Guidelines for Principles of Accounts (POA) SBA Project

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Guidelines for Principles of Accounts SBA Project

 

  1. Requirements

 

Each candidate must participate in a project, which involves the simulation or actual operation of a small business entity.

 

2. Types of Projects

 

Projects should centred around entities with which the candidates are familiar, e.g.

  Guidelines for Principles of Accounts SBA Project

 

  1. Requirements

 

Each candidate must participate in a project, which involves the simulation or actual operation of a small business entity.

 

2. Types of Projects

 

Projects should centred around entities with which the candidates are familiar, e.g.

– school cafeteria, canteen;

– school club;

– snack shop at school events;

– events coordinated by students such as concerts and fashion shows;

– sporting and culture clubs at school.

 

 NB   All activities selected must be legal

3. Scope and Size

 

The project should be between 1000 and 1200 words, (not including appendices).  Wherever a student exceeds the maximum length for the project by more than 10 percent, the teacher must impose a penalty of 10 percent of the score that the student achieves on the project.  The project may be done by individual basis or by group work. However, where the project is done by a group, an individual project must be submitted by each student.  No two reports must be identical.

 

    The project must satisfy the following objectives 

 

1.            – Books of original entry (Subsidiary Books)

 

2.            – The ledger with respect to recording the transactions.

3.            – The trial balance

 

4.             – Trading and Profit and Loss Account or the Income and Expenditure

                            Account

 

          5.             – Balance Sheet

 

 

 

 

 

 

 

 

Project Reports

 

Each candidate’s project report should be presented in an ordinary and inexpensive soft folder.

 

The front page must have the following

 

The candidate’s name

Registration number

Name of subject

School

Centre number

Name of Teacher

Year of Examination

Date submitted

 

Each folder should comprise in this particular order

 

(a) The project, comprising

 

1. Introduction

2. Table of contents

3. Aims of the project (Name at least TWO)

4. Information on entity

–  Name of entity (actual or simulated), the business type and                        description of activity

– The place where business activity takes place

5. Relevant information and Records

                          – Operational procedures with aid of accounting diagrams

                          – Transactions for the month

                          – Source documents

                            Purchase invoice or Sales invoice

                            Debit note or credit note

                            Cheque

                            Receipts

6.   Actual accounting procedures

                    Book(s) of original entry; the ledger accounts; the trial balance;

Trading and Profit and Loss Account and the Balance Sheet

7.  Interpretation of results

Simple ratios, comparisons of one period to another, etc.

(Use at least TWO)

8.  Performance of the business (Two statements)

9.  Suggestions/Recommendations (Give at least TWO)

10.  Conclusion

 

The following is a simulated business based on the School Events Snack Shop.

 

The following are the opening balances in the books.

Equipment $6000, Stock $1300, Cash $2000, Cash at Bank $12400

Debtors:  G. Davis  $90

Creditors:  Shoppers  $1320

 

During the month of January 2012

 

Jan     2     Paid rental of stall by Cheque $1200.

Bought goods from Shoppers  $6230 on credit and paid $354 to transport them.

Withdrew Cash from bank for business use $2000.

Paid for purchases in cash $2400.

6    Bought Equipment from Roy’s Hardware  on credit for $1440.

11    Bought goods on credit from Shoppers $2410

Total cash sales $4550.

Credit sales to G. Davis $100

  1. Davis returned $10 worth of sales.

Banked cash $4000

15  Paid insurance by cheque $900.

19  Cash Sales   $5760.

Returned goods to Shoppers $950.

Paid Shoppers $6000 by cheque, after a discount of 10% was deducted on the amount

owing.

26  Cash sales $5920

Received $175 by cheque from G. Davis.  He was allowed a cash discount of $5.

The owner took $3000 cash for personal use.

Banked Cash   $5500.

28  Paid wages in Cash $1040.

The notes at the end of the month were

  1. Wages owing $250.
  2. Rental of stall paid in advance $200.
  3. Depreciate the  fixed assets at a rate of 10% per annum.
  4. Closing stock  $1530.

