Recording Business Transaction

Recording Business Transaction

INTRODUCTION
The various accounting transactions are recorded in the books of accounts to derive the
results of the operations that the company has performed. The income statement shall show the
profitability of the company and the balance sheet shall be depicting the financial position of the
company. The report shall be showing the transactions of the business that are being recorded in
the primary book of journal. Further it shall be highlighting the posting of such accounting
transactions in the ledger of the company. In order to check the accuracy, the balance of the
accounts is carried forward to the trial balance. The project shall be reflecting the profitability
position of the business by incorporating all the incomes and expenses for the year in the profit
and loss statement. Lastly, the balance sheet shall be portraying the financial position of the
company.
PART A
a. Recording business transaction in T-accounts
Date Particulars
Debit (in
£)
Credit (in
£)
01/10/20 Bank a/c dr. 8000
cash a/c dr. 5200
fixed a/c dr. 3000
To capital a/c 16200
02/10/20 fixed a/c dr. 1000
To bank a/c 1000
04/10/20 purchase a/c dr 2450
To Toys Ltd. a/c 2450
05/10/20 bank a/c dr. 1500
To sales a/c 1500
12/10/20 Repairing a/c dr. 80
To cash. a/c 80

18/10/20 Toys ltd. A/c dr
To purchase return a/c 100
100
21/01/20 bank a/c dr. 500
To rent A/c 500
23/10/20 cash a/c dr. 2000
Fred a/c dr 400
To sales A/c 2400
24/10/20 fixed a/c dr. 2500
to bank A/c 2500
26/02/20 Wages A/c dr. 820
To bank A/c 820
30/10/20 Rent A/c dr. 1000
To bank A/c 1000
31/10/20 Drawing A/c dr. 1600
To bank A/c 1600
Total 12950 12950
b. Ledgers account
Bank Account
Date Particular Amt. Date Particular Amt.
02/10/
20 To fixed assets A/c 1000 01/10/20 By capital A/c 8000
24/10/
20 To fixed assets A/c 2500 05/10/20 By sales A/c 1500
26/10/
20 to wages A/c 820 21/10/20 By rent A/c 500
30/10/
20 To rent A/c 1000
31/10/
20 To drawing A/c 1600

31/10/
20 To closing A/c 3080
Total 10000 10000
Cash Account
date Particular Amt. date Particular Amt.
12/10/20 To Repairing A/C 80 01/10/20 By capital A/c 5200
23/10/20 By sales A/c 2000
31/10/20 To closing A/c 7120
Total 7200 7200
Capital Account
date Particular Amt. date Particular Amt.
01/10/
20 To fixed assets A/c 3000
To cash A/c 5200
To bank A/c 8000 31/10/20
By closing
Balance 16200
Total 16200 16200
Fixed assets
Account
date Particular Amt. date Particular Amt.
01/10/20 By capital A/c 3000
02/10/20 By bank A/c 1000
24/10/20 By bank A/c 2500
31/01/
20 To closing A/c 6500
Total 6500 6500
Purchase Account
date Particular Amt. date Particular Amt.
04/10/20 By Toys ltd. 2450
31/10/ To closing A/c 2450