Starting a Business and Financial Accounting: Desklib Study Material

Business Transaction

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
1.Describe the steps in starting a business..................................................................................3
2.Explain the role of financial accounting and whom is responsible for decision making.........3
Part B...............................................................................................................................................4
1. Journal entries for F Polk.............................................................................................................4
2. (a) Post the Journal entries into the General Ledger Accounts...............................................5
2. (b) Make the trail balance on 31st August, 2021....................................................................7
PART C............................................................................................................................................7
(a) Make the income Statement of B Moore for the year ending on 30th September, 2021......7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business transaction is an accounting event which is recorded in accounting system of
an organisation. Business transaction includes exchange of goods services for some
consideration (Kaiser, 2018). Every transactions are classified as business transaction then it is
recorded in the journal. Then these transaction are posted to the ledger and after that trail balance
is prepared to check whether the balance of the accounts match or not. Mark and Spencer is
taken as the reference company.
TASK
1.Describe the steps in starting a business.
David is the sole entrepreneur whom wants to start his own business. He is solely
responsible for all the debts and obligations of the company.
 Registration: In the first step the promoter have tor register the firm with the appellate
authority (Mahtani, 2019).
 Business idea: The foremost thing for any business entity is to have idea on which the
whole business will run in future.
 Execution of business plan: The plan needs to be implemented on the business according
to the blue print.
 Technological Strategies: A plan is created for the technological requirements so that the
needs can be found out.
 Community Network: Community is the one of the sources which plays an important role
in the working of the environment.
2.Explain the role of financial accounting and whom is responsible for decision making.
Accounting is comprises of recognising, interpreting, recording, distributing,
communicating and analysing the information to the various users (Lee, 2019). Accounting
system equips information regarding the financial health of an company.
Accounting Information:
 Owners: These information is used by the owners to know the profitability and financial
position of a business organisation and comparing those with the Marks and Spencer.
 Management: There is a huge difference between administration and contributor, they
make the decision according to the mentioned objectives and investment decision.