Recording Business Transactions - Desklib

PROJECT 2
RECORDING BUSINESS TRANSACTIONS
BA3UK92O
March 12, 2021

Table of Contents
March 12, 2021............................................................................................................................................1
b) Balancing the accounts and bringing down an opening balance.........................................................6
c) Extracting the trial balance as at 31stOctober 2020..........................................................................12
d) Preparing the Income Statement for the period ended 31st October 2020:.....................................13
e) Preparing the Statement of Financial Position as at 31st October 2020:...........................................15
f) Linda’s recommendation letter..........................................................................................................16
PART B.......................................................................................................................................................17
I)CalculatingFinancialRatios for Linda’s business as at 31st October 2020............................................17
II) Performance of Financial Ratios for Linda’s business as at31st October 2020..................................19
References.................................................................................................................................................21

PART A
a) Recording the transactions in T- accounts.
CAPITAL A/C
Date Details Amount
GBP
Date Details Amount
GBP
01/10/202
0
Bank 8,000
01/10/202
0
Cash 5,200
01/10/202
0
Vehicles 3,000
Bank A/C
Date Details Amount
GBP
Date Details Amount
GBP
01/10/202
0
Capital 8,000 02/10/20
2
Laptop 1,000
05/10/202
0
Sales 1,500 24/10/20
2
Car 2,500
21/10/202
0
Lease 500 26/10/20
2
Wages 820
30/10/20
2
Rent paid 1,000
31/10/20
2
Drawings 1,600
CASH A/C
Date Details Amount
GBP
Date Details Amount
GBP

01/10/202
0
Capital 5,200 12/10 Laptop 80
23/10/202
0
Auctions 1,500
23/10/202
0
Auctions-
Fred
500
Equipment expenses A/C
Date Details Amount
GBP
Date Details Amount
GBP
01/10/202
0
Vehicles 3,000
02/10/202
0
Laptop 1,000
24/10/202
0
Car 2,500
Purchases A/C
Date Details Amount
GBP
Date Details Amount
GBP
04/10/202
0
Toys 2,450 18/10/20
2
Toys
returns
100
12/10/202
0
Laptop 80
Accounts receivable A/C
Date Details Amount
GBP
Date Details Amount
GBP
23/10/202
0
Fred 400