Principles of accounts Essay

I would like to express my sincere gratitude to all(prenominal) the persons who have been helpful towards the successful completion of this assignment. First and foremost I would like to thank Shadae Russell, Shakeyra Millington, Jonathon Butler and Ovasha Bartley for their support and assistance towards carrying out the query to complete this assignment. Secondly I want to thank my guardians for providing me with the suitable materials to terminate this assignment. I would also like to thank Mrs. K. Elliot for her assistance and guidance in completing this project.Last but certainly not least I would like to thank God for his extended mercies unto me. Introduction This assignment is more or less a art that started almost three (3) years ago which is dictated in a busy area that allows it to generate large amounts of specie all(prenominal)(prenominal) day to carry out its operations. This assignment contains all the study about this Blannas look dress shop ancestry. The information which this assignment contains includes the financial records for the period ending family line 30 2011.This assignment serves to keep cut of all the coin that goes inside the ancestry bank account, all the specie which the job uses within visiting the affair bank account, all the money that goes outside of the business bank account, all the money that came into the business by hard cash and not with the use of chips and the purposes for each transaction. Therefore this assignment provides a clear understand of all the operations the business under goes on a day to day basis. Table of Contents Headings foliate sink in Page I Title PageII AcknowledgementIII Introduction IV extend to of the Project1 rendering of Business Entity 2 Mission disceptation 3 Logo and catchword 4 eyeshadeing Cycle 5 Accounting Information diarys 6-7 silver defy 8 Ledgers 9-13 campaign equaliser 14 Stock military rating 15-19 profession, winnings and loss and Appropriatio n A/c 20-21 labyrinthine sense airplane 22 strand satisfaction Statement 23 Accounting Ratios 24-25 deed of the Business 26 Comparisons 27 Recommendations and Suggestions 28 oddment 29 extension outlay list (showing mark up %) 30 Diagrams Charts and Graphs Pictures Invoices, Cheques, Receipts etc References Aim of the Project The aim of this project isTo arrive at a countrywide understanding of the financial sector of businesses. To highlight the strength and the weaknesses of the Blannas shape boutique business. To present the financial records for the year ended phratry 30, 2011 for Blannas demeanor Boutique business. Description of Business Entity Blannas Fashion Boutique is a partnership. This business is owned and operated by Anna Kay Blake, Shadae Russell and Ovasha Bartley a Group of overambitious young ladies. Our main aim is to make a sugar eyepatch catering for the needs of the community which it is situated in.Blannas Fashion Boutique is situated in Monteg o Bay at the Blue diamond home 10 Pearl Street. This business has been in existence since June 20, cc8. We employ approximately fifteen (15) workers. We cater for the petite to the full figured women. We produce a wide variety of slippers, pants, skirts, handbags and accessories. impairments are always lower than that of our competitors. In cases of direction emergencies you can call us at (1876) 3553980/4275646 or email us at Blannas_EmergencyStop5yahoo. com. The mission of Blannas Fashion Boutique is to submit the modish fashion for all females Provide goods and services at a middling costEnsure that the quality of our goods meets the standards of our business. Ensure that whatever the business do doesnt affect the environment negatively. Provide employment for members of the community Provide sponsors to underprivileged children Logo and Slogan Logo Slogan With passion we pass around out the latest fashion Accounting Cycle worldwide Journal meshing dilate paging Debit creed folk 1 pious platitude CB01 36four ascorbic acid0 specie CB01 27160 Debtor (J. Simpson) SL01 31600 repulse Van GL02 62840 building GL03 hundred curtilage Stock 24960 Creditor (Super