Recording Business Transactions: Journal Entries, Ledgers, Ratios, and COVID-19 Impact

Business Transactions

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Record the enterprise proceedings in the journal........................................................................3
Prepare general ledgers...............................................................................................................5
Formulate the Trial Balance........................................................................................................8
Construct the Income Statement.................................................................................................8
Provide details of the Balance Sheet...........................................................................................9
Explain drawings and demonstrate it to Linda..........................................................................10
TASK 2..........................................................................................................................................10
Determine the Accounting Ratios of the Business....................................................................10
Describe the effect of COVID – 19 on the working of business..............................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The business record explains all the financial and non financial operations that occur in the
organisation which would be relatable to the operational work carried out with the motive of
increasing profits. The above mentioned transactions are to be recorded in the books of account
of business for the determination of profits earned by a company. The further terms in report
describes how transactions are recorded and then transferred to financial statements to ascertain
profit and losses from them. Ratio analysis is calculated for different financial values and an
clarification is delivered for the same.
TASK 1
Record the enterprise proceedings in the journal
JOURNAL ENTRIES
Date Particulars Debit Credit
01/10/21 Bank
Cash
Flat
Car
Capital
(Business being started with cash, flat and a car)
10000
4800
45000
12000
71800
02/10/21 Purchases
Home Ltd
(goods of the firm i.e., furniture being purchased on
credit from Home ltd.)
5400
5400
04/10/21 Computer
Printer
Bank
(Computer and printer being bought for cash)
800
200
1000
05/10/21 Bank
Sales
2800
2800

(Goods worth 2800 being sold)
12/10/21 Repair Expense
Cash
(repair expenses incurred for repairs done in printer)
110
110
18/10/21 Home Ltd.
Purchases
(Furniture of wroth 250 being returned to home ltd.)
250
250
21/10/21 Bank
Rent Income
(Rent being received by the organisation)
800
800
23/10/21 Rayan
Cash
Sales
(sold goods to Rayan worth 2100, out of which, 1800
have been received by the business)
300
1800
2100
23/10/21 Cash
Sales
(sold goods to David for cash)
700 700
24/10/21 Laptop
Bank
(A new laptop has been bought for official use.
1700
1700
26/10/21 Wages
Bank
(shopkeeper has been paid monthly wages)
820
820
30/10/21 Rent Expenses
Bank
(a place being rented by the business and paid expenses
for same)
850
850