Comprehensive Financial Accounting and Performance Analysis Report

This report provides a comprehensive analysis of a business's financial activities, starting with the recording of transactions in T-accounts and culminating in the preparation of financial statements, including an income statement and balance sheet. It includes a trial balance as of October 31, 2021, and an analysis of the company's financial position. Furthermore, the report addresses a query regarding holiday expenditures and their impact on the business. The second part focuses on calculating and interpreting financial ratios to evaluate the company's performance, covering profitability, liquidity, and efficiency. The analysis includes a comparison with competitors, highlighting both strengths and areas for improvement, such as managing current assets and trade payables. The report concludes that while the organization shows good performance overall, there are specific areas needing attention to enhance financial stability and competitiveness.

ASSESSMENT 2 PART

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSESSMENT 2.............................................................................................................................1
PART A...........................................................................................................................................1
a) Recording the transactions in T account...............................................................................1
c) Formulating Trial balance as at 31st October 2021...........................................................17
d) Preparing income statement for the period ended 31st October 2021...............................18
e) Formulating financial position as at 31st October 2021.....................................................19
f) Writing letter to Linda for her query regarding holiday.....................................................20
PART B.........................................................................................................................................21
Calculating ratios for Anne’s business......................................................................................21
Evaluating the performance of company...................................................................................25
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................27

INTRODUCTION
Recording business transaction is helpful in keeping information regarding the commercial
transaction conducted by the company. In the current era, requirement regarding keeping
business process flexible with coordinating with the prevailing data so that significant decision
can be made. The current report will highlight the information related with journal entries, ledge,
trail balance, financial position, income statement and writing letter. This will give emphasis on
analysing the performance of organization via calculating the ratios.
ASSESSMENT 2
PART A
a) Recording the transactions in T account
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