Accounting Assessment 2: Transactions, Trial Balance, Income Statement, Balance Sheet, Ratio Analysis, and Covid-19 Impact

Assessment 2

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
PART A......................................................................................................................................3
a) Presenting double entry record the transactions in T-accounts..........................................3
b) Balance the accounts and bring down an opening balance................................................3
c) Drafting a trial balance of Linda ltd on 31st October 2021...............................................3
d) Preparing an Income Statement for the period ended on 31st October 2021....................3
e) Drafting a balance sheet on 31st October 2020.................................................................3
f) Writing a brief letter to Linda ltd explaining aspects related to drawing...........................3
PART B......................................................................................................................................3
a) Determining ratios for Anne’s business............................................................................3
b) Evaluating performance of Anne’s business on the basis of ratios and impact on covid
19 on it....................................................................................................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................9

INTRODUCTION
Accounting is concerned with the recording of daily transactions that associated with
business. All kind of business units such as sole proprietor, public & private limited firm lays
high level of emphasis on maintaining records. This in turn helps business entity in assessing
financial position and performance at the end of an accounting year. The current report will
highlight income, expenses, assets and liabilities of Linda ltd during the concerned period. It
also entails how ratio analysis tool can be used for evaluating company’s performance from
several perspectives.
PART A
a) Presenting double entry record the transactions in T-accounts

b) Balance the accounts and bring down an opening balance