Table of contents:

Opening remarks:
Acknowledgements
p3
Aim of project

p4
Description of business
..p5

Accounting procedures used and

records kept:
Opening journal entries
General journal
..p6
Sales journal
.p
7

1
Purchases journal
.p8
Return inwards journal
.p9
Return outwards journal
..p10
Cash book
.......
.p11
Sales
ledger
p12
Purchases ledger
.p13
General ledger
..p14-
17
Trial balance

p18
Trading and profit and loss statement
.p19
Balance sheet
.p20

2
Performance evaluation and
interpretation of results:
Ratios

.p21
Comparisons
.p22
Suggestions

p23
Conclusions

p24

Appendices:
List of transaction
p25-26
Source documents
..p27-29
Accounting cycle
...p30

3
 Acknowledgements:

I would like to express my sincere gratitude to all the

persons who have been helpful towards the successful
completion of this assignment. I indeed acknowledge my
teacher Mrs. K.Partap for guiding and helping me with
adequate information to complete this assignment also.

4
 Aims of project:
To record each transaction incurred for the business
accurately,
using standard accounting procedures.

To use those accounting records to provide clear

financial and accounting information on the
performance of the business.

To use accounting information to access the

performance of the business.

5
 Description of business

Richards wholesalers is a develop simulated entity

owned by Mr. Richard Smith, who is the sole proprietor. It
is located at #53 main road chaguanas. Richards
wholesalers are a developed supermarket which sells
wholesales goods, severing most of the island in its
convenient location.
The wholesaler supermarket employs fifteen staff along
with Mr. Richard acting as the owner/manager. There are
three supervisors and twelve general workers who acts as
shelf stackers, cashiers, as assistance and security.

6
Opening journal entries:

General journal
Dec 1st Cash $10,00
0
Bank $50,00
0
Premises $120,0
00
Motor vehicle $2500
stock $75,00
0
Debtors:
M. Miller $1500
J. Penny $2500
H. Briggs $1800

$3000
Creditors:
Perry
Elvis
J. Cruz $2700

Capital $280100

Assets and
liabilities at dec
7
 1st

To open the
books

Sales journal
Dec 5th J. Penny $11,000

Dec 22nd Peter White $2700

Dec 23rd M. miller $4500

Transferred to
sales account $18200

8
 Purchases journal
Dec 1st J. Cruz $4500

Dec 11th Perry Elvis $30,000

Transferred to
purchases account $ 34,500

9
Return inwards journal

Dec 18th M. Miller $1500

Transferred to
return inwards $1500
account

10
 Return outwards journal

Dec 24th Perry Elvis $2000

Return to return
outwards $2000
account

11
 Cash book
Dec 1st $10,0 $50,0 Dec 3rd rent $6000
opening bal. 00 00
Dec 2nd sales $55,0 Dec 4th $10,00
00 insurances 0
Dec 9thM. $1500 Dec 6th $20,0
Miller purchases 00
Dec 10th J. $2000 Dec 7th J. Cruz $3000
Penny
Dec 12th $15,0 Dec 8th P. Elvis $2000
sales 00
Dec 15th $15,0 Dec 13th $1000
sales 00 stationery
Dec 16th $7000 Dec 14th $1500
sales electricity
Dec 21st $500 Dec 17th $1500
sales drawings
Dec 19th wages $1800
Dec 20th motor $2200
exp.
Dec 31st Bal c/d $5470 $52300
0
$84,0 $72,0 $84,0 $72,00
00 00 00 0
Jan 1st Bal b/f $5470 $5230
0 0

12
 Sales ledger
M. Miller
Dec 1st opening balance Dec 9th cash
$1500 $1500
Dec 23rd sales Dec 18th return inwards
$4500 $1500

$6000 $3000
Jan 1st Bal b/f Dec 31stbal c/d
$3000 $3000

$6000
J. Penny
Dec 1st opening balance Dec 10th cash $2000
$1500
Dec 5th sales $2000
$11,000
$13500 Dec 31st Bal c/d $11500
Jan 1 Bal b/f
st
$13500 $13500

Dec 1st opening balance Dec 31st Bal c/d $1800

13
$1800
$1800
$1800
H. Briggs
P. White
Dec 22nd sales $2700 Dec 31st Bal c/d $2700
$2700 $2700
Jan 1st Bal b/f $2700

Purchases ledger
Perry Elvis
Dec 8th cash Dec 1st opening balances
$2000 $3000
Dec 24th return outwards Dec 11th purchases
$2000 $30000

