Accounting Assessment: Steps to Start a Business, Financial Accounting for Decision Makers, Journal Entries, Trial Balance, Income Statement and Covid-19 Impact

Accounting
Assessment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Part A ..............................................................................................................................................3
Provide suggestions on the steps required to be followed before starting a business.................3
How does financial accounting helps different decision makers of a plc...................................4
Part B ..............................................................................................................................................4
Give the journal entries of F Polk with narrations......................................................................4
Record the entries in general ledger and prepare Trial Balance for Maurice and Brothers........6
Prepare the income statement and analyse the impact of Covid-19 pandemic on the profits.....8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business transactions refers to the financial events that happens in the business. These events
determines the fiscal health of the business. Due to business transactions the firms are able to sell
their goods and services to the customers and earn revenue from same. These business
transactions are required to be properly recorded and analysed during a period which would
ascertain the profits earned by the business in this time. This time period is called the accounting
period or fiscal period (De Girolamo, and et. al., 2019). All the transactions happening in this
period are duly recorded. This report highlights the main entries recorded of a business
mentioned in case. The first part highlights the requirements of starting a business with the major
stakeholders of Morrisons. The part two of this assessment captures the main traditional
accounting process followed by the business like preparation of ledger accounts, trial balance
and income statement.
TASK
Part A
Provide suggestions on the steps required to be followed before starting a business
The case of David green is that, he wants to start a sole proprietorship start up dealing in
the business of decorating.. following are the steps that he might want to consider before starting
a new business.
 The first step to start a business is to formulate a business model which would give
insights to the leaders about the opportunities in the market.
 The entrepreneur in this step has to be clear of the visions and missions of the business
that he they want to take up for the business (Subramanian, and et. al., 2021).
 After forming the strategies, the leaders have to make a business portfolio about the
products and services the business will deal in.
 After deciding the product line, the business now have to decide the long term strategy
for growth that they will follow to hold the competitive edge in the market.
 The business is also required to have an online presence on the social media which
would aid the business in its settlement in the marketplace and gain potential customers.

How does financial accounting helps different decision makers of a plc.
Accounting is a procedure of transcription, evaluating and finalising of the entries which afford
the explanation data and helps in determination – devising. The content of accounting is to yield
the fiscal data about the concern. It help in intentional active the financial point and execution
which can be utilized in taking determination by the users (Wahyuni-TD, 2017). Morrisons is
listed on the London Stock Exchange and many decision-makers and responsible for the place of
the institution in the activity. Acquiring, generation, and the acquisition of long-term point for
adoptive working class and merchandise could be reasoned. Exact data is crucial to pledge that
the organisation is beneficial. Every determination seized in the firm calculate instantly or
directly on the users of Morrisons.
The users of accounting are:
1. Owners: They might check the rate of return complete using explanation information and
measure the consequence of the firm to those of comparable with businesses.
2. Government: The public authority needs accounting information of the undertaking to
gather different kinds of taxes, such as direct and indirect.
3. Management: These are people who figure and make arrangements for the future.. The
plan is made according to the goals of the business. The customers of the accounting
information uses it to plan, control and simply decide. It helps them with evaluating the
presentation and position of the firm.
4. Investors: Before contributing, entrepreneur should survey and examine the monetary
condition using the accounting data of an organisation (Appelbaum, Budnik, and
Vasarhelyi, 2020).
Part B
Give the journal entries of F Polk with narrations
JOURNAL ENTRIES – F POLK
Date Particulars Debit Credit
01/09/21 Assets A/c
Fixtures
Stock
Debtors (105 + 311)
5700
2800
5200
416