Recording Business Transactions - Desklib

This article discusses the processes of establishing a decorator business, top management in charge of accounting for a company listed on the London Securities Exchange, and ledger accounts in the books of Maurice and brothers. Also, create an income statement for B Morre and understand how COVID-19 outbreak can affect income for the year 2022.

Recording business
transactions

Contents
Contents...........................................................................................................................................2
ASSESSMENT 1.............................................................................................................................1
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Explain the steps involved in starting a fresh decorator company..............................................1
Explain the top management in charge of accounting for a company listed on the London
Securities Exchange.....................................................................................................................2
PART B...........................................................................................................................................3
1. Record the journal entries in the F Polk books........................................................................3
2. Make the ledger accounts in the books of Maurice and brothers............................................4
PART C...........................................................................................................................................7
Create a income statement for B Morre.......................................................................................7
b) Explain how, in consideration of the COVID–19 outbreak, income for the year 2022 could
be increased or decreased............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

ASSESSMENT 1
INTRODUCTION
A financial situation of an organization which indicates the enterprise's general stability is
called a commercial activity (Carlson and Koch, 2018). Accounting records are divided into two
categories: transactions and current accounts. The ledger records all of the corporation's
economic activities in a single collection. Financial statements reflect the starting and end
amounts of the different bodies specified in transactions. This paper discusses the processes of
establishing a decorator business for anyone who wishes to establish one. Moreover, as Marks &
Spencer argues, accretion investigation is essential by upper executives. Following that,
documents, cash accounts, financial statements, and net cash are prepared depending on actual
transaction data.
PART A
Explain the steps involved in starting a fresh decorator company
David Green is a one-man performer that aspires to start a fresh decorating business. He
is fully aware of his obligation for all of these obligations that the company may incur. Aside
from the reality that he is uninformed of the activities and responsibilities linked with the
company's beginning. As a consequence, he sought clarification on several issues of the
business's early stages (Cummins, 2016).
 Creating a variety of interconnection: Every company must engage in activities that
help the society and help to create a sustainable environment. It fosters compassion and
helps in the establishment of a section devoted to the organization' advancement.
Expanding the amount of links is a complementary advertising approach that can help
you gain more customers.
 Social connection expression: Nowadays, people prefer to check for business
recommendations on the web. As a consequence, it's vital for David to create accounts on
a variety of social media platforms, including Face book, YouTube, and LinkedIn. It
could enhance visibility and possibly even help with project conversion. If the owner
publishes specific images or video relevant to the firm, customers will be likely to find
out a lot more about the firm's manufacturing process.

 Creating a corporate strategy: A strategy is developed to maximize shareholder wealth,
which could only be achieved if the declarations of goal are clear. To accomplish so, one
must also create a competitive advantage, make judgments based on reality, and create a
rigorous firm strategic framework (Mullins, 2017).
 Decide the essential equipment: The management must first identify whether equipment
or parts are needed for the firm's operation to be carried out. Curtains, flowers, and other
decorative items, for example, are used in the decorating sector.
 Creating a foundation: To be good at business, one should first create a plan that will
help you organise your business sales. It's critical to think about the activities and
programmes which would be offered.
 Make a technical change management plan: Establish short- and long-term objectives.
This will help you understand the opportunities and also the potential stumbling stones
which might develop along the path. This will help define an exact timescale, assuring
that tasks are completed on time.
As a result, David Green may establish his business and achieve his goals by following the
steps mentioned above (Quintanilla and Wahl, 2018).
Explain the top management in charge of accounting for a company listed on the London
Securities Exchange
Accounting is the process of recording, evaluating, and completing activities in order to
generate economic data and make decisions. The goal of accounting is to offer financial
information about a corporation. It aids clients in gaining a better knowledge of their economic
state and efficiency, which can be used to make decisions. Since people make decisions based on
financial data and assessment, executives and supervisors of a company's structure are known to
as stakeholders. Marks and Spencer is a limited by shares company in the United Kingdom with
a big variety of possible managers in charge of the particular product or service. Integration,
incentives, and long-term asset source could all be handled in order to support jobs and
commodity. To assure that the company's activities are lucrative, accurate data is essential. Users
have an impact on every company decision, whether openly or indirectly.
Bidders of accounting selections:
 Management might utilize the monetary technique to determine the degree of enthusiasm
and evaluate the firm's results to those of companies in the same industry.

 Borrowers can employ operational techniques to assess a company's dependability and
desire to pay back its loans.
 Executives are the people in charge of making long-term strategies and putting them into
action. The approach is developed in line with the business mission. Accounting
information is used to organise, monitor, and ensure smooth choices by its customers. It
helps consumers evaluate the firm's image and position.
 Companies should evaluate and appraise the economic position using a company's
monetary data before giving it to venture capitalists (Subramanian, 2017).
PART B
1. Record the journal entries in the F Polk books.
JOURNAL ENTRIES – F POLK
Date Particulars Debit Credit
01/09/21 Assets A/c
Fixtures
Stock
Debtors (105 + 311)
Bank
Cash
Creditors (229 + 80)
Capital
5700
2800
5200
416
1060
85
309
14952
01/09/21 Bad Debts
P Mullen
(Bad Debts written-off)
105
105
05/09/21 Syme Ltd
Office Fixtures
(Office fixtures bought through credit was written-off)
150
150
10/09/21 Bank
Bad Debts
M Abel
180
131
311

