Recording Business Transaction

Recording Business
Transaction

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Decision makers and their need for accounting information: ....................................................1
Advantage and Disadvantage of recording accounting information:..........................................2
PART 2............................................................................................................................................4
Journal entries with narration for the David wises:....................................................................4
PART 3............................................................................................................................................5
Ledger and trail balance of Pearce & sons:................................................................................5
PART 4............................................................................................................................................8
Income statement for Airman co.:...............................................................................................8
Impact of COVID 19 on company income statement items:......................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Every business transaction has been recorded in the journal books of the company. Hence
all the transactions are found in journal itself that is considering as subsidiary books. Recording
the transactions is called as journalizing. In the accounting books record those transactions that
measurable in money such as purchase a machinery from suppliers (Deshpande, Shiurkar and
Devane, 2019). All the transactions impact on the business in twice manner and presents the
actual position of the business. This report based on the various business transactions that occur
in the company in a financial year. In this report consist of Journal entry, ledger and trial balance.
Along with it covers need of accounting information and identify advantage & disadvantage of
profit business structure.
PART 1
Decision makers and their need for accounting information:
Decision making is a procedure of analysing different situation of business, collecting
information and determine alternative resolutions. For this procedure require to take step by step
and make more deliberate by decisions and defining alternatives.
Decision makers are those persons who have the ability to take though decision in regard
of business such as, sales, growth as well as development. These person’s analysis the all the
transactions of business that occur in the a financial year after that prepare a strategy and make
decision for development. In this procedure consisting of corporate, policy, realistic, planned and
non-programmed choices. In this report selected business Cadbury which is a British
multinational confectionery business that listed into London stock exchange. It was founded in
1824 by John Cadbury. In the context of Cadbury mentioned those people who are taking
decision such as:
 Management department: This department in Cadbudry play essential role in decision
making procedure. All the activities analysing by the department people and follow as per
the rules & regulations. Along with focus on the issues and problems that occur in the
business and impact on the decision making. For this prepare different business strategy
to get rid of from such problems and take required action. In this procedure is often very
short and effective analysis is immediate (Kumar, 2019).
Need of information:
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 Accounting information plays essential role and these information use by the
management team for allocation funds in each department as per the requirement.
 All the information deliver on time to right person and utilise for decision making.
 Management people makes important decisions for Cadbury after the determining various
accounting information of different departments.
Owner: Board of directors plays crucial role in decision making procedure and coordinate with
each other’s. In board of directors consist of stakeholders, sales manager, finance manager and
many others. The manager of Cadbury conducts a meeting to make any big decision for company
future and take suggestions from every people. For financial activities require to conduct
different tasks in proper manner.
Need of information:
 The accounting information require for owner in future investment procedure in order to
complete task.
 It helps to generating more profitability in large manner.
 The need of accounting information to use to assess business operations in proper manner
and take right decisions.
Manager: The manager of Cadbury plays essential role in decision making procedure that
provides management team and other shareholder to direction in regard of different tasks.
They are analysing the performance of every team member for generating more profitability.
Need for accounting data:
 For the preparation of financial statement requires to collect all accounting data that
supports to business in decision making procedure.
 Accounts executives and staff members with significant financial knowledge.
 Along with analysis of stakeholder role for managing activities and controlling people.
Advantage and Disadvantage of recording accounting information:
Accounting is a procedure of financial transactions in analysing, determining, reviewing
and recording the transactions in the company books. The procedure follow by the oversight
agencies, tax collection organisation and regulatory bodies. On the basis of accounting
information compare business with another business and understand their strategy effectively. It
can also help to understand the actual position of business. Along with it supports to manager in
decision making procedure in the context of sales, promotions activities. Most of the
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