Year of Examination: 2018
Name of Candidate: Angelias Gilbert
4029075158115Candidate Registration Number: 160070
School Centre Number: 160070
Name of School: St. Joseph’s College
Title of Project: An examination of Accounting done in a small business being operated at St. Joseph ‘s College.

Date Submitted:
Territory: Trinidad, West Indies
Name of Teacher: Mrs. N.Martinez138112616891000Score: Marks
Aims of Project:
The aims of the project that would be attended to be achieved are:
To have a better understanding on how accounting procedures are used and applied in a real business environment.

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To determine how to achieve maximum profitability by using the principle of accounts and data in the business.

Information About the Entity Operate:
Name of entity & Description of activities: –
The students of the form 4 business class have decided to invest in the operation of the school Tuck Shop, which offers stationery supplies and photocopying services. The venture is to raise funds for their Graduation activities which will be held next year. The class consist of 20 members who have each invested $400.00. The two teachers assisting have contributed $5000.00 each through the voting process, the business was named SJC Stationery Concept (S.S.C.).

S.S.C. operates from the CVQ room, situated on the first floor of the college. A monthly rental of $500.00 to be paid at the 1st of each month, was agreed upon.

The following assets were purchased:
Wooden shelving display & cabinets: $500.00
Lasko fan: $300.00
Computer and printer: $3500.00
A second had photocopier machine was donated by a parent. It was valued at $8000.00.

The Tuck Shop is operated under the general management of the 4B form teacher Mr.Persad. The accounting and financial aspects are supervised by Mrs.Martinez the principle of account teacher. The students are divided into four teams of five students each. Each team is assigned one of the following.

Inventory Control
Accounting
Equipment Maintenance
Sales
(See appendix 1 for organization chart)
Students would receive a stipend of $5.00 per hour for working and each student gets an opportunity to be involved, through assignment on a roister.

The business will open Monday to Friday during the following times.

6:30am to 7:30am (Before school starts)
10:00am to 10:20am
11:25am to 12:05pm
2:15pm to 4:00pm
Since the target market of this business in the staff and students of the college, the business will not open otherwise. Since there is a strict policy not to facilitate any sales or render any services during class time. It also means that much promotion is not required, so fliers posted in every classroom and strategically place around the school, form the advertising of the business.

Accounting procedures & Record kept
The accounting will be based on the steps of a simple accounting cycle. (See appendix 2 for diagram)
Invoices, credit notes, cheques, bank payment slip, cash receipts and petty cash vouchers are source documents used to prepare the books of original entry-journals, three-column-cash book and petty cash book. The data is then posted to the ledgers and accounts are balance at the end of each month, a trial balance is then extracted and final accounts are prepared.

All expenses under $100.00 are to be recorded as petty cash and 5% annual depreciation rate is to be applied on all fixed assets. Depreciation figures obtained are rounding off to the nearest dollar. The period under reviewed is May 1st to May 31st, 2017. The transaction for the month are listed in appendix 3.

Accounting Records
SJC Stationery Concept
General JournalPage 1
Date Details Folio Debit Credit 2017
May O1 Furniture and Fittings GL1 800 00 Machinery & Equipment GL1 11500 Appliances (fan) GL1 300 00 Capital GL1 12300 00
Being assets and liabilities at that date 12300
00 12300 00

SJC Stationery Concept
Sales JournalsPage 1
Month Day Details Folio Invoices
No. Subtotal Total 2017
May O9 St. Joseph Drama Group
Less 10% discount SL1 001 1850
185 00
00 1665 00
May 11 Form 3
Less 5% discount SL1 002 760
38 00
00 722 00
May 31 Transfer to Sales Account GL 2387 00

SJC Stationery Concept
Purchase Journals Page 1
Month Day Details Folio Invoices
No. Subtotal Total 2017
May O3 Boss Stationery
Less 5% discount PL1 001 1500
75
00
00
1425 00
May 15 John Dickenson Limited
Less 10% discount PL1 002 1350
135 00
00 1215 00
May 31 Transfer to Purchases Account GL 2640 00

SJC Stationery Concept
Returns Inwards Journals Page 1
Month Day Details Folio Credit Note
No.

