Cover Image
close this bookBasic Accounting for Credit and Savings Schemes (Oxfam, 1996, 96 p.)
View the documentAcknowledgements
View the documentIntroduction
Open this folder and view contentsChapter 1: Getting started
Open this folder and view contentsChapter 2: Recording the transactions
Open this folder and view contentsChapter 3: Balancing the books
View the documentChapter 4: Sorting the data
Open this folder and view contentsChapter 5: The balance sheet
Open this folder and view contentsChapter 6: Administration of loans
Open this folder and view contentsChapter 7: Administration of savings
Open this folder and view contentsChapter 8: Sustainability
Open this folder and view contentsChapter 9: Stock
Open this folder and view contentsChapter 10: Checking the accounts
View the documentGlossary
View the documentFurther reading
View the documentAppendix 1: A worked example
View the documentAppendix 2 :Blank forms
View the documentOther books on financial management and income generation from Oxfam Publication
View the documentOxfam Publications

Appendix 1: A worked example

Darfur revolving fund Information

A farmers' cooperative in Darfur in the west of Sudan are operating a revolving fund selling seeds. The original capital for the fund was a grant from Oxfam of Ls52,500 for the purchase of tomato, melon and cucumber seeds.

A simple accounting system is in operation involving stock cards, a cash book, a bank book, and a stock issue book. The balance sheet of the fund as at 1 January 19XX is attached, together with details of the transactions in January. (All figures are in Sudanese pounds: Ls.) The transactions in January 19XX are as follows:

1.1.XX

Issue of 10 tins of tomato seeds to Kamonga at Ls 500 each.

1.1.XX

Issue of 10 tins of melon seeds to Kawra at Ls 700 each.

2.1.XX

Issue of 3 tins of tomato seeds to Shoba at Ls 500 each.

3.1.XX

Purchase of 13 tins of tomato seeds for Ls 450 each using a cheque.

3.1.XX

Cheque payment of Ls 200, being transport cost of tomato seeds: to be included as part of the cost of the seeds.

4.1.XX

Ls 10,000 received from Kamonga.

5.1.XX

Ls 5,000 received from Shoba.

10.1.XX

Issue of 10 packets of cucumber seeds to Kawra at Ls 100 each.

11.1.XX

Issue of 15 tins of melon seeds to Shoba at Ls 700 each.

12.1.XX

Purchase of 20 tins of melon seeds at Ls 500 each for cash.

15.1.XX

Transfer of Ls 4,000 to the bank.

25.1.XX

It is discovered that Debli village centre can no longer be contacted. The management committee decide to write-off the amount outstanding from Debli.

26.1.XX

Three packets of cucumber seeds are found to be damaged. These will have to be destroyed and written-off on the stock card.

27.1.XX

Stationery for the fund purchased for Ls 1,000 cash.

31.1.XX

Bank statement received. Includes bank charges of Ls 60.

At 1 January 19XX the balance sheet of the fund was as follows:

Balance sheet as at 1 January 19XX

Notes



Ls

Cash


1,000

Bank


6,500

Stock

1

24,250

Outstandings

2

29 750



61.500

Capital

3

52,500

Surplus

4

9.000



61.500

Notes:
1 Stock


Quantity

Unit

Total

Current cost

value

selling price

Tomato seeds

1 pound tins


20

400

8,000

500

Melon seeds

1 pound tins


25

500

12,500

700

Cucumber seeds

6 oz packets


50

75

3.750

100

Total





24.250


2 Debtors

Village

Amount outstanding

Kamonga

6,000

Kawra

6,750

Debli

10,000

Shoba

7.000

Total

29.750

3 Capital: Local purchase In November 19XX by Oxfam:


Quantity

Unit cost


Total cost

Tomato seeds

1 poundtins

50

400

20,000

Melon seeds

1 pound tins

50

500

25,000

Cucumber seeds

6 oz packets

100

75

7.500

Total



52.500


4 Surplus

Sales

37 5

Cost of stock sold

(28.250)

Gross profit

9,250

Expenses

(2501

Net profit

9.000

Exercises:

1 Write up the stock issue book, cash book, bank book, and stock cards for January 19XX.

2 Prepare a balance sheet with notes as at 31 January 19XX.

Darfur revolving fund: combined stock issue book and loan register

Stock issued: Issued to:

