Recording Business Transactions - Desklib

Recording Business
Transactions

Table of Contents
INTRODUCTION...........................................................................................................................4
ASSESSMENT 1.............................................................................................................................4
1. Give a consultation on setting of the business in steps............................................................4
2. How the financial accounting helps in decision - making and who are the decision makers..5
1. Depict the journal entries of F Polk as on 1 September..........................................................6
2. Record the General Ledger and Trial Balance of the Maurice and brothers...........................8
3. Prepare income Statement and analyse why the profit has increased and decreased over the
years...........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
INTRODUCTION.........................................................................................................................14
PART A.....................................................................................................................................14
a) Record the Journal entry in T- accounts................................................................................14
b) GENERAL LEDGERS:........................................................................................................15
c) TRIAL BALANCE................................................................................................................20
d) Balance Sheet........................................................................................................................21
Part – B..........................................................................................................................................21
a) Accounting Ratios.................................................................................................................21
b) Analysis of the performance and impact of COVID – 19 on Anne’s Business....................22
Conclusion.................................................................................................................................22
REFERENCES..............................................................................................................................23
Books and Journals....................................................................................................................23

INTRODUCTION
A business transaction is an economic activity of a company that changes its financial
situation. They are often grouped together in books called journals and ledgers. A journal is a
notebook that you use to record every business transaction that appears on your receipts. You
may need to keep separate logs for general transactions. The General Ledger is a ledger that
contains your journal totals. It is organized into different. In this report it is defined to start a
business as a decorator, but due to indebted circumstances it is necessary to consult on starting a
business. In addition, journal entries, income statements and trial balances are made for some
transactions. Tesco is used in this report to analyze decision makers.
ASSESSMENT 1
PART A
1. Give a consultation on setting of the business in steps.
David Green is a sole proprietor and wants to start his own business as a decorator. David Green
is keen on starting out as an owner decorator and knows he is fully responsible for all of his
business debts. He will also be responsible for certain accounting tasks (Smith and Castonguay,
2020). Even if someone is new to the stages of starting a business, it is a must to follow the steps
described above:
1. Build a business model: To become successful as a decorator, he must first set up a business
model . For example, if he wants to run a sole proprietorship, he needs to be careful about the
pros and cons of the business.
2. Make a business strategy: It is important to make a plan after creating a good model as it will
serve as a guide for the activities in which it will be involved in all aspects, the budget and the
people it will manage subtly.
3. Building an activity portfolio: In particular, an activity portfolio is more than a simple
brochure. It contains detailed information about the objectives, skills and initiatives of the
company. It will contain detailed information on how the projects will be implemented

successfully. It also includes profiles of key people in the organization highlighting their real
work experience, skills and qualifications.
4. Obtaining the necessary equipment: He should receive the necessary equipment for
decoration after establishing the business strategy of what is required (Perry, 2018
Banks, 2018). Before purchasing the necessary tools, he should measure the available space to
make sure everything fits.
5. Create a technology roadmap: A technology roadmap is a strategic tool that combines the
short and long term strategic objectives of an institution with technical options. This will help
him better understand modern technological possibilities, define technological goals and set
deadlines for the introduction of innovative processes.
6. Create accounts on social platforms: Because nowadays most customers prefer to search for
businesses online. David should therefore create a social media profile and a website to increase
the company's online visibility. Use social media sites like Facebook, Instagram, etc. can help
your business stand out, especially if you offer samples of your work in the form of videos or
photos. Customers can also participate in social media by sharing good information and asking
questions. It will help to know the customer and vice versa using social media.
7. Build community networks: It should also try to physically connect with the community by
participating in charitable activities that promote environmental sustainability. Connecting to the
community where the business is based is a win-win scenario (Hahn, 2020). The engagement
will benefit the company. Customers will appreciate the goods and services provided by the
company. It serves as the point of contact between the company and the customer.
This will be the socially responsible image of your company. In this way, the decorator can start
his own business and this will be of great help for the establishment and development of the
business.
2. How the financial accounting helps in decision - making and who are the decision makers.
Accounting concerns with the monitoring, definition, interpretation, analysis and
communication of accounting information to users. The motive of an accounting system is to
provide financial information about the organization. Data related to the financial position and

performance of a business and is literally designed to be used in decision making based on the
number of internal and external users. Managers at all levels of the corporate structure are called
decision makers because they make decisions based on data and accounting facts. TESCO is
listed on the London Stock Exchange and has a number of decision makers who are responsible
for the organization's position in the market (Hirschmeier and Yui, 2018). Long-term asset
acquisitions, incentives and acquisitions for the development of goods and services can be
considered. Accurate information is essential to ensure the long-term profitability of a company's
operations.
Users of Accounting Information:
1. Management: In a large company like TESCO, there is a separation between management
and shareholders. However, both make choices in the best interests of the organization when
considering the investment decisions and initiatives that can be taken
2. Owners: They can examine ROI using accounting information and compare Tesco's results
with different companies.
3. Government: The government needs accounting data from TESCO to collect direct and
indirect taxes.
4. Creditors: It may use accounting data to assess the solvency and solvency of TESCO.
5.Investors: Before investing, capitalists should examine and analyze Tesco's financial situation
using accounting data.
Knowing the exact state of your business is highly vital so that users can make decisions on how
to achieve their business goals, whether against several other companies in the same industry or
against previous years based on accounting information.
PART B
(a) Journal Entries for the month September, 2021
Date Particulars Debit
Amount
Credit
Amount
01/09/2021 Bad Debts A/C Dr.
To P Mullen A/C Cr
(Being debts written off)
105
105