Recording Business Transaction

Recording Business transaction
Student Name:
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Table of Contents
Introduction......................................................................................................................................3
Double Entry Record Posting in T-Accounts and Balancing the Account......................................4
Accessing a Trial Balance.............................................................................................................11
Evaluating an Income Statement...................................................................................................12
Preparing a Statement of Financial Position..................................................................................13
Impact of Drawings in Small Business..........................................................................................15
Calculation and Analysing of Ratios.............................................................................................16
Conclusion.....................................................................................................................................18
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Introduction
The many accounting and bookkeeping components of Anne York will be examined in this
paper. Bookkeeping is a step-by-step process that records company activities and occurrences to
keep financial paperwork up to date (Douglas Hillman et al., 2019). This report will use Anne
York's double-entry recording, and the results will be submitted to the T-account when they have
been processed (Ledger). Anne York will also be tested in terms of her trial balance. Following
that, various financial statements for Anne York will be shown. It will then be discussed in detail
throughout the paper how drawings are relevant to small businesses. In the end, several financial
ratios of Anne York will be computed, and her financial ratios will be assessed right away. In
addition, the influence of the Covid -19 epidemic on the average ratios will be discussed in
detail.
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Double Entry Record Posting in T-Accounts and Balancing the
Account
T-accounts is widely used to produce adjusting entries, and they are a kind of Account. For
example, the matching principle in accrual accounting stipulates that all costs must be equal to or
greater than the revenues earned during the period they occur (Bodie et al., 2018). The T-account
guides accountants on what to record in a ledger to achieve an adjusted balance, ensuring that
revenues match costs. Company owners may also use the utilization of T-accounts to extract
data, such as the type of transaction that happened on a specific day or the amount and activities
of each Account. For example, the T-account of Anne York is following:
DR CASH A\C
CR
Date ££ Date ££
2021
Oct- 1
Oct- 23
Oct- 23
Oct- 31
Nov- 1
CAPTIAL A\C
SALES A\C
SALES A\C
ACCOUNTS
RECEIVABLE A\C
BALANCE B\D
4800
1800
700
150
7450
7340
2021
Oct- 12
Oct- 31
MAINTENANCE AND
REPAIR A\C
BALANCE C\D
110
7340
7450
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