You are on page 1of 24

Candidate Name: Christopher Cameron

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

Petty Cash Book

______

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

Return Outwards Journal


Details
Folio
P.Swaby
PL
Total credited to the
GL
returns outward
account in the
general ledger

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

New Line Motors


Amount
Date
150,000 January3
1

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

Return Inwards Journal


Details
Folio
P.Douglas
SL

Amount
39,000

Total credited to the


sales accounts in the
general ledger

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

Less: 20% discount

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

Trial Balance as at the 31 January 2011


Debit
Motor vehicle
80,000
Fixtures and Fittings
324,000
Stock
2,600
Sales
Rent
3,500
Rates
Purchases
963,300
Return Inwards
3,900
Return Outwards
Debtors
P.Douglas
12,800
S.Coke
32,538
Creditors
P.Swaby
R.Wilson
Cash
15,600
Bank
489,060
Capital
New Lines Motors
Loan: T.Thompson
Petty cash balance
608
Postage
12
Travelling
80
Cleaning
180
Repairs
60
Trucks
150,000
Drawings
6,800
Discount allowed

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)

Balance sheet as at 31 January 2011


Fixed assets
Motor vehicle
Fixture and fittings
Truck

80,000
32,400
150,000

Total fixed assets

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)

Name of business: Camerons Electronics


Location of Business: Shop#11 Pavillion Plaza, 105 Half Way Tree, Kingston
Justification of the business:
Description of business:
Type of business- Electronic store
State target profit- $90,000
State target market- consumers
List of goods that are sold
Name of goods
Price of goods
Monitor
40,000
Mouse
1,000
Scanner
35,000
IPad
45,000
IPod
25,000
x-box 360
36,000
PC unit
38,000
Computer desk
15,000
Multimedia station
31,000
Stereo
28,000
keyboards
4,000

Draw an organization chart-

CEO

Manager/ Accountant

Cashier

Sales Rep.

Janitor

Businesss Logo:

Slogan: The Best Place for all your electronics

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

Adjustments and Closing Entries

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

6. Interpretation of business performance


Discuss how well or badly the business performed
The business performed badly for the month of January. Our profit did not went
anywhere near the target profit.
Amount of goods sold

100
80
60

Mouse

key board

40
20
0
January

Sales and purchases

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

You might also like