Assessment 1: Starting a new venture, decision-makers in a listed company, journal entries and income statement

This report provides a consultation on starting a new venture of decorator, identifies decision-makers in a listed company on London Stock Exchange, records journal entries in the books of F Polk and posts ledger accounts and trial balance in the books of Maurice & Brothers. It also creates an income statement of B Moore and explains the impact of COVID-19 on profits in previous years.

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Table of Contents
INTRODUCTION ..........................................................................................................................3
ASSESSMENT 1 ............................................................................................................................3
PART A...........................................................................................................................................3
1. Give a consultation to David Green about the steps of starting a new venture of decorator.. 3
2. Consider an organisation which is listed on the London Stock Exchange and identify the
decision-makers...........................................................................................................................4
PART B............................................................................................................................................5
1. Record the Journal entries in the books of F Polk..................................................................5
2. Post Ledger accounts and Trial Balance in the books of Maurice & Brothers......................6
PART C............................................................................................................................................7
a) Make a income statement of B Moore....................................................................................7
b) Explain the increase or decrease of profit in the years from 2013 to 2020 will results in
loss or profit in 2022, due to coronavirus pandemic...................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business transaction happens when the exchange of good or service and money is
performed in any organisation between two or more parties. It can be credit or cash purchase or
sales. But all the entries need to be recorded in the books of accounts in journal and then posted
to ledger. Considering the transaction made in the above accounts are entered into the financial
statement (Chan, 2017). The report describes the step of staring a new firm of a decorator as the
owner wants a consultation. Further, a listed company on London stock exchange is taken and in
the context of that organisation, the decision-makers of accounting are explained. Then, the
journal, ledger, income statement transaction was done relevant to the questions given.
ASSESSMENT 1
PART A
1. Give a consultation to David Green about the steps of starting a new venture of decorator.
David Green is a sole proprietor and wanting to commence a business of decorator for
which he wants a consultation of steps of staring a firm. About the responsibility, it is aware of
getting the bad debts which may arise to the organisation and have to be beared by him. But, he
is not aware of the responsibilities he will have as an owner. So, the steps of starting the business
is as follows:
1. Create a model: First and the foremost step in any start up is to make a model. It will
help to find out the activities which are to be performed and will also help in organising
those activities.
2. Make a strategy for the business: A business proposal is made for earning the profits
which can be realised just when the mission and vision is clear. For this, one should set
the upper hand and made the choices subject to current facts and plan a economic
development for the organization (Allen, Benefield and Rutherford, 2021).
3. Working of a business portfolio: It is a pamphlet, which has all the objectives,
initiatives and the capabilities of the firm mentioned. It will also specify the vision and
the modality which the company will take for completing the projects efficiently and
effectively in the future.

4. Preparing the list of the material required: The administration should decide the
substances which can be needed for the fulfilment of the business operations and make a
rundown of those things. For instance, in the business of decoration the needed material
can be – lights, curtains, flowers, balloons, drapes etc.
5. Create a technical roadmap: The business should determine first its short and long –
term goals. It will assists in understanding the problems, threats and opportunities and
prepared before these situation arises. It will aid in getting the projects done on time and
will create a good reputation in the market (Santosa and Palupi, 2017).
6. Social Media Presence: In the current days, individuals like to look for strategic
agreements online Consequently, it is very crucial for David to make accounts on
different web-based media stages such as Instagram, Facebook, you tube, LinkedIn etc.
The proprietor can likewise post a few pictures or recordings related with the proposals to
assist clients with more deeply perusing the organization's work.
7. Create a network: Every firm should be involved in the social work, it helps in creating
a community network. It will hike up the reputation of the company which will build the
network rapidly and people will get to know about the firm more. It will result in increase
in the number of customers.
2. Consider an organisation which is listed on the London Stock Exchange and identify the
decision-makers.
Accounting is a course of recording, assessing and closing of the books of accounts,
which gives the accounting information and helps in taking independent decisions. The point of
bookkeeping is to give the monetary data about the organization. It assists with knowing the
monetary well-being and execution that can be utilized in decision – making (Küster, Aoki and
Lambert‐Torres, 2020). The Sainsburry is recorded on the London Stock Exchange and have
numerous executives that are answerable for the organization's situation on the lookout. Exact
information is essential to guarantee that the association's business is helpful. Each choice made
inside the organization depends, straightforwardly or indirectly, on the users of Sainsburry.
Users of Accounting:

