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 N.E.C.S Snack ResortTrial Balance

As at 01st October 2010

Drawings 300

Sales 8003

Purchases 3025

Wages 1560

gas 110

Capital 2625

Rent 30

Bad debt 20.35

Transportation-in 240

Cash 2024.5

Bank 3100Interest received 1.85

Depreciation 14.17

M. Luke 630

Mini-stove 835.83

11259.85 11259.85

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 N.E.C.S Snack resortTrading and profit and loss account

As at 01st October 20

Sales 8003Net sales 8003

Purchases 3025

Transportation 240

3265

Net purchases 3265

Goods available for sales 3265

less closing stock 320

Cost of goods sold 2945

Cost of sales 2945

Gross profit 5058

Add revenueInterest received 1.85

Total revenue 5059.85

Less expenses

Wages 1560

Gas 110

Rent 30

Bad Debt 20.35

Depreciation 14.17

1734.52

3325.33

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N.E.C.S Snack Resort

Balance Sheet

As at 01st October 2010

Assets

Fixed assets

Mini-stove 835.83

Current Assets

Stock 320

Cash at Bank 3100

Cash in hand 2024.5

5444.5

Less Current liabilities

Creditors mini-stove (M.Luke) 630

Working Capital 4814.5

Total Assets 5650.33

Financed by:

Capital at start 2656

Add net profit 3325.33

5950.33

Less drawings 300

Capital at end 5650.33

Total liabilities and capital 5650.33

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Sales Journal

Date Details Folio Amount $

Oct. 06 A. Paris DL01 850

K. Titre DL02 17

K. Alexander DL03 18.5

18 N. Thomas DL04 8.5

25 A. Paris DL05 11

N. Thomas DL04 6

Nov.08 A. Paris DL01 2.5

15 N. John DL06 11

N.Thomas DL04 7.5

22 A. Prosper DL05 2.5

93

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Purchases Ledger Account

Date Details Folio Amount $ Date Details Folio

Amount

$

Oct.04 Cash 300 Nov. 30 Trading account 3025

Cash 750

Cash 100

Cash 20

Cash 60

25 Cash 80

Nov.01 Cash 85

19 Cash 1580

26 Cash 30

Cash 20

3025 3025

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Cash Book 

Date Details Folio Discount Cash $Bank

$ Date Details Folio Discount Cash $Bank

$

Oct.01Balance

B/D 225 2400 Oct. 04 Purchases $1,310

Sales 30 Cash © 2000

4 Sales 250 Gas 80

Bank © 2000 Transportation-in 120

6 Sales 310 25 Purchases 85

8 Sales 380 29 Wages 780

11 Sales 200 Rent 1513 Sales 360 Nov. 01 Purchases 1580

15 Sales 370 Transportation-in 120

A. Paris 8.5 19 Gas 30

18 Sales 190 Purchases 30

K. Titre 17 drawings 300

20 Sales 260 22 Bank © 3000

22 Sales 420 24 Purchases 20

25 Sales 280 30 Wages 780

27 Sales 350 Rent 15

N. Thomas 8.5 Balance C/D 2232 3100

29 Sales 520

Nov. 01 Sales 450A. Prosper 11

N. Thomas 6

8 Sales 250

10 Sales 300

12 Sales 580

15 Sales 320

A. Paris 2.5

17 Sales 410

Nov. 19 Sales 630

N. Thomas 7.5

N. Thomas 11

22 Sales 190Cash © 3000

26 Sales 400

29 Sales 200

A. Prosper 250

$10,197 $5400 $10,197 $5,400

Dec. 01Balance

B/D 2232 3100

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Date Details Folio Amount Date Details folio Amount

$ $

Nov. 30 Trading Account 8003 Oct. 01 Cash 30

04 Cash 250

06 Cash 310

08 Cash 380

11 Cash 200

13 Cash 360

15 Cash 370

18 Cash 19020 Cash 260

22 Cash 420

25 Cash 280

27 Cash 350

20 Cash 520

Nov. 01 Cash 450

08 Cash 250

10 Cash 300

12 Cash 580

15 Cash 320

17 Cash 41019 Cash 630

22 Cash 190

24 Cash 260

26 Cash 400

29 Cash 200

30 Cash 93

8003

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Date Details folio Debit Credit

$ $

Oct. 01 Cash 225

Bank 2400

Capital 2625

Being the amount investedon that date

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Date Details folio Debit Credit

$ $

Nov.30 Bad debts 20.35

K. Alexander 20.35

Mini-Stove 850

M. Luke 850

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Date Details folio Debit Credit

