Accounting: Recording Transactions, Ledgers, Income Statement, Balance Sheet, and Ratios

Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Recording of transactions in the Journal-...............................................................................1
Recording entries in respective ledgers-.................................................................................3
Posting in the trial balance.....................................................................................................6
Construct the Income Statement.............................................................................................7
Provide details of the Balance Sheet......................................................................................7
Explaining drawings in case of Anne.....................................................................................8
TASK 2 ...........................................................................................................................................9
Determine the Accounting Ratios of the Business.................................................................9
Impact of Covid19 on profits of the business-.......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Business transaction represents all the activities which can be recorded in form of money and can
be valued. These transactions acknowledge about the liquidity,profitability and structure of
business (Appelbaum and Nehmer, 2020).This report contains journal entries and their posting to
respective accounts. For checking accuracy trial balance is also recorded in which all the
accounts having debit or credit balances are shown. Afterwards,profit and loss account is
prepared to know the expenses and income of the business and with the help of all statements
balance sheet is prepared to know about the real assets and liabilities of the given organisation.
Lastly,ratios are also interpreted for its comparison with other competitors.
TASK 1
Recording of transactions in the Journal-
Journal entries in the books of Anne york.
Date Particular L.F. Debit(Dr.) Credit(Cr.)
1st October Bank
cash
flat
car
capital
(Capital introduced in the business)
10000
4800
45000
12000
71800
2nd October Purchases
Home limited.
(Purchases made from home limited)
5400
5400
4th October Computer
Printer
Bank
(
800
200
1000
5th October Bank 2800
1

Sales
(sales payment received by cheque)
2800
12th October Repairs
cash
(expense of 110 for repairs)
110
110
18th October Home limited
Purchase return
(return of purchases from home
limited)
250
250
21st October Bank
Rent received
(Rent received of amount 800)
800
800
23rd October Rayan
cash
Sales
(goods being sold on cash and
credit)
300
1800
2100
23rd October Cash
sales
(Cash sales to David)
700
700
24th October Laptop
Bank
(laptop purchased)
1700
1700
26th October Wages
Bank
(Monthly wages paid by cheque)
820
820
30th October Rent 850
2