N.E.C.

S Snack Resort Trial Balance As at 01st October 2010

Drawings Sales Purchases Wages gas Capital Rent Bad debt Transportation-in Cash Bank Interest received Depreciation M. Luke Mini-stove 300 8003 3025 1560 110 2625 30 20.35 240 2024.5 3100 1.85 14.17 630 835.83 11259.85 11259.85

N.E.C.S Snack resort Trading and profit and loss account As at 01st October 20
Sales Net sales Purchases Transportation Net purchases Goods available for sales less closing stock Cost of goods sold Cost of sales Gross profit Add revenue Interest received Total revenue Less expenses Wages Gas Rent Bad Debt Depreciation 8003 8003 3025 240 3265 3265 3265 320 2945 2945 5058

1.85 5059.85 1560 110 30 20.35 14.17 1734.52 3325.33

N.E.C.S Snack Resort Balance Sheet As at 01st October 2010

Assets Fixed assets Mini-stove Current Assets Stock Cash at Bank Cash in hand Less Current liabilities Creditors mini-stove (M.Luke) Working Capital Total Assets Financed by: Capital at start Add net profit Less drawings Capital at end Total liabilities and capital 835.83

320 3100 2024.5 5444.5 630 4814.5 5650.33

2656 3325.33 5950.33 300 5650.33 5650.33

Sales Journal

Date Oct. 06

Details A. Paris K. Titre K. Alexander

Folio DL01 DL02 DL03 DL04 DL05 DL04 DL01 DL06 DL04 DL05

Amount $ 850 17 18.5 8.5 11 6 2.5 11 7.5 2.5 93

18 25

N. Thomas A. Paris N. Thomas

Nov.08 15

A. Paris N. John N.Thomas

22

A. Prosper

Purchases Ledger Account

Amount $ 3025

Date Oct.04

Details Cash Cash Cash Cash Cash

Folio

Amount $ 300 750 100 20 60 80 85 1580 30 20 3025

Date Nov. 30

Details Trading account

Folio

25 Nov.01 19 26

Cash Cash Cash Cash Cash

3025

Cash Book

Date Oct.01 4 6 8 11 13 15 18 20 22 25 27 29 Nov. 01

8 10 12 15 17 Nov. 19

22 26 29

Details Balance B/D Sales Sales Bank Sales Sales Sales Sales Sales A. Paris Sales K. Titre Sales Sales Sales Sales N. Thomas Sales Sales A. Prosper N. Thomas Sales Sales Sales Sales A. Paris Sales Sales N. Thomas N. Thomas Sales Cash Sales Sales A. Prosper Balance B/D

Folio

Discount

Cash $ 225 30 250 2000 310 380 200 360 370 8.5 190 17 260 420 280 350 8.5 520 450 11 6 250 300 580 320 2.5 410 630 7.5 11 190 400 200 250 $10,197 2232

Bank $ 2400

Date Oct. 04

Details Purchases Cash Gas Transportation-in Purchases Wages Rent Purchases Transportation-in Gas Purchases drawings Bank Purchases Wages Rent Balance C/D

Folio

Discount

Cash $ $1,310

Bank $

2000 80 120 85 780 15 1580 120 30 30 300 3000 20 780 15 2232

25 29 Nov. 01 19

22 24 30

3100

3000

$5400 3100

$10,197

$5,400

Dec. 01

Date Nov. 30

Details Trading Account

Folio

Amount $ 8003

Date Oct. 01 04 06 08 11 13 15 18 20 22 25 27 20 Nov. 01 08 10 12 15 17 19 22 24 26 29 30

Details Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash

folio

Amount $ 30 250 310 380 200 360 370 190 260 420 280 350 520 450 250 300 580 320 410 630 190 260 400 200 93 8003

