Recording Business Transaction

Recording Business Transaction

TABLE OF CONTENTS
PART A...........................................................................................................................................3
a)..................................................................................................................................................3
b)..................................................................................................................................................4
c)..................................................................................................................................................8
d)..................................................................................................................................................9
e)..................................................................................................................................................9
f) ..................................................................................................................................................9
PART B..........................................................................................................................................10
I. Computation of ratios.............................................................................................................10
ii. Analysing the performance of the business...........................................................................11
REFERENCES..............................................................................................................................13

PART A
a)
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 Toy Ltd. A/C 100
To purchase return 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 credit
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
(being business funds used by owner