SBA Guidelines/Checklist

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Create a list of business transaction (between 20 30 transactions for a 1 month period). A list of opening
Assets, Liabilities and Capital balances may be incorporated if the business first transaction is not started
the business with capital)
Prepare a list of accounting records (General Journal; Sales/Purchases/Return Inward/Return outward
Journals; Cashbook; Sales/Purchases/General Ledgers)
Record the opening balances (if incorporated) into the General Journal and then post to the Ledger
accounts
Prepare at least one of each of the following source document using a respective transaction (Sales
invoice or Purchase invoice; receipt; banking document cheque, deposit slip, withdrawal slip; cash or
payment voucher; Debit note or credit note;
Record the transactions in their respective BOOE and ledger accounts
Post the totals from the Sales/Purchases/Return Inward/Return outward Journals to their respective
account in the General ledger
Balance off the Cashbook
Post the discount received and discount allowed totals (if incorporated) to their respective ledger account
in the General Ledger
Use the General Journal to close off all revenue and expenses accounts, (including Sales, Purchases,
Return Inwards and Outwards, Opening stock). There will not be a balance c/d but instead transferred to
TPL a/c.
Balance off all the other ledger accounts (Assets, Liabilities, Capital and Drawings) in the
Sales/Purchases/General Ledgers.
Using the Sales Ledger accounts, prepare a Sales Ledger Control Account to calculate the total Debtors at
the end of the month
Using the Purchases Ledger accounts, prepare a Purchases Ledger Control Account to calculate the total
Creditors at the end of the month
Prepare a Trial Balance (include the accounts balances transferred to the TPL account)
Calculate the value of the closing stock if any. (A stock ledger may be maintained to record the quantity or
units moving in and out of the business)
Using the Trial Balance extracted, prepare the Trading, Profit and Loss account (or Income Statement)
Using the Trial Balance and the Trading, Profit and Loss account (or Income Statement) prepare the
Balance Sheet
Using the Trading, Profit and Loss account (or Income Statement), describe the performance of the
business
Using the Trading, Profit and Loss account (or Income Statement) and the Balance Sheet, calculate and
interpret accounting ratios.
Make comparison between different account balances at different time period, I.e., opening and closing
balances
Draw a graph or chart to show any two of total purchases verses sales; cash verses credit purchases or
sales, total expenses for the period, total assets, debtors verses creditors
Make two suggestions or recommendations based on the SBA Project

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22. Write up your SBA Project (using the computer to type your project is not compulsory. However, it is
encouraged for neatness and good presentation). Be sure to conclude. Conclusion must relate to the aims.

THE SBA
The SBA component of the exam is designed for students at registered centers, giving them the
opportunity to:
Gain partial marks/grade prior to sitting the exam.
Give the students the opportunity to be involved in hands on or some level of practical
accounting.
The SBA (Paper 3) gives the students up to a maximum of 40 marks. Paper 1- 60 marks; Paper 2 100
marks. Overall, the students can gain 20% (40/200) of their final score prior to sitting the
examination.
Private candidate (without a registered center) will have to sit an additional paper in place of the SBA.
The SBA requires students to be either engaged in:
the simulation of a business entity and recording of these simulated transactions, or
the actual operation of a small business venture.
Typically, the following business ventures are suitable:
Sole trader
Partnership
Limited company
Not for profit organization (clubs etc.)
Cooperative
Students should be able to record or document transactions for a given period, (e.g. one month, one
quarter), and then prepare the financials from these records, interpret these statements and make
recommendations.
Title page bearing the name of student, school, subject, registration number, center number and
date submitted
Table of contents content areas and page numbers corresponding to pages within the project
Aims of project

Name and Description of business

Accounting procedures and record kept
Simulated Transactions
Source Documents
Books of Original Entry
Three Column Cashbook
Ledger Accounts
Trial Balance

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Financial statements
Statement of Performance of the Business
Interpretation of Result
Suggestions/ Recommendations
Conclusion

Aims of project at least two aims are required. Aims must be related to accounting for example:
To simulate a set of accounting transactions and records for XYZ,
To complete the accounting cycle for XYZ
To keep proper accounting records for XYZ for the period October 1 31, 2012
To prepare the financial statements for XYZ,
To interpret the performance of XYZ for the period
Name of business and activities the name of the business operated or simulated must be clearly
stated together with its type (sole trader, partnership, etc.), and its activities described. The period of
operations must be clearly stated under activities!!!
Accounting procedures and records kept the procedures must be described together with the
various accounting records used (BOOE and Ledgers). The list of transactions must be presented
here.
Source documents Four different types are required as follows:
A Cash receipt
A Banking document (e.g., a cheque/counterfoil, a deposit slip, a withdrawal slip, a funds
transfer slip, a bank statement )
An Invoice Sales invoice or purchase invoice (purchase order is not considered to be a source
document)
Any other type such as a debit note, a credit note, a cash voucher, an internal memo.
Source documents must be correctly prepared and cross referenced to the transactions and entries in
the ledger accounts.
Only one of each type of source document is required.
Books of Original Entry Books used must be properly drawn up and the totals correctly posted to
their relevant accounts.
There must be evidence of at least one BOOE.
The books that can be used are the General, Sales, Purchases, Return Inwards and Return
Outwards Journals. (Also called the Day books).
The Cash book (or substituted by a cash or bank account) must be presented.
The Ledgers the ledger accounts must be clearly separated into Sales, Purchases and General
Ledgers. At least five Assets and Liabilities accounts, five revenue and expenses accounts, and a
Capital account should be included.

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Trial Balance the statements should be correctly headed (Trial balance as at) and balanced.
Hopefully, the totals should be in agreement.
Financial statements
Trading, Profit and Loss Account or Income statement correctly headed and shows
Revenues, Expenses and net profit or loss (net surplus or deficit)
Balance Sheet correctly headed and classified (Assets, Liabilities and Capital). Should be
presented in order of permanence or liquidity
Statement of performance A correct statement must be made based on the financial statements
and substantiated by figures e.g., the entity made a net profit of $12 000.
Interpretation of results
Ratios at least two different ratios (based on the financial statement), used and correctly
calculated. These ratios must also be interpreted (i.e., a statement saying what the ratio
means)
Comparisons at least two items used and compared at different time period. Examples
include:
o Capital at beginning and at the end of the period
o Stock value or stock count at the beginning and at the end of the period
o Cash balance at beginning and at the end of the period
o Sales values per week or each month
o Purchases value per week or month.
Any graphs, charts, diagrams drawn should be incorporated/presented within this section (or
wherever most is appropriate), for example, a pie-chart showing expenses, a graph showing sales and
purchases, etc.

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