Recording Business Transactions: Journal Entries, Balance Sheets, and Ratio Analysis

Recording
Business
Transactions

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Journal transactions of T- accounts:............................................................................................1
Balance the accounts and an opening balances:..........................................................................2
Trial balance:...............................................................................................................................6
Income statement for the period 31st Oct. 2020:.........................................................................6
Preparation of financial position 31st Oct. 2020:........................................................................7
PART B............................................................................................................................................7
Ratio calculation for Linda's business:........................................................................................7
Analysis of ratio analysis in comparison to its competitors:.......................................................8
CONCLUSION..............................................................................................................................10
RFERENCES.................................................................................................................................11

INTRODUCTION
Business transactions are those which are use for company's for running its activities.
These are the transactions which are company's runs for its profits. For example, the company
purchases machinery for running its business. It is the transaction for business which it views for
its better performance which helps for higher profitability for the businesses. It is about the
company runs activities for the accomplish its tasks. These are the business accounting which
businesses views for its higher profitability. It is about for determine the transactions for what
account will makes affect, for it company know the account, records what will debit what will
credit for its transactions which helps for better performance which helps for higher profitability
for the businesses. This report is about the recording business transactions. This report includes
topics which are Journal, ledger, trial balance etc. Apart from it includes topics which are ratios,
balance sheet, income statements which helps for better performance which helps for higher
profitability for the businesses (Harkiolakis and Halkias, 2016).
PART A
Journal transactions of T- accounts:
JOURNAL ENTRIES
S.NO Date Particulars L.F £ £
2020
1 01/10/20 Cash A/c Dr. 5200
Bank A/c Dr. 8000
Van A/c Dr. 3000
To Capital A/c 16200
(Capital invested into business)
2 02/10/20 Laptop A/c Dr. 1000
To Bank A/c 1000
( Purchased laptop by cheque)
3 04/10/20 Purchase A/c Dr. 2450
1

To Toys LTD. A/c 2450
(Goods purchased on Credit basis)
4 05/10/20 Bank A/c Dr. 1500
To Sales A/c 1500
(Goods sold by cheque)
5 12/10/20 Repair A/c Dr. 80
To Cash A/c 80
(Laptop Repair with cash)
6 18/10/20
Toys LTD. A/c
Dr. 100
To Purchase Return A/c 100
(Goods Return)
7 21/10/20 Bank A/c Dr. 500
To rent A/c 500
(Rent received)
8 23/10/20 Fred A/c Dr. 400
Cash A/c Dr. 1500
To Sales A/c 1900
(Goods sold)
9 23/10/20 Cash A/c Dr. 500
To Sales A/c 500
(Goods sold)
10 24/10/20
Car A/c
Dr. 2500
2