Subtotal Total 2017
May 12 SJC Drama Group
Less 10% discount SL 1 N/001-1 200
20
00
180
00
May 31 Transfer to Return Inwards Account GL 180 00

SJC Stationery Concept
Returns outwards Journals Page 1
Month Day Details Folio Credit Note
No. Subtotal Total 2017
May 17 John Dickenson Limited
Less 10% discount PL 1 N/34 160
16 00
00 144 00
May 31 Transfer to Return Outwards Account GL 144 00

SJC Stationery Concept
Three Column Cash Book Page 1
Month
2017 Day Details Folio Discount
Allowed Cash Bank Month
2017 Day Details Folio Discount
Record Cash Bank
May 01 Capital GL1 9000 May 02 Bank (C) 6000 May 02 Cash (C) 6000 May 02 Petty Cash PCB1 200 May 08 Sales GL 10 190 May 02 Rent GL 500 May 08 Sales GL 45 May 03 Furniture & Fittings GL1 300
May 12 Cash (C) 2035 May 12 Bank (C) 2035 May 22 Form 3 SL1 400 May 15 Wages GL 200 May 25 Sales GL 54 621 May 16 Boss Stationery PL1 1000
May 27 SJC Drama Group SL1 400 May 30 Wages GL 200 May 31 64 10256 8435 May 31 Balance c/d 10256 1300
June 01 Balance b/d 1121 7135 -40006-371602100
SJC Stationery Concept
Petty Cash Journals Page 1
Cash
Received Date Details Folio Total
$ Travelling
$ Cleaning
$ Stationery
$ Voucher
No.

200 May
02 Cash CB1 May
03 Traveling
Expenses GL 10 10 01
May
03 Supplies GL 45 45 02
May
05 Cleaning Supplies GL 55 55 03
May
31 Balance c/d 110
90 10 55 45 200 200 90 June
01 Balance b/d

