This document provides an overview of a sole proprietorship business called 'Avonto' that sells chicken, chips, and other foods. It includes sections describing the business, accounting procedures, sample transactions from May 2014, journals, ledgers, financial statements including a trial balance, income statement, and balance sheet. While the business faced some challenges with customers and storage, it was overall successful based on the $2,700 profit earned over the period.

1. Table Of Contents
Content Page
Content page
1
Introduction
2 Acknowledgment
3
Tittle
4
Aims
5
Description of business
6
Accounting cycle
7
Account procedures
8
Transactions
10
Journals-Ledgers
12
Cash book
15
General journal
16
Trial balance
17
Stock valuation
18
1

2. Trading profit & loss account
19
Balance sheet
20
Interpretation of data
21
Performance of the business
22
Comparison
23
Recommendation
24 Appendix
25
Conclusion
31
Bibliography
32
2

3. Introduction
This SBA serves to introduce you to the student’s entrepreneurial
ability in a theory/ practical.
3

4. Acknowledgment
The researcher would like to thank God for giving life to
complete this SBA.
The researcher would like to thank my family for their support
and advice. They all had important work to do but they always
found time to discuss my project.
The researcher would like to thank my teacher for her guidance.
4

5. Title
Our best foot forward.
5

6. Aims
The researcher aims of the business are:
● To make a profit
● To satisfy customers
● To create employment
6

7. Description of business
The Avonto a Sole trader business. The name of the business will
be ‘Avonto’. Located at 12 Camp and Princess Street
Charlestown, opposite Nicky’s store. The building is paint in blue
and white. The structure of the building is a two story building.
Some of the surrounding businesses are: NY Carwash, Nicki’s
store, Bobby’s internet, and two drug stores. The environment is
very peaceful because there is very little conflicts that occur there,
but in the area it have a lot of people so the noise level is high.
The environment is clean because there is a frequent garbage
disposal system that picks up garbage twice per a week. The
business will be selling chicken & chips and cream-cycle. The
opening time will be 09:00 hours to 13:30 hours and 14:30 hours
to 16:00 hours.
Two reasons for choosing the environment are:
1. There is no competition in the area, referring to that no other
business is selling chicken and chips.
2. The environment is a business oriented area.
7

8. Account cycle
8

9. Accounting Procedures
• Return inwards: Returns inwards are goods returned to
the selling entity by the customer, such as for warranty
claims or outright returns of goods for a credit.
• Return outwards: Returns outwards are goods returned
by the customer to the supplier.
• Drawings: Money withdrawn by the owner of a sole
proprietorship or the partners of a partnership firm
from the business.
• Journals: A journal is a book or computer file in which
monetary transactions are entered the first time they
are processed. This journal lists transactions in
chronological sequence by date prior to a transfer of
the same transactions to a ledger in the process of
bookkeeping
• Trial balance: A trial balance is a list of all the General
ledger accounts (both revenue and capital) contained in
the ledger of a business. This list will contain the name
of the nominal ledger account and the value of that
nominal ledger account.
• Debtors: A debtor is an entity that owes a debt to
another entity. The entity may be an individual, a firm,
a government, a company or other legal person.
• Creditors: A creditor is an entity, a company or a
person of a legal nature that has provided goods,
services or a monetary loan to a debtor.
9

10. • Cash: Ready money. For accounting purposes, cash
includes money in hand, petty cash, bank account
balance, customer checks, and marketable securities.
• Discount allowed: discount allowed is when the seller
of goods or services grants a payment discount to a
buyer.
• Goods: items of merchandise, finished products,
supplies, or raw materials.
10

11. Transactions
May 6th 2014
started business with $10000 cash and $5000 in bank.
May 7th 2014
Purchase goods $9000 cash.
May 8th 2014
Cash sales $10000.
May 9th2014
Purchase cooler on credit from A.Prasad $2000.
May 10th 2014
Sold goods on credit to R.Rodgriues $1500.
May 11th 2014
R.Rodgriues returns faulty goods $300.
May 12th 2014
Purchase goods $14000 cash Didco LTD, discount
received $2000.
May 13th 2014
Transfer Cash to bank $1500.
May 14th 2014
Returned faulty goods to Didco LTD $2800.
May 15th 2014
Bought new cooler on credit from A.Prasad $900.
May 15th 2014
Paid balance of $2000 to A.Prasad.
May 16th 2014
Sold goods on credit to F.Anthony $3000.
May 18th 2014
F.Anthony returns goods worth $500.
May 18th 2014
F.Anthony paid for goods owed $2500.
May 20th 2014
Paid carriage outwards $1200.
May 21st 2014
Owner withdraws $200 for personal use.
May 22nd 2014
Withdraw 300 from bank for purchases.
May 23rd 2014
Bought goods $3500 on cash.
May 24th 2014
Discount allows $400.
May 25th 2014
Cash sales $10000.
May 25th 2014
Transfer $4000 cash to bank.
May 26th 2014
Bought goods on credit from Demico $1000.
May 27th 2014
Sold goods $8000 cash.
May 28th 2014
Return goods $300 to Demico.
May 28th 2014
R.Rodgriues paid for goods owing $1200.
May 29th 2014
Paid $7500 general expense.
May 29th 2014
Sold furniture $9000 to A.Prasad.
May 30th 2014
R.Rodgriues bought cooler $1000 cash.
May 30th 2014
Sold goods $3000 cash.
May 31st 2014
Transfer $10000 cash to bank.
11