1. Investors: Before taking any decisions about investing in the business, one should
always check about the company health and monetary condition by comparing with its
competitive firms of the same industry.
2. Owners: they should give a check on the return on their investment which will be given,
if the companies earn profits and also monitor the return by the other firms (Jost and et.
al., 2018).
3. Government: The rule and regulations imposted by the governing bodies must be
followed as it collect number of taxes, duties etc.
4. Management: These are the most important part of any organisation because most of the
organisation depends on their functions and decisions. These plan, control and take
decision by evaluating the financial statements of the undertaking.
5. Creditors: These gives the loan by checking the reliability and capability of reimbursing
the obligation.
PART B
1. Record the Journal entries in the books of F Polk.
JOURNAL ENTRIES – F POLK
Date Particulars Debit Credit
01/09/21 Assets A/c
Fixtures
Stock
Debtors (105 + 311)
Bank
Cash
Creditors (229 + 80)
Capital
5700
2800
5200
416
1060
85
309
14952
01/09/21 Bad Debts
P Mullen
(Bad Debts written-off)
105
105

05/09/21 Syme Ltd
Office Fixtures
(Office fixtures bought through credit was written-off)
150
150
10/09/21 Bank
Bad Debts
M Abel
(M Abel declared bankruptcy and received the amount
in full settlement)
180
131
311
18/09/21 Machinery
Cash
Bank
Brown Ltd
(Purchased a machinery and the amount paid by
cheque, cash and on credit)
1800
100
500
1200
26/09/21 Brown Ltd
Bank
(Half of the amount due paid through cheque)
600
600
28/09/21 Insurance Expenses
Drawings
Bank
(Insurance expenses paid by bank but later realised that
£70 is of personal house)
60
70
130
2. Post Ledger accounts and Trial Balance in the books of Maurice & Brothers.
a) General Ledger – MAURICE & BROTHERS
Cash Account
Date Particulars Amount Date Particulars Amount
03/08/21 Bank 2800 15/08/21 Office Fixtures 110
19/08/21 Toyota Co. 8700
31/08/21 Balance c/d 6440 25/08/21 Bank 430
9240 9240

Bank Account
Date Particulars Amount Date Particulars Amount
03/08/21 Cash 2800
01/08/21 Capital 36800 04/08/21 Van 6200
25/08/21 Cash 430 05/08/21 Office Fixtures 1000
02/08/21 Loan Payable 12400 28/08/21 Office Fixtures 750
31/08/21 Balance c/d 38880
49630 49630
Van Account
Date Particulars Amount Date Particulars Amount
01/08/21 Capital 32000
04/08/21 Bank 6200 31/08/21 Balance c/d 46900
08/08/21 Toyota Co. 8700
46900 46900
Office Fixtures Account
Date Particulars Amount Date Particulars Amount
01/08/21 Capital 1200
05/08/21 Bank 1000
05/08/21 Sharp Office Ltd 2400 31/08/21 Balance c/d 5460
15/08/21 Cash 110
28/08/21 Bank 750
5460 5460
Sharp Office Account (Creditor)
Date Particulars Amount Date Particulars Amount
31/08/21 Balance c/d 2400 05/08/21 Office Fixtures 2400
2400 2400
Toyota Co. Account
Date Particulars Amount Date Particulars Amount
19/08/21 Cash 8700 08/08/21 Van 8700
8700 8700
Loan Payable Account
Date Particulars Amount Date Particulars Amount
31/08/21 Balance c/d 12400 02/08/21 Bank 12400

