Recording Business Transactions

RECORDING BUSINESS
TRANSACTIONS

TABLE OF CONTENTS
PART A...........................................................................................................................................3
a. Record transaction...................................................................................................................3
b. Balancing transaction..............................................................................................................6
c. Extract trial balance...............................................................................................................10
d. Income statement..................................................................................................................11
e. Statement of financial position..............................................................................................11
f. Brief letter to Linda...............................................................................................................12
PART B..........................................................................................................................................13
Calculation of ratios..................................................................................................................13
Analysis of performance...........................................................................................................14
REFERENCES..............................................................................................................................15

PART A
a. Record transaction
Bank A/C
Date Details
Amount
£ Date Details
Amount
£
1/10/2020 To capital 8,000 2/10/2020 by laptop 1,000
5/10/2020 to sales 1,500 24/10/20 by second hand car 2,500
21/10/20 To rent 500 26/10/20 by wages 820
30/10/20 by rent 1,000
31/10/20 by drawing 1,600
10,000 10,000
van A/C
Date Details
Amount
£ Date Details
Amount
£
01/10/20 To Capital A/C 3000
3,000 3,000
Purchase A/C
Date Details
Amount
£ Date Details
Amount
£
04/10/20 To Toy Ltd. A/C 2450
2,450 2,450
Sales A/C
Date Details
Amount
£ Date Details
Amount
£
05/10/20 By Bank A/C 1500
23/10/20 By Cash A/C 1500
23/10/20 By Fred A/C 400

23/10/20 By Cash A/C 500
3,900 3,900
Purchase return A/C
Date Details
Amount
£ Date Details
Amount
£
18/10/20 Toy Ltd. A/C 100
100 100
Fred A/C
Date Details
Amount
£ Date Details
Amount
£
23/10/20 To sales A/C 400
400 400
Wages A/C
Date Details
Amount
£ Date Details
Amount
£
26/10/20 To Bank A/C 820
820 820
Capital A/C
Date Details
Amount
£ Date Details
Amount
£
01/10/20 By Bank A/C 8000
01/10/20 By Cash A/C 5200
01/10/20 By Van A/C 3000
16,200 16,200