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This school based assessment is about a sole trader business and consist of all information
regarding Pastries Delight. These information includes the financial records for the period ending
31st July. This SBA keeps track of all the income and expense of Pastries Delight and therefore
this shows clearly the operation of the business on a daily basis.
ACKNOWLEGEMENT
The researcher would like to thank the following persons who contributed to the successful
completion of this project:
1
2
Thank you
`
Salina Romanchal
C0NTENT
Presentation
1) (Aim)
2) Business description
3) Record kept by the business
Application of principle
1)
2)
3)
4)
5)
6)
7)
8)
9)
Price list
Opening entry
Transactions
Books of original entry
Ledger accounts
Stock valuation: FIFO
Trial balance
Additional information
Financial statement
Conclusion,Summary,Evaluation
1)
2)
3)
4)
5)
6)
Business performance
Accounting ratios
Comparison of ratios
Suggestions/Recommendation
Conclusion
Appendices
Source Documents
Graphs
Pictures of product
Mark scheme
business has one employee. Opening hours are from Monday to Friday (8:00 hrs.) (Sat 9:00).
Pastries delight was established since on the 28th September, 2005. The accounting period is
from September to July. This business sells strictly on cash.
Ledgers
General ledgers
Purchase ledger
PRICE LIST
Product
Buying price
Selling price
Profit
Pine tart
$80
$140
$40
Cheese roll
$75
$200
$85
Black eye
$100
$160
$40
Pudding
$80
$160
$20
Red Roll
$100
$120
$20
Opening Entries
FIXED ASSET
Land $800,000
Motor van $280,000
Furniture $12000
Computer $50,000
2335
Cash $20,000
Bank $25,000
Liabilities
Creditor A.lam
PASTRIES DELIGHT
CASHBOOK
DATE
DETAIL
July 1st
Bal b/f
FOLIO
CASH
BANK
DATE
DETAIL
FOLIO
$20,000
$25,000
July2nd
Furniture
GL 5
$2500
3rd
telephone
GL 11
$800
CASH
$12,000
Capital
GL 7
7th
Sales
GL 10
$280
8th
Motor van
GL1
$1000
20th
Sales
GL 10
$400
10th
Purchase
GL 8
$425
25th
Sales
GL 10
$940
12th
A.Lam
PL 1
$3000
28th
Cash
18th
Staff
GL 12
$6000
29th
Sales
GL 1O
21st
Insurance
GL 13
$1000
28th
Bank
CB
$1000
31st
R.Rajmangal
PL 2
$680
$1000
$380
Bal c/d
Bal b\f
$22,000
$28500
$9095
$16500
$9095
$16500
$22,000
$28500
PASTRIES DELIGHT
GENERAL JOURNAL
DATE
July 1
DETAIL
Motor van
FOLIO
GL 1
DEBIT
$280,000
BANK
CREDIT
July 1
Land
GL 2
$800,000
July 1
Computer
GL 3
$50,000
July 1
Glass case
GL 4
$20,000
July 1
July 1
GL 5
GL 6
July 1
Furniture
Stock
Cash at hand
CB
$12,000
$2335
$20,000
July 1
Cash at bank
CB
$25,000
July 1
A.Lam
Pl 1
$38,000
Gl 7
$1171335
Recording of
opening entries
1209335
1209335
Assets, capital
and liabilities
PURCHASE JOURNAL
DATE
DETAIL
FOLIO
INVOICE #
AMOUNT $
July 22nd
R.Rajmangal
Transfer to the
purchase
PL 1
4444
$1060
GL 8
Account in the
Gl 1 in the
general ledger
DATE
July 22nd
DETAIL
FOLIO
R.Rajmangal
PL 1
INVOICE #
3333
AMOUNT $
$380
transfer to the
purchase return
account in the
GL 9
General ledger
SALES LEDGER
DR
A.Lam A/c
CR
July 12th
Cash
July 31st
Bal c/f
$3000
$ 35,000
$38,000
$38,000
Aug1st
DR
$38000
Bal b/f
R.RAJMANGAL A/C
July 31st
Return outward
$380
July 31st
Cash
$680
July 22nd
$1060
$35000
CR
purchase
$1060
$1060
GENERAL LEDGER
DR
CAPITAL A/C
CR
$1173835
$1171335
$2500
$1173835
$1173835
DR
CASH A/C
$1173835
CR
July 1st
Bal b/f
July 7th
Sales
July 20th
Sales
$400
July10th Purchase
$425
July 25th
Sales
$940
$3000
July 29th
Sales
$380
$20,000
$280
$800
$600
$1000
$680
$1000
$144495
$22000
$144495
BANK A/C
July 1st Bal b/f
July 1st
Capital
$20,000
$2500
$12,000
$16,500
$1000
$28500
$28500
$16500
FURNITURE A/C
July 1st Bal b/f
$12,000
$12,000
$24,000
Aug 1st Bal b/f
$24,000
$24,000
$24,000
TELEPHONE A/C
July 3rd
Aug 1st
Cash
Bal b/f
$800
$800
$800
Cash
$600
Aug 1st
Bal b/f
$600
$600
SALES A/C
July 31st
Bal c/f
$2000
$280
$400
$940
$380
$2000
$2000
PURCHASE A/c
July 10th Cash
$425
$1060
$1485
Aug 1st Bal b/f
$1485
$1485
$1485
INSURANCE A/C
July 21st
Cash
$1000
Aug 1st
Bal b/f
$1000
$1000
Bal c/f
$380
$380
$380
STOCK A/C
July 1st
Bal B/f
$2335
Aug 1st
Bal b/f
$2335
$2335
$20,000
$20,000
$20,000
$280,000
$280,000
$280,000
LAND A/C
July 1st Bal B/f
$800,000
$800,000
$800,000
COMPUTER A/C
July 1st Bal B/f
$50,000
$50,000
$50,000