autocratic) PL01 10560 Capital GL01 600000 Opening entries 610560 610560 Purchase journalPage 01 Date expound folio pith 1-Sep Super dogmatic supranational PL01 237,040 27-Sep Super Supreme external PL01 57,960 Sep 30 wide-cut reference point purchases to be transferred to the purchases account in the general ledger GL02 295,000 SALES JOURNAL Date Details Folio Amount 5-Sep J. Simpson SL01 57000 13-Sep B. Banton SL03 78,550 20-Sep N. Kidman SL02 104, cd Sep 30 Total credit gross sales to be transferred to the sales account in the general ledger GL13 239,950 RETURN outwards JOURNAL Date Details Folio Amount 9-Sep Super Supreme external PL01 13,600 Sep 30 Total return outwards to be transferred to the return outwards account in the general ledger GL1613,600 final defrayal in Day Bo ok Date Details Folio Amount 24-Sep B. Banton SL03 16,800 30-Sep N. Kidman SL02 9,600 Sep 30 Total goods returned to us to be transferred to the return inward account in the general ledger GL15 26,400 silver Book Date Details Folio ignore Allowed currency Bank Date Details Folio ignore real Cash Bank family line 1 pro grantality b/d GJ01 27,160 364,000 family 1 Machinery GL3 48,000 phratry 2 Bank C 50,000 2 Cash C 50,000 3 gross revenue GL13 59,350 3 Rent GL4 30,000 7 sales GL13 37,750 6 Fixtures GL5 65,000 18 J. Simpson SJ01 12,000 45,000 8 stipend GL12 10,000 29 B. Banton SJ03 6,175 55,575 11 damages GL6 6, coulomb 30Sales GL13 120,540 11 Electricity GL7 3,300 11 Rates GL8 2,600 15 Super Supreme International PL01 7,500 142,500 15 bribe GL12 10,000 16 Drawings GL10 6,200 19 furniture GL11 3,600 22 Wages GL12 10,000 29 Wages GL12 10,000 30 end c/d 123,075 239,000 18,175 350,375 409,000 7,500 350,375 409,000 General Ledger Date Details Folio Amount Date Details Folio A mount Capital A/C Page 01 folk 31 rest c/d 600,000 phratry 1 Balance b/d GJ01 600,000 October 1 Balance b/d 600,000 Motor Van A/C Page 02 kinfolk 1 Balance b/d GJ12 62,840 householdember 30 Balance c/d 62,840 October 1 Balance b/d 62,840 Buildings A/C Page 03 folkember 1Balance b/d GJ01 100,000 crime syndicateember 30 Balance c/d 100,000 October 1 Balance b/d 100,000 Machinery A/C phratryember 1 Bank CB01 48,000 family unitember 31 Balance c/d 48,000 October 1 Balance b/d 48,000 Rent A/C familyember 3 Bank CB01 30,000 kinspersonember 30 gelt & passing 30,000 Fixtures A/C September 6 Cash CB01 65,000 September 31 Balance c/d 65,000 October 1 Bal b/d 65,000 indemnification A/C September 11 Bank CB01 6,100 September 30 meshing & Loss 6,100 Electricity A/C September 11 Bank CB01 3,300 September 30 Profit & Loss 5,500 30 Accruals c/d 1,200 5,500 5,500 October 1 Accruals b/d 1200 Rates September 11 Bank CB01 2,600 September 30 Profit & Loss2,600 Drawings September 16 Cash CB0 1 6,200 September 30 Balance c/d 6,200 September 30 Balance b/d 6,200 Furniture September 19 Cash CB01 3,600 September 30 Balance c/d 3,600 October 1 Balance b/d 3,600 Wages September 8 Bank C01 10,000 September 31 Profit & Loss 40,000 15 Cash C01 10,000 22 Bank C01 10,000 29 Bank C01 10,000 40,000 40,000 Sales September 30 Trading Account 457,590 September 3 Cash CB01 59,350 September 7 Cash CB01 37,750 September 30 Cash CB01 120,540 September 30 Total Credit Sales SJ01 239,950 457,590 457,590 Purchases September 31 Total Credit Purchases PJ01 295,000 September 31 Trading Account 295,000 pitch Inwards September 31 Total for month RI01 26,400 September 31 Trading Account 26,400 Return Outwards September 31 Trading Account RO01 13,600 September 31 Total for month 13,600 Discount Allowed September 30 Total Discount Given to customers 18,175 September 30 P & L 18,175 Discount Received September 30 P & L 7,500 September 11 Super Supreme International 7,500 Purchases Ledger Super Supre me International September 9 Return Outwards RO01 13,600 September 1 Balance b/d GJ01 10,560 15 Bank CB01 142,500 1 Purchases PJ01 237,040 15 Discount Received CB01 7,500 27 Purchases PJ01 57,960 30 Balance c/d 141,960 305,560 305,560 October 1Balance b/d 141,960 Sales Ledger J. Simpson September 1 Balance b/d 31,600 September 18 Discount Allowed CB01 12,000 September 5 Sales SJ01 57,000 