Recording Business Transactions and Financial Analysis of Anne's Business

Portfolio 2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSIGNMENT 2.............................................................................................................................2
PART A...........................................................................................................................................2
a) Preparing double entry system to record transaction in journal entries..................................2
b) illustrating below ledge account to get opening balance........................................................6
c) Formulating Trial balance as at 31st October 2021...............................................................17
d) Preparing Income Statement for the period ended 31st October 2021..................................17
e) Formulating balance sheet as at 31st October 2021..............................................................18
f) Writing letter..........................................................................................................................20
PART B.........................................................................................................................................21
a) Determination of ratios..........................................................................................................21
b.................................................................................................................................................24
CONCLUSION..............................................................................................................................25
REFERENCES..............................................................................................................................27

INTRODUCTION
Recording business transaction is one of the significant component that is one of the crucial
component that is helpful is gaining the information about the conducted commercial activities
in turn better approach for decision can be made. It is based on double entry system that records
the transaction in two accounts so that overall picture of organizational performance can be
derived. The current report will provide significant information regarding the aspects like
recording transaction in journal entries, bring opening balance from ledge, formulating trial
balance, income statement and financial position. These largely play role in providing crucial
information that aids in ascertaining overall performance of company. It will comprise
computation of ratio in order to evaluate performance of organization on the basis of this
analysis technique.
1

ASSIGNMENT 2
PART A
a) Preparing double entry system to record transaction in journal entries
2

3

4