$4000 $33000
Dec 31st Bal c/d
$29000 $4000
Jan 1st Bal b/f
$33000 $29000
J. Cruz

14
Dec 1st cash Dec 1st opening balance
$3000 $2800
Dec 1st purchases
$4500
Dec 31st Bal c/d
$4200 $7200
Jan 1st Bal b/f
$7200 $4200

General ledger
Opening stock
Dec 1st Bal b/f $75000
Purchases
Dec 1st J. Cruz $4500 Dec 31st Bal c/d $54500
Dec 6th cash
$20000

15
Dec 11th Perry Elvis
$30000

$54500 $54500
Jan 1st Bal b/f
$54500
Sales
Dec 31st Bal c/d $110,700 Dec 2nd cash
$55000
Dec 5th J. Penny
$11000
Dec 12th cash
$15000
Dec 15th bank
$15000
Dec 16th bank
$7000
Dec 21st cash
$500
Dec 22nd P. White
$2700
Dec 23rd M. Miller
$4500

$110700
Jan 1st Bal b/f
$110700
Rent
Dec 3rd bank $6000 Dec 31st Bal c/d $6000
$6000 $6000
Jan 1 Bal b/f $6000
st

16
 Insurance
Dec 4th bank $10000 Dec 31st Bal c/d $10000
$10000 $10000
Jan 1 Bal b/f $10000
st

Stationery
Dec 13th cash $1000 Dec 31st Bal c/d $1000
$1000 $1000
Jan 1st Bal b/f $1000
Electricity
Dec 14th bank $1500 Dec 31st Bal c/d $1500
$1500 $1500
Jan 1st Bal b/f $1500
Drawings
Dec 17th cash $1500 Dec 31st Bal c/d $1500
$1500 $1500
Jan 1 Bal b/f $1500
st

Return inwards
Dec 18th M. Miller $1500 Dec 31st Ba c/d $1500
$1500 $1500
Jan 1 Bal b/f
st
$1500
Return inwards
Dec 31st Bal c/d $2000 Dec 24th P. Elvis $2000
$2000
Jan 1 Bal b/f
st
$2000

17
Wages
Dec 19th cash $1800 Dec 31st Bal c/d $1800
$1800 $1800
Jan 1 Bal b/f $1800
st

Motor expenses
Dec 20th bank $2200 Dec 31st Bal c/d $2200
$2200 $2200
Jan 1 Bal b/f $2200
st

Capital
Dec 31st Bal c/d $280100 Dec 1st Bal b/f $280100
$280100 $280100
Jan 1st Bal b/f $280100
Cash
Dec 1st opening Balance Dec 6th purchases $20000
$10000
Dec 2nd sales Dec 7th J. Cruz $3000
$55000
Dec 9th M. Miller Dec 8th P. Elvis $2000
$1500
Dec 10th J. Penny Dec 13th stationary $1000
$2000
Dec 12th sales Dec 17th drawings $1500
$15000
Dec 21st Dec 19th wages $1800
$500

18
$84000 $29300
Jan 1st Bal b/f Dec 31st Bal c/d $54700
$54700

$84000

Bank
Dec 1st Bal b/f Dec 3rd rent
$50000 $6000
Dec 15th sales Dec 4th insurance
$15000 $10000
Dec 16th sales $7000 Dec 14th electricity
$1500
Dec 20th motor expenses
$2200

$72000 $19700
Jan 1st Bal b/f $52300 Dec 31st Bal c/d
$52300

$72000
Premises
Dec 1st opening balance Dec 31st Bal c/d
$120000 $120000
19
$120000 $120000
Jan 1st Bal b/f
$120000
Motor vehicle
Dec 1st opening balance Dec 31st Bal c/d $25000
$25000

$25000 $25000
Jan 1st Bal b/f
$25000

Trial balance
Capital $280100
Purchases $54500
Stock $75000

20
Rent $6000
Cash $54700
Sales $110700
Bank $52300
Insurance $10000
Stationery $1000
Electricity $1500
Drawings $1500
Return inwards $1500
Wages $1800
Motor expenses $2200
Return outwards $2000
Premises $120000
Motor vehicle $25000
J. Penny $11500
M. Miller $3000
H. Briggs $1800
Peter White $2700
Perry Elvis $29000
J. Cruz $4200
$426000 $426000

Sales
$110700
Less return inwards
$1500
Net sales
$109200
Opening stock $75000
Purchases $54500

21
Return outwards $2000
$127500
Less closing stock $129500
Cost of goods sold -
$2000
Gross profit
$111200
Less expenses
Wages $1800
Rent $6000
Insurances $10000
Motor expenses $2200
Electricity $1500
Stationery $1000
$22500
Net profit
$88700

