Recording Business Transaction and Accounting Information

Recording Business
Transaction

Table of Contents
INTRODUCTION ............................................................................................................................3
Explain stage to start a new business............................................................................................3
Role of the financial accounting and responsible individual for decision making process...........3
Part B .................................................................................................................................................4
2. (a) Post the Journal entries into the General Ledger Accounts.................................................5
2. (b) Make the trail balance on 31st August, 2021.......................................................................7
PART C..............................................................................................................................................7
(a) Make the income Statement of B Moore for the year ending on 30th September, 2021.........7
b Analysis of income statement and ratio. Explain reason of changing profit in business
organisation...................................................................................................................................8
CONCLUSION .................................................................................................................................8
REFERENCES...................................................................................................................................9

INTRODUCTION
The business transaction take place between two or more parties in which it involve
exchange of of services and goods for some type of consideration. All these transactions basically
record in books of accounts that is ledger and journal. After this these transaction posted to their
respective ledger (Frankot, 2020). Company chosen in this report is Marks and Spencer.
Commencement of the decorator's business is described in this report, Journal entries, trial
balances and income statements are created for the specified transactions.
Explain stage to start a new business
David is a decorator and want to start a new business himself. He want to be sole
proprietor of his business. Therefore, to start his business he need to face all stages which are
mentioned below:
 Firm's registration- First of the all, the owner need to register his company in order to get
license for running his business.
 Business idea- To start a new business, he require a blue print for operate a business.
 Develop business plan- The owner need to implement his blue print to business
(Downey, Bauchot and Röling, 2018).
 Technology strategy- For this, it need to create a technical roadmap in order to
understand the firm's requirements regarding technology.
 Community Network- This network help the business in maintaining business relations.
Role of the financial accounting and responsible individual for decision making process.
The accounting include recording, recognising, analysing interpreting, distributing and
communication an accounting information to different users. Financial position of a company is
analysed by accounting system (Zelditch, ed., 2018).
Bookkeeping information
 Owner- They may use the company's information as per their wish. They have right to
know financial position and profitability of the company.