Principles of Accounts: SBA - Mathsville

Principles of Accounts: SBA

1. Title of project (What is the name of your business) Example: An investigation into the use of the accounting principles & cycle to the real world of business.

2. Aims of the business (At least 2) Transactions recorded To prepare accounts records from transaction. Investigate the business performance Show clearly the accounting cycle. What is the accounting cycle? Profit making Skills gain in class to apply to the SBA Financial performance of the business To assess the performance of the business

3. Introduction ? Information on steps involve in this project - Show accounting cycle and explain steps to be taken

4. Description of business entities & activities - Name of business - Description of activities, product etc. - Location of the business - Period under investigation - Number of employees - Organizational structure - Opening Financial accounts (Trading and Profit and Loss account & Balance Sheet).

5. Transactions of the business ( At least 2). These transactions would include o Purchases of items (Cash/Bank/Credit). Discount Received included for some transactions o Sales of items (Cash/Bank/Credit). Discount Allowed included for some transactions. o Return inwards o Return outwards o Withdrawals (Drawings) o Expenses paid (At least 4) o Debtors (At least 4, Remember to put the name of the Debtors) o Creditors (At least 4, Remember to put the name of the Creditors) o Money paid (To Creditors Cash & Bank/Cheque) o Bad debt written off o Money received (From Debtors (Cash & Bank/Cheque))

Note: transactions must be a minimum of 25 and must include at least 2 of the following recorded above and in some cases 4.

6. Books of original entry ? SDB, PDB, RIDB, RODB & CB. 7. Ledgers ? GL, PL, SL. 8. Balance off the accounts ? Each account has to show accurately the bal. c/d & bal. b/d 9. Trial balance from the list of final balances (#8) 10. Financial accounts ? TPL & B.S 11. Ratios computed to assess performance

- At least 2 categories of profitability's & Liquidity 12. Comparison of ratios opening with closing 13. Evaluation ? Performance of business ? Profitability & Liquidities

14. Recommendation ? TO improve/ not ? regarding business operation 15. Conclusion ? Must answer AIMS

16. Appendices -

-

Diagrams, Pictures, Tables Graphs Source Documents (Cash receipts, Bank documents, (cheque, deposits slips and withdrawals) Invoices (Sale & Purchases) Debit Note Credit Note

17. Bibliography ? Books, Text, Journal, Web site

Everything must be done in APA FORMAT

POA SBA

Example of first transaction

1 Jan 2016

Fixed Assets

$$

Building

?????

Current Assets

Stock in hand

?????

Cash

?????

Bank

$?????

Debtors:

#1 Name $?????

#2 Name $?????

#3 Name $?????

Current Liabilities

Creditors:

#1 Name $?????

#2 Name $?????

#3 Name $?????

Long Term Liabilities

Loan:

#1 Name $?????

#2 Name $?????

#3 Name $?????

o Further notes for transactions

o When buying items you have to state whether it is cash/bank/credit. If on credit, who was the item was credited to?

o When paying for items you have to state whether it is cash/bank/credit. If on credit, who was the item was credited to?

o When allowing a discount, you would have sold an item. Please state the cost of the item and also the amount for the allowance of the discount.

o When receiving a discount, you would have bought an item. Please state the cost of the item and also the amount for the discount received.

o When the business is returning an item to their customers, it must have had an item that was previously bought on credit (Return Outwards).

o When the suppliers are returning items to the business, there would have been goods previously sold on credit (Return Inwards).

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