SCHOOL BASED ASSESSMENT

PRINCIPLES OF ACCOUNTS
YEAR 2017

NAME OF CANDIDATE: ANN MARIE KHADOO

NAME OF SCHOOL: SARASWATI VIDYA NIKETAN
REGISTRATION #:
CENTRE #: 090100

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TABLE OF CONTENT

ACKNOWLEDGEMENT
INTRODUCTION
AIMS OF THE PROJECT
AIMS OF THE BUSINESS
ORGANISATIONAL CHART
METHOD OF DATA COLLECTION
PERIODS UNDER REVIEW
OPENING RECORDS
TRANSACTIONS
GENERAL JOURNAL
THE SALES JOURNAL
THE PURCHASE JOURNAL

THE RETURN INWARDS JOURNAL

THE RETURN OUTWARDS JOURNAL

THE CASH BOOK
THE SALES LEDGER
THE PURCHASES LEDGER
GENERAL LEDGER
THE TRIAL BALANCE
THE TRADING PROFIT AND LOSS ACCOUNT
BALANCE SHEET
STATEMENT ABOUT THE BUSINESS PERFORMANCE
RATIOS
COMPARISON

RECOMMENDATIONS

CONCLUSION

APPENIX

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ACKNOWLEDGEMENT

I would like to express special thanks to my Principles of Accounts teacher as well as the
principal who gave me the golden opportunity to do this wonderful project.

Secondly, I would like to thank my loving parents who helped me a lot in financing this
project. I would also like to thank my friends for helping me and also guiding me through this
project.

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INTRODUCTION

This School Based Assessment is based on the financial aspects of Anns Grocery Store
for the period 1st of July to the 31st of September, 2016. This business is simulated by the
researcher. It is a sole trader business and it is operated by Teresa Lee. It is located in Anna
Catherina.

Anns Grocery Store is involved in the buying and selling of a wide range of consumer
goods such as sugar, rice and flour. Some financial records done by the business are Journals,
Day Books, Ledgers, Trading Profit and Loss Account and the Balance Sheet.

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AIMS OF THE PROJECT

The main aim of this project is to allow the researcher to prepare for the working world
of accounting. It also aims to fulfil the requirements of the Caribbean Examination Council and
also to develop analytical skills.

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AIMS OF THE BUSINESS

The main aims of the business are to make a maximum profit, to provide employment to
persons and to provide quality goods to the community.

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ORGANISATIONAL CHART

MANAGER
TERESA LEE

SUPERVISOR
ARTHOR SMITH

ACCOUNTANT PURCHASES MANAGER

ANN SIMONS DIPA SINGH

CASHIER SALES CLERK

SHIVANIE MAHADEO SARAH PERSAUD

DRIVER
CHRIS SMART

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METHOD OF DATA COLLECTION

In order to complete this project the researcher needed the information which was
obtained through interview and observation

At the starting of this project, the researcher started to gather the necessary information
needed to complete this School Based Assessment.

The interview method of the data collection was very useful and researcher obtained all
the information needed quickly since the staff was very friendly.

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PERIODS UNDER REVIEW

This project started on the 1st of July, 2016 and it ended on the 31st September, 2016. The
period under review was from the 1st of July to the 31st of September, 2016.

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OPENING RECORDS

1st July, 2016:

The assets and liabilities of the business were:

Cash 1000
Bank 50000
Premises 100000
Motor Van 1500
Stock 50000
Loan (repayable in 6 mths) 600

Debtors
C. Harris 1000
S. Clarke 5000
T. Thomas 300

Creditors
M. Song 5000
D. Call 1000

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TRANSACTIONS

Jul 1. Purchased goods on credit from Ulrich $50,000

2. Sold goods on credit to H. Hoyte costing $600

10. Cash Sales $100,000

13. Cash Drawings $1,000

20. Paid Rent and Rates by cheque $1,000

30. Credit Sales to M. Lung $450

Aug 2. H. Hung lent us $600 by cheque

8. M. Lung paid us by cheque $450

15. Repaid H. Hung $600 by cheque

20. Sold goods on credit to F. Frank $2000

21. Bought goods from R. Reid $1500 on credit

24. Paid insurance by cheque for $300

25. Paid wages by cheque $5,000

27. Paid for motor expenses $300 by cash

30. Sales on credit to G. Gooding $2,000

31. Goods returned from F. Frank $200

Sep 4. Returned faulty stock to U. Ulrich $100

10. Credit purchases from M. Thomas $ 1000

21. Bought goods from I. Irish for $45 on credit

27. Paid R. Reid his account by cheque having a discount of 5%

31. H. Hoyte paid his account by cheque having a discount of 10%

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GENERAL JOURNAL

The General Journal

Date Details Folio Debit Credit
2016 Assets
1ST Jul Premises Gl 100000
Motor Van Gl 1500
Stock Gl 50000

