Recording Business Transactions

This report discusses the importance of recording and analyzing business transactions for higher profitability and sustainability. It explains the steps for starting a new business as a decorator and the decision makers of listed companies on the London Stock Exchange. The report also includes journal entries, ledger, trial balance, income statement, and forecasting profitability for the year 2022.

BUSINESS
TRANSACTIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSESSMENT 1.............................................................................................................................1
PART A...........................................................................................................................................1
1Explaining steps for starting a new business as decorator........................................................1
2 explaining the decision makers of listed company on London stock exchange by referring
presented statement.....................................................................................................................2
PART B ...........................................................................................................................................3
a)..................................................................................................................................................5
b).................................................................................................................................................7
PART C............................................................................................................................................7
a)..................................................................................................................................................7
b).................................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business transactions are associated with gaining distinct information by recording the
commercial transactions. The prevailing circumstances is facing cut-throat competition which is
required to be taken into consideration in turn higher implementations of effective business
practices can become possible. The current report is based on specifying steps for set up of
business conducting as decorators. Users of accounting information for making decision will be
included in current report. It will comprise journal entries, ledger and trial balance. It will
comprise income statement and predication of h profitability for the new accounting period. It
will help in gaining the depth insights regarding accounting in turn proper decision can be
formulated.
ASSESSMENT 1
PART A
1Explaining steps for starting a new business as decorator
In the current competitive business environment there is requirement of giving
emphasis on having significant information regarding prevailing laws, legislation, rules and
regulations, etc. in turn proper formulation of plan to start business can be conducted.
 Checking the legality of organization which is starting as new business through
identifying proper form of activities (Mirakyan and Golomejic, 2019). In UK legal
requirements for starting the business is high in turn proper investigation of prevailing
situations can become possible.
 There is need to give focus on having appropriate business plan by comprising h
strategies, policies, etc in turn better activities to conduct operational activities can be
exerted in effective manner.
 The next step is to deciding structure and name & address in turn proper formulation of
activities. It is essential for carrying forward the legal practice like paying tax, etc. in turn
having significant processing through eliminating non crucial practices deriving smooth
processing.
 It can be carried forward registering Hr revenue and customs in turn better conducting
effectual practicing through applying course of activities for checking any additional
rules for your type of business. The other course of action which are needed to be
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executed by enterprise for starting business as decorator involves higher focus on
implementing laws like employment, etc.
On the basis of specified course of action it can be articulated that firm should focus on giving
much focus on having ethical practices. It can lead firm toward success by eliminating non
significant components which are nonessential for having depth insights (Imani, Dehghani and
Amiri, 2019). David Green as being sole trader must make arrangements to make payment of the
income tax and National insurance as he is considered to be liable for his personal debts. There
is larger scope of this particular form of business activities in UK as the life style pattern of
people have changed as compared to previous (Legal structures for businesses in the United
Kingdom, 2021). It becomes essential to pay attention on having significant functional for right
amounts of tax & national insurance. From the evaluation it can be specified that as being
operator in UK decorator industry become essential to focus on having depths insight regarding
the mentioned procedure.
2 explaining the decision makers of listed company on London stock exchange by referring
presented statement
Accounting is basically a process which refers to record, analyze and interpret
information of business transaction in turn higher profitability & sustainability can be derived by
organization There are different kinds of experts who utilizes accounting information for
analyzing the financial condition of the enterprise. This involves financial analyst, accountant,
managers, etc.
Marks and Spencer as being an international organization operating in retail sector
conducts its operational practices on larger scale. There are number of the stakeholders of who
use the accounting information for making decision. It involves both internal and external
stakeholders who use accounting information on larger scale.
The internal stakeholders of the specified organization pay attention on gaining
significant value for making sound decision. The internal stakeholders are employees,
management and employees (Khristiningrum, Gustomo and Ginting, 2021). Management of
enterprise need to focus on the accounting information for having information regarding
formulating policies, strategies and business decision in turn higher outcome to reach success.
Employees as being part of internal management sues the accounting data to analyze how fir is
facing growth & development in turn their personal progress can be assessed. Users of the
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accounting information as well can be considered as owner who tend to evaluate information for
assessing progress of enterprise. In addition to this, there are larger number of components
which are required by these financial experts for gaining higher profitability & stability of
company's processing.
External stakeholders of the Marks and Spencer give emphasis on each practice of
company which is required to be taken into proceeding of making effectual business decision.