September 18 Bank CB01 45000 September 30 Balance c/d 31,600 88,600 88,600 October 1 Balance b/d 31,600 N. Kidman September 20 Sales SJ01 104,400 September 30 Return Inwards RI01 9,600 September 30 Balance c/d 94,800 104,400 104,400 October 1 Balance b/d 94,800 B. Banton September 13 Sales SJ01 78,550 September 24 Return Inwards RI01 16,800 September 29 Discount Allowed CB01 6,175 29 Cash CB01 55,575 78,550 78,550 Trial Balance Blannas Fashion Boutique Trial Balance as at September 30, 2011Details Debit $ Credit $ Capital 600,000 Motor Van Buildings 100,000 Machinery 48,000 Stock 24,960 Rent 30,000 Fixtures 65,000 Sales 457,590 Purchases 295,000 Cash 123,075 Bank 239,000 Wages 40,000 Return Outwards 13,600 Super Supreme International 141,960 Electricity 3,300 Insurance 6,100 Rates 2,600 Furniture 3,600 Drawings 6,200 Return Inwards 26,400 N. Kidman 94,800 J. Simpson 31,600 Discount Received 7,500 Discount Allowed 18,175 1,220,650 1,220,650 Stock Valuation (A) Pants Date Received Issued Balance amount of money building block Price Amount bill social unit Price Amount Quantity whole Price Amount 1-Sep 12 900 10,800 1-Sep 96 1,000 96,00012 96 900 1,000 10,800 96,000 3-Sep 12 12 900 1,000 10,800 12,000 84 1,000 84,000 5-Sep 12 1,000 12,000 72 1,000 72,000 13-Sep 24 1,000 24,000 48 1,000 48,000 20-Sep 24 1,000 24,000 24 1,000 24,000 27-Sep 36 1,100 39,600 24 36 1,000 1,100 24,000 39,600 30-Sep 24 12 1,000 1,100 24,000 13,200 24 1,100 26,400 (B) Blouse Date Received Issued Balance Quantity unit of measurement Price Amount Quantity Unit Price Amount Quantity Unit Price Amount 1- Sep 12 400 4,800 1-Sep 96 440 42,240 12 96 400 440 4,800 42,240 5-Sep 12 12 400 440 4,800 5,280 84 440 36,960 13-Sep 24 440 10,560 60 440 26,400 20-Sep 36 440 15,840 24 440 10,560 30-Sep 12 440 5,280 12 4405,280 (C ) Handbag Date Received Issued Balance Quantity Unit Price Amount Quantity Unit Price Amount Quantity Unit Price Amount 1-Sep 4 1,600 6400 4 1,600 6,400 3-Sep 1 1,600 1,600 3 1,600 4,800 7-Sep 1 1,600 1,600 2 1,600 3,200 13-Sep 1 1,600 1,600 1 1,600 1,600 27-Sep 4 1,650 6,600 1 4 1,600 1,650 1,600 6,600 30-Sep 1 3 1,600 1,650 1,600 4,950 1 1,650 1,650 (D ) Skirts Date Received Issued Balance Quantity Unit court Amount Quantity Unit Cost Amount Quantity Unit Cost Amount 1-Sep 12 780 9,360 1-Sep 60 820 49,200 12 60 780 820 9,360 49,200 3-Sep 12 780 9,360 60 820 49,200 7-Sep 12 820 9,840 48 820 39,360 13-Sep 12 820 9,84036 820 29,520 30-Sep 24 820 19,680 12 820 9,840 (E) Slipper Date Received Issued Balance Quantity Unit Price Amount Quantity Unit Price Amount Quantity Unit Price Amount 1-Sep 48 900 43,200 48 900 43,200 5-Sep 12 900 10,800 36 900 32,400 7-Sep 12 900 10,800 24 900 21,600 20-Sep 24 900 21,600 27-Sep 12 980 11,760 12 980 11,760 Trading, Profit and Loss and Appropriation Account Blannas Fashion Boutique Trading Profit & Loss Account for the year ended September 30, 2011 $ $ $ Sales 457,590 slight Return Inwards (26,400) authorise Sales 431,190 Less Cost of Goods sell Opening Stock 24,960 Purchases 95,000 Less Return Outwards (13,600)Net Purchases 281,400 Cost of Goods Available 306,360 Less Closing Stock (54,930) 251,430 Gross Profit 179,760 issue Revenues Discount Received 7,500 187,260 Less Expenses Wages 40,000 Rent 30,000 Electricity 4,500 Insurance 5,100 Rates 2,600 Depreciation 400 Discount Allowed 18,175 100,775 86,485 Net Profit sum interest on Drawings Shadae 620 Less 85,865 Interest on expectant Anna kay 12,500 Shadae 7500 Ovasha 10,000 30,000 compensation Anna kay 12,000 42,000 43,865 Share of Profit Anna kay 18,277. 08 S hadae 10966. 25 Ovasha14,621. 67 43,865 Balance Sheet Blannas Fashion Boutique Balance Sheet as at September 30, 2011 Fixed Assets CostAccumulated Depreciation NBV Buildings 100000 100,000 Fixtures 65000 65,000 Machinery 48000 400 47,600 Furniture 3600 3,600 Motor Car 62840 62,840 400 279,040 menstruation Assets Stock 54,930 Debtors 126,400 Prepayment 1,000 Bank 239,000 Cash 123,075 544,405 Less authoritative Liabilities Creditors 141960 Accruals 1,200 143160 Working Capital 401,245 680,285 Financed by Capital 600,000 Net Profit 86,485 686,485 Less Drawings 6,200 680,285 Bank Reconciliation Statement Updated Cash Book Balance b/d 239,000 Bank Charges 65 Credit conveyance 4200 Standing Order 15000 Balance c/d 228,135 243200 243200 Bank Reconciliation Statement as at September 30, 2011Balance as per Bank Statement 222,535 Add Late Lodgments 45,000 267,535 Less Unpresented Cheque 39,400 Balance as per Cash Book 228,135 Accounting Ratios Inventory Turnover Ratio- Cost of Goods inter change Average Inventory/2 =244,470 24960+61890/2 =5. 