Recording Business Transaction: Assessment 2

Recording Business
Transaction

Contents
INTRODUCTION...........................................................................................................................................3
ASSIGNMENT 2............................................................................................................................................3
PART A.........................................................................................................................................................3
a) Preparing double entry system to record transaction in journal entries.............................................3
b) illustrating below ledge account to get opening balance...................................................................6
c) Formulating Trial balance as at 31st October 2021...........................................................................17
d) Preparing Income Statement for the period ended 31st October 2021............................................18
e) Formulating balance sheet as at 31st October 2021.........................................................................19
f) Writing letter......................................................................................................................................20
PART B.......................................................................................................................................................21
a) Determination of ratios.....................................................................................................................21
b............................................................................................................................................................23
CONCLUSION.............................................................................................................................................24
REFERENCES..............................................................................................................................................26

INTRODUCTION
Recording business transactions is an important factor that aids in acquiring knowledge
about the completed commercialization, allowing for a good alternative to decision-making. It is
centered into a double entry system, which records transactions in two accounts in order to
provide a comprehensive evaluation of the company's productivity (Haralayya, 2021). The
present report will include important details on issues such as journal entry documenting,
bringing statement of account from ledge, constructing trial balance, income statement, and
financial condition. These are mostly responsible for delivering critical information which helps
in determining the firm's current effectiveness. It will include the calculation of ratios in order to
assess the company's efficiency using this analytical approach.

ASSIGNMENT 2
PART A
a) Preparing double entry system to record transaction in journal entries