$ $

Nov. 30 Sales Account 8003

Trading account 8003

Being the transfer of sales

Date Details folio Debit Credit

$ $

Nov. 30 Trading account 3025

Purchases account 3025

Being the transfer of purchases

Date Details folio Debit Credit

$ $

Nov.30 Profit and loss account 15

Rent 15

Being the transfer of rent

Date Details folio Debit Credit

$ $

Oct. 04 Trading Account 240

Transportation- in 240

Being the transfer of transportation-in

Date Details folio Debit Credit

$ $

Oct Profit and loss account 110

Gas 110

Being the transfer of Gas

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Date Details folio Debit Credit

$ $

Profit and loss 20.35

Bad debts 20.35

Being the transfer of bad debts

Date Details folio Debit Credit

$ $

Profit and Loss 1560

Wages 1560

Being the transfer of wages

Date Details folio Debit Credit

$ $

Nov. 30 Interest received 1.85

Profit and loss account 1.85

Being the transfer of interest received to theprofit and loss account

Date Details folio Debit Credit

$ $

Nov. 30 Balance Sheet 300

Drawings 300

Being thetransfer off 

drawings to theprofit and loss

account

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Capital Account

ate Details folio Debit Date Details folio Credit

$ $ov.30 Balance Sheet 2625 Oct. 01 Cash 225

Bank 24002625

Rent Account

ate Details folio Debit Date Details folio Credit

$ $Oct.29

Cash 15 Nov.30 Profit and Loss 30

ov.30

Cash 15

30

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Mini stove account

Date Details Folio Debit Credit

$ $

Oct. 04 Mini-stove 850

M.Luke 850

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The name of this business is the N.E.C.S Snack Resort. It is located at thecentre of the North East Comprehensive School round about. A tent is granted by thevillage council for free (at no cost).The business began with 11 members. Then 4 more members joined which added upto 15 members which were all students of the North East Comprehensive School. It’sa clear, beautiful and clean surrounding just good enough for the business location.Each student will be making a contribution of $25; each parent will match theamount, the business departments of the school will double the amount of the parents.We deposited two amounts of money into the bank which was $225 and $2400 which

gave us a total capital at start of $2625.

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The business employed two (2) permanent workers which will be the cooks. They will be paid $20 per day. These employees will be expected to work from 7:00.a.m till4:30.p.m.

We provided paleau, water and local juices because we don’t want to compete withthe existing canteen. The N.E.C.S Snack Resort will be catering mainly for thestudents who live far from school like Carib Territory, Calibishie and Portsmouth,Also for students with extra afternoon class, teachers who work late, the auxiliarystaff and workers on the new building. Hours of operation will be very vital. The

 business will be opened and ready for business from 10.a.m to 4:30.p.m.The N.E.C.S Snack Resort are members of the Schools Savings Union. On the 22 nd of 

 November a $3000 deposited was made into the Snack Resorts Account.All cooking utensils will be rented to us by the F&N department at a small fee of $15

 per month. Students will be helping on a rotational basis both in kitchen and the sale

of items. A rooster for students was kept and the daily inventory on beginning an endof the day. Everyday 40 plates of paleau and 2 buckets of local juice would be

 prepared on 3 days. These Days are the days when the Snack Resort will be opening.These days are Mondays, Wednesdays and Fridays. Therefore a scrap book will beused to take records/ daily transactions, from there all students will be accessing thereinformation. A mini- stove was also purchased on credit from M. Luke with a fee of 850. Credit policies will only be allowed for teachers and auxiliary staffs. That’s

 because they are the only one’s who work and get a salary at the end of the month. Sothey can pay for there debts.

This Principles of Accounts School Base Assessment is a requirement for the 2011CSEC examination. And by successfully completing it, it will help in obtaining agood grade at CXC.

It can also help to gain first hand knowledge of accounting concept andrecords keeping which will serve as future references in the working world.

It also gives the candidates an opportunity to experience the daily transactionsand to partake in efficient record keeping for the business. And in so doing itassists in improving the accounting skills and liabilities of the candidates.

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The performance of the business is solvent. That’s because it made a $3325 amount of  profit. It ideal purpose for existing made it competent being the sole provider for theitems it offered and the time at which the items was being offered. This business is

 performing tremendously that's mostly because of the hard working employees andthe goods provided are of good taste and high standard. As a result of this the businessis making a profit. The business was left with stock on hand of $320 at the end of theyear ended November 30th 2010.

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For efficient and smooth operations of the N.E.C.S Snack Resort the following procedures were followed:

1. Journalizing

Opening Entries: This consists of the Assets and Liabilities of the business at start.