SJC Stationery Concept
General Ledger
Mon Day Details Folio $ € Mon Day Details Folio $ €
Capital A/C 2017
May 31 Balance c/d -74295317512300 00 2017
May 01 Balance b/d GJ1 12300 -57848519040000
May 01 Cash CB1 9000 00
21300 00 21300 00
June 01 Balance b/d 21300 Furniture & Fittings A/C 2017
May 01 Balance b/d GJ1 800 00 2017
May 31 Balance c/d 1100 00
May 03 Bank CB1 300 00 42354533718500 -5778557151100 00 1100 00
June 01 Balance b/d 1100 00 Machinery & Equipment
A/C 2017
May 01 Balance
b/d GJ1 11500 00 2017
May 31 Balance
c/d 11500 00
11500 00 -36195-435673400 11500 00
June 01 Balance 11500 00 Rent A/C 2017
May 02 Cash CB1 500 00 2017
May 31 Balance
c/d 500 00
500 00 500 00
June 01 Balance 500 00 Travelling Expenses A/C 2017
May 03 Petty
Cash PCB1 10 00 2017
May 31 Balance c/d 10 00
10 00 -36195-66674900 10 00
June 01 Balance
b/d 10 00 Stationery Supplies
A/C 2017
May 03 Petty
Cash PCB1 45 00 2017
May 31 Balance
c/d 45 00
45 00 45 00
June 01 Balance
b/d 45 00 Sales A/C May 31 Balance
c/d 3243 00 2017
May 08 Cash CB1 200 00
May 08 Cash CB1 45 00
May 25 Cash CB1 675 00
May 30 Total
Credit Sales SJ1 2387 00
3307 00 3307 00
June 01 Balance b/d 3248 00
Wages A/C 2017
May 15 Cash CB1 200 00 2017
May 31 Balance
c/d 400 00
May 30 Cash CB1 200 00 400 00 400 00
June 01 Balance
b/d 400 00 Cleaning Supplies A/C 2017
May 22 Petty
Cash PCB1 55 00 2017
May 31 Balance
c/d 55 00
June 01 Balance
b/d 55 00 Purchases A/C 2017
May 30 Total
Purchases
Credit PJ1 2460 00 2017
May 31 Trading
A/C 2460 00
June 31 Balance
b/d 2640 00 -36195-82105400 Returns Inwards A/C May 30 Total
Returns RIJ1 180 00 2017
May 31 Trading
A/C 180 00
June 01 Balance
b/d 180 00 Returns Outwards
A/C 2017
May 31 Trading
A/C 144 00 2017
May 31 Total
Returns ROJ
1 144 00
June 01 Balance
b/d 144 00
Discount Allowed
A/C 2017
May 31 Total
Discounts CB1 64 00 2017
May 31 Profit &
Loss A/C 64 00
June 01 Balance
b/d 64 00 Depreciation Expense A/C 2017
May 31 Furniture
& Fittings JL1 5 00 May 31 Profit &
Loss
53 00
May 31 Machinery
& Equipment JL1 48 00 53 00 53 00
June 01 Balance
b/d 53 00 Provision for Depreciation
A/C May 31 Balance c/d 53 00 2017
May 31 Furniture
& Fittings 5 00
May 31 Machinery
&
Equipment 48 00
53 00 53 00
June 01 Balance b/d 53 00
3105150-666750
SJC Stationery Concept
Sales Ledger
Mon Day Details Folio $ € Mon Day Details Folio $ €
SJC Drama Group A/C 2017
May 09 Sales SJ1 1665 00 2017
May 12 Returns
Inwards RIJ1 180 00
May 27 Cash CB1 400 00
May 31 Balance c/d 1085 00
-74930101601665 00 -495301015901665 00
June 01 Balance b/d 1085 00 Form 3 A/C 2017
May 11 Sales SJ1 722 00 2017
May 22 Bank CB1 400 00
May 31 Balance c/d 322 00
-762006985722 00 -793756985722 00
June 01 Balance b/d 322 00 -42545-370586000 SJC Stationery Concept
Purchases Ledger
Mon Day Details Folio $ € Mon Day Details Folio $ €
Boss Stationery A/C 2017
May 16 Bank CB1 1000 00 2017
May 04 Purchases PJ1 1425 00
May 31 Balance
c/d -6667535750400425 00 1425 00 -1352558255001425 00
June 01 Balance b/d 425 00
John Dickenson
A/C 2017
May 17 Returns
Outwards ROJ1 144 00 2017
May 15 Purchases PJ1 1215 00
May 31 Balance c/d 1071 00 -1009653810001215 00 -844552541001215 00
June 01 Balance
b/d 1071 00
-42545-370586000
SJC Stationery Concept
Trial Balance
Debit $ Credit $
Capital 21300
Furniture & Fittings 1100 Machinery & Equipment 11500 Rent 500 Traveling Expenses 10 Stationery Supplies 45 Sales 3307
Wages 400 Cleaning Supplies 55 Purchases 2640 Returns Inwards 180 Returns Outwards 144
Discount Allowed 64 Depreciation Expenses 53 Provision for Depreciation 53
Debtors 1407 Creditors 1496
Cash 1121 Bank 7135 Petty Cash 90 Total 26300 26300

SJC Stationery Concept
Income Statement for the year ending 31st May 2017.

$ $ $
Sales 3307 Less: Return Outwards 180 Net Sales -68580-635 3127
Less: Cost of Goods Sold Opening Stock 0 Add: Purchases 2640 Carriage Inwards 0 Gross Purchases -590551270002640 Less: Returns Outwards 144 Net Purchases -69850698500 -984251689102496 Cost of Goods Available for Sale 2496 Less: Closing Stock -889001682750 Cost of Goods Sold 1360170165100 2496
Gross Profit 631
Add: Revenue Items Total Revenue Items 631
Less: Expenses -5080011430
Stationery Supplies 45 Rent 500 Travelling Expenses 10 Wages 400 Cleaning Supplies 55 Discount Allowed 64 Depreciation Expense 53 Total Expenses -793758890 1127
Net Loss -97155635000496

SJC Stationery Concept
Balance Sheet as at 31st May 2017.

