Recording of Transactions and Financial Analysis

2 Rbt

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
(a) Write double entry record the transactions in T-accounts.....................................................1
b) Balance the accounts and bring down an opening balance.....................................................3
c) Extract a Trial balance as at 31st October 2020......................................................................8
d) Prepare an Income Statement for the period ended 31st October 2020..................................9
e) Prepare a Statement of Financial Position as at 31st October 2020......................................10
f) Write a brief letter to Linda explaining what drawings are concerning small business and
answering her query concerning her holiday............................................................................10
PART B..........................................................................................................................................11
Ratio calculations......................................................................................................................11
Linda's competitors ratio averages are as stated above.............................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Recording of transactions was done under the accounts within every section with the
fundamental equation of accounting to present how the double entry accounting system works
with every transactions. Such transactions are presenting with increment and decrease in the
elements of accounting equation (Widianto and et.al, 2020). It is based on manual accounting
system and helps to analysis to record data into a computerized accounting system. The
analysing and categorising steps must be done first after that recording the transactions properly.
PART A
(a) Write double entry record the transactions in T-accounts
Date Particulars L.F
Debit
Amount
Credit
Amount
2020
01/10/2
0 Bank A/c Dr 8000
Cash A/c Dr 5200
Van A/c Dr 3000
To Capital A/c 16200
(Being business started)
02/10/2
0 Laptop A/c Dr 1000
To Bank A/c 1000
(Being laptop purchased)
04/10/2 Purchase A/c Dr 2450
1

0
To Toy Ltd 2450
(Being purchase made)
05/10/2
0 Bank A/c Dr 1500
To Sales A/c 1500
(Being sales made)
12/10/2
0 Repairs A/c Dr 80
To Cash A/c 80
(Being cash paid for
repairs)
18/10/2
0 Toy Ltd A/c Dr 100
To Purchase Return
A/c 100
(Being purchase return
made)
21/10/2
0 Bank A/c Dr 500
To Rent A/c 500
(Being rent received)
2