BA3LC920- Recording Business Transactions

BA3LC920- RECORDING
BUSINESS
TRANSACTIONS

Table of Contents
Table of Contents.............................................................................................................................2
PORTFOLIO 1.................................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
a...................................................................................................................................................3
b...................................................................................................................................................3
Task 2...............................................................................................................................................3
Journal entries.............................................................................................................................3
Task 3...............................................................................................................................................5
Journal entries.............................................................................................................................5
Task 4...............................................................................................................................................8
a...................................................................................................................................................8
b...................................................................................................................................................9
REFERENCES..............................................................................................................................11

PORTFOLIO 1
MAIN BODY
Task 1
a
For the success of the business the most important thing is effective decision making as if
the management of company is not able to make effective decision than this will have a great
impact over the working of company (Bunget and et.al., 2020). Thus, for the top management
and other important stakeholders of the company as they have to take effective decision for the
better working of the company. For company like Tesco the major decision makers are the
shareholders, government, employees of the company. Thus, for this the decision makers use the
accounting information in order to manage the work in effective manner. All these decision
makers of Tesco analyses the accounting information and then this assist company in taking
more decision for the better working of company.
b
With reference to the working of company there are many benefit and drawbacks which the
company and the accountant faces in order to manage their work. the major advantage of using
the accounting information by the accountant is that this provides a clear view to the accountant
that how they can make the use of accounting information and take effective decision.
But the major disadvantage seen by the accountant is that it is not possible that the company is
having all the knowledge relating to the accounts and this might be possible that the company
might not understand what the company is and what the actual position of the company is
(Fairlie, 2020).
Task 2
Journal entries
Journal of David Wise for the month February 2020

Date Details Fol DT CT
Feb
1
Cash a/c
To purchase return a/c
(Being office furniture returned to supplier)
350
350
Feb
4
Bad debt a/c
S. keyes a/c
(Being S. Keyes written off as bad debt)
85
85
Feb
9
Machinery a/c
To Bank a/c
To TS. Co a/c
(Being machinery purchased and some
payment being paid by cheque)
2300
200
2100
Feb.
13
Cash a/c
Bed debt a/c
To S. Hill
(Being some part of cash received and rest
settled as bad debt)
220
50
270
Feb
20
Drawing a/c
To stock
(Being goods taken for personal use)
180
180
Feb.
26
Drawing a/c
To cash
(Being amount of money paid for personal
expenses)
85
85
Feb
28
TS co a/c
To bank
(Being half amount paid to TS co by issuing
cheque)
1050
1050