Recording Business Transactions: Process, Decision Makers, Journal Entries, Income Statement, Prediction

Recording Business
Transactions
Table of Contents
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Part – A............................................................................................................................................3
(1) Process for starting a new business enterprise as a Decorator..............................................3
(2) Identify the decision makers of the business organization which are responsible for the
process of the decision making in context to the company listed on the London Stock
Exchange.....................................................................................................................................4
Part – B............................................................................................................................................5
(a) Journal Entries for the month September, 2021....................................................................5
Part – 4.............................................................................................................................................9
(a)Income Statement of P Moore ending 31st September, 2021..................................................9
(b) Based on the income statements of previous year predict that whether the company will
attain profits or losses in the year 2022.....................................................................................10
References......................................................................................................................................10
Books & Journals......................................................................................................................10
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Part – A
(1) Process for starting a new business enterprise as a Decorator.
A sole trader business can be defined as a business structure which basically involves the
participation of an individual person who is responsible for running the whole business (Bradlow
and Finkelstein, 2018). Also, all the decisions lie with the owner regarding all the important
matters of business organization of sole trade. Therefore, the process of setting up a sole trade
business is given below as a Decorator:
 Idea generation: The first step before starting a sole trade business is that it should have
an idea on the basis of which the whole business is going to work. In context of being a
decorator, the owner specifically needs to identify and analyse that what new can be
offered to the target audience so that they can be highly attracted towards the business.
Therefore, the idea of uniqueness along with the quality of work can help in having a
competitive advantage amongst the competitors.
 Financing the proposition: the second and one of the most important step is to arrange
the finances because it is highly important for the business that it must have sufficient
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funds to run the business smoothly.in relation to the Decorator sole trade business, the
owner have to find the trustable and authentic sources of funds that can be effectively
invested in the business to have an efficient financial status.
 Location of business: It is highly significant for any business to set up its organization as
the most relevant places so that it can attract and grab more and more customers on a
regular basis. In consideration to the business of a Decorator, it will be recommended to
run its business operations in the big cities. The major reason behind that is the
opportunities for businesses like event decorating are in more abundance and it is
comparatively much easier for the business to thrive and achieve success in longer run.
Human resource selection: in order to run a successful business organization it is highly
important that it is having an effective and efficient workforce which is helping the organization
to run its business operations in the most suitable manner (Søgaard, 2021). In context to the
Decorator business, a workforce with the attributes of creativity, hardworking along with a high
level work commitment is required in order to achieve success in a more consistent way.
 Tax planning: Taxes as something which can consume the earnings of the business and
result into reduced amounts coming in the hands of the owners. Therefore, in relation to
the respective business, it is highly advisable that the business is must perform an
effective tax planning in order to reduce the tax liabilities of a particular financial year
(Appelbaum and Nehmer, 2020).
 Launching the enterprise: Once all the above steps have been perfectly performed it is
the time to launch the business in the market. In context to business of Decorator, after
completing all the above formalities, steps and procedures the business can be effectively
launched in the marketplace with an objective to achieve success along with the huge
profits in the long run.
(2) Identify the decision makers of the business organization which are responsible for the
process of the decision making in context to the company listed on the London Stock
Exchange.
Decision makers can be defined as the people in the company who have the authority and the
power to making different types f important and strategic decisions. These decisions can be
related to acquisitions, mergers or expansion (Downer, Cooper, and Faseruk, 2018). In
context to Unilever, which is considered as one of the leading company on the London Stock
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