Recording Business transaction

Recording Business transaction

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
A) Journal entry...........................................................................................................................3
B) Formulation of ledger.............................................................................................................6
C)Formulation of Trial balance.................................................................................................10
D)Income statement...................................................................................................................10
E) Balance Sheet........................................................................................................................11
F) Relevance of adjustment of drawing account........................................................................12
PART B..........................................................................................................................................12
A) Calculation of financial ratios...............................................................................................12
B) Evaluation of financial performance of Linda's organization...............................................13
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................16

INTRODUCTION
Accounting is defined as procedure which useful in record each & every business
transaction in effective manner. This report is formulated to represent how tools and technique of
accounting is used for systematically collect, record and represent transaction in effective
manner. It is also defines how financial ratio use to evaluate performance of organization.
PART A
A) Journal entry.