Recording Business Transactions - Desklib

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This report explains the process of recording business transactions, including journal entries, ledger entries, and trial balance. It also discusses the legal process of starting a new business venture and decision-making based on financial records. Additionally, it includes an income statement and conclusion. The report is relevant for students studying accounting and finance courses in universities and colleges.

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BUSINESS
TRANSACTIONS

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Table of Contents
INTRODUCTION...........................................................................................................................3
Part A...........................................................................................................................................3
Part B...........................................................................................................................................4
Part 4............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business transaction is defined as reporting the entries related to day activities associated
with the venture. In this report different journal entries will be presented belong day to day
activities of the business venture. Ledger entries will further be made in this project. The trial
balance will present in this report that will be demonstrated in this project. Furthermore,
performance of the company will demonstrate in this report.
Part A
1)
Starting a business venture is a legal process that need to incorporate by the business
venture. David Green want to start a new business venture. There are several ways that can be
taken by the stakeholder to start a new business venture. IN order to start a new business house
there are certain different option which include sole proprietor business, company need to have a
business idea that need to execute. In context to the sole proprietor this become important to
manage all the debt and the credit of the business house. In context to the sole proprietor
business house all the due value of the business need to manage by the stakeholder and manager
itself (Kalogiannidis, 2020). This is the sole responsibility of the owner of the business to take a
sole responsibility of the due value in the business. All the debt arises in the business will be
personally responsible by the David Green itself. The legal process of starting a new business
venture is that David contain the option to either to register the whole business idea or not to
register the same. This is not mandatory to register the whole business idea. In case David is
looking forward to starting a new business venture in the form of company the mandatory
registration would be needed for the business house.
Starting a new business venture include certain ways that can be executed to initiate the
whole business idea. Research is further necessary to achieve success in business idea. The
business idea of decorating events and venue is a key commercial activity. This is a business
sector that can be started at a very small level. Currently David Green do not require to register
the business as a company business so if they start with a proprietor business segment than still it
will be considered as a business venture that can run by the investor (Madray, 2020). This is a
good business idea which can be executed by the stakeholder in order to deliver the business
operations. Any debt or failure in the bushiness will consider the certain value of liabilities that is
needed to meet by the stakeholder. Managing the responsibilities and liabilities is a part of the
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business idea that needed to execute by the venture. In case of the sole proprietor business
venture all the liabilities will also be required for the David Green to ensure in order to execute
the respective business practice.
A proper business plan is further required to deliver the whole idea. Deciding the
structure of business is the next step. Securing funding is also essential to start a new business
successfully. Registering business is the next step. Undertaking license for the business is also
necessary step to be taken. Ensure all the responsibilities is necessary to achieve success in the
business idea.
2)
In context to the Marks and Spencer Company that is listed in the London Stock
Exchange all decision in the organisation is taken based on the transaction reported in the books
of accounts. The board of director of the organisation assess the financial record maintain by the
venture and make all important decision in the business. Further the employee which precisely
include finance team to look after the actual financial situation before making any decision
related to operation, business expansion and such like of decision that company need to take
before coordinating further for the business decision-making. This is a part of the business idea
deliver by the venture in order to execute the whole business set up (Reyad and et.al., 2019).
Decision making at the Marks and Spencer Company wisely include the role of financial
statement and books of accounts to be assessed and analysed before taking any such decision
related to the operation, business expansion. The finance team need to elaborate the actual
situation company is witnessing in the books of accounts of the organisation. Recording and
analysing the financial records and information is a mandatory trait associated with the business
venture that needed to execute by the organisation. The role of analysing the actual financial
situation of the venture is necessary and essential for the company to execute in respect to
delivering the whole business operations and situation. The business operation that are delivered
by the organisation is a part of the business idea that is executed by the organisation with support
of proper evaluation of the financial records and information of the organisation.
Part B
Date Particular Debit Credit
1 sep Baddebt a/c 105

