Sba on Someone's Business

Topics: Balance sheet, Bookkeeping, Generally Accepted Accounting Principles Pages: 8 (1207 words) Published: February 24, 2013
Principles of Accounts
Principles of Accounts

School Based Assessment
School Based Assessment

Student Name: Colin Williams
Candidate Number:
Centre Number:
Name of Subject:Principles of Accounts
Name of School: St Jago High
Teacher’s Name:Mr Burton
Date Submitted:22/2/2013
This school based assessment is based on a sole trader entrepreneur, Sidnay Bingham, who owns and operates a business that makes and sells durable umbrella for kids. It was located at an unoccupied room at the back of her house where she employed two persons. Entries were recorded in Ledgers, Journals and Cash Book. There was a preparation of a Manufacturing, Trading and Profit and Loss Account and the extraction and draft of a Balance Sheet and Trial Balance for the month. Receipts, Invoices, Bank Document, Debit and Credit note were also written up. A minimum of four accounting ratios were calculated and comments were made on the performance using charts. Recommendations were also made. All entries were made on the month of May.


I want to thank everyone who helped me to put this school based assessment together. Firstly I want to thank Mr Burton for giving me this School Based Assessment which gave me experience on setting up a real business and how to account for every transaction that goes on in the business. Also I want to thank my friends and family who helped me to gather the data. Finally I want to thank God for giving me the strength to do this project.

Table of Contents
Aim of Project1
Aim of Business2
Description of Business3
General Ledger5
Sales Ledger7
Purchases Ledger7
General Journal9
Purchases Journal9
Sales Journal9
Return Inwards Journal9
Cash Book10
Trial Balance12
Final Accounts14
Manufacturing, Trading and Profit and Loss Account15
Balance Sheet15
Accounting Ratios16
Comment on the Business18
Performance of the Business19
Table of Contents (Cont’d)
Price List25
Sales Invoice26
Purchases Invoice27
Credit Note28
Copy of the SBA Exercise31
Mark Scheme32

Aim of Project
This School Based Assessment is about a business that makes and sells durable umbrellas for kids. It is owned and operated by Sidnay Bingham, This School Based Assessment has many aims. These are to satisfy the requirements of Caribbean Examination Council and to obtain experience in actual accounting procedures such as Ledgers, Journals, Cash Book and more. Also to prepare final accounts and to enter the transaction that occurred in the month of May in the appropriate books.

Aim of Business
The aim of Sidnay’s Business is to make a profit and to use the necessary documents, procedures and systems to have a proper book keeping. Another aim is to supply goods and services to the customers and also manufacture goods in order to make a profit.

Description of Business
Sidnay Bingham operates an umbrella business located at an unoccupied room at the back of her house. The business makes and sells umbrella on credit as well as cash. The business is engaged in a tertiary production and is currently operating on the basic level of production, this means that it sell finish products and sell locally in the country.



cash book
cash book

trial balance
trial balance

final accounts
final accounts

accounting ratios
accounting ratios

Accounting Ratios of Sidnay Bingham
1. Gross Profit as Percentage of Sales
Gross Profit * 100 =
101405 * 100 = 56.3%
This ratio is used as a test of the profitability of sales. Sidnay Bingham’s gross profit ratio shows for every $100 sales the business measure $56.30 worth of profit.

2. Expense to Turn Over Ratio
Total Expenses * 100 =

Bibliography: * Dr. Alan Whitcomb with Macpherson Barnes, Essential Principles of Business for CSEC. 3rd Edition © 2006
* Frank Wood and Sheila Robinson, Principles of Accounts for the Caribbean. 4th Edition © 2000
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