62 Current Ratio- Current assets Current Liabilities =551365 143160 =3. 85 Gross meshwork as a ploughshare of sales- Gross profit x 100 Sales =179,760 x 100 457590 = 39. 28% For every sale of $100 the business earns $39. 28 as gross profit. Net profit Ratio- Net profit / Net sales x l00 =86,485 / 431,190 x 100 =20. 06% For every sale of $100 the business earns $20.06 as net profit. Acid Test Ratio- Current Assets- Stock Current liabilities = 544,405 54,930 143160 =3. 42 Performance of the Business In preparing the financial statements of Blannas Fashion Boutique the Trading, profit and loss and appropriation account shows a profit of fourscore six gm four hundred and eighty quintette honey oil dollar (86,485) at the end of the financial period of September 30,2011. The business started out with six hundred thousand dollar. In the apogee of the financial period of Blannas Fashion Boutique there was an growing in the amoun t of cap that the business has.The business made a gross profit of one hundred and seven some(prenominal)ty nine seven hundred and sixty dollars (179,760) instead of making a gross loss. Comparisons The compare is being done between the beginning capital and the closing capital for Blannas Fashion Boutique, at the end of the financial period. At the extraction of the financial year the opening capital was six hundred thousand dollar (600,000). At the end of the financial period the closing capital is six hundred and eighty thousand two hundred and eighty five dollar (680,285) which fashion there is an enlarge of eighty thousand two hundred and eighty five dollar (80,285).Another comparison is being done between the stiff assets of the business and the current assets. The fixed asset of the business is two hundred and seventy nine thousand and forty dollar (279,040) while the current asset is five hundred and forty four thousand four hundred and five dollars (544,405). This means that the amount of money that the business spend of items that stays in the business with no intention of selling it is lesser than the amount of money that the business spend on assets that leave alone allow the business to generate a profit. Recommendations and SuggestionsIt is recommended that Blannas Fashion Boutique Ploughed back a portion of the profit that the business makes into it. Introduces new products to the business. Purchase new equipment for the business Uses some of the profit that the business makes to attach another department on to the business. It is suggested that Blannas Fashion Boutique should Purchase cheaper equipments to use in the business. This will increase the amount of money available in the business. Offer more sale discounts this will force more customers to purchase from Blannas Fashion Boutique. ConclusionIt is clear that Blannas Fashion Boutique keeps all the records of the transactions that seduce place in the business over the financial period of time. Blannas Fashion Boutique could increase the gross profit and net profit of the business by adhering to the suggestions or recommendations outlined. Never the less Blannas Fashion Boutique made a good net profit of eighty six thousand four hundred and eighty five dollars (86,485) during the month of September in 2011. Blannas Fashion Boutique was able to make a profit due to the large amount of sales the business made. Price list Goods Price Pants $ Blouse $ Handbags$ Skirts $ Slippers $ INVOICE Debit lineage Principles of Accounts School Based Assessment (2012-2013) You are required to name the house and state the nature of the business. This must be in accordance with the items exchange*. After the initial