Debtors:
C. Harris Sl 1000
S. Clarke Sl 5000
T. Thomas Sl 300

Bank CB 50000
Cash CB 1000
Loan (repayable in
6 mths)
600
Liabilities:
Creditors
M. Song 5000
D. Call 1000
Capital 202200
208800 208800

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THE SALES JOURNAL

Sales Journal
Invoice
Date Details No Folio Amount
2016 $
nd
Jul 2 H. Hoyte SL 600
th
Aug 8 M. Lung SL 450
th
20 F. Frank SL 2000
th
30 G. Gooding SL 2000
Sep
31st Transferred to sales a/c GL 5050

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THE PURCHASE JOURNAL

Purchases Journal
Invoice
Date Details No Folio Amount
2016 $
Jul 1st Ulrich PL 50000
Aug 21st R. Reid PL 1500
Sep 10th M. Thomas PL 1000
21st I. Irish PL 45

Sep 31st Transferred to purchases a/c GL 52545

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THE RETURN INWARDS JOURNAL

Return Inwards Journal

Invoice
Date Details No Folio Amount
2016 $
Aug 31st F. Frank SL 200
Sep 31st Transferred to Return Inwards a/c GL 200

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THE RETURN OUTWARDS JOURNAL

Return Outwards Journal

Invoice
Date Details No Folio Amount
2016 $

Sep 4th Ulrich PL 100

Sep 31st Transferred to return outwards a/c GL 100

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 THE CASH BOOK

Anns Grocery Store

DR Three column Cash Book CR
Dis Dis
Date Details Folio All. Cash Bank Date Details Folio Rec Cash Bank
2016 2016
July $ $ $ July $ $ $
1st Bal b/f 1000 50000 13th Drawings 1000
Rent and
10th Sales 100000 20th Rates 1000
Aug
15th H.Hung 600
Aug
2nd H. Hung 600 24th Insurance 300
M.
8th Lung 450 25th Wages 5000
Sep H. Motor
31st Hoyte 60 540 th
27 expenses 300
Sep
27th R. Reid 75 1425
31st Bal c/d 99 700 43265

60 101000 51590 75 101000 51590

1st
Jan Bal b/d GL 99700 43265

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SALES LEDGER
DR C. Harris A/C CR
2016
Jul 1st Bal b/f GJ 1000

S. Clarke A/C
2016
Jul 1st Bal b/f GJ 5000

T. Thomas A/C
2016
Jul 1st Bal b/f GJ 300

F. Frank A/C
2016 2016
Aug Return
20th Sales SJ 2000 Aug 31 st
Inwards RIJ 200
Sep31st Bal c/d 1800
2000 2000
Oct 1st Bal b/d 1800

G. Gooding A/C
2016
Aug
30th Sales SJ 2000

H. Hoyte A/C
2016 2016
Jul 2nd Sales SJ 600 Sep 31st Bank CB 540
Dis
Sep 31st Allowed CB 60
600 600

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 M Lung A/C
2016 2016
Aug 8th Sales SJ 450 Aug 8 Bank CB 450

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PURCHASE LEDGER
DR Ulrich A/C CR
2016 2016
Return
Sep 4th Outwards ROJ 100 Jul 1st Purchases PJ 50000
Sep
31st Bal c/d 49900
50000 50000
st
1 Oct Bal b/d 49900

D. Call A/C
1st Jul Bal b/f GJ 1000

M. Thomas A/C
Sep 10th Purchases PJ 1000

I. Irish
A/C
2016
Sep 21st Purchases PJ 45

R.Reid
A/C
2016 2016
Sep
27th Bank CB 1425 Aug 21st Purchases PJ 1500
27th Dis Received CB 75
1500 1500