Date

Details

Ref

Cost of stock sold

Price

Kamonga

Kawra

Debli

Shoba

1 Jan

Debtors brought forward

-


29,750

6,000

6,750

10,000

7,000

1 Jan

10 tins tomato seeds

LR1


4,000

5,000

5,000



1 Jan

10 tins melon seeds

LR2


5,000

7,000


7,000


2 Jan

8 tins tomato seeds

LR3


3,200

4,000



4,000

4 Jan

Repayment received

R1


(10,000)

(10,000)




5 Jan

Repayment received

R2


(5,000)




(5,000)

10 Jan

10 tins cucumber seeds

LR4


750

1,000


1,000


11 Jan

15 tins melon seeds

LR5


7,500

10,500



10,500

25 Jan

Debt written off

LR6



(10,000)


(10,000)





20.450

32,250

1.000

14.750

-

16,500

Darfur revolving fund cash book: receipts

Receipts

Date

Description

Voucher

Amount cash

From from villages

Repayments

Other

1 Jan

Brought forward

1,000



1,000

4 Jan

From Kamonga

R1

10,000


10,000


5 Jan

From Shoba

R2

5,000


5,000


Total

16,000


15,000



1,000

Darfur revolving fund cash book: payments

Payments

Date

Description

Voucher

Amount

To bank

Stock

Admin

Other

12 Jan

Purchase 20 tins

1

10,000


10,000




melon seeds







15 Jan

Deposit cash at bank

P2

4,000

4,000




27 Jan

Purchase stationery

P3

1,000



1,000


31 Jan

Carried forward

1,000




1,000




16,000

4,000

10,000

1,000

1,000

Darfur revolving fund bank book: receipts

Receipts

Date

Description

Voucher

Amount

From cash

Repayments from villages

Stock

Other

1 Jan

Brought forward

6,500




6,500

15 Jan

Cash deposited

BR1

4,000

4,000




Total



10.500

4.000



6.500

Darfur revolving fund bank book: payments

Payments

Date

Description

Voucher

Amount

To cash

Stock

Admin

Other

3 Jan

Purchase 13

BP1

5,850


5,850




tins tomato seeds







3 Jan

Delivery of

BP2

200


200




tomato seeds







31 Jan

Bank charges

BP3

60



60


31 Jan

Carried forward

4,390




4,390

Total



10,500


6,050

60

4,390

Tomato seeds 1 pound tins

Date

Details Issued to/ received from

Movement

Cost Balance

Quantity Movement

Balance

1.1.XX

Brought forward

8,000


20


1.1.XX

Kamonga

(4,000)

4,000

(10)

10

2.1.XX

Shoba

(3,200)

800

(8)

2

3.1.XX

Purchase

5,850

6,650

13

15

3.1.XX

Transport

200

6,850

15

Melon seeds 1 pound tins

Date

Details Issued to/ received from

Movement

Cost Balance

Quantity Movement

Balance













1.1.XX

Brought forward 12,500



25


1.1.XX

Kawra

(5,000)

7,500

(10)

15

11.1.XX

Shoba

(7,500)

(15)

-

12.1.XX

Purchase

10,000 10,000

20

20


Cucumber seeds 60z packets

Date

Details Issued to/ received from

Movement

Cost Balance

Quantify Movement

Balance

1.1.XX

Brought forward

3,750



50

10.1.XX

Kawra

(750)

3,000

(10)

40

26.1.XX

Damaged

(225)

2,775

(3)

37

Balance sheet as at 31.1.XX


Notes

Ls

Cash


1,000

Bank


4,390

Stock

1

19,625

Outstandings

2

32 250



57.265

Capital


52,500

Surplus

3

4 765



57 265

Notes:

1 Stock


Balance 1

Tomato seeds

1 pound tins

6,850

Melon seeds

1 pound tins

10,000

Cucumber seeds

6 oz packets

2 775



19 625

2 Debtors



Village


Amount outstanding

Kamonga


1,000

Kawra


14,750

Debli



Shoba


16.500

Total


32.250

3 Deficit for January


Ls

Saiesa

27,500

Cost of sales


Cost of stock sold

20,450

Damaged stock

225


(20.675)


6,825

Debt written-off

(10,000)

Expenses (1,000 + 60)

( 1 060)


4 235

Surplus brought forward

9,000

Deficit Jan XX

( 4 235)

Surplus carried forward

4.765

NOTE
a Sales
From stock issue book price column:
5 000 + 7 000 + 4,000 + 1,000 + 10,500 =27,500