Odaine Crossman Sba Final accounts
Transcript of Odaine Crossman Sba Final accounts
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Big League Auto Supply is a sole proprietorship that is owned and operated
by Odaine Crossman . Big League Auto Supply specializes in the selling of a
wide range of Audi, Nissan, oyota, and !ange !o"er cars as well as
accessories at an a#ordable cost. Big League Auto supply is intended to be in
operation for $fteen years where transaction will be recorded only for the
months of %ay and &une in the year '(().
he business*s $nancial records will be +ept in ournals and ledgers.
he accounting process will commence at ournalizing the di#erent
information from "arious source documents -such as, the sales in"oice,
purchases in"oice, credit and debit note into their respecti"e boo+s of
original entry -which include, the sales and purchases ournal, return inwards
and return outwards ournal, general ournal. /rom these boo+s, transactions
will then be posted in their speci$c ledgers -the sales, purchases and general
ledgers. Afterwards a rial Balance will then be prepared, and then
adustments will be made to the $nal account, from which the $nal accounts
will be constructed.
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Big league Auto Supply’s aim is to provide our customers with durable and exquisite motor
vehicles at an affordable cost. The business also aims to show great interest in manufacturing
quality cars which can compete on the world market and thus become acquainted with partners
in neighbouring countries. This SBA was carried out with the aim of expanding my knowledge
and providing a better understanding of accounting principles and to become aware of the
various accounting procedures which is essential in my long term career of becoming an
entrepreneur.
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The business will be manage by !eneral "anager #$onavan $ean%& after which three managers
will be used to oversee the activities carried out in the organi'ation. These managers will be
placed in different categories #"arketing (roduction and Sales%. Supervisors will be placed to
watch over the work carried out by workers.
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Period 1
"ay)* Assets* (remises +,---- truck +)--- fixtures +--- stock +/----. $ebtors* S.
0omrie +1--- 2. Sadar +3-- ". 4ontana +5--. 0ash at bank +)5---- 0ash in
hand +)---. 6iabilities* 0reditors* 0. 7ke +1--.
The following are transaction for Big 6eague Auto supply for the month of "ay*
"ay )* 0ash sales +/----.
"ay 1*Sold goods on credit to B. Afflick +----.
"ay ,* Bought goods by cheque +,--- from ". Sennett
"ay ,* Bought goods on credit from ". Sennett
"ay 5* Took +)---- from the cash till and placed into the bank.
"ay * Bought office furniture +)1--- from 89B 6td. on credit.
"ay 3* B. Afflick paid +--- to his account by cheque receiving a )-: discount.
"ay /* Bought goods on credit from T. 0obourne +;---.
"ay ;*!oods returned to ". Sennett +15--.
"ay )-* 0ash sales +;----.
"ay ))* (aid rates +--- by cash.
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"ay )1* Sold goods on credit to
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Period 2
Transactions for the month of 2une 1--5*
2une )* 0ash sales + /5---.
2une =* Bought office equipment from 2. 6td. on credit.
2une ,* Sold goods on credit to (. 0loonis +=5--.
2une 5* Bought goods on credit from 2. Silvera +)5--.
2une * (aid insurance +=5-- by cash.
2une 3* @ithdrew +)1--- from the bank account and placed in the cash till.
2une /* !oods return to 2. Silvera valued +)---.
2une ;* (. 0loonis paid his account by cheque +=5-- receiving a )-: discount.
2une )-* 0ash sales +5----.
2une ))* Bought goods by cheque +5---.
2une )1* Took +1---- from the cash till and place in the bank.
2une )=* Bought goods on credit from . (almer + ;---.
2une ),* Bought goods on credit from B. yatt +3---.
2une )5* @e paid . (almer her account receiving a 5: discount by cash.
2une )* (aid rates + 3--- by cash.
2une )3* !oods return to B. yatt +3--.
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2une )/* 0ash sales + ,----
2une );* Sold goods on credit to T.
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Big 6eague Auto Supply
INVOICE
)5 8ing Street
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T. 0obourne
INVOICE
), ohampton Avenue
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No. 1 %ay '2, '((2
Received from 33333 3S.