12400 12400
Capital Account
Date Particulars Amount Date Particulars Amount
31/08/21 Office Fixtures 1200
31/08/21 Van 32000 31/08/21 Balance c/d 70000
31/08/21 Bank 36800
70000 70000
(b) TRIAL BALANCE for B Moore on 31 August 2021
TRIAL BALANCE
Maurice & Brothers
Debit Credit
Bank 38880
Cash 6440
Van 46900
Office Fixtures 5460
Sharp Office Ltd (Creditor) 2400
Loan Payable 12400
Capital 70000
TOTAL 91240 91240
PART C
a) Make a income statement of B Moore.
Income Statement of B Moore of the year 2021
Details Amount (£) Amount (£)
Sales 95000
Less: Sales Returns 3500
Less: Carriage Inwards 890

Net Sales (A) 90610
Opening Stock 18000
Purchases 110000
Less: Return Outwards 720
Less: Closing Stock 13000
Net Purchases (B) 114280
Motor Expenses 1400
Rent 7000
Telephone Charges 830
Wages and Salaries 14000
Insurance 1030
Office Expenses 800
Sundry Expenses 250
Operating Expenses (C) 25310
NET PROFIT (A -B - C) -48980
b) Explain the increase or decrease of profit in the years from 2013 to 2020 will results in loss or
profit in 2022, due to coronavirus pandemic.
For certain associations, 2020 was maybe the most troublesome conditions in late times.
While most firms had a steady growth till the mid 2020. But, the Covid-19 pandemic suspended
the progression in most of the universe in mid-March. From breaks in day – to – day activities to
the absolute closure of the business firms (Santos, Richman and Wong, 2019).
As per the income statement, the company had experience losses in the year 2020. This
shows that the expenses have outperformed the income. Regardless, supplied goods gets some
money yet cannot cover its expenses. This could be a direct result of the Covid pandemic, which
has achieved bringing down the interest of the things and the administrations and thus decreasing

the deal. The potential results are different, going from little direct effects like, a closure of
business to roundabout effects like changes in business methods. Understanding the impact of
the organization and the money related ramifications is basic for the administration.
CONCLUSION
From the above analysis, it can be concluded that establishment of business model is very
important for the firm well as for the owner. Further a company called Sainsburry was taken and
the users of accounting information was explained. Then the journal entries were passes and
posted to ledger accounts and made a trial balance to determine the monetary condition of the
company. Furthermore, the income statement was made by referring the trial balance and them
the effect of coronavirus was explained in relation to the net profits of the previous years.

REFERENCES
Books and Journals
Allen, M.T., Benefield, J.D. and Rutherford, R.C., 2021. Co-Listing Strategies: Better
Transaction Outcomes?. The Journal of Real Estate Finance and Economics, pp.1-28.
Chan, B.H., 2017. How to build new competitive competencies in transaction banking. Journal
of Digital Banking. 2(1). pp.13-21.
Jost, J. and et. al., 2018. Interventional programs to improve therapeutic management of people
with epilepsy in low-and middle-income countries. Epilepsy & Behavior. 80. pp.337-
345.
Küster, K.K., Aoki, A.R. and Lambert‐Torres, G., 2020. Transaction‐based operation of electric
distribution systems: A review. International Transactions on Electrical Energy
Systems. 30(1). p.e12194.
Madhani, P.M., 2021. Lean Six Sigma in finance and accounting services for enhancing business
performance. International Journal of Service Science, Management, Engineering, and
Technology (IJSSMET). 12(6). pp.141-165.
Santos, M.R., Richman, V. and Wong, Z., 2019. The Effects of Insurance Pool Size Among
Small Property & Casualty Firms and Recommendations for Insurance Regulators.
Journal of Applied Financial Research. 1. pp.34-46.
Santosa, P.B. and Palupi, C., 2017. The Transaction Cost of Tax Compliance on Institutional
Change of Tax Regulation: Some Evidence from Indonesia. Advanced Science Letters.
23(8). pp.7153-7155.