N.E.C.S Snack Resort Trial Balance As at 01 st October 2010 Drawings 300 Sales 8003 Purchases 3025 Wages 1560 gas 110 Capital 2625 Rent 30 Bad debt 20.35 Transportation-in 240 Cash 2024.5 Bank 3100 Interest received 1.85 Depreciation 14.17 M. Luke 630 Mini-stove 835.83 11259.85 11259.85
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The name of this business is the N.E.C.S Snack Resort. It is located at thecentre of the North East Comprehensive School round about. A tent is granted by thevillage council for free (at no cost).The business began with 11 members. Then 4 more members joined which added upto 15 members which were all students of the North East Comprehensive School. It’sa clear, beautiful and clean surrounding just good enough for the business location.Each student will be making a contribution of $25; each parent will match theamount, the business departments of the school will double the amount of the parents.We deposited two amounts of money into the bank which was $225 and $2400 which
The business employed two (2) permanent workers which will be the cooks. They will be paid $20 per day. These employees will be expected to work from 7:00.a.m till4:30.p.m.
We provided paleau, water and local juices because we don’t want to compete withthe existing canteen. The N.E.C.S Snack Resort will be catering mainly for thestudents who live far from school like Carib Territory, Calibishie and Portsmouth,Also for students with extra afternoon class, teachers who work late, the auxiliarystaff and workers on the new building. Hours of operation will be very vital. The
business will be opened and ready for business from 10.a.m to 4:30.p.m.The N.E.C.S Snack Resort are members of the Schools Savings Union. On the 22 nd of
November a $3000 deposited was made into the Snack Resorts Account.All cooking utensils will be rented to us by the F&N department at a small fee of $15
per month. Students will be helping on a rotational basis both in kitchen and the sale
of items. A rooster for students was kept and the daily inventory on beginning an endof the day. Everyday 40 plates of paleau and 2 buckets of local juice would be
prepared on 3 days. These Days are the days when the Snack Resort will be opening.These days are Mondays, Wednesdays and Fridays. Therefore a scrap book will beused to take records/ daily transactions, from there all students will be accessing thereinformation. A mini- stove was also purchased on credit from M. Luke with a fee of 850. Credit policies will only be allowed for teachers and auxiliary staffs. That’s
because they are the only one’s who work and get a salary at the end of the month. Sothey can pay for there debts.
This Principles of Accounts School Base Assessment is a requirement for the 2011CSEC examination. And by successfully completing it, it will help in obtaining agood grade at CXC.
It can also help to gain first hand knowledge of accounting concept andrecords keeping which will serve as future references in the working world.
It also gives the candidates an opportunity to experience the daily transactionsand to partake in efficient record keeping for the business. And in so doing itassists in improving the accounting skills and liabilities of the candidates.
The performance of the business is solvent. That’s because it made a $3325 amount of profit. It ideal purpose for existing made it competent being the sole provider for theitems it offered and the time at which the items was being offered. This business is
performing tremendously that's mostly because of the hard working employees andthe goods provided are of good taste and high standard. As a result of this the businessis making a profit. The business was left with stock on hand of $320 at the end of theyear ended November 30th 2010.
individual customer accounts, their totals are posted to the ledger as a debit toaccounts receivable and as a credit to sales.
Closing Entries: These are the final bookkeeping entries made at the end of anaccounting period to reduce all nominal (temporary) accounts to zero. It was used
to transfer the balances of the sales and purchase journal and the depreciation of fixed assets to the trading and profit and loss account. Cash was used throughoutthe business so these were recorded in the cash book. And drawings aretransferred to the owners' capital account.
1. Posting to the Ledger : Where you write up the entries into the ledger from the balance sheet.
2. Trial Balance : In double entry bookkeeping, aggregate of all debit and credit balances at the end of an accounting period that:
(1) Shows if the general ledger is in balance (total debits equal total credits)
before making closing entries.(2) Serves as a worksheet for making closing entries.
(3) Provides the basis for making draft financial statements.
3. Final Account : Accounts made up only at the end of a firm's financial year .The final accounts consist of the Trading account, profit and loss account, andProfit and loss appropriation account. These accounts together help to generatethe gross profit.
Liquidity analysis ratio
1. Current ratio or working capital ratio
Current AssetsCurrent Liabilities
Current Assets = $5444.50Current Liabilities = $630
This shows that the business is in good Liquidity. Therefore the business can meet itsshort term debts with no difficulties.
2. Profitability Ratio
Net profit * 100Average Capital employed
Net Profit = $3325.33Average capital employed = $4153.17
$3325.33 *100$4153.17
= 80.1%
The business is becoming more profitable and seems to be in good investments. N.E.C.S snack resort has made good use of there net assets. As a result this firm has ahigh percentage of 80.1.
The N.E.C.S Snack resort is performing so well that if it is equaled to the Canteensales it would make more gross profit and net profit than the canteen
During the business there is a high increase in Gross profit over Net Profit. This is agood sign for the business which can help in showing the improvement of the
This pie chart shows that the capital at end is greater than capital at start. This tells usthat the N.E.C.S Snack Resort has improved and from beginning and has managed tomake a profit. The capital at start and capital at end has a difference of 36% which is
Acknowledgement …………………………………………………………….. 1Aim Of project ………………………………………………………………… 2Description of the Business …………………………………………………… 3Actual Accounting Procedure………………………………………………….. 4
Record Kept
General Journal………………………………………………………….5-17Opening entries ……………………………………………………..18Intermediate entries………………………………………………….19Closing entries……………………………………………………….20-21
Trading and profit and loss account…………………………………29Balance Sheet ……………………………………………………….30
Summery/Performance of the business ………………………………………….31Interpretation Of final Ratio ………………………………………………..32-33Comparisons ………………………………………………………………..34-36
Conclusion …………………………………………………………………….. ..37Suggestion and Recommendations ………………………………………………38Appendix
Actual Accounting transactionsPrice listOrganizational ChartInvoicesDeposit slipReceipt etc
I suggest that the business continue. This business has been a great help to the staff
and students of the North East Comprehensive School in providing food and drink to
them in the afternoon when the School Canteen is already closed. The Snack Resort
has also given students something to do in there spear time that can help in
community service and school spirit points. Also, I suggest the business remain even
if the students in the partnership is leaving school, so that other students can gain an
opportunity to take part in a business and learn something from it. Because in the
future these students may want to open there own businesses.
Recommendations
The N.E.C.S Snack Resort should have had more varieties of goods
offered. Instead of only paleau it could have specific dishes or snacks
for different days. These dishes or snacks could be Sandwiches, pizzas,
pastry snacks, and an occasional chocolate or candies.
The N.E.C.S Snack Resort could also have activities planned to help to
gain more money/income in the business. This income/ money would
be able to help in expanding the business and also to purchase more
goods and produce a wider variety of goods.
The students in the partnership should give more support to the
business. Whether its financially or just to give a helping hand around
the business (assistance)
Firstly, I would like to thank the almighty father for strength, wisdom,knowledge and understand, for with Christ all things are possible.
Secondly, I would like to thank my family especially my grand mother for her continued encouragement, financial support and purchasing the equipments needed in
producing this School Based Assessment. Without her help I would not have beenable to successfully accomplish my goals. Thanks to friends and other familymembers who always had my back and believed in me.
Lastly, I would like to thank the principles of Accounts Teachers at my schoolfor there great teaching skills that has made be learn and understand the concepts of
Accounts and how to complete this SBA.May God continue to bless, guide and keep you all. For God has a future
planned out for you and who god has blessed no man can curse. Your help andsupport was very much appreciated.