Recording Business Transaction

RECORDING BUSINESS
TRANSACTION

Table of Contents
MAIN BODY...................................................................................................................................3
Part A...............................................................................................................................................3
a) Business transaction in Linda buying and selling toys in Oxford...........................................3
b)Ledger Accounts of Linda business.........................................................................................4
c) Trial balance as on 31st oct 2020............................................................................................7
d)Income statement for year ended 31st Oct 2020......................................................................8
e) Financial Position as on 31st Oct 2020...................................................................................8
f)Letter to Linda regarding drawings..........................................................................................8
Part B...............................................................................................................................................9
1. Ratio's for Linda's Business....................................................................................................9
2. Analysis of Lind's business performance as compared to competitors.................................10
REFERENCES..............................................................................................................................12

MAIN BODY
Part A
a) Business transaction in Linda buying and selling toys in Oxford
Date Particulars L.F Debit Credit
01/10/20 Bank A/C 8000
Cash A/C 5200
Van A/C 3000
To Capital A/C 16200
(Being Capital introduced)
02/10/20 Laptop A/C 1000
To Bank A/C 1000
(Being Laptop bought )
04/10/20 Purchase A/C 2450
To Toy Ltd. A/C 2450
(Being toys are purchased on credit)
05/10/20 Bank A/C 1500
To sales A/C 1500
(being goods sold)
12/10/20 Repairs A/C 80
To Cash A/C 80
(Being laptop is repaired )
18/10/20 Toys Ltd. A/C 100
To purchase A/C 100
(Being goods returned to toys ltd)

21/10/20 Bank A/C 500
To Rent A/C 500
(Being rent received)
23/10/20 Cash A/C 1500
Fred A/C 400
To sales A/C 1900
(Being Goods sold on cash and cred
it partly )
23/10/20 Cash A/C 500
To sales A/C 500
(Being goods sold to David)
24/10/20 Second hand car A/C 2500
To Bank A/C 2500
(Being car purchased by issuing
cheque)
26/10/20 wages A/C 820
To Bank A/C 820
(Being wages paid to part time
workers )
30/10/20 Rent A/C 1000
To Bank A/C 1000
(Being rent paid)
31/10/20 Drawings A/C 1600
To Bank A/C 1600