Recording Business - Portfolio 1

Recording Business
Transactions
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Table of Contents
Introduction......................................................................................................................................3
PART – A........................................................................................................................................3
(1) Process for starting a new business enterprise as a Decorator..............................................3
(2) Identify the decision makers of the business organization which are responsible for the
process of the decision making in context to the company listed on the London Stock
Exchange.....................................................................................................................................4
Part – B............................................................................................................................................5
(a) Journal Entries for the month September, 2021....................................................................5
Part – 4.............................................................................................................................................8
(a)Income Statement of P Moore ending 31st September, 2021................................................8
(b) Based on the income statements of previous year predict that whether the company will
attain profits or losses in the year 2022.......................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Books & Journals......................................................................................................................11
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Introduction
It is highly important for any organization to record all the business financial transactions
in a proper way so that the organization can keep a check on the financial performance of the
business related functions. When the records are maintained in a proper way so that the financial
decisions can be taken effectively without any kind of inefficiency. In context to this report, the
process to start a business is described with step by step procedure. Also, financial journals,
ledgers and trail balances are prepared to record the business transactions. In addition to this
financial performance is assessed based on the interference of the global pandemic corona virus.
PART – A
(1) Process for starting a new business enterprise as a Decorator.
Sole Business organization can be referred as a business organization essentially involving a
single natural person responsible for managing the entire business (Pratama, 2017).
Therefore, the process of establishing a business organization is described below as a
decorator:
• Idea generation: The first step before starting a business organization is that it must have
an idea, based on which the whole company will work. Being a decorator, the owner must
specifically determine and analyze what novelties can be offered to the target market so that
they can be strongly attracted to the business. Therefore, the idea of originality as well as the
quality of the work can help in creating a competitive advantage among competitors.
• Funding Proposal: The second and also one of the most important steps is a financial
institution because it is very important for a business that they have enough capital for the
business to run smoothly. Owners must find genuine and reliable sources of capital so that
they can invest effectively in the business to achieve a sound financial position.
• Location of the company: It is very important for any company to establish its
organization as the most suitable places to attract and attract large amount of customers on a
daily basis. In return for the activity of a Decorator will be proposed to carry out commercial
activities in major cities. The main reason behind this is that opportunities for business
organization like event decoration are more abundant and it is relatively easier for the
business to thrive and be successful in the long run.
• Human Resource Selection: To run a successful business organization, it is very
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important that the organization has an efficient and effective workforce to help the
organization manage its business (Negash and Lemma, 2020). themselves in the most
appropriate way. In the decoration business landscape, it is necessary to have a workforce
with the features of creativity, hard work and a high level of commitment to succeed in a
more consistent manner.
• Tax planning: Taxes are something that can consume a business' profits and lead to a
reduction in the amount of money in the hands of the owner. Therefore, for the respective
company, we recommend it to do effective tax planning to reduce the tax liability of a
particular financial year.
• Opening the business enterprise: Once all of the above steps have been fully completed, it's
time to launch the business (Alsharari, 2017). In the business context of Decorator, after
completing all the above mentioned processes, steps and procedures, the business can
effectively market with the goal of success as well as huge long-term profits.
(2) Identify the decision makers of the business organization which are responsible for the
process of the decision making in context to the company listed on the London Stock Exchange.
Decision makers can be defined as the people in the business who have the authority and power
to make different types of strategic and important decisions. These decisions may involve
acquisitions, mergers or expansions (Abdurrahman, 2019) . In the context of Unilever,
which is considered as one of the leading companies on the London Stock Exchange,
various decision makers are also involved in the decision-making process for all matters
related to the business. business. The different decision-makers are explained below by
their respective organizations:
• Business leaders: Business managers play an important role in the preparation of action
plans that greatly contribute to achieving achieve business goals in the most effective
way. In the context of Unilever, managers always ensure that all employees in the
company are working efficiently and implementing all the strategies designed by the
manager.
• Investors: They are the most important decision makers in the company. The main
reason behind this is that they are the ones who help increase shareholder value, reduce
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