Recording Business Transaction Assignment (Doc)

Added on - 15 Jan 2021

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RECORDING BUSINESSTRANSACTION
Table of ContentsINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1(a) Journal Entries of Jill.............................................................................................................1(b) General Ledger of Jill............................................................................................................2(c) Trial Balance of Jill...............................................................................................................5(d) Income Statement of Jill........................................................................................................6(e) Statement of Financial Position of Jill...................................................................................6PART B............................................................................................................................................7Calculations of ratios of Jill :......................................................................................................7Comparison of various ratios of Jill with competitors average:.................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONRecording of business transaction means entering a transaction and providing achronological record of business activities (Veblen, 2017). Recording of business transactionfirstly include recording of journal entries, then ledgers are prepared from the journal entries byopening the accounts, then all the closing balances of the ledgers are transferred to trial balance,which is used in preparation of statement of income and statement of financial positions. Fromthe statement of income and financial position, various ratios like net profit margin, gross profitmargin, current ratio, acid test etc. are calculated for better understanding of financial statementsof the entity.PART A(a) Journal Entries of JillDateParticularsDebit ()Credit ()01/09/17Bank A/c Dr3000Cash A/c Dr800To Capital A/c3800(being business started with cash balance of800 andbank balance of3000 )02/09/17Purchase A/c Dr900To Ron A/c900(being goods purchase in credit from Ron amounting of900 )03/09/17Computer A/c Dr800To Bank A/c800(being computer amounting of800 purchased throughcheque)05/09/17Bank A/c Dr500To Sales A/c500(being goods sold amounting of500 and receivedmoney in bank)06/09/17Purchase A/c Dr400To Cash A/c400(being goods purchase amounting of400 in cashfrom C Jones)1
10/09/17Rent Paid A/c Dr300To Bank A/c300(being rent amounting of300 paid through cheque)12/09/17Stationery A/c Dr100To Cash A/c100(being stationery amounting of100 purchase incash )18/09/17Ron A/c Dr100To Purchase Return A/c100(being goods amounting of100 returned to Ronwhich was purchased on 02/09/2017)21/09/17Bank A/c Dr100To Rent Received A/c100(being rent amounting of100 received of let off partof premises)23/09/17Bill A/c Dr400To Sales A/c400(Being goods amounting of400 sold to Bill on credit)23/09/17Cash A/c Dr1500To Sales A/c1500(Being goods amounting of1500 sold in cash)24/09/17Car A/c Dr900To Bank A/c900(being car amounting of900 purchase in cheque forbusiness use)30/09/17Wages A/c Dr400To Cash A/c400(being wages amounting of400 paid in cash)30/09/17Capital A/c Dr550To Cash A/c550(being cash amounting of550 withdraw by Jill incash)(b) General Ledger of JillCapital A/c2
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