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To P Mullent 105
(Badebt are recorded)
5 sept Syme Ltd a/c 150
To office fixtures 150
(office fixtures are returned)
10 sep Cash a/c 180
P/L a/c 131
To Debtor 311
(Cash received from debtor)
18 sep Machinary a/c 1800
To cash 100
To bank 500
To Brown Ltd 1200
(Machinery purchased)
26 sep Brown Ltd a/c 600
To bank 600
(Payment is made to Brown Ltd)
28 spe Insurance a/c 60
Drawing a/c 70
To bank 130
(Insurance is paid from bank)
2)
2/8 Bank a/c 12400
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To loan a/c 12400
3/8 Cash a/c 2800
To bank 2800
4/8 Van a/c 6200
To bank 6200
5/8 Office fixtures a/c 3400
To bank 1000
To sharp office Ltd 2400
8/8 Van a/c 8700
To Toyota Co. 8700
15/8 Office fixtures a/c 110
To cash 110
19/8 Toyota Co. 8700
To bank 8700
25/8 Bank a/c 430
To cash 430
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28/8 Office fixtures a/c 750
To bank 750
Bank a/c
Date Discription Amount Date Discription Amount
01/08/21 To bal. B/D 36800 03/Aug BY cash 2800
02/08/21 To Loan 12400 04/Aug By Van 6200
25/08/21 To cash 430 05/08/21 By office fixtures 1000
19/Aug By toyota Co. 8700
28/08/21 By office fixtures 750
31/08/21 By bal. C/d 30180
49630 49630
Office fixtures
a/c
Date Discription Amount Date Discription Amount
01/08/21 To bal. B/d 1200 31/Aug By bal. C/d 5460
05/08/21 To bank 1000
05/08/21
To sharp office
ltd 2400
15/08/21 To cash 110
28/08/21 To bank 750

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5460 5460
Van a/c
Date Discription Amount Date Discription Amount
01/08/21 To bal. B/D 32000 31/Aug BY bal.cid 38200
04/08/21 To bank 6200
38200 38200
Loan a/c
Date Discription Amount Date Discription Amount
31/08/21 To bal/c/d 12400 02/Aug By bank 12400
12400 12400
Cash /ac
Date Discription Amount Date Discription Amount
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03/08/21 To bank 2800 15/Aug By office fixtures 110
25/Aug By bank 430
31/08/21 BY bal.cid 2260
2800 2800
Sharp office ltd
a/c
Date Discription Amount Date Discription Amount
31/08/21 To bal. C/d 2400 05/Aug
By office
fixtures 2400
2400 2400
Toyota a/c
Date Discription Amount Date Discription Amount
31/08/21 To bal. C/d 8700 08/Aug By van /ac 8700
8700 8700
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Trial Balance
Particular Debit Credit
Bank 30180
Office fixtures 5460
Van 38200
Loan 12400
Cash 2260
Creditor 2400
Toyota 8700
Suspense 52600
76100 76100
Part 4
Income statement
Particular Amount
Sales 91500
(95000-3500)
Less: cogs
Opening stock 18000
Purchase 110000
Purchase retrun (720)
Carriage outward 500

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Less: closing stock (13000) 114780
Gross loss (23280)
Less:
Motor expenses 1400
Rent 7000
Telephone charges 830
Wages and salaries 14000
Insurance 1030
Office expenses 800
Sundry expense 250 (25310)
Net loss 47690
b)
The above stated income statement clearly depict the fact that company is considering a
net loss from the whole business idea. The net loss of the venture is 47690. The organization in
previous year also attend a net loss from the business idea. IN recent time the market become
very weak. Due to the corona virus situation company could not meet the need and demand of
the potential customer effectively. Also the buying power of the customer get so weak due to the
pandemic situation which could further influence the operations of the venture. The prediction
was to regain the losses occur in against to execute the respective business operation. Further this
become important for the venture to effectively deliver and execute the respective business
strategy that can support the growth of the company in market. Due to the challenging market
situation company could not perform as efficiently in the business (Xi and et.al., 2017). The sales
of the company could not meet up the revenue part of the business venture. The prediction was
related to recovering the actual business situation which could not be overcome by the venture.
The current year performance of company is such that it could not offer the revenue equivalent to
the expenses that is incurred by the organisation belong to the respective financial year.
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CONCLUSION
The journal entries are the one that is about to present all the transaction in the systematic
manner in the accounting books. Ledger entries will be presented to demonstrate the dual impact
of every transaction associated with the venture. Trial balance is about to present all the affairs of
company in a net value. IN recent time due to the covid situation business houses could not
deliver as effective as possible.
REFERENCES
Books and Journal
Kalogiannidis, S., 2020. Covid Impact on Small Business. International Journal of Social
Science and Economics Invention. 6(12). pp.387-391.
Madray, J. S., 2020. The Impact of COVID-19 on Event Management Industry. International
Journal of Engineering Applied Sciences and Technology. 5(3). pp.2455-2143.
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Reyad, S. M. R. and et.al., 2019. Do entrepreneurial skills affect entrepreneurship attitudes in
accounting education?. Higher Education, Skills and Work-Based Learning.
Xi, G. and et.al., 2017. How Does Firm Survival Differ between Business Takeovers and New
Venture Start-ups?.
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