Recording Business Transaction: Steps, Formats, and Analysis

Recording Business transaction

INTRODUCTION
Recording of business transaction is one of the important step which includes multiple
steps and procedures. It is essential to record all financial transaction which is consist of all
monetary transaction. It helps in building and maintaining of financial statements of a company
which is require to analyse and determine financial position. A company uses varied formats for
recording financial transactions such as journal entries, ledger accounts, trial balance, profit and
loss account and balance sheet, comparative analysis etc (Adamyk, 2017). In this report it is
consist of trial balance, ratio calculation and an analysis of competitors position.
PART A
Writing double entry recording of transactions in T-accounts
Date Particulars L.F
Debit
Amount
Credit
Amount
2020
01/10/20 Bank a/c dr 8000
Cash a/c dr 5200
Van a/c dr 3000
To Capital a/c 16200
(Being business started)
02/10/20 Laptop a/c dr 1000
To Bank a/c 1000
(Being laptop purchased)

04/10/20 Purchase a/c dr 2450
To Toy Ltd 2450
(Being purchase made)
05/10/20 Bank a/c dr 1500
To Sales a/c 1500
(Being sales made)
12/10/20 Repairs a/c dr 80
To Cash a/c 80
(Being cash paid for
repairs)
18/10/20 Toy Ltd a/c dr 100
To Purchase Return
a/c 100
(Being purchase return
made)
21/10/20 Bank a/c dr 500
To Rent a/c 500
(Being rent received)
23/10/20 Cash a/c dr 1500