Intermediate Entries: This includes the depreciation of fixed assets and bad debts.

Sales Journal: This is the book of first entry for sales invoices issued to customers

for goods supplied or services rendered. Entries from this journal are posted to

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individual customer accounts, their totals are posted to the ledger as a debit toaccounts receivable and as a credit to sales.

Closing Entries: These are the final bookkeeping entries made at the end of anaccounting period to reduce all nominal (temporary) accounts to zero. It was used

to transfer the balances of the sales and purchase journal and the depreciation of fixed assets to the trading and profit and loss account. Cash was used throughoutthe business so these were recorded in the cash book. And drawings aretransferred to the owners' capital account.

1. Posting to the Ledger : Where you write up the entries into the ledger from the balance sheet.

2. Trial Balance : In double entry bookkeeping, aggregate of all debit and credit balances at the end of an accounting period that:

(1) Shows if the general ledger is in balance (total debits equal total credits)

 before making closing entries.(2) Serves as a worksheet for making closing entries.

(3) Provides the basis for making draft financial statements.

3. Final Account : Accounts made up only at the end of a firm's financial year .The final accounts consist of the Trading account, profit and loss account, andProfit and loss appropriation account. These accounts together help to generatethe gross profit.

Liquidity analysis ratio

1. Current ratio or working capital ratio

Current AssetsCurrent Liabilities

Current Assets = $5444.50Current Liabilities = $630

$5444.50$630

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= 8.64:1

Liquid Ratio

Current assets – stock Current liabilities

5444.50 - 320630

=8.13:1

This shows that the business is in good Liquidity. Therefore the business can meet itsshort term debts with no difficulties.

2. Profitability Ratio

  Net profit * 100Average Capital employed

 Net Profit = $3325.33Average capital employed = $4153.17

$3325.33 *100$4153.17

= 80.1%

The business is becoming more profitable and seems to be in good investments. N.E.C.S snack resort has made good use of there net assets. As a result this firm has ahigh percentage of 80.1.

3. Gross profit margin

Gross profit * 100Sales

Gross profit = $5058Sales =$8003

$5058 * 100$8003

= 63.2%

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 Net profitSales

3325.33 * 1008003

= 41.5% or 42%

The N.E.C.S Snack resort is performing so well that if it is equaled to the Canteensales it would make more gross profit and net profit than the canteen

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Items Price

Principles of Accounts teacher 

Cashier (Sales Clerk)

Chef (cooks)

Members of the Partnership(Students)

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  Water 

Small …………………………………..$2.50

Large …………………………………. $5.00

Paleau

Small …………………………………. .$3.00

Large ………………………………… $5.00

Local Juices

Small …………………………………. $3.00

Large………………………………… $5.00

October 1st to November 30th

Oct. 1 Started business $225 cash and $ 2400 in bank 

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Cash Sales4 Withdrew $2000 cash from bank for office use

Cash purchases $1310Paid for gas $80 cashTransportation-in $120 cash

Cash Sales $2506 Sold goods on credit to A. Paris $8.50

Cash Sales $3108 Cash Sales $380

11 Sold goods on credit to K.Titre $17 and K.Alexander $18.50Cash Sales $200

13 Cash Sales $36015 Cash Sales $370

Received $8.50 cash from A. Paris for goods previously bough on ncredit.

18 Sold goods on credit to N. Thomas $8.50Cash Sales $ 190Received $17 cash from K.Titre for goods bought on credit

20 Cash Sales $26022 Cash Sales $42025 Sold goods on credit to A. Prosper $11 cash and N.Thomas $6

Cash purchases $85Cash Sales $280

27 Received $8.50 cash from N.Thomas for goods bought on creditCash Sales $350

29 Cash Sales $520Paid rent $15 cashPaid wages $780 cash

 Nov. 1 Cash Purchases $1580Transportation-in $120 cashCash Sales $450Received $11cash from A. Prosper and $6 cash from N.Thomas for 

goods bought on credit

8 Sold goods on credit to A. Paris $2.50Cash Sales $250

10 Cash Sales $30012 Cash Sales $55015 Sold goods on credit to N. John $11 and N. Thomas $7.50

Received $2.50 cash from A. Paris for goods bought on creditCash Sales $320

17 Cash Sales $41019 Cash Purchases $30

Paid for gas $30 CashWithdrew $300 cash from bank for personal useCash SalesReceived $11 cash from N. John and $7.50 cash from N. Thomas for 

goods previously bought on credit

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22 Cash Sales $190Deposited $3000 cash into bank 