Date Oct. 01

Details Cash Bank Capital

folio

Debit $ 225 2400

Credit $

2625

Being the amount invested on that date

Date Nov.30

Details Bad debts K. Alexander Mini-Stove M. Luke

folio

Debit $ 20.35

Credit $ 20.35

850 850

Date Nov. 30

Details Sales Account Trading account Being the transfer of sales

folio

Debit $ 8003

Credit $ 8003

Date Nov. 30

Details Trading account Purchases account Being the transfer of purchases

folio

Debit $ 3025

Credit $ 3025

Date Nov.30

Details Profit and loss account Rent Being the transfer of rent

folio

Debit $ 15

Credit $ 15

Date Oct. 04

Details Trading Account Transportation- in Being the transfer of transportationin

folio

Debit $ 240

Credit $ 240

Date Oct

Details Profit and loss account Gas Being the transfer of Gas

folio

Debit $ 110

Credit $ 110

Date

Details Profit and loss Bad debts Being the transfer of bad debts

folio

Debit $ 20.35

Credit $ 20.35

Date

Details Profit and Loss Wages Being the transfer of wages

folio

Debit $ 1560

Credit $ 1560

Date Nov. 30

Details Interest received Profit and loss account Being the transfer of interest received to the profit and loss account

folio

Debit $ 1.85

Credit $ 1.85

Date Nov. 30

Details Balance Sheet Drawings Being the transfer off drawings to the profit and loss account

folio

Debit $ 300

Credit $ 300

Capital Account Date Nov. 30 Details Balance Sheet folio Debit $ 2625 Date Oct. 01 Details Cash Bank folio Credit $ 225 2400 2625

Rent Account Date Oct. 29 Nov. 30 Details Cash Cash folio Debit $ 15 15 30 Date Nov.30 Details Profit and Loss folio Credit $ 30

Mini stove account

Date Oct. 04 Details Mini-stove M.Luke Folio Debit $ 850 Credit $ 850

The name of this business is the N.E.C.S Snack Resort. It is located at the centre of the North East Comprehensive School round about. A tent is granted by the village council for free (at no cost). The business began with 11 members. Then 4 more members joined which added up to 15 members which were all students of the North East Comprehensive School. Its a clear, beautiful and clean surrounding just good enough for the business location. Each student will be making a contribution of $25; each parent will match the amount, the business departments of the school will double the amount of the parents. We deposited two amounts of money into the bank which was $225 and $2400 which gave us a total capital at start of $2625.

The business employed two (2) permanent workers which will be the cooks. They will be paid $20 per day. These employees will be expected to work from 7:00.a.m till 4:30.p.m.

We provided paleau, water and local juices because we dont want to compete with the existing canteen. The N.E.C.S Snack Resort will be catering mainly for the students who live far from school like Carib Territory, Calibishie and Portsmouth, Also for students with extra afternoon class, teachers who work late, the auxiliary staff and workers on the new building. Hours of operation will be very vital. The business will be opened and ready for business from 10.a.m to 4:30.p.m. The N.E.C.S Snack Resort are members of the Schools Savings Union. On the 22nd of November a $3000 deposited was made into the Snack Resorts Account. All cooking utensils will be rented to us by the F&N department at a small fee of $15 per month. Students will be helping on a rotational basis both in kitchen and the sale of items. A rooster for students was kept and the daily inventory on beginning an end of the day. Everyday 40 plates of paleau and 2 buckets of local juice would be prepared on 3 days. These Days are the days when the Snack Resort will be opening. These days are Mondays, Wednesdays and Fridays. Therefore a scrap book will be used to take records/ daily transactions, from there all students will be accessing there information. A mini- stove was also purchased on credit from M. Luke with a fee of 850. Credit policies will only be allowed for teachers and auxiliary staffs. Thats because they are the only ones who work and get a salary at the end of the month. So they can pay for there debts.

This Principles of Accounts School Base Assessment is a requirement for the 2011 CSEC examination. And by successfully completing it, it will help in obtaining a good grade at CXC. It can also help to gain first hand knowledge of accounting concept and records keeping which will serve as future references in the working world. It also gives the candidates an opportunity to experience the daily transactions and to partake in efficient record keeping for the business. And in so doing it assists in improving the accounting skills and liabilities of the candidates.

The performance of the business is solvent. Thats because it made a $3325 amount of profit. It ideal purpose for existing made it competent being the sole provider for the items it offered and the time at which the items was being offered. This business is performing tremendously that's mostly because of the hard working employees and the goods provided are of good taste and high standard. As a result of this the business is making a profit. The business was left with stock on hand of $320 at the end of the year ended November 30th 2010.

