PRINCPLES OF ACCOUNTS

SCHOOL BASED ASSESSMENT 2014

KCBSA ENTERPRISE (A stimulated activity)

This business has been trading for four months and the owners, the KC business students decided to
make a complete assessment of the performance of the financial status of the business for the month
of January 2014.

On January 1 2014, the following balances were on the books of the firm:

Building $12,900, Computers $3,870, Loan $5,000

Creditors: R. Brown $180, A. Green $76, S. Holmes $129

Furniture $6,200, Cash $600, Bank balances $5,450

Debtors: B. Lewis $87, L. James $400, Motor vehicle $3,600

Stock $2,370

The following transactions took place during the month of January 2014:

Jan 02 Bought goods for $2,325 by cheque

Jan 02 Paid rent $600 by cheque

Jan 03 Sold goods on credit to G. Brown $240, T. Green $150

Jan 10 Paid electricity $100 by cash

Jan 12 Sold goods for $4,420 by cheque

Jan 15 Bought goods on credit from ABC Printers $2,200

Jan 16 Goods returned to us from G. Brown $23, T. Green $50

Jan 17 Repaid part of loan by cheque $2,000

Jan 18 Received the amount owing from L. James by cheque

Jan 22 Sold goods for $4,000 by cheque

Jan 25 Cash sales $1,860

Jan 26 Paid R. Brown $80 by cash

Jan 30 Paid cash: Water bill $60, Telephone $120

At the end of the month:

1. The remaining stock was valued at $2,300

2. The motor vehicle depreciated $200 and building depreciated by $450
The following details were provided from the previous three months of trading:

October November December

$ $ $
Sales 5,680 6,240 7,390
Gross Profit 4, 367 4,530 6,300
Net Gross 2,321 3,269 3,450
Total Assets 15,450 16,769 22,130

You are required to:

1. Briefly describe the business entity being studied

2. Write up all books of original entry
3. Post to the ledgers
4. Extract a Trial Balance
5. Prepare the Final Accounts of the business
6. Analyse the performance of the business using accounting ratios
7. Use the results provided for the previous months to compare the performance of the business
8. Make suitable recommendations based on the analysis
9. Prepare and present source documents, charts, diagrams, tables and pictures for the report

Principles of
accounts
School Based
assessment
 2014

Name: Keviesha Stephens

School: Knox College
Centre #:
Candidate #:
Subject: Principles of Accounts

Table of Contents

Titles Pages
Acknowledgement 1
Introduction 2-3
The Source Documents 4-6
The Day Books:
General Journal 7
Cash Book 8
Sales Journal 9
Purchases Journal 9
Return Inwards Journal 10
General Ledger 11-15
Sales Ledger 16-17
Purchases Ledger 18-19
The Trial Balance 20
The Final Accounts:
Trading and Profit & Loss A/c 21
Balance Sheet 22
Analysis and Interpretation of results 23-25
Comparisons of Data 26-30
Recommendations 31
Conclusion 32
Appendices 33-34

Acknowledgement

The successful completion of this project would not have been achievable without the assistance
and cooperation of a number of persons.

Firstly, I would like to thank the Lord for health, strength, patience and knowledge.

I want to extend gratitude to my teacher, Mrs Richards, who guided me all the way and explained to
me what was to be done.

Finally, special thanks to my family members, who have been a continuous source of support and
encouragement.
 Introduction

The name of the business that was studied is KCBSA Enterprise which is located at Knox

College P.O. Spalding in Clarendon, Jamaica. KCBSA Enterprise is a stimulated partnership

business for a four month period from the 1st of October 2013 to the 31st of January 2014. The

business is owned and managed by the Knox College Business students.

The KCBSA Enterprise is a Stationery Centre which opens from 7am 6:30 pm on

Mondays- Fridays and 9am -4pm on Saturdays. Proper accounting records are written and kept for

all the day-to-day transactions that occur within the business. This is done in order to keep check

and records of all the assets, liabilities and the capital of the business. Additionally, this is done to

ascertain if a profit or a loss was made.

The necessary record for the period was prepared and completed. The accounts for the four

months were analysed and compared in order to make recommendations that could be carried out to

make the business more successful.

 Accounting procedures
In order to ensure that the proper and adequate records of the accounting procedures were
maintained and to give an account for the performance of the business, the owners ensured that
accounting cycle was fully utilised as shown in the chart below.

Accounting Cycle

These were used to capture information as to the

Source Document different transaction. Those used were credit note,
sales invoice, purchase invoice and cash receipt.

Recoded in these books was the original

transaction that took place.
Journals

Double entry was carried out using the Sales ledger,

Ledgers Purchases ledger and General ledger.

Based on the balances derived from the ledgers, the

trial balance was extracted to test double entry and
Trial Balance
mathematical accuracy.

This showed whether the business made a net profit

Trading and profit &Loss or loss.

This was used to show the financial position of the

Balance sheet business at the end of the accounting period.

THE
 SOURCE
DOCUMENTS

INVOICE
KCBSA
ENTERPRIS
E
Spalding High, Spalding P.O., Clarendon
Tel: (867) 331-2287
Fax: (867) 610- 3290
G. Brown
45 Charles Street Invoice #: 504
Clarendon Account: 124
Jamaica Date: January 3, 2014

Your Purchase Order

Quantity Price per unit Total
$ $
2 boxes of black ball- point Pens 120 240
 INVOICE
ABC
Printers

Super Plus Shop #13, Christiana P.O., Manchester.

Tel: (876) 385-6636
Fax: (876) 610-4114
KCBSA Enterprise
Spalding High
Spalding P.O. Invoice #: 1020
Clarendon Account #: 254
Jamaica Date: January 15, 2014

Your Purchase Order

Quantity Price per unit Total