<p> SCHOOL BASED ASSESSMENT</p><p>PRINCIPLES OF ACCOUNTS</p><p>MY BEST FRIEND</p><p>In 2008 Topaz Lopez opened a jewellery store called My Best Friend. It is situated in the Velvet Rope Mall, Booth#12, located at #19 Prince Street, Arima.</p><p>Topaz buys and sells unisex jewellery of gold, silver and semi precious stones.</p><p>The rent of the booth is $1,500 per month. She has employed four workers and one cashier, whom she pays $250 per week, and three sales persons whom she pays $200 each per week.</p><p>Topaz has five hundred ($500) dollars in hand to start the business and took a loan from Escapade Bank Limited for ten thousand ($10,000) dollars. 2008</p><p>Oct 01 Paid rent by cheque $1,500 Bought cash register by cheque $2,000</p><p>Oct 02 Bought fixtures and showcases by cheque $3,000 which will be installed Fri. 3rd October.</p><p>Oct 03 Bought goods for $2,000 by cheque Bought goods from Diamond and Co. for $4,000 Bought goods from Opalita’s Ltd. for $3,000 less10% trade discount Established a petty cash with a float of $100</p><p>Oct 04 Employees set up and decorated store Purchased milk and coffee for $10, cleaning materials for $30 and decorations for $25 Bought stationery (boxes, bags, receipt books) for $200 by cheque</p><p>Oct 06 Cashed cheque for office cash $500 Returned $1,000 worth of goods to Diamond and Co. Sold $1,000 worth of goods for cash</p><p>Oct 07 Sold goods for cheque worth $1,500 Purchased goods from Missy Gold worth $2,000</p><p>Oct 08 Sold goods on credit to Amber Lites worth $500</p><p>Oct 09 Amber Lites returns $200 worth of goods Sold goods for cash $1,000</p><p>Oct 10 Purchased goods worth $1,200 by cheque Deposited $600 into bank account Sold goods worth $2,500 by cheque Paid wages ($850 per week) cash Topaz withdrew $1,000 by cheque for personal use Bought snacks for staff $15</p><p>Oct 11 Bought equipment to engrave jewellery from Safire and Sons for $800</p><p>Oct 13 Sold goods for cash $600</p><p>Oct 14 Paid Opalita’s Ltd. Less 5% discount</p><p>Oct 15 Emeralda’s Boutique bought $700 worth of goods on credit and paid $10 to have them delivered (carriage outwards) Oct 16 Purchased goods on credit, $4,000 from Diamond and Co. Sold goods for cheque of $300</p><p>Oct 17 Sold goods for cash $300 and paid wages by cheque.</p><p>Oct 18 Sold goods $600 by cheque Amber Lites paid her account in full, less $50 cash discount</p><p>Oct 19 Topaz withdrew money for snacks $15 and reimbursed the petty cash</p><p>Oct 20 Purchased stationery for $300 by cheque, sold goods $1,000 by cash</p><p>Oct 21 Paid Diamond and Co. By cheque Sold goods by cheque $3,000</p><p>Oct 22 Sold goods to Lapis Lazuli worth $3,000 less 2% trade discount Sold goods worth $700 for cash</p><p>Oct 23 Bought goods $5,000 by cheque and paid $15 for transport</p><p>Oct 24 Sold goods $1,500 by cheque and $600 by cash Deposited $1,500 into bank, paid wages by cash Topaz withdrew $2,000 by cheque for personal use</p><p>Oct 28 Paid $500 on loan by cheque Sold $100 worth of goods by cash</p><p>Oct 29 Sold goods for $50 by cash</p><p>Oct 30 Sold goods for $300 cash Closing stock at this date was $6,000</p>