For efficient and smooth operations of the N.E.C.S Snack Resort the following procedures were followed: 1. Journalizing Opening Entries: This consists of the Assets and Liabilities of the business at start. Intermediate Entries: This includes the depreciation of fixed assets and bad debts. Sales Journal: This is the book of first entry for sales invoices issued to customers for goods supplied or services rendered. Entries from this journal are posted to

individual customer accounts, their totals are posted to the ledger as a debit to accounts receivable and as a credit to sales. Closing Entries: These are the final bookkeeping entries made at the end of an accounting period to reduce all nominal (temporary) accounts to zero. It was used to transfer the balances of the sales and purchase journal and the depreciation of fixed assets to the trading and profit and loss account. Cash was used throughout the business so these were recorded in the cash book. And drawings are transferred to the owners' capital account. 1. Posting to the Ledger: Where you write up the entries into the ledger from the balance sheet. 2. Trial Balance: In double entry bookkeeping, aggregate of all debit and credit balances at the end of an accounting period that: (1) Shows if the general ledger is in balance (total debits equal total credits) before making closing entries. (2) Serves as a worksheet for making closing entries. (3) Provides the basis for making draft financial statements. 3. Final Account: Accounts made up only at the end of a firm's financial year. The final accounts consist of the Trading account, profit and loss account, and Profit and loss appropriation account. These accounts together help to generate the gross profit.

Liquidity analysis ratio 1. Current ratio or working capital ratio Current Assets Current Liabilities Current Assets = $5444.50 Current Liabilities = $630 $5444.50 $630

= 8.64:1 Liquid Ratio Current assets stock Current liabilities 5444.50 - 320 630 =8.13:1 This shows that the business is in good Liquidity. Therefore the business can meet its short term debts with no difficulties. 2. Profitability Ratio Net profit * 100 Average Capital employed Net Profit = $3325.33 Average capital employed = $4153.17 $3325.33 *100 $4153.17 = 80.1% The business is becoming more profitable and seems to be in good investments. N.E.C.S snack resort has made good use of there net assets. As a result this firm has a high percentage of 80.1.

3. Gross profit margin Gross profit * 100 Sales Gross profit = $5058 Sales =$8003 $5058 * 100 $8003 = 63.2%

Net profit Sales 3325.33 * 100 8003 = 41.5% or 42% The N.E.C.S Snack resort is performing so well that if it is equaled to the Canteen sales it would make more gross profit and net profit than the canteen

Principles of Accounts teacher

Members of the Partnership (Students)

Cashier (Sales Clerk)

Chef (cooks)

Items

Price

Water Small ..$2.50 Large . $5.00 Paleau Small . .$3.00 Large $5.00 Local Juices Small . $3.00 Large $5.00

October 1st to November 30th Oct. 1 Started business $225 cash and $ 2400 in bank

6 8 11 13 15 credit.

Cash Sales Withdrew $2000 cash from bank for office use Cash purchases $1310 Paid for gas $80 cash Transportation-in $120 cash Cash Sales $250 Sold goods on credit to A. Paris $8.50 Cash Sales $310 Cash Sales $380 Sold goods on credit to K.Titre $17 and K.Alexander $18.50 Cash Sales $200 Cash Sales $360 Cash Sales $370 Received $8.50 cash from A. Paris for goods previously bough on n

Sold goods on credit to N. Thomas $8.50 Cash Sales $ 190 Received $17 cash from K.Titre for goods bought on credit 20 Cash Sales $260 22 Cash Sales $420 25 Sold goods on credit to A. Prosper $11 cash and N.Thomas $6 Cash purchases $85 Cash Sales $280 27 Received $8.50 cash from N.Thomas for goods bought on credit Cash Sales $350 29 Cash Sales $520 Paid rent $15 cash Paid wages $780 cash Nov. 1 Cash Purchases $1580 Transportation-in $120 cash Cash Sales $450 Received $11cash from A. Prosper and $6 cash from N.Thomas for goods bought on credit Sold goods on credit to A. Paris $2.50 Cash Sales $250 10 Cash Sales $300 12 Cash Sales $550 15 Sold goods on credit to N. John $11 and N. Thomas $7.50 Received $2.50 cash from A. Paris for goods bought on credit Cash Sales $320 17 Cash Sales $410 19 Cash Purchases $30 Paid for gas $30 Cash Withdrew $300 cash from bank for personal use Cash Sales Received $11 cash from N. John and $7.50 cash from N. Thomas for goods previously bought on credit 8

