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Aim
The aim is to prepare the financial statements for a business entity. We chose the schools
canteen for two reasons:
1. Its location is convenient.

2. It requires double entry book keeping, ledgers and final accounts in order to calculate
an accurate profit figure.

Description of the Business

The canteen started in 1991 when the school was only a Junior Secondary School with 300
students. When the school canteen became a full secondary school in 1991 the population
increased from 300 to 500 over two years. A canteen was required to feed this number of
students plus 30 teachers.
There are six suppliers to the canteen. SMJ provides soft drinks, Greens and Savemart
provide Grocery items, W&L Brewerys supply malts and fruit drinks and Holiday Snacks
provide snacks. The canteen prepares snacks and meals and a range of drinks to the students
and teachers on a daily basis.
The canteen was run by a committee of teachers. They decided on what is to be sold in the
canteen and the prices to charge. They sold a variety of snacks, food items and drinks.
The canteens opening hours from Monday to Friday included:
7:30 a.m.-8:15 a.m. for the breakfast, 10:30 a.m.-10:50 a.m. for break, 12:10 p.m.-12:50 p.m.
for lunch and 2:50p.m.-4:30p.m. for students who were attending extra lessons.

Relevant Information
1. Where did you get the sales, purchases and purchase returns information?
The school bursar was questioned for the information on sales, purchases and
purchase returns.
2. Where did you go to get canteen information?
The canteen manager was questioned for details about the running of the school
canteen.
3. Some expenses had to be estimated for example water and electricity.
The water and electricity are on the same meter as the school. Gas is shared with the
Food and Nutrition Department General Expenses are given at $10 per day for
incidentals.

Source Documents
1. Purchase Invoice
Purchase Invoice

Invoice: 14738
Date:24th April 2015

Holiday Snacks Limited

Code

Product

Size

Quantity

Price($)

Values ($)

0100

Chips

24x30g

4.80

9.60

0210

Chocolate

24x38g

8.10

16.20

0215

Peanuts

24x34g

9.60

19.20

Total

45.00

2. Receipt
Sales Receipt
Date : 1st April 2015
Vieux-Fort Comprehensive Secondary School
Canteen
Items

Price($)

1 Hamburger sandwich
1 Fruita Box Juice
Total

3.00
2:50
5:50

3. Bank Deposit Slip

Bank Deposit Slip
Bank of Saint Lucia
Vieux-Fort Branch
Vieux-Fort Comprehensive Secondary School
A/c No. : 151773478
Date: 29th April,2015
Notes
16x5
8x10
22x20
12x50
14x100
Coins

Total($)
80.00
80.00
440.00
600.00
1400.00
223.24

Total

2823.24

4. Credit Note
Credit Note
SMJ Beverages Vieux-Fort
Saint Lucia
Date: 24th April 2015
To:
Vieux-Fort Comprehensive Secondary School
1 c/s of Busta Soft Drink
$25.00
(Damaged)
Total: $25.00

Review Period
The accounts for the school canteen were prepared for the period of 1st April to 30th April. The
Journals, Ledgers and the Final Accounts were prepared for a four week period so that
meaningful comparisons can be made.