/ung3333333333333333333333333333333333
The sum of Se"en 4undred333333333333333333333
Dollars 333333333
333333333333 Cents for 5oods33333333333333333333333
No. ' %ay 17, '((2
Received from 3333AL89 0arts
Ltd.333333333333333333333333333333333
The sum of Se"en housand 333333333333333333
Dollars 333333333
333333333333 Cents for 5oods333333333333333333333333
Credit Note
Supplier* Big 6eague Auto Supply
Address* )5 8ings Street
8ingston
0ustomer*
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E
0eriod 1
he 5eneral &ournal
$AT> $>TAF6S 4olio
+
$
G +
0
G
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1--5
"ay ) (remises !6 ,---- H
) Truck !6 )---- H
) 4ixtures !6 --- H
) Bank 0B )5---- H
) 0ash 0B )--- H
) Stock !6 /---- H
) $ebtors* S.0omrie S6 1--- H
) 2. Sadar S6 5-- H
) ". 4ontana S6 5-- H
) 0reditors* 0. 7ke (6 1--
) 0apital !6 1;----
1;-1-- H 1;-1--
Assets and 6iabilities use to open books at
this date.
"arch 7ffice 4urniture !6 )--- H
8 9B 6td. (6 )--- H
7ffice furniture bought from 89B 6td.
0eriod '
he 5eneral &ournal
$AT> $>TAF6S 4olio
+
$
G +
0
G
1--5
2une ) (remises !6 ,---- H
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) Truck !6 )---- H
) 4ixtures !6 --- H
) 7ffice >quipment !6 )1--- H
) Bank 0B )33,-- H
) 0ash 0B )5)/-- H
) Stock !6 3--- H
) $ebtors* S. 0omrie S6 1--- H
2. Sadar S6 3-- H
". 4ontana S6 5-- H
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0eriod 1
Sales &ournal
$AT> $>TAF6S 4oli
o
F J
+
A"7D
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0eriod 1
0urchases &ournal
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$AT> $>TAF6S 4oli
o
F
J
+
A"7D<
T
G
1--5
"ay , ". Senneth (6 --) =--- H"ay / T. 0obourne (6 --1 ;--- H
"ay ); A6>? (arts 6td. (6 --, 3--- H
"ay 15 S. 4ung (6 --; 3-- H
"ay =) Transfer to Sales aKc !6 );3-- H
0eriod '
0urchases &ournal
$AT> $>TAF6S 4 F
J
+
A"7D<
T
G
1--5
2une 5 2. Silvera (6 -=, )5--
2une )= . (almer (6 -3 ;---
2une ), B. yatt (6 -55 3---
2une =- Transfer to (urchases aKc !6 )35--
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0eriod 1
!eturn Outwards &ournal
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$AT> $>TAF6S 4olio $>BFT
J
+
A"7D
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0eriod 1
!eturn :nwards &ournal
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$AT> $>TAF6S 4oli
o
0>$FT
J
+
A"7D
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0eriod 1
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0urchases Ledger
C. Oke
$ate $etails 4 Amount
+
G $ate $etails 4 Amount
+
G
1--5 1--5
"ay ) Balance
cKd
1-- "ay ) Balance bKd !2 1--
Apr ) Balance bKd 1--
M. Senneth"ay ; eturn
7utwars
72 15-- "ay , (urchases (2 =---
"ay =) Balance
cKd
5--
=--- =---
Apr ) Balance bKd 5--
T. Coborne"ay )= 0ash 0B 31-- "ay / (urchases (2 ;---
"ay )) $iscount
eceived
!6 )/--
;--- ;---
ALE! "#rts Ltd."ay 1) 0ash 0B 3--- "ay ); (urchases (2 3---
S. ng"ay =) Balance
cKd
3-- "ay 15 (urchases (6 3--
2une ) Balance bKd 3--
C. Oke
$ate $etails 4olio Amount
+
G $ate $etails 4olio Amoun
t
+
G
1--5 1--5
2une
r
=- Balance cKd 1-- 2une ) Balance bKd 1--
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2uly ) Balance bKd 1--
M. Senneth
2une =- Balance cKd 5-- 2une ) Balance bKd 5--
"ay ) Balance bKd 5--
S. ng2une =- Balance
cKd
3-- 2une ) Balance bKd 3--
"ay ) Balance bKd 3--
%. Sil&er#2une / eturn
7utwards
72 )--- 2une 5 (urchases (6 )5--
2une =- Balance
cKd
5--
)5-- )5--"ay ) Balance bKd 5--
B. '(#tt2une )3 eturn