18

22 24 26 29 30

Cash Sales $190 Deposited $3000 cash into bank Cash Sales $260 Cash Sales $400 Cash purchases $20 Received $2.50 from A. Prosper for goods previously bought on credit. Cash Sales $200 Paid wages $780 cash Paid rent $15 cash

Figure 1
Comparison of gross and net profit

6000 5700 5400 5100 4800 4500 4200 3900 3600 3300 3000 2700 2400 2100 1800 1500 1200 900 600 300 0 Gross Profit Net Profit 3325.33 5058

During the business there is a high increase in Gross profit over Net Profit. This is a good sign for the business which can help in showing the improvement of the business after each year.

Figure 2

Comparison between Capital at start and Capital at end as a percentage

Slice 3 0% Slice 4 0% Capital at start 32%

Capital at end 68%

This pie chart shows that the capital at end is greater than capital at start. This tells us that the N.E.C.S Snack Resort has improved and from beginning and has managed to make a profit. The capital at start and capital at end has a difference of 36% which is the amount made as a percentage.

Figure 3

Comparison of Sales and Purchases

9225 8200 7175 6150 5125 4100 3075 2050 1025 0

8003

3025

Sales

Purchases

Name: Not to be Publish Subject: Principles of Accounts Teacher's Name: Mr Not to be Publish School: North East Comprehensive School School Code: Not to be Publish Candidate Number: Territory: Dominica Registration Number:

Content

Page

Acknowledgement .. 1 Aim Of project 2 Description of the Business 3 Actual Accounting Procedure.. 4 Record Kept General Journal.5-17 Opening entries ..18 Intermediate entries.19 Closing entries.20-21 Sales journal .22 Purchases journal...23 Cash Book.24 General Ledger..25 Sales ledger26 Trial Balance..................27 Final Accounts28 Trading and profit and loss account29 Balance Sheet .30 Summery/Performance of the business .31 Interpretation Of final Ratio ..32-33 Comparisons ..34-36 Conclusion .. ..37 Suggestion and Recommendations 38 Appendix Actual Accounting transactions Price list Organizational Chart Invoices Deposit slip Receipt etc

Suggestions

I suggest that the business continue. This business has been a great help to the staff and students of the North East Comprehensive School in providing food and drink to them in the afternoon when the School Canteen is already closed. The Snack Resort has also given students something to do in there spear time that can help in community service and school spirit points. Also, I suggest the business remain even if the students in the partnership is leaving school, so that other students can gain an opportunity to take part in a business and learn something from it. Because in the future these students may want to open there own businesses. Recommendations The N.E.C.S Snack Resort should have had more varieties of goods offered. Instead of only paleau it could have specific dishes or snacks for different days. These dishes or snacks could be Sandwiches, pizzas, pastry snacks, and an occasional chocolate or candies. The N.E.C.S Snack Resort could also have activities planned to help to gain more money/income in the business. This income/ money would be able to help in expanding the business and also to purchase more goods and produce a wider variety of goods. The students in the partnership should give more support to the business. Whether its financially or just to give a helping hand around the business (assistance)

Firstly, I would like to thank the almighty father for strength, wisdom, knowledge and understand, for with Christ all things are possible. Secondly, I would like to thank my family especially my grand mother for her continued encouragement, financial support and purchasing the equipments needed in

producing this School Based Assessment. Without her help I would not have been able to successfully accomplish my goals. Thanks to friends and other family members who always had my back and believed in me. Lastly, I would like to thank the principles of Accounts Teachers at my school for there great teaching skills that has made be learn and understand the concepts of Accounts and how to complete this SBA. May God continue to bless, guide and keep you all. For God has a future planned out for you and who god has blessed no man can curse. Your help and support was very much appreciated. Thank You

Name: Leeann, Londie, Sarahn Lawrence Subject: Principles of Accounts Teacher's Name: Mr. Paris School: St. Andrews High School Code: 070008 Candidate Number: Registration Number: Territory: Dominica