in a safe.
Accounting cycle
Source Docu
(Credit note, R
Final Accounts
My business will follow the accounting cycle by taking information from the source
documents, place them in the journal, then post them to the ledger. Then the accounts will
be checked with the trial balance and make adjustments and close the entries. Finally,
work the final account.
Write up two deposit slips for cash banked Jan 1 (loan from t. Thompson)
and Jan 13
Trial B
100
80
60
Mouse
key board
40
20
0
January
North
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Purcahses
Sales
January
Comparison between the Profit (net profit) and the target profit stated earlier.
The net profit was very small compared to the target profit. This may be of a result of
crediting to many goods to persons who could not pay what they owed, which result in a
high amount of bad debt.
Apply at least one Profitability ratio and one solvency ratio
Profitability Ratio
Gross profit = (682,762)* 100 = (198.05243)
Sales
344,738
Solvency Ratio
Current Assets
=
665,806 = 0.577294014084507
Current Liabilities
1,136,000
7. Recommendation:
1) The business should credit fewer goods, to reduce debt/ bad debt.
2) Increase stock prices
Conclusion
In relation to the aim the business made a net loss for the month of January 2011. Also
the business did not made its target profit, it made less than that was predicted.
Furthermore , this maybe of a result of crediting to much goods to customers or the
selling price was too low.
CRITERIA 1
CRITERIA 2
CRITERIA
3