accounting entries (Tasks 1 -3) have been completed you will then record the additional adjusting entries as set out at Tasks 4 and 5. You may choose goods from the following list for the transactions. * Computer lineage Clothes and Accessories Store A Keyboa rd Pants (guess) B Mouse Blouse (guess) C Printer Hand bags (guess) D Surge Protector Skirts (guess) E Speakers Slippers (guess) rudiment Enterprise (Remember that you are to rename the firm) The following transactions were taken from the books of first principle Enterprise. You are required to asses them carefully then write up the germane(predicate) books as outlined in the requirements below 2011 Sept 1Opening Balances Capital$600, 000 Bank$364, 000 Cash$ 27, 160 Debtor (J Simpson)$ 31, 600 Creditor (Super Supreme International)$ 10, 560 Motor Van$ 62, 840 Building$100, 000 Stock 1doz A$ 10,800 1doz B $ 4,800 1doz D$ 9,360 Sept 1Bought goods on credit from Super Supreme International. 8 doz A $1,000 each 8 doz B $440 each 4 buffetes C $1,600 each 5 doz D $820 each4 doz E $900 each Sept 1Bought Machinery by cheque $48, 000. Sept 2Withdrew $50, 000 cash from the bank account to be used in the business. Sept 3Cash Sales 2 doz A $1, 650 each 1 box C $2, 950 each 1 doz D $1, 400 each Sept 3 Paid rent by cheque $30, 000. Sept 5 exchange goods on credit to J. Simpson. 1 doz A $1, 650 each 2 doz B $800 each 1 doz E $1, 500 each Sept 6 Bought fixtures with cash $65, 000. Sept 7 Cash Sales 1 box C $2, 950 each 1 doz D $1, 400 each 1 doz E $1, 500 each Sept 8Paid wages $10, 000 by cheque. Sept 9Returned goods to Super Supreme International as items were damaged. 1 doz A 1 box CSept 11Paid the following expenses by cheque Insurance $6,100, Electricity $3,300 and Rates $2,600. Sept 13Sold goods on credit to B. Banton 2 doz A $1, 650 each 2 doz B $ 800 each 1 box C $2, 950 each 1 doz D $1, 400 each Sept 15Made payment to Super Supreme International by cash $150, 000, received a 5% cash discount. Sept 15Paid wages with cash $10, 000 Sept 16Owner withdrew $6,200 cash to fix his personal motor car. Sept 18Collected Cheque from J. Simpson for goods sold on Sept 5th 2011, $45, 000. Sept 19Bought furniture $3,600 with cash from Courts Ja. Ltd. Sept 20Sold goods on credit to N. Kidman 2 doz A $1, 650 each3 doz B $ 800 each 2 doz E $1, 500 each Sept 22Paid wages with cheque $10, 000. Sept 241 doz D returned to us by B. Banton as they were the wrong size. Sept 27Bought goods on credit from Super Supreme International. 3 doz A $ 1,100 each 4 boxes C $1, 650 each 1 doz E $ 980 each Sept 29B. Banton settled his account less 10% cash discount. He pay with cash. Sept 29 Paid wages $10,000 by cheque. Sept 30 Received goods from N. Kidman 1 doz B Sept 30Cash Sales 3 doz A $1, 815 each 1 doz B $ 800 each 4 boxes C $3, 000 each 2 doz D $1, 400 each Task 1 salve up ALL Subsidiary Books and then post the transactions to the ledgers. enjoy ensure that you distinguish between, General Ledger, Sales Ledger and Purchases Ledger. Show the opening entries in the General Journal at September 1, 2011. Task 2 Prepare ABC Enterprise Trial Balance as at September 30, 2011 Task 3 Using the FIFO method of billet valuation, determine the closing st ock. Task 4 Design a logo and slogan for your business and provide the relevant information on the business entity Prepare ABC Enterprise Trading, Profit and Loss Account for the month ending September 30, 2011 and a Balance Sheet as at that date, after taking into account the following a) Insurance expense was give in advance, $1000.b) Electricity was outstanding by $1, 200 c) Machinery is to be depreciated at 10 % annually using the straight line method (show the disparagement for the month). Show adjustment to the above information in the ledgers. Task 5 Prepare the Bank Reconciliation Statement using the Bank Statement below Bank Statement DR CR Balance $ $ $ Sept 1 Balance 364 000 Sept 1 Burkes (Machinery) 48 000 316 000 Sept 2 SNPN Ltd (Cash) 50 000 266 000 Sept 8 Wages 10 000 256 000 Sept 11 NWC (Rates) 2 600 253 400 Sept 20 Wages 10 000 243 400 Sept 24 Credit transfer (Q Smith) 4 200 247 600 Sept 29 Wages