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. Analyze 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
assignment
 2014

Name: Keviesha Stephens

School:
Teacher:

Table of Contents

Titles Pages
Acknowledgement

Introduction

The Source Documents

The Day Books:

General Journal

Cash Book

Sales Journal

Purchases Journal

Return Inwards Journal

General Ledger

Sales Ledger

Purchases Ledger
The Trial Balance

The Final Accounts:

Trading and Profit & Loss A/c

Balance Sheet

The Accounting Ratios

Recommendations

Conclusions

Appendices

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 and is located at Knox

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

means that it is owned and managed by more than one person but less than twenty persons. The

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

The business is a Stationery Center and it buys and sells on credit as well as for cash. 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 KCBSA Enterprise was stimulated for a four month period. This was from the 1st of

October 2013 to the 31st of January 2014. This periods records was prepared and completed. The

accounts of the four months were analyzed and compared in order to make recommendations that

could be carried out to make the business more successful.

 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
10 boxes of pens

10 boxes of blank paper

2 packs of folders leaves

100

100

100

1000

1000

200