Trading and profit and loss

statement

22
 Balance sheet
Fixed assets
Premises
$120000
Motor
$25000

$145000
Current assets
Stock $129500
Debtors $19000
Cash $52300
Bank $54700
$255500
Current liabilities
Creditors $33200
Working capital
$222300
Net assets
$367300
Finance by :
Capital
$280100
Net profit
$88700
Drawings
$1500

$367300

23
Performance evaluation
and interpretation of
results:

Ratios:

Gross profit as a percentage of sales

Gross profit x 100 = 111200 x 100
Sales 110700
1

Net profit as a percentage of sales

24
Net profit x 100 = 88700 x
100
Sales 110700
1

Rate of stock turn over

Cost of goods sold = -2000 =
-0.0195
Average stock 102250

Comparisons:

This comparison is being done between the fix assets of

the business and the current asset. The fixed assets of
the business are $145000.00 while the current assets are
$255500.00. This means that the amount of money that
the business spends on items that stays in the business
with no intention of selling, it is less than the amount of
money that the business spend on assets that will allow
the business to generate a profit.

25
 Suggestions:

It is suggested that Richards wholesalers should offer

more sales discounts. This will force more costumers to
purchase from this business due to the fact the goods are
cheaper.

It is also suggested that some of the profit money can be

used to open another department in the business. This
will help the business expand.

26
Conclusions:

It is clear that Richards wholesaler keeps all the records

of transactions that took place in the business over the
financial period of time. Through the activities of
Richards wholesaler, I gained the knowledge of how the
accounting systems work and how to properly keep
records of everyday transaction in the business.
As results of the proper financial statement reports that
were put together, the business had made a profit and
were successful thus far. At Richards wholesaler they
were able to make a good profit due to the large amount
of sales the business made.

27
Appendices:
List of transactions:
The following are balances at the start of December

Assets
Cash $10,000
Bank $50,000
Premises $120,000
Motor vehicle $25,000
Stock $75,000

28
Debtors
M. Miller $1,500
J. Penny $2,500
H. Briggs $1,800

Creditors
Perry Elvis $3,000
J. Cruz $2,700

The following transactions took place during the month of

December 2014:
1. Purchased goods on credit from J. Cruz costing
$4,500
2. Cash sales of $55,000
3. Paid rent by cheque $6,000
4. Paid insurance by cheque $10,000
5. Sold goods on credit to J. Penny $11,000
6. Purchased goods paying cash $20,000
7. paid J. Cruz $3,000
8. paid Perry Elvis $2,000
9. M. Miller paid cash, settling his debt
10. J. Penny paid $2,000 on his account
11. Purchased goods from Perry Elvis on credit
$30,000
12. Cash sales $15,000
13. Bought stationery $1,000
14. Paid electricity by cheque $1500
29
 15. M. Miller bought goods $15,000 paying by
cheque
16. Barry Locker bought goods paying by check
$7,000
17. Cash drawings $1500
18. M. Miller returned $1,500 in goods
19. Paid wages $1,800
20. Paid motor expenses by cheque $2,200
21. Cash sales $500
22. Peter White bought $2,700 goods on credit
23. M. Miller took $4,500 goods on credit
24. $2,000 goods were returned to Perry Elvis

Closing stock was $129500

Source documents:
Credit note:
CREDIT NOTE
RICHARDS WHOLESALERS
#53 MAIN ROAD CHAGUANAS

H. Briggs telephone: (1868)331-2287

#45 hill view fax:
(1868)332-3190
Chaguanas
Trinidad credit note No.
0/37
Account No.
p/4298

30
 Date:
8 December 2014

Quantity per unit total

21 cases of cape glory $25 $50

pears
$10
Less 20% trade discount
$40

Invoice note:

31
 INVOICE
RICHARDS WHOLESALER
#53 MAIN ROAD CHAGUANAS

H. Briggs telephone:
(1868)331-2287
#45 hill view fax:
(1868)332-3190
Chaguanas
Trinidad credit note No.
0/37
Account No.
p/4298
Date:
8 December 2014

Quantity per unit

total

21 cases of cape glory pears $25

$525

5 cartons kays flour $5

$25

6 cases joys sauce $25

$150

$700

32
less 20% trade discount $140

$560

Cheque:

Dec 22nd 09-07-99

2014 Richards wholesaler date: Dec

Payee: H. 22nd 2014
Briggs #53 main road Chaguanas.

Creditor for pay H. Briggs

goods of order
seventy two dollars eighty five cents
$72 85
$72 85

914234
Richard Smith

33
914234 09-07-99 0599 Richard smith

Accounting cycle:

34
The basic accounting cycle:

opening balances permenant account

closing balances permenant account

transactions for the period

financial statements

end of period ajustments

35