M. Song
2016
Jul 1st Bal b/f GJ 5000

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GENERAL LEDGER

DR Premises A/C CR
2016
Jul 1st Bal b/f GJ 100000

Motor Van A/C

2016
Jul 1st Bal b/f GJ 1500

Sales A/C
2016 2016
Sep 31st Total sales SJ 5050
for the
month
Sep Transferred to
31st Trial A/C 105050 Jul 10th Cash CB 100000
105050 105050

Loan A/C
2016
Jul 1st Bal b/d GJ 600

Discount Allowed
A/C

2016
2016 Sep 31st
Transferred
Sep to Profit and
31st Total discount CB 60 Loss A/c 60
for the month

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 Discount
Received A/C
2016 2016
Transferred to
Sep Profit and Loss Total
31st A/c 75 Sep 31st discount CB 75
for the
month

Purchases A/C
2016 2016
Transferred
Sep to Trading
31st Total credit PJ 52545 Sep 31st A/C 52545
for the month

Return Outwards
A/C
2016 2016
Sep 31st Total Returns
Sep Transferred to for the
31st Trading A/C 100 month ROJ 100

Return Inwards
A/C
2016 2016
Sep Transferred to
31st Total Returns Sep 31 st
Trading A/C
for the month RIJ 200 200

Drawings A/C
2016
Sep
13th Cash CB 1000

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 Rent and Rates
A/C
2016 2016
Transferred
Sep to Profit and
20th Bank CB 1000 Sep 20th Loss A/c 1000

Insurance A/C
2016 2016
Transferred to
Aug Aug Profit and Loss
24th Bank CB 300 24th A/C 300

Wages A/C
2016 2016
Transferred to
Aug Aug Profit and Loss
25th Bank CB 5000 25th A/C 5000

Motor Expenses
A/C
2016 2016
Transferred to
Sep Profit and Loss
27th Cash CB 300 Sep 27th A/C 300

Capital A/C
2016
Jul 1st Bal b/f GJ 202800

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 Stock A/C
2016
Jul 1st Bal b/d GJ 50000

H. Hung A/C
2016 2016
Aug Aug
15th Bank 600 2nd Bank 600

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THE TRIAL BALANCE

Anns Grocery Store

Trial Balance
as at 31st Sep, 2016
Date Details Debit Credit
2016 $ $
Sep 31st Capital 202200
Cash 99700
Bank 43265
Premises 100000
Motor Van 1500
Sales 105050
Loan 600
Purchases 52545
Return Outwards 100
Return Inwards 200
Drawings 1000
Rent and Rates 1000
Insurance 300
Wages 5000
Motor Expenses 300
Creditors 56945
Debtors 10100
Stock 50000
Discount allowed 60
Discount received 75
364970 364970

Adjustments

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Closing Stock- $10245
Depreciation on Motor Van- 10%
Insurance owing- $50
Rent and Rates paid in advance- $500

THE TRADING PROFIT AND LOSS ACCOUNT

Anns Grocery Store

Trading and Profit and Loss
for the year ending 31st September 2016
$ $ $
Sales 105050
less Return Inwards 200
Net Sales 104850

Add Opening Stock 50000

Purchases 52545
less Return Outwards 100
Net Purchases 52445
Cost of goods available for sale 102445
less closing stock 10245
Cost of goods sold 92200
Gross Profit 12650
Add Discount Received 75
12725

Less Expenses:
Rent and Rates 1000
Less Advance 500 500
Insurance 300
Add Owings 50 350
Wages 5000
Motor Expenses 300
Discount Allowed 60
Depreciation for Motor Van 150
Total expenses 6360

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Net profit 6365

THE BALANCE SHEET

Anns Grocery Store

Balance Sheet
as at 31st Sep 2016
CAPITAL EMPLOYEED COST DEP NET
Fixed Assets $ $ $
Premises 100000 100000
Motor Van 1500 150 1350
101500 150 101350

Current Assets
Closing Stock 10245
Debtors 10100
Rent and rates advance 500
Bank 43265
Cash 99700

Total current assets 163810

Less current liabilities

Creditors 56945
Loan(repayable in 6 mths) 600
Insurance owing 50
Total current liabilities 57595
Working capital 106215
207565
Financed by

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Capital 202200
Add Net Profit 6365
208565
Less Drawings 1000
207565

STATEMENT ABOUT THE BUSINESS PERFORMANCE

In preparing the financial statements for the business Anns Grocery Store, the Trading
and profit and Loss account showed a profit of six thousand three hundred and sixty five dollars
($6365) during the months from the 1st August, 2016 to the 31st September, 2016.