PASTRIES DELIGHT
TRIAL BALANCE
DETAIL
DEBIT
$
CREDIT
$
Cash
14,495
Bank
16,500
Furniture
24,000
Telephone
800
600
Insurance
1000
Sale
2000
Purchase
1485
A.lam
Return outward
Stock
Glass case
35,000
380
2335
20,000
Land
800,000
Computer
Motor van
Capital
50,000
280,000
1173835
1211215
1211215
RECEIVED
ISSUED
BALANCE
8@80= $640
July 7th
2@140
6@80=$480
July 25th
1@140
5@80=$400
July 29th
1@140
4@80=$320
CHEESEROLL
DATE
July 10th
RECEIVED
ISSUED
3@75
BALANCE
5 @ 75 = $375
5 @ 75= $575
3 @ 75= $225
$600
BLACK EYE
DATE
July 10th
RECEIVED
ISSUED
2 @100
BALANCE
4@100=400
4@ 100=400
2@100=200
1 @ 160
3@100=300
2@100=200
500
PUDDING
DATE
July 22nd
RECEIVED
ISSUED
7@80
BALANCE
9@80=720
9@80=720
7@80=560
July 25th
5@160
1@80
RETURNED
4@80=320
7@80=560
3@80=240
7@80=560
REDROLL
DATE
RECEIVED
ISSUED
BALANCE
2@100=200
2@120
5@100
5@100=500
2@120
3@100
3@100=300
=0
RETURNED
Pastries Delight
Trading and Profit and Loss Account for the month ended 31st july
Sales
2000
2335
1485
(380)
1105
3440
(2640)
(800)
1200
Less: Expense
Telephone expense
Motor van expense
Insurance (1000-600)
Dep: motor van
800
600
400
1167
(2967)
-1767
Net loss
Pastries Delight
Balance Sheet As At 31st July,2005
Fixed Assets:
COST
Land
Computer
Furniture
Motor van
Glass case
280,000
ACC DEP
1167
NBV
800,000
50,000
24,000
278,833
20,000
1172833
Current Assets:
Stock
Prepayment
Bank
Cash
2640
600
16500
14495
34235
(35000)
Financed by:
Capital
Less: Net Loss
-765
1172068
1173835
(-1767)
1172068
PERFORMANCE OF BUSINESS
Pastries delight is an unsuccessful business resulting a loss of $1767. The loss could be
accounted for in the following reasons. Firstly the business encountered the excess amount of
expenses. Secondly, the item Pastries Delight sold were given too little amount of profit to be
attached to their prices; lastly the business did not uncounted with any additional income other
than sales eg. Discount received, commission received, etc. Although the business had a poor
financial performance, its financial position seems well with its assets. As from the following
asset valued at $1172833, land, computer, furniture, motor van and glass case. The business
further own additional assets which are current assets valued $34235, which are current assets
valued $34235, stock, prepayment, bank and cash.
On the other hand the business owes creditors, $35,000 resulting a working capital of $-765.
The business opening capital was $1173835 but due to a net loss rhe closing capital is now
1172068
ACCOUNTING RATIOS
1.
2.
3.
4.
= 0.9781
The total current assets are $34235 and current liabilities are 35000. The current ratio is 0.98,
this indicates that the current assets cannot pay for the current liabilities which is not good for
the business.
Gross profit margin
This ratio measures what proportion of each dollars is to be considered profit. This ratio
restates the relationship of gross profit to sales as a percentage.
Formula for gross profit margin = gross profit \ sales x 100
= 1200 \ 2000 x 100
= 60%
4) Stock turn
This ratio checks how quickly the business has turned over its stock.
Formula for stock turn= 800 / 2487.5
= 0.3216
Average stock = opening stock + closing stock / 2
= 4975 / 2
= 2487.5
This ratio shows how many times the stocks was sold out. According to the results the stock
was turned or sold out 0.3216 times.
Comparison of Data
The opening capital was 1171335 and the working capital is 1172068. The opening capital is
higher than the working capital which indicates clearly that the business had a loss or poor
business income.
2100
2200
2300
2400
2500
2600
2700
5000
10000
15000
20000
25000
Conclusion
In conclusion, the researcher can definitely relate that the aims of the business were achieved ie,
the researcher understood the entire accounting cycle by investigating pastries delight and
secondly the researcher obtain better information and details on how the business operates.
Bibliography
APPENDICES
Bank Document
Cash Receipt
Purchase Invoice
R.Rajmangal ltd
NO.A
123
Lot 12 Section C
D' Edward
Village
To: Pastries
Delight
Date:
Order
No:
Deliver
ed:
Main Road
Rosignol village
(WBB)
QUANTITY
DESCRIPTION
CAT.NO
UNIT
PRICE
TOTAL
credit note
Cheese roll
Black eye