Fnwards
72 3-- 2une ), (urchases (6 3---
2une =- Balance
cKd
=--
3--- 3---
). "#lmer
2une )5 0ash 0B /55- 2une )= (urchases (6 ;---2une )5 $iscount
received
!6 ,5-
;--- ;---
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Sales Ledger
S. Comrie
$ate $etails 4olio Amount +
G $ate $etails 4olio
Amount +
G
1--5 1--5
"ay ) Balance bKd 1--- "ay =) Balance cKd 1---
2une ) Balance bKd 1---
%. S#d#r"ay ) Balance bKd 3-- "ay =) Balance bKd 3--
2une ) Balance bKd 3--
M. ont#n#"ay ) Balance bKd 5-- "ay =) Balance cKd 5--
2une ) Balance bKd 5-- B. Afflick
"ay 1 Sales S2 --- "ay 3 Bank 0B 5,--
"ay 3 $iscount Alw !6 --
--- ---
N. Armstrong
"a
y
)1 Sales S2 3--- "ay ) eturn Fnward F2 --
"ay =) Balance cKd ,--
3--- 3---
Apr ) Balance bKd ,--
0eriod '
Sales Ledger
". Cloonis
$ate $etails 4olio Amount G $ate $etails 4olio Amount G
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+ +
1--5 1--5
2une , Sales S2 =5-- 2une ; Bank 0B =)5-
2une ; $iscount
Alw
!6 =5-
=5-- =5--T. *ill(
2une ); Sales 55-- 2un
e
1= eturn
Fnward
F2 =---
2un
e
=- Balance cKd 15--
55-- 55--
2uly ) Balance bKd 15--
S. Comrie2une ) Sales S2 1--- "ay =- Balance cKd 1---
2uly ) Balance bKd 1---
%. S#d#r
2une ) Sales S2 3-- 2une =- Balance cKd 3--
2uly ) Balance bKd 3--
M. ont#n#
2une ) Sales S2 5-- 2une =- Balance cKd 5--
2uly Balance bKd 5--
N. Armstrong
2une ) Sales S2 ,-- 2une =- Balance cKd ,--
2uly ) Balance bKd S2 ,--
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0eriod 1
he 5eneral Ledger
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$ate $etails 4oli
o
+
Amoun
t
G
$ate $etails 4
+
Amount
G
1--5 1-))
"remises #+c
"ay ) Balance bKd !2 ,---- "ay =) Balance cKd ,- ---
2une ) Balance bKd ,----
Trck #+c
"ay ) Balance bKd !2 )---- "ay =) Balance cKd )----
2une ) Balance bKd )----i,tres #+c
"ar ) Balance bKd !2 --- "ay =) Balance cKd ---
2une ) Balance bKd ---
C#-it#l #+c
"ay =) Balance cKd ,)1,-- "ay ) Balance bKd !2 1;----
"ay =)
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0eriod '
he 5eneral Ledger
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$ate $etails 4oli
o
+
Amoun
t
G
$ate $etails 4oli
o
+
Amount
G
1--5 1-))
"remises #+c
2une ) Balance bKd !2 ,---- 2une =- Balance cKd ,- ---
2uly ) Balance bKd ,----
Trck #+c
2une ) Balance bKd !2 )---- 2une =- Balance cKd )----
2uly ) Balance bKd )----i,tres #+c
2une ) Balance bKd !2 --- 2une =- Balance cKd ---
2uly ) Balance bKd ---
C#-it#l #+c
2une =) Balance cKd 5/;-- 2une ) Balance bKd !2 ,)1,--
2une =-
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Tri#l B#l#nce of Big Le#ge #s #t the 23 M#(4556$
+
G 0
+
G
(remises ,- ---
Truck )----
4ixtures ---
7ffice 4urniture )1---
89 B 6td. )1---
0apital 1;----
Sales 15=---
0ash )5)/--
Bank )33,--
0. 7ke 1--
". Senneth 5--
S. 4ung 3--
S. 0omrie 1---
2. Sadar 3--
". 4ontana 5--
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eturn Fnwards --
eturn 7utwards 15--
Stock /----
$iscount eceived )/--$iscount Allowed --
5,/3-- 5,/3--
Tri#l B#l#nce of Big Le#ge #s #t the 25 %ne 4556
$
+
G 0
+
G
(remises ,- ---
Truck )----
4ixtures ---
7ffice 4urniture )1---
7ffice >quipment ,5-
2. 6td. ,5-
Salaries )5---
"otor >xpenses )3--
Stock 3---
eturn Fnwards =---
eturn 7utwards )3--
$iscount Allowed ,5-
$iscount eceived =5-
Bank 1-)/5-
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0ash 1;,35-
Fnsurance =5--
ates 3---
(urchases 115--
Sales 1),---
0. 7ke 1--
". Sennneth 5--
S. 4ung 3--
2. Silvera 5--
B. yatt =--
T.
