School-based Assessment

Year: 2017

CXC
Candidates Name: Jayanti Ram
Candidate Number: 0901000612
Subject: Principles of Accounts
School: Saraswati Vidya Niketan
Centre Number: 090100612
Teacher: Edward Basdeo

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Table of Contents
Acknowledgement 1
Introduction 2
Aims of project 3
Description of Business 4
Organizational Chart 5
Records of the business 6
Specified period under review started 7
Accounting Transactions 8-9
Books of Original Entry
General Journal 10
Purchases Journal 11
Sales Journal 12
Return Outwards Journal 13
Return Inwards Journal 14
Three-Column Cash Book 15
Ledgers
General Ledger 16-19
Sales Ledger 20
Purchase Ledger 21
Trial Balance 22
Financial Statements
Trading and Profit/Loss account 23
Balance Sheet 24
Statement about the performance of the business 25-26
Ratio Analysis 27
Comparisons______________________________________________________ 28
Recommendations 29
Conclusions 30
Appendix
Cash receipt 32
Cheque 33
Sales Invoice 34
Credit Note 35
Items sold 36

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 Acknowledgement

The researcher would like to extend the greatest gratitude to the following persons who
made this School-Based Assessment project successful.
The researcher would like to thank the subject teacher for his patience, time, guidance
and cooperation in order for the complete understanding of this project.
Gratitude is also extended to the parents who helped in the financial needs for the overall
completion of the project.
Finally, the researcher would like to thank her peers and other persons who helped in
some way or the other to make this SBA a success

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Introduction

The researcher is conducting a School-Based Assessment for the subject of Principles of

Accounts; the research is based on a simulated business called Electro Tech. This business is
located in Lileendhal, Charlestown. It is a sole trader business in which its nature is involved in
the selling of retail items such as cell phones, electronic tablets, computers, laptops, etc. of
various brands.
In this project, it consists of various accounts. They include the accounting transactions,
journals, ledgers, trial balance, final accounts, etc. for Electro Tech for the period of June 1st,
2016 to August 31st, 2016.

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Aims of the project

The aims are as follows:

To be knowledgeable of record keeping

To fully understand the concept of how to keep proper records for the business.
To prepare the books or original entry accurately for Electro Tech for the period of June
1st, 2016 to August 31st, 2016.

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Description of the Business

The name of the establishment is Electro Tech. It is located at Lileenadhal, Charlestown. It is a

sole tradership business that deals mainly in the sale of retail items. Items such as cell phones,
laptops, computers, tablets, etc. these items are electronic in nature and there are various brands
to choose from like SAMSUNG or Apple. They are sold at the researchers establishment at
attractive and affordable prices of substantial quality that is worth the value of your money.

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Organizational Chart

General
Manager

Marketing Finance Sales

Workers Workers Personnel

DIAGRAM OF THE ORGANIZATIONAL CHART OF ELECTRO - TECH

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Records of the Business

The following are records maintained by the business:

Books of Original Entry
Ledgers
Trial Balance
Financial Statements

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Specified period under review stated

The researcher carried out this investigation from June 1st, 2016 to August 31st, 2016.

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Accounting Transactions

Below is a summary of accounting transactions for the period of June 1st, 2016 to August 31st,
2016.

June 1 Stock at cost $ 46,600

Furniture $ 15,000
Vehicles $ 8,000
Debtors: J. Banks $ 5,800
C.Pauls $ 6,000
Cash in hand $19,900
Cash in bank $19,000
Creditors: M.Marks $10,400
J.Balvin $5,600
Loan $16,000
2 Credit purchases from K.Vans $32,000
5 Cash sales $28,000
9 Deposited cash into bank $43,000
14 Cash purchases valued $27,000
23 Paid salaries by cheque $22,500
26 Goods returned by C.Pauls $2,700
30 Purchased goods on credit $29,000
from M.Benz

July 3 Credit sales to D.De Agrella $15,000

8 Cash sales $28,000
16 Withdrew cash from office for private $18,000
use.
18 Received from J.Banks cash $2,800
20 Paid insurance by cheque $1,000
21 Paid rent by cheque $2,000
23 Withdrew from bank for office use $7,000

August 3 Repaid loan in part by cheque $12,000

13 Cash sales $55,000
14 Paid electricity by cash $14,000
17 Credit sales to Paulina $29,000
20 Received from D. De Agrella by cheque $13,000

