Recording Business Transactions (PDF)
Added on 2020-11-12
12 Pages2387 Words466 Views
Recording BusinessTransactions
Table of ContentsINTRODUCTION...........................................................................................................................1PART-A...........................................................................................................................................1a) Double entry records of transaction in T-account...................................................................1b) account balancing and bringing down an opening balance....................................................2c) Trial balance............................................................................................................................5d) Income statement....................................................................................................................6e) Statement of financial position...............................................................................................6PART- B..........................................................................................................................................7I) ratio analysis............................................................................................................................7ii) comparison of the performance between the competitor and Mel statements........................8CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness transaction refers to an activity that is analysed in relation to the monetary terms andaffects the profitability and the financial position of the enterprise (Altman, 2015). The presentreport is based on the business transactions of Mel who has started its business on 1 October2018. Further the report includes the recording, classifying, analysing and interpreted the resultsof the business transaction by preparing the journal, ledger, trial balance, income statement andthe balance sheet for knowing the position of the business (Horrigan, and et.al., 2015). It alsodescribes the performance by finding the ratios and comparing with its competitors. PART-Aa) Double entry records of transaction in T-account DateParticulars AmountDr.Cr. 01/09/18Cash a/c Dr.Bank a/c Dr. To Capital a/c£5000£900£5,90002/09/18Purchase a/c Dr. To Bill's a/c £900£90003/09/18Furniture a/c Dr. To Bank a/c£600£60005/09/18Cash a/c Dr. To Sale a/c£1100£1,10006/09/18Purchase a/c Dr. To Cash a/c£400£40010/09/18Rent a/c Dr. To Cash a/c£400£40012/09/18Stationary a/c Dr. To Bank a/c £200£20018/09/18Bill a/c Dr. To Bank a/c £500£50021/09/18Purchase a/c Dr. To Bill a/c £100£10023/09/18Till a/c Dr. £400£4001
To Sales a/c 23/09/18Cash a/c Dr. Rob a/c Dr. To Sale a/c£1000£500 £1,50024/09/18Car a/c Dr, To Bank a/c £1500£1,50030/09/18Wages a/c Dr, To Cash a/c£80080030/09/18Drawing a/c droffice computer a/c drTo cash a/c£400£400£800b) account balancing and bringing down an opening balancecapital accountDateParticularsamountDate particularsamount01/09/18By cash£5,000.0001/09/18To closing bal.£5,900.0001/09/18By Bank£900.00£5,900.00£5,900.00Purchase accountDateParticularsamountDate particularsamount02/09/18To Bill's a/c£900.0006/09/18To cash a/c£400.0021/09/18To bill a/c£100.0021/09/18By closing bal.£1,400.00£1,400.00£1,400.00Bills accountDateParticularsamountDate particularsamount18/09/18To Bank a/c£500.0002/09/18By purchase a/c£900.0021/09/18To closing £500.0021/09/18By purchase £100.002
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