Recording Business Transactions

Recording Business Transactions

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
a. Preparing journal for James referring given transactions........................................................1
b. Ledger balances.......................................................................................................................2
c. Trial balance for the year ended on 30th September 2019.......................................................6
d. Preparing profitability statement.............................................................................................7
e. Drafting statement of financial position for the year ended 30th September 2019...................7
PART-B...........................................................................................................................................8
1. Calculating ratios for James referring financial statements.....................................................8
2. Commenting on the financial performance of James............................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In the context of business organization, financial statement preparation is highly significant
which helps in analysing monetary performance effectually. This project report is based on the
case scenario of James who started new business. In this, report will provide deeper insight about
company’s final accounts and monetary performance via ratio analysis.
PART A
a. Preparing journal for James referring given transactions
James business
Journal
Date Particulars Debit (£) Credit (£)
01/09/19 Cash A/c Dr. 3200
Bank A/c Dr. 12000
Computer A/c Dr. 1000
To capital A/c 16200
02/09/19 Purchase A/c Dr. 900
To David A/c 900
03/09/19 Computer A/c Dr. 2000
To Bank A/c 2000
05/09/19 Bank A/c Dr. 500
To sales A/c 500
06/09/19 Purchase A/c Dr. 400
To cash A/c 400
10/09/19 Rent expense A/c Dr. 600
To cash A/c 600
1

12/09/19 Repair expense A/c Dr. 100
To cash A/c 100
18/09/19 David A/c Dr. 100
To purchase return A/c 100
21/09/19 Bank A/c Dr. 300
To rent received A/c 300
23/09/19 Joseph A/c Dr. 400
To sales A/c 400
23/09/19 Cash A/c Dr. 1500
To sales A/c 1500
24/09/19 Car A/c Dr. 1000
To Bank A/c 1000
30/09/19
Wages expense A/c
Dr. 700
To cash A/c 700
30/09/19 Drawings A/c Dr. 450
To cash A/c 450
25150 25150
b. Ledger accounts
Cash A/c
Dr. Cr.
2