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Discount Allowed $1,000

21 Paid telephone by cheque $10,000
24 Goods returned by Paulina valued $1,280
26 Received from Paulina by cash $3,000
28 Paid K.Vans by cheque $20,000
29 Returned goods to M.Benz $8,000

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Books of Original Entry

General Journal

Electro Tech
General Journal
Date Details L/F Dr Cr
$ $
2016 Furniture G.L 15,000
June 1st Vehicles G.L 8,000
Stock G.L 46,600
Debtors:
- J.Banks S.L 5,800
- C.Pauls S.L 6,000
Creditors:
- M.Marks P.L 10,400
- J.Balvin P.L 5,600
Cash C.B 19,900
Bank C.B 19,000
Loan G.L 16,000
Capital G.L 88,300
120,300 120,300
Being opening assets and liabilities

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Purchases Journal

Electro - Tech
Purchase Journal
Date Details Invoice L/F Amount
$
2016
June 2 K.Vans 001 P.L 1 32,000
30 M.Benz 002 P.L 2 29,000
August 31 Transferred to purchase A/c G.L 4 61,000

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Sales Journal

Electro Tech
Sales Journal
Date Details Invoice L/F Amount
$
2016
July 3 D. De Agrella 100 S.L 2 15,000
August 17 Paulina 101 S.L 2 29,000
August 31 Transferred to sales A/c G.L 4 44,000

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Return Outwards Journal

Electro Tech
Return Outwards Journal
Date Details Credit L/F Amount
Note $
2016
August 29 M.Benz 200 P.L 3 8,000
August 31 Transferred to return outwards A/c G.L 4 8,000

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Return Inwards Journal

Electro Tech
Return Inwards Journal
Date Details Debit L/F Amount
Note $
2016
June C.Pauls 300 S.L 2 2,700
26
August Paulina 301 S.L 4 1,280
24
August 31 Transferred to returns inwards A/c G.L 4 3,980

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Three-Column Cash Book

Electro - Tech
Dr Three- Column Cash Book Cr
Date Details L/ Disct Cash Bank Date Details L/ Disct Cash Bank
F All. $ $ F Rec. $ $
2016 2016
Jun 1 Bal b/f 19900 19000 Jun 9 Bank C 43000
5 Sales 28000 14 Purchases 27000
9 Cash C 43000 23 Salaries 22500
Jul 8 Sales 28000 Jul 16 Drawings 18000
18 J.Banks 2800 20 Insurance 1000
23 Bank C 7000 21 Rent 2000
Aug Sales 55000 23 Cash C 7000
13
20D.De 1000 Aug 3 Loan 12000
Agrella 13000
26 Paulina 3000 14 Electricity 14000
21 Tel/phone 10000
28 K.Vans 20000
31 Bal c/d 41700 500
143,700 75,000 143,700 75,000
2016
Sep 1 Bal b/d 41700 500

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Ledgers
General Ledger

Electro Tech
General Ledger
Dr. Stock A/c Cr.
Date Details L/F Amount Date Details L/F Amount
$ $
2016
Jun 1 Bal b/f 46,000

Dr. Furniture A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016
Jun 1 Bal b/f 15,000

Dr. Vehicle A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016
Jun 1 Bal b/f 8,000

Dr. Loan A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Aug 3 Bank 12,000 Jun 1 Bal b/f 16,000
31 Bal c/d 4,000
16,000 16,000
Sep 1 Bal b/d 4,000

Dr. Capital A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016
Jun 1 Bal b/f 88,300

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Dr. Sales A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Aug 31 Trading A/c 155,000 Jun 5 Cash 28,000
Jul 3 D. De Agrella 15,000
Jul 8 Cash 28,000
Aug 13 Cash 55,000
Aug 19 Paulina 29,000
155,000 155,000

Dr. Purchases A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jun 2 K.Vans 32,000 Aug 31 Trading A/c 88,000
14 Cash 27,000
30 M.Benz 29,000
88,000 88,000

Dr. Drawings A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016
Jul 16 Cash 18,000

Dr. Salaries A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jun 23 Bank 22,500 Aug 31 Profit/Loss A/c 22,500

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Dr. Insurance A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jul 20 Bank 1000 Aug 31 Profit/Loss A/c 1000

Dr. Electricity A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jul 14 Cash 14000 Aug 31 Profit/Loss A/c 14000

Dr. Telephone A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Aug 21 Bank 10000 Aug 31 Profit/Loss A/c 10000

Dr. Rent A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jul 21 Bank 2000 Aug 31 Profit/Loss A/c 2000