Cost $ Accumulated Depreciation $ Net Book Value
$
Fixed Assets Machinery & Equipment 11500 48 11452
Furniture & Fittings 1100 -1421131168274005 1095
Total Fixed Assets 12600 53 12547
Current Assets Stock 0 Debtors 1407 Less: Provision for bad debts 0 1407 Bank -69215889000 7135 Cash 1121 Petty Cash 1303019172720 90 Total Current Assets 9753 Less: Current Liabilities Creditors 1496 Total Current Liabilities -64135190500 1496 Working Capital -55880253900130302018605400 8257
-114300107950020804
Less: Long-Term Liabilities -590551866890 Total Long-Term Liabilities 0
-59055762020804
Financed By: Capital 21300
Less: Net Loss -685801644650496
20804
Less: Drawings 0
Capital at Close -7747031750020804
Report – Statement of Performance
Businesses exist to make money not to lose it. In that case SJC Stationery Concept (S.S.C.) didn’t do so well, the business made a loss of $496.00 for the month since opening.

Two ratios are:
Net profit to sales %: Profitability
NP x 100= % $496 x 100= 15%
Sales 1 3307 1
This is the profitability ratio. It shows the business made a loss of 15% which isn’t that good according to industry standards.
Current (or working capital ratio): Liquidity

Current Assets = X: 1 9753 = 7:1
Current Liabilities 1496
This is the liquidity ratio. It shows the business is holding too much assets an therefore not in a good liquidity position. The ideal current ratio should be 1.5:1 or between 2:1 & 1:1.

Comparison of Results

Appendix 1- Organization Chart

Appendix 2- Diagram of The Accounting Cycle

Appendix 3- List of Monthly Transactions
May 2017
May 1 Started business with cash contributed to members $9000.

May 2 Opened a bank account and deposited $6000 cash.

Give $200 to the petty cashier for the petty cash float.

Paid the first month’s rent by cash
May 3 Purchased another fan from IAM by cheque $300.

Paid $10 travelling to obtain supplies which amounted to $45.00
May 4 Placed an order for immediate delivery from Boss Stationery Supplies Limited $1500. Received 5% trade discount; 30 days credit applies.

May 8 Sold to Form 2T supplies for cash $200. Photocopies for 5B – $45 cash.

May 9 Credit sales to St. Joseph Drama Group $850 less 10% discount
May 11 Offered Form 3 a 5% discount on credit sale of stationary and fliers valued $760.

May 12 SJC Drama Group returned $200 worth of fliers which were not colored copies as, requested. Deposited cash into bank, keeping $500 in hand.

May 15 Purchased goods from John Dickenson Limited $1350 on credit, 10% trade discount. Paid wages by cash $200.

May 16 Paid Boss Stationery $1000 by cheque on their account.

May 17 Returned goods, valued $160 to John Dickenson Limited because the items received were incorrect.

May 22 Received $400 cheque from Form 3.

May 25 Cash sales $675
May 27 Received $400 cash from SJC Drama Group.

May 30 Paid wages by cash $500.

Appendix 4:
College Tech Services
Income Statement
as at March 31st, 2016
$ $ $
Sales 39100
Less: Cost of goods sold Opening Stock 46500 Add: Purchases 28070 Carriage Inwards -7874017018000300 28 370 Less: Returns Outwards 800 Net Purchases 107442019176900-69850571500 27570 Cost of Good Available for Sale 74070 Less: Closing Stock 67800 Cost of Goods for Sold -88900635000 6270
Gross Income/ Profit -4953031750032830
Add: Revenue Items: Discount Received 400
-98425101600033230
Less Expenses: Salaries/ Wages 10800 Add: Accrual 600 11400 Insurance 1600 Less Prepayment 400 1200 Electricity 850 Add: Accrual 200 1050 Rent 3000 Discount Allowed 1500 Increase in provision for bad debts 323 Depreciation: Motor Vehicle 1100 Equipment 640 Furniture ; Fittings 78 1818 Total Expenses 20291
Net Income/ Profit 12939

Appendix 5:
College Tech Services
Balance Sheet
as at March 31st, 2016

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