12. 12

13. Sales Journal
Date (May) Details F Amount
May 10th 2014
R.Rodgriues SL $1500
May 16th 2014
F.Anthony SL $3000
Total credit sales $4500
Purchase Journal
Date
(May)
Details F Amount
May 9th 2014
A.Prasad PL $2000
May 15th 2014
A.Prasad PL $900
May 26th 2014
Demico PL $6000
Total credit purchases $8900
Return Inwards
Date
(May)
Details F Amount
May 11th 2014
R.Rodgriues SL $300
May 18th 2014
F.Anthony SL $500
Total credit return
inwards
$800
Return Outwards
Date(May) Details F Amount
May 28th 2014
Demico PL $300
Total credit return
outwards
$300
13

14. 14

15. Sales Ledgers
DR R.Rodgriues A/C CR
May 10th 2014
Sales $1500 May 11th 2014
Return inwards $300
May 31st
BAL C/D $1200
$1500 $1500
June 1st 2014
BAL B/D $1200
DR F.Anthony A/C CR
May 15th 2014
Sales $3000 May 18th 2014
Return inwards $500
May 31st 2014
BAL C/D $2500
$3000 $3000
June 1st 2014
BAL B/D $2500
DR Return inwards CR
May 11th 2014
R.Rodgriues $300 May 31st 2014
BAL C/D $800
May 18th 2014
F.Anthony $500
$800 $800
June 1st 2014
BAL B/D $800
Purchase Ledger
DR A.Prasad CR
May 31st 2014
BAL C/D $2900 May 9th 2014
Purchase $2000
May 15th 2014
Purchase $900
$2900 $2900
June 1st 2014
BAL B/D $2900
15

16. DR Demico CR
May 28th 2014
Return outwards $300 May 26th 2014
Purchase $1000
May 31st 2014
BAL C/D $700
$1000 $1000
June 1st 2014
BAL B/D $700
DR Return outwards CR
May 31st 2014
BAL C/D $1000 May 28th 2014
Demico $1000
$1000 $1000
June 1st 2014
BAL B/D $1000
16

17. Cash book
Date
May
2014
Detail Discount
Allowed
Cash Bank Date
May
2014
Detail Discount
Received
Cash Bank
6th 2014
Bal B/D 10000 5000 7th 2014
purchase 9000
8th 2014
Sales 10000 12th
2014
Purchase 2000 14000
13th
2014
Cash 1500 13th
2014
Bank 1500
18th
2014
F.Anthony 2500 15th
2014
A.prasad 2000
24th
2014
Sales 400 20th
2014
Carriage
out
1200
25th
2014
Sales 10000 21st
2014
Drawings 200
25th
2014
Cash 4000 22nd
2014
Purchase 3000
27th
2014
Sales 8000 23rd
2014
Purchase 3500
28th
2014
R.Rodgriues 1200 24th
2014
Bank 4000
29th
2014
A.prasad 9000 29th
2014
General
expense
7500
30th
2014
R.Rodgriues 500 1000 31st
2014
Bank 10000
30th
2014
Sales 3000
31st
2014
Cash 10000 31st
2014
BALC/D 1800 17500
900 54700 20500 2000 54700 20500
June 1st 2014
BAL B/D Cash $1800
Bank $17500
17

18. General journal
Date Details F Debit Credit
May 21st 2014
Drawings GL $200
Cash GL $200
Owner withdraw cash
for personal use
General ledger
DR Drawings CR
May 21st 2014
Cash $200 May 31st 2014
BAL C/D $200
$200 $200
June 1st 2014
BAL B/D $200
Dr Cash CR
May 31st
Cash $200 May 21st 2014
Drawings $200
$200 $200
18