(M Abel declared bankruptcy and received the amount
in full settlement)
18/09/21 Machinery
Cash
Bank
Brown Ltd
(Purchased a machinery and the amount paid by
cheque, cash and on credit)
1800
100
500
1200
26/09/21 Brown Ltd
Bank
(Half of the amount due paid through cheque)
600
600
28/09/21 Insurance Expenses
Drawings
Bank
(Insurance expenses paid by bank but later realised that
£70 is of personal house)
60
70
130
2. Make the ledger accounts in the books of Maurice and brothers.
a) GENERAL LEDGER – MAURICE BROTHERS
Cash Account
Date Particulars Ref Amount Date Particulars Ref Amount
03/08/21 Bank 2800 15/08/21 Office Fixtures 110
19/08/21 Toyota Co. 8700
31/08/21 Balance c/d 6440 25/08/21 Bank 430
9240 9240
Bank Account
Date Particulars Ref Amount Date Particulars Ref Amount
03/08/21 Cash 2800

01/08/21 Capital 36800 04/08/21 Van 6200
25/08/21 Cash 430 05/08/21 Office Fixtures 1000
02/08/21 Loan Payable 12400 28/08/21 Office Fixtures 750
31/08/21 Balance c/d 38880
49630 49630
Van Account
Date Particulars Ref Amount Date Particulars Ref Amount
01/08/21 Capital 32000
04/08/21 Bank 6200 31/08/21 Balance c/d 46900
08/08/21 Toyota Co. 8700
46900 46900
Office Fixtures
Date Particulars Ref Amount Date Particulars Ref Amount
01/08/21 Capital 1200
05/08/21 Bank 1000
05/08/21 Sharp Office Ltd 2400 31/08/21 Balance c/d 5460
15/08/21 Cash 110
28/08/21 Bank 750
5460 5460
Sharp Office (Creditor)
Date Particulars Ref Amount Date Particulars Ref Amount
31/08/21 Balance c/d 2400 05/08/21 Office Fixtures 2400

2400 2400
Toyota Co. Accountable
Date Particulars Ref Amount Date Particulars Ref Amount
19/08/21 Cash 8700 08/08/21 Van 8700
8700 8700
Loan Payable Account
Date Particulars Ref Amount Date Particulars Ref Amount
31/08/21 Balance c/d 12400 02/08/21 Bank 12400
12400 12400
Capital Account
Date Particulars Ref Amount Date Particulars Ref Amount
31/08/21 Office Fixtures 1200
31/08/21 Van 32000 31/08/21 Balance c/d 70000
31/08/21 Bank 36800
70000 70000
b) Trial Balance
TRIAL BALANCE
Maurice & Brothers
Debit Credit
Bank 38880
Cash 6440
Van 46900
Office Fixtures 5460
Sharp Office Ltd (Creditor) 2400

Loan Payable 12400
Capital 70000
TOTAL 91240 91240
PART C
Create a income statement for B Morre
Particulars Amount (£)
Sales 95000
Less: Sales Returns 3500
Less: Carriage Inwards 890
Net Sales (A) 90610
Opening Stock 18000
Purchases 110000
Less: Return Outwards 720
Less: Closing Stock 13000
Net Purchases (B) 114280
Motor Expenses 1400
Rent 7000
Telephone Charges 830
Wages and Salaries 14000
Insurance 1030
Office Expenses 800
Sundry Expenses 250
Operating Expenses (C) 25310

TOTALS (A – B - C) -48980
b) Explain how, in consideration of the COVID–19 outbreak, income for the year 2022 could be
increased or decreased
The year 2020 was one of the most challenging in recent history for some firms. Despite
the fact that several companies were running properly in early 2020, the COVID-19 pandemic
stopped growth in most regions of the world in mid-March. There have been a variety of effects,
ranging from interruptions in normal operating condition to the complete closing of some firms.
According to the accounting information, the company had incurred a loss. This suggested that
expenditure had exceeded income. Despite the fact that the company's operations produce a
significant amount of income, they are inadequate to cover its expenses. This could be because to
the COVID-19 outbreak, which has decreased demand for goods and services, leading to lower
income. The possible results vary from small instant consequences, such as a business closure, to
long-term and indirect consequences, such as changes in company strategy. It is impossible to
stress the significance of understanding the business's effect and financial repercussions for the
business owner (Townsend, 2019).
CONCLUSION
The following studies suggest suggesting creating a business strategy is crucial when
starting a business. The ledger, financial statements, and report of complete revenue represent the
firm's financial situation. The operational income is shown on the income report. Marks and
Spencer, as well as its decision-makers, are confirmed in this section.

REFERENCES
Books and Journals
Carlson, E. and Koch, J., 2018. Building a Successful Social Venture: A Guide for Social
Entrepreneurs. Berrett-Koehler Publishers.
Cummins, F. A., 2016. Building the agile enterprise: With capabilities, collaborations and
values. Morgan Kaufmann.
Mullins, J., 2017. The new business road test: what entrepreneurs and investors should do before
launching a lean start-up. Pearson UK.
Quintanilla, K. M. and Wahl, S. T., 2018. Business and professional communication: keys for
workplace excellence. Sage Publications.
Subramanian, D., 2017. Telecommunications industry in India: State, business and labour in a
global economy. Routledge.
Townsend, J. B., 2019. Extraterritorial Antitrust: The Sherman Antitrust Act and US Business
Abroad. Routledge.