The users of accounting information comprises investors, competitors, financial institutions,
Suppliers, lenders, creditors and other stakeholders in turn better formulation of decision can
become possible. Purchasing, selling, liabilities and assets, etc are evaluated by firm from the
presented information. Suppliers, financial institutions, etc are considered to be crucial parties of
the organization who analyses the details regarding company liquidity position, short term
liability paying capacity, etc so that making appropriate decision for supplies & lending credit
can be done effectively. Investors are those who provide fund to the organization for meeting it
both short and long term requirement of enterprise in turn predetermined objectives can be
accomplished. Other people who are interested in accounting information through presented the
details who are needed to be taken into consideration for ensuring proper utilization of their
resources in order to be successful involve competitors, creditors, etc.
PART B
Journal entries for the transactions of September 2021
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Journal entries for the transactions of August 2021 in the books of ABC enterprises
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a)
Ledge accounts are as follows
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b)
Trial balance as 31 August 2021
PART C
a)
Income Statement for B Moore for the year ending 30th
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Working note:
COGS= opening inventory+ purchase- closing stock
Inventory (30september 2020) =18000
Add: Purcahse- returns outwards =720
Less: Closing stock = 13,000
COGS=114,280
b)
Forecasting profiatbility for the year 2022
from the given table regarding the profitability of the organization it can be interpreted that
there is non consistent pattern of growth. From the evaluation it can be specified that there are
large factors which affect the profitability of the specified organization. B Moore's performance
of organization has been given which is presenting profitability or loss from the accounting
period of 2013 to 2020 which is indicating non stable performance of Enterprise.
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B Moore has good profitability for the accounting period of 2013 which is presenting good
performance in turn higher progress can be seen. In the year 2014 the specified organization has
inclined its profitability as compared to previous time. From comparison to the 2014, the year
2015 and 2016 are poss sing higher positive outcome which is a positive trend. From the
analysis of the presented chart it can be articulated that B Moore profitability has decreased as
compared to previous. This is presenting that firm need to make few courses of action for
improving prevailing condition.
On the basis of data presented for the period 2018 and 2019 it can be measured that having
appropriate conducting has permitted enterprise to modify and uplift the performance through
enabling company to earn higher profitability. In the year 2020 the derived outcome is negative
is reflecting adverse performance. From the formulation of income statement performance of
period 2021 is negative which is showing loss that is 49480. The below presented trend line is
useful in gaining insights about the prevailing performance of which can be computed by
following equation:
Y (2022)= 1326x+121793
= 1326(9)+12793
= 11934 +12793
= 24727
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From the evaluation of presented information it can be specified that firm performance is
inclining as compared to earlier period as become able to recover the liabilities in tun higher
productiveness can be achieved. On the basis of presented profitability diagram it can be stated
that fluctuating pattern of development can be seen (Shepherd and Gruber, 2021.). From the
assessment it can be articulated that presenting information can be useful in forecasting
financial condition. It can provide assistance to specified firm to make relevant processing
according to the prevailing circumstances.
CONCLUSION
From the presented information above report it can be interpreted that business
transaction are conducted on continuous basis which needs firm to give focus on having relevant
processing through recording and analyzing information. It can give higher profitability and
sustainability through ensuring proper utilization of resources. The presented accounting
statement is indicating that highlighted information is useful for both internal and external
stakeholders for the purpose of decision-making. It has given emphasis on presenting journal
entries, ledger and trail balance which is helpful in having crucial insights related to business
processing in turn sound conclusion can be drawn. The articulated trend of performance from
2013 to 2021 has helped to forecast prevailing situation. Trend line graph has been utilized in
the present report which is indicating performance in turn forecasting profitability for the period
2020 has become possible. From the given information in current study it can be articulated that
having relevant functioning into internal process can be done effectively by recording
transaction.
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REFERENCES
Books and Journals
Imani, S., Dehghani, N. and Amiri, N.S., 2019. Branding: Internal and External Stakeholders.
In Contemporary Issues in Branding (pp. 173-198). Routledge.
Khristiningrum, V.A., Gustomo, A. and Ginting, H., 2021. Strengthening Human Capital
Department Roles through Building Collaboration with External Stakeholders. The Asian
Journal of Technology Management, 14(2), pp.192-204.
Mirakyan, A. and Golomejic, R.D.V., 2019. MANAGING INTERNAL AND EXTERNAL
STAKEHOLDERS IN STARTUP PROJECTS. Economic and Social Development: Book
of Proceedings, pp.309-316.
Shepherd, D.A. and Gruber, M., 2021. The lean startup framework: Closing the academic–
practitioner divide. Entrepreneurship Theory and Practice, 45(5), pp.967-998.
Online
Legal structures for businesses in the United Kingdom. 2021. [Online]. Available through:
<https://www.expatica.com/uk/working/self-employment/how-to-start-a-business-in-the-
uk-1105218/>.
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