Dr. Return Inwards A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jul C.Pauls 2,700 Aug 31 Trading A/c 3,980
26
Aug 24 Paulina 1,280
3,980 3,980

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Dr. Return Outwards A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Aug 31 Trading A/c 8,000 Aug 29 M.Benz 8,000

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Sales Ledger

Electro Tech
Sales Ledger
Dr. J. Banks A/c Cr.
Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jun 1 Bal b/f 5,800 Jul 18 Cash 2,800
Aug 31 Bal c/d 3,000
5,800 5,800
Sep Bal b/d 3,000
Dr. C.Pauls A/c Cr.
Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jul 1 Bal b/f 6,000 Jun 26 Return Inwards 2,700
Aug 31 Bal c/d 3,300
6,000 6,000
Sep 1 Bal b/d 3,300
Dr. D.De Agrella A/c Cr.
Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Jul 3 Sales 15,000 Aug 20 Bank 13,000
Aug 20 Discount Allowed 1,000
Aug 31 Bal c/d 1,000
15,000 15,000
Sep 1 Bal b/d 1,000
Dr. Paulina A/c Cr.
Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Aug 17 Sales 29,000 Aug 24 Return Inwards 1,280
Aug 26 Cash 3,000
Aug 31 Bal c/d 24,720
29,000 29,000
Sep 1 Bal b/d 24,720

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Purchases Ledger

Electro Tech
Purchases Ledger

Dr. M.Marks A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016
Jun 1 Bal b/f 10,400

Dr. J.Balvin A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016
Jun 1 Bal b/f 5,600

Dr. K.Vans A/c Cr.

Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Aug 28 Bank 20,000 Jun 2 Purchases 32,000
Aug 31 Bal c/d 12,000
32,000 32,000
Sep 1 Bal b/d 12,000
Dr. M.Benz A/c Cr.
Date Details L/F Amount Date Details L/F Amount
$ $
2016 2016
Aug 29 Return Outwards 8,000 Jun 30 Purchases 29,000
Aug 31 Bal c/d 21,000
29,000 29,000
Sep 1 Bal b/d 21,000

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Trial Balance

Dr Cr
$ $
Sales 155,000
Purchases 88,000
Creditors 49,000
Debtors 32,020
Cash 41,700
Bank 500
Stock 46,600
Discount Allowed 1,000
Return Outwards 8,000
Return Inwards 3,980
Furniture 15,000
Vehicles 8000
Loan 4,000
Salaries 22,500
Drawings 18,000
Insurance 1,000
Telephone 10,000
Rent 2,000
Electricity 14,000
Capital 88,300

304,300 304,300

N.B Closing Stock = $ 50,000

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Financial Statements
Trading, Profit/Loss Account

Electro Tech
Trading, Profit/Loss A/c
For the period ended Aug 31, 2016

Dr Cr
$ $
Sales 155,000
Less Return Inwards 3,980
Net Sales 151,020
Less cost of sales

Opening Stock 46,600

Purchases 88,000
Cost of goods available 134,600
Less return outwards 8,000
Net Purchases 126,600
Less closing stock 50,000
Cost of goods sold 76,600
Gross Profit 74,420
LESS EXPENSES
Salaries 22,500
Discount Allowed 1,000
Insurance 1,000
Telephone 10,000
Rent 2,000
Electricity 14,000
50,500
NET PROFIT 23,920

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Balance Sheet

Electro Tech
Balance Sheet
As at August 31, 2016
$ $
CAPITAL EMPLOYED
FIXED ASSETS
Vehicles 8,000
Furniture 15,000
23,000

CURENT ASSETS
Closing Stock 50,000
Debtors 32,020
Cash at Bank 500
Cash at hand 42,700
124,220

LESS CURRENT LIABILITIES

Creditors 49,000
Working Capital 75,220
98,220
FINANCED BY:
Capital 88,300
Add Net Profit 23,920
112,220
Less Drawings 18,000
94,220
LESS LONG-TERM LIABILITIES
Loan 4,000
98,220

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Statement about the performance of the business

The business has performed well in this period of three months. The performance was
determined by the Trading/Profit & loss account. The business had earned a profit of $23,920
which was proof that the business operations were good. However, this amount of profit could
have been higher but cost of expenses was high. The gross profit was $ 74,420 and the total
expenses were $50,000. So in order for the business to be more profitable, the cost of expenses
should be decreased. Also the balance sheet showed that the business has assets that worth
enough to repay its liabilities. The total assets were worth $147,220 whereas the total liabilities
were worth $53,000. The following graphs below demonstrate the comparisons.

