Recording Business Transaction

Recording Business Transaction

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
A) Journal entries.........................................................................................................................3
B) Ledger.....................................................................................................................................6
C) Trial balance..........................................................................................................................10
D) Income statement..................................................................................................................10
E) Balance sheet.........................................................................................................................11
F) Special note regarding drawing account...............................................................................12
PART B..........................................................................................................................................13
Calculation of ratio....................................................................................................................13
Evaluation of financial performance of Linda's organization....................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Recording business transaction is procedure in which accountant, analysis, collect, and
record each business activity in tabular format to show their monetary value. This report has
been formulated to define the relevance of accoutring approach, by solving Linda's case study. In
includes, how business operations record in the form of journal and then they classified in ledger
account, on the basis of that to find out error trial balance has been format, and it proved base to
prepare financial statement. In this report to compare performance of Linda's organization with
industry different types of ratios used to measure the performance.
PART A
A) Journal entries.
Date Particulars L.F
Debit
Amount
Credit
Amount
2020
01/10/2
0 Bank A/c.... Dr 8000...
Cash A/c ... Dr 5200..
Van A/c Dr 3000..
To Capital A/c.. 16200..
(Being business started)..
02/10/2
0 Laptop A/c Dr 1000..
To Bank A/c.. 1000..
(Being laptop purchased)..

04/10/2
0 Purchase A/c Dr. 2450...
To Toy Ltd.. 2450..
(Being purchase made)..
05/10/2
0 Bank A/c Dr 1500..
To Sales A/c.. 1500..
(Being sales made..)
12/10/2
0 Repairs A/c Dr 80..
To Cash A/c.. 80..
(Being cash paid for
repairs)..
18/10/2
0 Toy Ltd A/c Dr 100..
To Purchase Return 100..