19. Trial balance
Details DR CR
Capital $15000
Cash $1800
Bank $17500
Purchase $33400
Sales $41500
Return outwards $3100
Return Inwards $700
Drawings $200
Carriage outwards $1200
General expense $7500
Discount allowed $900
Discount receive $2000
Creditors $1600
Total $63200 $63200
19

20. Stock valuation
Date
2014
Received Issue Stock after each
transaction
Total value
of stock
May
7th
9 at $1000
each
9 at $1000 each $9000
May
10th
7 at $1000 each 2 at $1000 each $2000
May
12th
7 at $2000
each
2 at $1000 each
7 at $2000 each
$16000
May
16th
1 at $1000
3 at $2000 each
1 at $1000 each
4 at $2000 each
$9000
May
20th
1 at $2000 1 at $1000 each
3 at $2000 each
$7000
May
23rd
7 at $500
each
1 at $1000 each
3 at $2000 each
7 at $500 each
$10500
May
26th
5 at $200
each
2 at $2000
4 at $3000
1 at $1000 each
1 at $2000 each
4 at $ 500 each
5 at $200 each
$6000
May
28th
1 at $2000
3 at $500
1 at $1000 each
1 at $500 each
5 at $200 each
$2500
May
30th
1 at $500
1 at $200
1 at $1000 each
4 at $200 each
$1800
20

21. Trading Profit and loss account
Venicia Benjamin
Trading and Profit & Loss A/C
For year ending May 31st
2014
Sales $41500
Return inwards ($700)
Net sales $40800
Cost of goods available for
sale
Opening stocks $0
Purchases $33400
Carriage inwards $0
Return outwards ($3100)
Net purchases $30300
Cost of goods available for
sale
$30300
Closing stocks ($1800)
Cost of goods sold ($28500)
Gross profit $12300
Revenue
Discount receive $200
Total revenue $200
New Gross profit 12500
Less expense
Carriage outwards $1200
General expense $7500
Discount Allowed $900
Total ($9600)
Net Profit $2900
Balance sheet
Vinicea Benjamin
21

22. Balance sheet
For year ending May 31st
2014
$ $ $
Fixed assets $0
Current assets
Cash $1800
Bank $17500
$19300
Current liability
Creditors $1600
($1600)
Working capital 17700
17700
Long Term liability (0)
17700
Capitol $15000
Net profit +$2900
$17900
Drawings - $200
$17700
22

23. Interpretation Of Data
Ratios
Profitability
Gross profit percentage:
GP x 100 %
NS
12500 x 100
40800 1
= 1250000
40800
= 31%
Net profit percentage
NP x 100%
NS 1
2900 x 100
40800 1
= 290000
40800
= 7%
23

24. Liquidity
Current ratio
CA
CL
19300
1600
=12.06
Quick ratio
CA – CS
CL
19300 – 1800
1600
=19300 – 1.12
=19298.88
24

25. Performance of the business
The business started with $15000 and ended with $17700. So the
business made a profit of $2700. Therefore the business was a
successful one. The business had faced some major problems like
e.g.
• Customers credit goods and not repaying.
• The business had a problem with the storage facilities.
• Some days the business had hardly had sales.
While the business had face those problems it flourish in these
• Sales.
• Profit.
• Customers.
• Quality service.
25

26. Comparison
The business had started with $10000 cash in hand and $5000 in
bank. On the first day the business made a purchase of $9000 and
the following day made a profit of $1000. The 12th
May the
business made a purchase of $14000, the business made a horrible
loss of $11000.On the 23rd
May the business made a purchase
$3500 and made a profit of $6500. On 26th
May the business
made a further purchase of $1000 worth of goods and made a
profit of $7000.
26

27. Recommendation
• The business should credit fewer goods to customers to
decrease bad debts/ debts.
• Increasing food prices.
27

28. Appendix
Graphs
Graph comparing sales and purchase
41500,
55%
33400,
45% Sales
Purchase
Graph comparing Net profit and gross profit
12300
2900
0
2000
4000
6000
8000
10000
12000
14000
Gross profit Net profit
28

29. Pictures
Invoice
29

30. Receipt
30

31. Deposit voucher
31

32. Petty cash
32

33. Picture of the business
Services provided by the business
33

34. Conclusion
In relation to the aim, the business made a net profit. Also
the business did not made its target profit, it made less
than was predicted. This maybe of a result of crediting to
many goods to customers and the selling the goods at a
low price.
34

35. Bibliography
www.acountingcycles/eg.com
www.acounting/dictionary.com
www.invoice/e.g
www.receipts/e.g
35