 

 

 

Prepare

 

1           The relevant source documents.

 

2            The Purchases Day Book, The Sales Day Book,

The Returns Inwards  Book , The Returns Outwards Book and The Cash Book.

3             The Purchases Ledger, The Sales Ledger and The General Ledger.

 

4              The Trial Balance.

 

5               The final Accounts for the month.

 

6               Ratios and Comparisons.

– school cafeteria, canteen;

– school club;

– snack shop at school events;

– events coordinated by students such as concerts and fashion shows;

– sporting and culture clubs at school.

 

 NB   All activities selected must be legal

3. Scope and Size

 

The project should be between 1000 and 1200 words, (not including appendices).  Wherever a student exceeds the maximum length for the project by more than 10 percent, the teacher must impose a penalty of 10 percent of the score that the student achieves on the project.  The project may be done by individual basis or by group work. However, where the project is done by a group, an individual project must be submitted by each student.  No two reports must be identical.

 

    The project must satisfy the following objectives 

 

1.            – Books of original entry (Subsidiary Books)

 

2.            – The ledger with respect to recording the transactions.

3.            – The trial balance

 

4.             – Trading and Profit and Loss Account or the Income and Expenditure

                            Account

 

          5.             – Balance Sheet

 

 

 

 

 

 

 

 

Project Reports

 

Each candidate’s project report should be presented in an ordinary and inexpensive soft folder.

 

The front page must have the following

 

The candidate’s name

Registration number

Name of subject

School

Centre number

Name of Teacher

Year of Examination

Date submitted

 

Each folder should comprise in this particular order

 

(a) The project, comprising

 

1. Introduction

2. Table of contents

3. Aims of the project (Name at least TWO)

4. Information on entity

–  Name of entity (actual or simulated), the business type and                        description of activity

– The place where business activity takes place

5. Relevant information and Records

                          – Operational procedures with aid of accounting diagrams

                          – Transactions for the month

                          – Source documents

                            Purchase invoice or Sales invoice

                            Debit note or credit note

                            Cheque

                            Receipts

6.   Actual accounting procedures

                    Book(s) of original entry; the ledger accounts; the trial balance;

Trading and Profit and Loss Account and the Balance Sheet

7.  Interpretation of results

Simple ratios, comparisons of one period to another, etc.

(Use at least TWO)

8.  Performance of the business (Two statements)

9.  Suggestions/Recommendations (Give at least TWO)

10.  Conclusion

 

The following is a simulated business based on the School Events Snack Shop.

 

The following are the opening balances in the books.

Equipment $6000, Stock $1300, Cash $2000, Cash at Bank $12400

Debtors:  G. Davis  $90

Creditors:  Shoppers  $1320

 

During the month of January 2012

 

Jan     2     Paid rental of stall by Cheque $1200.

Bought goods from Shoppers  $6230 on credit and paid $354 to transport them.

Withdrew Cash from bank for business use $2000.

Paid for purchases in cash $2400.

6    Bought Equipment from Roy’s Hardware  on credit for $1440.

11    Bought goods on credit from Shoppers $2410

Total cash sales $4550.

Credit sales to G. Davis $100

  1. Davis returned $10 worth of sales.

Banked cash $4000

15  Paid insurance by cheque $900.

19  Cash Sales   $5760.

Returned goods to Shoppers $950.

Paid Shoppers $6000 by cheque, after a discount of 10% was deducted on the amount

owing.

26  Cash sales $5920

Received $175 by cheque from G. Davis.  He was allowed a cash discount of $5.

The owner took $3000 cash for personal use.

Banked Cash   $5500.

28  Paid wages in Cash $1040.

The notes at the end of the month were

  1. Wages owing $250.
  2. Rental of stall paid in advance $200.
  3. Depreciate the  fixed assets at a rate of 10% per annum.
  4. Closing stock  $1530.

 

 

 

Prepare

 

1           The relevant source documents.

 

2            The Purchases Day Book, The Sales Day Book,

The Returns Inwards  Book , The Returns Outwards Book and The Cash Book.

3             The Purchases Ledger, The Sales Ledger and The General Ledger.

 

4              The Trial Balance.

 

5               The final Accounts for the month.

 

6               Ratios and Comparisons.

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