Pie Chart showing the value of gross profit vs the

value of expenses

40%
60% Gross Profit
Expenses

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Bar Chart showing the the value of the assets vs the

value of the liabilities

Liabilities

Assets

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000

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Ratio Analysis
Profitability Ratio
(Profit Margin)

Gross profit expressed as a percentage of sales = Gross profit 100

Net Sales
= $74,420 100
$151,020
= 49.3

The profitability ratio is utilized as a test of the profitability of sales made for the period. It
measures the earning capacity of the business based on the amount of sales made. The profit
gained for each dollar of the sales made is expressed as a percentage. It means that for each
dollar made there was a profit of 49 cents which exhibited the performance of the business and
how profitable it was for that period.

Liquidity Ratio
(Current Ratio)

Current ratio = Current assets

Current liabilities
= $124,220
$49,220
= 2.5:1

The liquidity ratio or the current ratio compares the current assets which will become liquid
within the period of a year with the current liabilities that will be due for payment in the same
period. This ratio measures the capacity of the business to pay its debt when they are full due.
This ratio of 2.5:1 shows that for each dollar of current liabilities it is supported by $2.50 quick
assets. This proves to the business that it is in a good financial position to repay its short-term
liabilities.

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Comparisons

Beginning with End

The opening debtors were amounted to $11,800 whereas the closing debtors were
amounted to $32,020.

The opening creditors were amounted to $16,000 whereas the closing creditors were
amounted to $49,000.

The opening cash was amounted to $19,900 whereas the closing cash was amounted to
$41,700.

The opening bank was amounted to $19,000 whereas the closing bank was amounted to
$500.

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Recommendations

After the investigation was carried out, the following were recommended for the improvement of
the business:

The business should try its best to minimize its expenses since it has a high total of
$50,500 when gross profit was amounted to $74,420.
The business should also have advertisements on all media forms in order to showcase
their products that are for sale.
The business should have sales promotion strategies in order to boost sales and profit by
attracting customers to purchase products.

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Conclusion

In the preparation of the books for Electro Tech the researcher has achieved the
objectives that were laid out.
The researcher now possesses sufficient knowledge and understanding of the concept of
account and can handle the challenges of accounting when it comes to record- keeping. The
researcher is now aware of the preparation of source documents and transactions based on the
basic skill acquired in Principles of Accounts. Knowledge was also gained in the use of ratios to
determine whether the business is profitable and worthwhile or not.

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Appendix

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Source Documents
Cash Receipt

Electro Tech Receipt Number: ___0000345___

Lileenadhal, Charlestown Date: ____2016-08-28___

Cash Receipt
Received From D.De Agrella the amount of $ 13,000____
For____purchases of Samsung tablet_________________.
Cash
Current Balance: __$ 0.00__________ Cheque
Payment Amount: $13,000________ Money Order
Balance Due: ___-------------_________
Received By: Chelsea Valencia

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Cheque

Republic Bank 28th August 20 16

Georgetown, Guyana.

Pay __________________K.Vans_______________________________________
$20,000
_____________Twenty thousand dollars_______________________
____________________________________________________________
100178 50 - 37 - 05 563568642 Makayla Agrella

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Sales Invoice

SALES INVOICE
Electro Tech
Lileenadhal, Charlestown
Date: 2016-07-03
Invoice Number: 00123
To: D. De Agrella
Lot 4196 Tuschen New Housing Scheme
East Bank Essequibo

Order No. 0021

Quantity Details Unit price ($) Total ($0

1 Blu 456 Cell phone 15,000 15,000

Gross Invoice: $15,000

Less Discount Allowed: $1000
Net Invoice: $14,000

Delivery Address:
Lot 4196 Tuschen New Housing Scheme
East Bank Essequibo.

E & OE

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Credit Note

CREDIT NOTE
Electro Tech
Lileenadhal, Charlestown
Date: 2016-08-17
Credit Number: 00675
To: Paulina
Lot 6784 Horizon New Housing Scheme
East Bank Demerara

Credit against Order No. 0025

Quantity Details Unit price ($) Total ($0

To adjust Hin123 Item 1,
being unit overbilled at
$5000 each instead of
$4000
1 Blu 456 Cell phone 15,000 15,000

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Items sold at Electro Tech

Apple Products

Samsung Products

LG Products
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