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08!:O; 1
+ + +
Sales 15=---
6ess eturn Fnwards -- 151,--
6ess 0ost of goods sold*
7pening Stock /----
Add (urchases 1=3--
6ess eturn 7utwards 15-- 1)1--
0ost of goods available for sale )-)1--
6ess 0losing Stock 3--- ;,1--
!ross (rofit )5/1--
Add $iscount eceive )/--
)----
6ess >xpenses*
$iscount Allowed --
ates ---
ent ;---
Fnsurance --
"otor >xpenses
)---
Salaries )5--- =3--
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08!:O; '
+ + +
Sales 1),---
6ess eturn Fnwards =--- 1))---
6ess 0ost of goods sold*
7pening Stock 3---
Add (urchases 115--
6ess eturn 7utwards )3-- 1-/--
0ost of goods available for sale 13/--
6ess 0losing Stock )--- 1/--
!ross (rofit )/,1--
Add $iscount eceive =5-
)/,55-
6ess >xpenses*
$iscount Allowed ,5-
ates 3---
Fnsurance =5--
"otor >xpenses
)3--
Salaries )5--- 135-
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08!:O; 1
+
+
i,ed Asset
(remises ,- ---
Truck ) ----
4ixtures ---
7ffice 4urniture )1--- /---
Crrent Assets7
Stock 3---
$ebtors ;--
0ash )5)/--
Bank )33,--
=,5/--
Less Crrent Li#bilities
0reditors ),--
@orking 0apital =,,,--
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Add fixed assets ,)1,--
0apital 1;----
Add
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Bank 1-)/5-
5)13--
Less Crrent Li#bilities
0reditors /1--
@orking 0apital 5-,5--
Add fixed assets 53/;5-
0apital ,)1,--
Add
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Big league has made a net profit during the two month period that it has been operating for. Fn
period one +1'''(( in period
one.
Although Big league made a profit they would hope to increase sales in the near future.
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8ross "rofit #s # "ercent#ge of S#les
Period 1
!ross (rofit M )--
Sales
)5/1-- M )-- N 1.5:
15=---
The above illustrates Big league’s gross profit as a percentage of sales for the first period to be
1.5.:. 4or every +)-- sales +1.5- gross profit was made before any expenses deducted.
Period 2
!ross (rofit M )--
Sales
)/,1-- M )-- N /:
1),---
The above illustrates Big league’s gross profit as a percentage of sales for the second period to be
/:. 4or every +)-- sales +/ gross profit was made before any expenses deducted.
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Crrent )#tio
Period 1
0urrent Assets
0urrent 6iabilities
=,5/--
1;---- N ).1* )
The current ratio for the first period is ).1*). This means that the potential ability of this business
to meet it current liabilities as they become due is ).1 times.
Period 2
0urrent Assets
0urrent 6iabilities
5)13--
,)1,-- N ).1* )
The current ratio for the second period is ).1*). This means that the potential ability of this
business to meet it current liabilities as they become due is ).1 times.
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Stock Trno&er )#tio
Period 1
0ost of goods sold
Average Stock #opening Oclosing stock P1%
;,1--
,---
N 1=. times
The above illustrates Big league’s stock turnover to be 1=*). This states that the business
was able to replenish the stock that was sold 1= times during the month of "ay which was the
first period.
0ost of goods sold
Average Stock #opening Oclosing stock P1%
1/--
,--- N .3 times
The above illustrates Big league’s stock turnover to be .3*). This states that the business
was able to replenish the stock that was sold .3 times during the month of 2une which was its
second period of operation.
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4ig ) showing the capital figure for both period ) and period 1
capital
%ay
&une
The bar graph above illustrates that the capital figure for period one is +1;---- while for
period two it is +,)1,--. The capital has increase in period two by much and this says that the
owner has invested more money in the business during the second period of the business.
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%ay
&une
( 1((( '((( =((( (((
%ay? 6(((
&une? 1(((
Closing Stock
4ig 1 showing the closing stock for both periods
The area chart above illustrates that at the end of period one the closing stock was
calculated at +3--- while in period 1 it was +)---. The stock figure has decrease drastically with
+--- and implies that sales were raised in the second period that causes it to have less stock in
possession than that of the first period.
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Big league has been as successful as the owner would have wanted it to be. After analysing the
performance of the business by preparing the necessary final accounts and using accounting
ratios it can be concluded that this business has been profitable and has incurred a net profit in
both periods. owever most of the aims of the business were met& as it has offer car supplies at
an affordable price had a good relationship with its customers and has administer questionnaires
on a weekly basis. Fn regard to the researchers’ obQectives they were all achieved and the
researcher is more so thankful for the experience gained.
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The researcher recommends the following for the improvement of the performance of Big
6eague Auto Supplies
>ven though Big league made a gross profit of 5.5: his expenses were below this and
thus allowed him to make a huge net profit the researcher recommends that he engage in
advertising his productsKbusiness more so that his sales figure will increase and as a result
generate more profit which is one of the business’s main obQectives.
The owner is been recommended to invest more capital in the business so that the current
liabilities can be cleared.