PRINCIPLES OF ACCOUNTS

SCHOOL BASED ASSESSMENT

Name:

Jareth Moreira

Submitted To: Ms. F. Usher

Student Number:

0400210509

School:

Anglican Cathedral College

Subject:

Principles of Accounts

Territory:

Belize

TABLE OF CONTENT

Aims ..Pg1
Business Description..Pg2
Sales Invoice ...Pg3
Purchase Order .Pg4
Receipt....Pg5
Cheque....Pg6
Transaction Sheet...Pg7
Cash book ......Pg8
Sales Day Book ....Pg9-10
Trial Balance ........Pg11
Trading Profit and Loss Account ..Pg12
Balance Sheet ...Pg13
Double Entries......Pg14-15
Profitability Ratios...Pg16-17
Liquidity Ratios..Pg18-19
Comparison..Pg20
Recommendation.Pg21
Conclusion.Pg22
Appendices
Double Entries i-v
Books of Original Entries......vi-ix

AIMS

1. To learn more in accounting specifically, in preparing financial statement and ratios.

2. To prepare myself for the Caribbean Secondary Education Certificate (CSEC) examination.
3. To further my studies in Accounting.

BUSINESS DESCRIPTION

The business BZ PLUS CELLULAR sells wide variety electronic products under one roof; the
main target market for the business is the general public of Belize. This is a sole proprietor business
managed by Mr. Jareth Moreira. The capital contributed in the business was $20,000. Some of the
items that are on sale in the store are:
1.
2.
3.
4.
5.
6.

iPad
Laptops/ Computers
iPhone
Cameras
Cell phones
X Box 360

Price ranges for the electronic items ranges from $2,500 to $100 Belize Dollars.

INVOICE

Jul 16, 2013

Invoice # [100]

[BZ PLUS CELLULAR]

TO:

S. Ibaka
VIP Plus]

[21 Dolphin Street]

[45 Bannock Street]

[Belize City, Belize

[Belize City, Belize]

[223-1098]
Customer ID [ABC12345]

[223-0810]
Fax [501-223-2098]
cellplusbz@yahoo.com

SALESPER
SON

PAYMENT
TERMS

JOB

DUE DATE

Due on
Receipt

QUANTITY

DESCRIPTION

10

IPhone, IPad screen protector and cases

UNIT PRICE

LINE TOTAL

25

250.00

Subtotal
S a l e s Ta x
To t a l

250.00

Make all checks payable to [Your Company Name]

[Your company slogan]

THANK YOU FOR YOUR BUSINESS!

PURCHASE ORDER

p.o. # [No.]
K. Bryant
Strive for the Best

Date:

Belize City, Belize

Phone 223-7865 Fax 224-1765
lkif@yahoo.com

VENDO
R

J. MOREIRA
BZ PLUS CELLULAR
21 DOLPHIN STREET
BELIZE CITY, BELIZE
223-0810
Customer ID 12

SHIPPING METHOD

QTY

ITEM #

0o23k

SHI
P
TO

J. MOREIRA
BZ PLUS CELLULAR
21 DOLPHIN STREET
BELIZE CITY, BELIZE
223-0810
Customer ID 12

SHIPPING TERMS

DESCRIPTION

DELIVERY DATE

JOB

Samsung charger

UNIT
PRICE

17.50

LINE TOTAL

70.00

SUBTOTAL
SALES TAX
TOTAL
1.

Please send two copies of your invoice.

2.

Enter this order in accordance with the prices, terms,

delivery method, and specifications listed above.

3.

Please notify us immediately if you are unable to ship

as specified.

4.

Send all correspondence to:

[Name]
[Street Address]
[City, ST ZIP Code]
Phone [phone] Fax [fax]

Authorized by

70.00

Date

RECEIPT

CHEQUE

TRANSACTIONS FOR BZ PLUS CELLULAR

6

2013
Jul 02

Started business with $20,000 in bank.

Jul 02

Bought goods on Credit from K. Bryant $200; K. Durant $150;

P. Lewis $95; R. Jackson $295 and A. Davis $175.

Jul 05

Cash sales $380.

Jul 08
Jul 13
Jul 16

Paid rates by cash $70.

Paid general expense by Cheque$190.
Sold goods on Credit to: R. Westbrook $145; S. Ibaka $250;
K. Perkins $190.

Jul 18

Paid wages by cash $150.

Jul 20

We returned goods to: K.Bryant$50; K. Durant $110.

Jul 21

Bought goods on Credit from: K. Bryant $70; K. Durant $280;

R. Jackson $550.

Jul 23
$100.
Jul 25

Goods returned to us by R. Westbrook $64; S. Ibaka

Bought stationery on Credit from P. Jones $120.

Jul 26

Paid the following by cheque and received a discount 15% K.

Bryant $220; K.Durant$320.

Jul 28

Bought machinery paying by cheque $2000.

Jul 29

Received a loan of $950 cash from J. Lamb.

Jul 30

Received cash from: R. Westbrook, $71 gave him a discount of

$10; S. Ibaka $100 gave him a $50 discount.

Jul 31

Proprietor brings further $5000 cash into the business.