At the close of the financial year for Anns Grocery Store there was an increase of
capital, this indicates that the business was profitable as shown in the following ratios.

The business was able to maximize its profitability on the Gross profit/ sales ratio
percentage and return on capital employed ratio percentage as indicated by the following:

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RATIOS
1.
Gross Profit to sales ratio.
Gross Profit = 12650 = 0.1:1
Sales 104850

Gross Profit as a percentage of sales

Gross Profit *100= 12650 *100 = 12%

Sales 104850

Gross profit to Sales

12%

Gross Profit
88% Sales
Cost of
sales

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 The sales for the period under review were $104850; the cost of goods sold was $ 92200.
Therefore the business made a gross profit of $12 650. Overall the business made twelve dollars
($12) on every hundred dollars ($100) of sales.

2.

Return on capital employed ratio

Net Profit = 6365 = 0.03

capital
employed 207565

Return on capital employed ratio percentage

Net Profit *100= 6365 *100= 3.12%

capital
employed 204883

Return on Capital Employed

3%

Net Profit
Capital Employed

97%

N.B Capital Employed= (Opening Capital + Closing Capital)/2

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The capital at start was $202200, whilst at close it was $207565. These figures show an increase
in the net worth of the business of 5365. The business was able to earn $3.12 net profit for every
$100 of capital employed.

3.

Current ratio

Current Assets = 163810

Current
liabilities 57595

= 2.8:1

Acid test ratio

Current assets- stock = 163810 - 10245

current liabilities 57595

= 153565
57595

= 2.6:1

The current ratio was 2.8:1 and the acid test ratio was 2.6:1.That is an indication that
when creditors are paid the remainder of cash is 1.8 and 1.6 respectively. Although stock was
deducted from the current assets the business was still able to repay its debts. This showed that
the current assets did not depend on closing stock to raise its figure.

COMPARISON

1. There was an increase in the closing debtors account. The opening debtor was $6300 while the
closing debtor was $10100.

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2. There was an increase in the closing creditors account. The opening creditor was $6000 while
the closing creditor was $56945.

RECOMENDATIONS
The following recommendations are made by the researcher:

1. Use the excess money to expand the business by opening another grocery store. This will
also increase the sales revenue of the business.
2. Introduce new products to the business and purchase new equipment which will lead to
faster production and thus higher profits will be made.

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CONCLUSION
After completing this project, the researcher has gained a wide range of knowledge in the
field of accounting, especially in the preparations of the different records

To conclude, the researcher has been able to satisfy the purpose of the research, thus is
ready to further her studies in the field of accounting.

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APPENDIX
INVOICE

Debit Note:

DEBIT NOTE

Anns Grocery
To: Store From: Ulrich
Ann Catherina Cornelia Ida

Date: September 4th, 2016 Ref No: Invoice No:005

QTY DESCRIPTION UNIT PRICE ($) TOTAL AMOUNT($)

5 cases BBC: Pep drinks 20 100

Credit Note:

Credit Note
From: Anns Grocery To: F. Frank
Store Leonora,
Anna Catherina Guyana

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 Date: August 31st, 2016 Ref No: Invoice No:010
August 31st,
Dated 2016

UNIT PRICE TOTAL

QTY DESCRIPTION ($) AMOUNT($)
5 buckets( 1 Gallon
each) Igloo : Ice Cream 40 200

Invoice

Invoice
no: 001
Date: 20th/08/2016
Anns Grocery
Store To: Frank
Haggat Hall St. Turning
From: Michael St. Michael

QTY DESCRIPTION UNIT PRICE($) $

25 Cases PHD: Milk 40 1000
10 crates Sun flower: Eggs 15 150
Pampers:
50 boxes Pampers 17 850

Total 2000

Receipt
Receipt
Date:31st Sep 2016 # 001

Received from: H. Hoyte

the sum of Five hundred and forty dollars

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For: wholesale goods
$540.00
Per: H. Hoyte

PHOTOGRAPHS

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