24 Cash Sales $26026 Cash Sales $400

Cash purchases $20

29 Received $2.50 from A. Prosper for goods previously bought on credit.Cash Sales $200

30 Paid wages $780 cashPaid rent $15 cash

 

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Figure 1

5058

3325.33

0 

300 

600 

900 

1200 

1500 

1800 

2100 

2400 

2700 

3000 

3300 

3600 

3900 

4200 

4500 

4800 

5100 

5400 

5700 

6000 

Gross Profit Net Profit

Comparison of gross and net profit

During the business there is a high increase in Gross profit over Net Profit. This is agood sign for the business which can help in showing the improvement of the

 business after each year .

Figure 2

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Comparison between Capital at start and

Capital at end as a percentage

Capital at end

68%

Slice 3

0%

Slice 4

0%

Capital at start

32%

This pie chart shows that the capital at end is greater than capital at start. This tells usthat the N.E.C.S Snack Resort has improved and from beginning and has managed tomake a profit. The capital at start and capital at end has a difference of 36% which is

the amount made as a percentage.

Figure 3

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Comparison of Sales and Purchases

8003

3025

0

1025

2050

3075

4100

5125

6150

7175

8200

9225

Sales Purchases

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 Name: Not to be Publish

Subject: Principles of Accounts

Teacher's Name: Mr Not to be Publish

School: North East Comprehensive School

School Code: Not to be Publish

Candidate Number:

Territory: Dominica

Registration Number:

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Content Page

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Acknowledgement …………………………………………………………….. 1Aim Of project ………………………………………………………………… 2Description of the Business …………………………………………………… 3Actual Accounting Procedure………………………………………………….. 4

Record Kept

General Journal………………………………………………………….5-17Opening entries ……………………………………………………..18Intermediate entries………………………………………………….19Closing entries……………………………………………………….20-21

Sales journal …………………………………………………………….22Purchases journal………………………………………………………...23Cash Book……………………………………………………………….24General Ledger…………………………………………………………..25Sales ledger………………………………………………………………26Trial Balance…………………………………………………..................27Final Accounts……………………………………………………………28

Trading and profit and loss account…………………………………29Balance Sheet ……………………………………………………….30

Summery/Performance of the business ………………………………………….31Interpretation Of final Ratio ………………………………………………..32-33Comparisons ………………………………………………………………..34-36

Conclusion …………………………………………………………………….. ..37Suggestion and Recommendations ………………………………………………38Appendix 

Actual Accounting transactionsPrice listOrganizational ChartInvoicesDeposit slipReceipt etc

Suggestions

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I suggest that the business continue. This business has been a great help to the staff 

and students of the North East Comprehensive School in providing food and drink to

them in the afternoon when the School Canteen is already closed. The Snack Resort

has also given students something to do in there spear time that can help in

community service and school spirit points. Also, I suggest the business remain even

if the students in the partnership is leaving school, so that other students can gain an

opportunity to take part in a business and learn something from it. Because in the

future these students may want to open there own businesses.

Recommendations

The N.E.C.S Snack Resort should have had more varieties of goods

offered. Instead of only paleau it could have specific dishes or snacks

for different days. These dishes or snacks could be Sandwiches, pizzas,

 pastry snacks, and an occasional chocolate or candies.

The N.E.C.S Snack Resort could also have activities planned to help to

gain more money/income in the business. This income/ money would

 be able to help in expanding the business and also to purchase more

goods and produce a wider variety of goods.

The students in the partnership should give more support to the

 business. Whether its financially or just to give a helping hand around

the business (assistance)

Firstly, I would like to thank the almighty father for strength, wisdom,knowledge and understand, for with Christ all things are possible.

Secondly, I would like to thank my family especially my grand mother for her continued encouragement, financial support and purchasing the equipments needed in

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 producing this School Based Assessment. Without her help I would not have beenable to successfully accomplish my goals. Thanks to friends and other familymembers who always had my back and believed in me.

Lastly, I would like to thank the principles of Accounts Teachers at my schoolfor there great teaching skills that has made be learn and understand the concepts of 

Accounts and how to complete this SBA.May God continue to bless, guide and keep you all. For God has a future

 planned out for you and who god has blessed no man can curse. Your help andsupport was very much appreciated.

Thank You

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 Name: Leeann, Londie, Sarahn Lawrence

Subject: Principles of Accounts

Teacher's Name: Mr. Paris

School: St. Andrews High

School Code: 070008

Candidate Number:

Registration Number:

Territory: Dominica

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