BZ PLUS CELLULAR
BOOKS OF ORIGINAL ENTRY
Dr.
Dat
e
201
3
Jul
02
Jul
05
Jul
29
Jul
30
Jul
30
Jul
31

CASH BOOK
Detail

Disc
t
$

Capital
Sales
J. Lamb
R.
Westbroo
k
S. Ibaka

10.0
0
50.0
0

Capital

Cr.

Dat
Cash
Bank
e
Detail
201
$
$
3
20,000
Jul
.00
08 Rates
General
380
Jul Expense
.00
13 s
Jul
950.00
18 Wages
Jul
26
Jul
26
Jul
28

71.00
100.00
5,00
0.00

K.
Bryant
K.
Durant
Machine
ry

Disc
t

Cash

Aug
01

Dr.
Cr.
2013
$
Jul 31
81.00

Balance
b/d

6,501.
00
6,281.
00

20,000
.00
17,351.
00

70.00
190.00
150
.00
33.0
0
48.0
0

Jul Balance
31 c/d
60.0
0

Bank

81.0
0

187.00
272.00
2,00
0.00
6,357.
00
6,281.
00

17,351.
00
20,000.
00

Discount Received
2013
$
Jul 26
33.00
Jul 26
48.00

Balance c/d

K. Bryant
K. Durant

________
81.00

________
81.00

Aug 01
Balance b/d

81.00

Dr.
Cr.
2013
$
Jul 30
10.00
Jul 30
50.00

Discount Allowed
2013
$
R. Westbrook
S. Ibaka

Jul31
60.00

Balance c/d

________

________

60.00
Aug 01

Balance b/d

60.00
60.00

SALES DAY BOOK

Folio

Invoice No.

P. 23
Amount

Date
2013
July 5

Details
Cash

SL21

1023

$
380.00

July16

R. Westbrook

SL22

1024

145.00

July 16

S. Ibaka

SL23

1025

250.00

July 16

K. Perkins

SL24

1026

190.00

Transferred to Sales
Account

GL98

965.00

SALES JOURNAL
Dr.
Cr.
2013
Folio
Jul 5S
Sales
SDB23

CASH
$
380.00

PG21

Dr.
Cr.
2013
Jul16

Dr.
Cr.
2013
Jul16

Dr.
Cr.
2013
Jul16

R. WESTBROOK
Folio
S Sales
SDB23

PG22

$
145.00

S. IBAKA
Folio
S Sales
SDB23

PG23

$
250.00

K. PERKINS
Folio
S Sales
SDB23

PG24

$
190.00

GENERAL LEDGER

Dr.
PG98

SALES ACCOUNT
Cr.
2013
Jul 31

10

Folio
Total Sales
SDB23

$
965.0
0

for the
month

11

BZ Plus Cellular
TRIAL BALANCE AS AT JULY 31, 2013
DR.
CR.
$
$
Capital
25,000.00
Purchases
1,815.00
Cash
6,281.00
Bank
17,351.00
P. Lewis (Creditor)
95.00
R. Jackson (Creditor)
845.00
A. Davis (Creditor)
175.00
J. Lamb (Creditor)
950.00
Sales
965.00
Rates
70.00
General Expenses
190.00
K. Perkins (debtor)
190.00
Wages
150.00
Return Outwards
160.00
Return Inwards
164.00
Stationery
120.00
P. Jones (Creditor)
120.00
Machinery
2000.00
Discount Allowed
60.00
Discount Received
81.00
28,391.00
28,391.00
Closing stock $1,500.00

12

BZ PLUS CELLULAR
TRADING AND PROFIT AND LOSS ACCOUNT FOR YEAR
ENDED JULY 31, 2013
$
$

Sales
Less: Return Inwards
Net Sales
Less: Cost of goods sold
Purchases
Less: Return Outwards
Less: Closing Stock
Cost Of Goods Available For
Sale
Gross Profit
Add Discounts Received

Less: Expense
Rates
General Expense
Wages
Stationary
Discount Allowed
Total Expense
Net Profit

965.00
164.00
801.00
1,815.00
160.00
1,655.00
1,500.00
155.00
646.00
81.00
727.00

70.00
190.00
150.00
120.00
60.00
590.00
137.00

13

BZ PLUS CELLULAR
BALANCE SHEET AS AT JULY 31, 2013

Fixed Assets:
Machinery

Current Assets:
Stock
Debtors
Cash
Bank
Total Current Assets
Current Liability:
Creditors
Working Capital
Net Assets
Capital Account:
Capital 31.07.12
Add: Cash Introduced
Add: Net Profit
Net Capital

2,000.00

1,500.00
190.00
6,281.00
17,351.00
25,322.00

2,185.00
23,137.00
25,137.00

20,000.00
5,000.00
______137.00
25,137.00

14

DOUBLE ENTRIES

Dr.
Cr.
2013
$
Jul 31 Balance c/d
25,000.00

CAPITAL
2013
$
Jul 02
Bank
20,000.00
Jul 31
Cash
5,000.00
25,000.00 25,000.00
Aug 01
25,000.00

