Recording Business Transactions

BA3LC920- RECORDING
BUSINESS
TRANSACTIONS

Table of Contents
Table of Contents.............................................................................................................................2
PORTFOLIO 1.................................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
a...................................................................................................................................................3
b...................................................................................................................................................3
Task 2...............................................................................................................................................4
Journal entries.............................................................................................................................4
Task 3...............................................................................................................................................5
Journal entries.............................................................................................................................5
Task 4...............................................................................................................................................8
a...................................................................................................................................................8
b...................................................................................................................................................9
REFERENCES..............................................................................................................................11

PORTFOLIO 1
MAIN BODY
Task 1
a
With reference to the meaning of accounting it is clear that the use of accounting information it
is very important for the decision maker to make the effective use of the accounting information.
Whether the company be it big or small the most important thing for the company is to have
effective decision maker. The major reason is that the success of the company is dependent over
the fact that how well the company is able to take effective decision. With reference to the
company Unilever the major decision maker of the company are shareholders, investors,
government and other important stakeholders (Faccia, 2020). If the company is not having
proper decision maker then this will affect the working of the company to a great extent. Thus,
for taking the right and appropriate decision the most important thing is the effective use of the
skills of the decision maker to make the company grow and develop. Thus, for this the most
important thing used by decision maker of Unilever is that they must effectively use all the
information being provided within the accounting information. This is particularly because of the
reason that this assists the company in effectively take decision for the betterment of the
company.
b
By referring to Unilever it can be stated that major advantage faced by accountant is that the use
of accounting information provides a clear view to the company and the accountant in order to
take appropriate decision and plan for the future. With addition to this another major benefit is
that accountant can use this information as base for their future development of budgets.
On the flip side the major drawback for accountant of Tesco is that it is not necessary that every
person is in situation of understanding the requirements of accounting and understand what is
being told by the accountant in accounting information (Gonocruz, 2017).

Task 2
Journal entries
Journal of David Wise for the month February 2020
Date Details Fol DT CT
Feb
1
Cash a/c
To purchase return a/c
(Being office furniture returned to supplier)
350
350
Feb
4
Bad debt a/c
S. keyes a/c
(Being S. Keyes written off as bad debt)
85
85
Feb
9
Machinery a/c
To Bank a/c
To TS. Co a/c
(Being machinery purchased and some
payment being paid by cheque)
2300
200
2100
Feb.
13
Cash a/c
Bed debt a/c
To S. Hill
(Being some part of cash received and rest
settled as bad debt)
220
50
270
Feb
20
Drawing a/c
To stock
(Being goods taken for personal use)
180
180
Feb.
26
Drawing a/c
To cash
(Being amount of money paid for personal
expenses)
85
85
Feb
28
TS co a/c
To bank
1050
1050