Dr.
Cr.
2013
$
Jul 02
200.00
Jul 02
150.00
Jul 02
95.00
Jul 02
295.00
Jul 02
175.00
Jul 21
70.00
Jul 21
280.00
Jul 21
550.00

Balance b/d

PURCHASES
2013
$
Jul 31
1,815.00

K. Bryant

Balance c/d

K. Durant
P. Lewis
R. Jackson
A. Davis
K. Bryant
K. Durant
R. Jackson

____
___
1,8
1,815.00

Aug 01
1,815.00

15.00

Balance b/d

15

Dr.
Cr.
2013
$
Jul 05
380.00
Jul 29
950.00
Jul 30
71.00
Jul 30
100.00
Jul 31
5,000.00
Aug 01

Dr.
Cr.
2013
$
Jul 02
20,000.00

CASH

Sales
J. Lamb
R. Westbrook

2013
$
Jul 08
Rates
70.00
Jul 18
Wages
150.00
Jul 31
Balance c/d
6,281.00

S. Ibaka
Capital
________
6,501.00
Balance b/d

6,501.00
6,281.00

BANK

Capital

2013
$
Jul 13
190.00
Jul 26
187.00
Jul 26
272.00
Jul 28
2,000.00
Jul 31
17,351.00
20,000.00 20,000.00

Aug 01
17,351.00

Balance b/d

16

General Expenses
K. Bryant
K. Durant
Machinery
Balance c/d

Dr.
Cr.
2013
$
Jul 20
50.00
Jul 26
187.00
Jul 26
33.00

K. BRYANT
2013
$
Jul 02
200.00
Jul 21
70.00

Return Outwards
Bank

Purchases
Purchases

Discount Received
_______
270.00

270.00

Further Interpretations of Results

Profitability
1. GROSS PROFIT AS A PERCNETAGE OF SALES

17

Using the gross profit of $646.00 and the net profit of

$965.00; the gross profit as a percentage of sales is 66.94%.
This is illustrated below:
Gross profit/ Sales* 100%:
646.00/965.00*100%=0.6694*100%=66.94%

Gross Profit as a Percentage of Sales

33%

67%

Reporting on performance:
The profitability percentage of 66.94% of gross profit signifies that the
business is in a stable position because it is making approximately 0.49
cents profit for every item sold within the business. The business must
ensure that it keeps its cost of goods low and goods are sold in order to
maximize gross profit.

2. NET PROFIT AS A PERCENTAGE OF SALES

18

Using the given net profit of $137.00 and Sales of $965.00 the net
profit as a percentage of sales is 14.19%.
Net profit/ Sales* 100%:
137.00/965.00*100%=0.1419*100%=14.19%

Net Profit as a percentage of Sales

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

85.81%

14.19%
Net Profit

Sales

Reporting on performance:
The higher the percentage of sales signifies good news for the
business; it also needs to focus on its expenses and ensures that it is
kept at a minimal. Even though the business sales are high its profits
are low because of the expense that has to be paid.

Liquidity

19

3. CURRENT RATIO
The current ratio for the year was 11.58:1. The current asset
was $25,322.00
and the current liability is $2,185.00.
Current assets/ Current liabilities
25,322.00/2,185.00=11.58

Current Ratio
30,000
25,000
20,000
Axis Title 15,000
10,000
5,000
0

Current Assets

Current Liabilities

Reporting on Performance:
The current asset ratio of 11.58: 1 signifies that the business can
cover its short term debts. The business asset outweighs its
liabilities; which means that they can make good on payments. The
business can consider investing surplus money in a profitable
venture.

4. ACID TEST RATIO

20

The acid test ratio for the year was 10.90: 1. The current asset was
$25,322.00 less stock of $1,500.00 and the current liability is
$2,185.00.

Current Assets less stock/ current liability

(25,322.00-1,500.00)/2,185.00 = 23,822.00/2185.00=10.90

Reporting on performance:
The liquidity ratio of 10.90: 1 signifies that the business has enough
liquid assets to be able to pay current liabilities quickly. It is
recommended for the business to keep its current liabilities at a
marginal cost.

COMPARISON

21

Expenses for the month

$400.00
$350.00
$300.00
$250.00
$200.00
$150.00
$100.00
$50.00
$week 1

week 2

week 3

week 4

Reporting on performance:
During the 2nd week the company paid the most expense of $340.00,
it fell in the 3rd week and no expenses were paid in the 4th week.

Sales for the month

$600.00
$500.00
$400.00
$300.00
$200.00
$100.00
$-

Week 1

Week 2

Week 3

Week 4

Reporting on performance:
In week 1 there was only one sale of $380, in week 2 the sales
increased but week 3 and 4 there was no sale for the business.
RECOMMENDATION
22

The business has to make sure that wise purchases are made and
their goods are sold at reasonable prices to increase gross profit.
The business has to cut down on its expenses in order to increase its
net profit.

CONCLUSION

23

When completing the financial statements and ratios of the business

it was learnt that the business is making a small profit but it needs to
cut down on the expenses they incur. This SBA helps me to improve
on my critical thinking and to prepare for my CXC examination. I
believe that I am fully prepared to sit my CXC examination.

24