Business Transactions and Financial Statements Report - Accounting

This report provides a detailed analysis of recording business transactions and preparing financial statements. It includes journal entries, ledger accounts, and the creation of an income statement for a business. The impact of the COVID-19 epidemic on revenue is discussed, along with the calculation and analysis of financial ratios for a company. The report also covers the procedures for launching a new decorator business and identifies senior managers involved in accountancy for a firm registered on the British Stocks Market. The document concludes by summarizing the importance of financial accounting in making informed business decisions and highlights the resources available on Desklib for further study.

Recording business
transactions

Contents
Contents...........................................................................................................................................2
ASSESSMENT 1.............................................................................................................................1
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Describe the procedures for launching a new decorator business...............................................1
Describe the senior managers who are involved in accountancy for a firm that is registered on
the British Stocks Market............................................................................................................2
PART B...........................................................................................................................................3
1. Record the journal entries in the F Polk books........................................................................3
2. Make the ledger accounts in the books of Maurice and brothers............................................4
PART C...........................................................................................................................................7
Create a income statement for B Morre.......................................................................................7
b) Describe how the revenue for the year 2022 can be boosted or diminished in light of the
COVID–19 epidemic...................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
ASSESSMENT 2...........................................................................................................................11
INTRODUCTION.........................................................................................................................11
PART A.........................................................................................................................................11
a) Record the double entry.........................................................................................................11
b) General Ledgers....................................................................................................................12
c) Trial Balance..........................................................................................................................16
d) Prepare Income Statement ending on 31 October 2021........................................................16
e) Make the statement of financial position...............................................................................17
f) What are the illustrations regarding smaller companies and the vacation.............................18
PART B.........................................................................................................................................18

a) Calculate the ratios from the above calculations for Anne's business...................................18
b) Analyze Anne's company's profitability using the median of her rivals' statistics.
Furthermore, describe how COVID–19 affects the mean percentage.......................................19
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................21

ASSESSMENT 1
INTRODUCTION
A commercial activity is a monetary condition of an entity that represents the firm's
overall soundness (Brijs, 2016). Entries and account balances are the two types of accounting
records. In a volume, the journal documents all of the company's financial transactions. The
beginning and ending balances of the various entities stated in entries are recorded in accounting
records. The stages for starting a decorator company are discussed in this report for someone
who wants to start one. Furthermore, as Marks and Spencer explains, top management require
the support of accrual analysis. Next, based on the purchase information, written reports, account
balances, accounting records, and retained earnings are created.
PART A
Describe the procedures for launching a new decorator business
David Green is a lone entrepreneur who wants to begin a new decorating firm. He is well
conscious of his responsibility for any and all liabilities that the business might develop. Despite
the fact that he is unaware of the duties and functions associated with the start-up of the business.
As a result, he seeks advice on a few aspects of the company's start-up.
 Establishing various connections: Each firm should participate in operations that
benefit the community and establish a viable atmosphere. It promotes empathy and aids
in the formation of a group that promotes the institutions. Increasing the number of
connections is a complimentary marketing strategy that would also boost the number of
clients (Mergel, Rethemeyer and Isett, 2016).
 Digital networking appearance: Currently, individuals choose to look for company
suggestions on the internet. As a result, it's critical for David to set up profiles on several
online networking sites, like Twitter, Google, and Meta. This would raise awareness and
might even aid in the acquisition of initiatives. Users would be able to learn much more
about company's production procedure if the proprietor uploads certain photographs or
footage linked to the company.
 Developing a company approach: A plan is created to meet profitability that can only
be accomplished if the statements of purpose are apparent. To do so, one should first

establish an edge over its competitors, make decisions depending on facts, and develop a
methodical development strategy for the company.
 Creating a corporate strategy: It's similar to a pamphlet in that it lists the strategic
mission, capabilities, and actions that it has undertaken or plans to take. It would also
contain information related to the operation that would be carried out efficiently in the
upcoming. It also includes statistics regarding the company leadership, such as respective
qualifications and occupations.
 Determine the necessary machinery: The administration should initially determine
which apparatus or components are required for the execution of the company activity.
For instance, in the decoration industry, curtain, garlands, and so forth.
 Making a framework: To be successful in corporate, someone must initially make a
framework that would aid in the organisation of commercial operations. It is essential to
consider on the operations and programs that will be provided (Martiník, Friedrich and
Pomp, 2016).
 Create a technological transition plan: The immediate and long-term goals must be
determined. This would aid in comprehending the prospects as well as the roadblocks that
may arise on the way to achieving it. It would also aid in the establishment of a precise
time limit, ensuring that activities are finished on schedule.
Consequently, David Green may create his corporation and attain objectives by
implementing the stages outlined previously that would aid in the company's development.
Describe the senior managers who are involved in accountancy for a firm that is registered on the
British Stocks Market
Accountancy is the activity of entering, analysing, and closing transactions to produce
financial information and aid judgement call. Accountancy's purpose is to provide monetary
statistics regarding a company. It assists customers in understanding their financial condition and
productivity that may be utilised to make selections. Managers at all stages of an institution's
hierarchy are referred to be decision makers because individuals decide things based on
accounting evidence and analysis. Marks and Spencer is a publicly traded corporation on the
British Securities Exchanges with a large number of decision makers who are responsible for the
firm's marketing strategy. Absorption, enticements, and long run asset sourcing for fostering
employment and commodities can all be addressed. Precise information is required to ensure that

the institution's operations are profitable. Each business choice is influenced by its customers,
either explicitly or implicitly (Pipattanasomporn, Kuzlu and Rahman, 2018).
Accountancy selection takers:
 Shareholders: Managers could use financial method to discover the level of interest and
compare the company's outcomes to that of similar businesses.
 Lenders: It could use administrative tools to determine an organization's reliability and
willingness to repay its debts.
 Administration: The country's governance requires financial data from the company in
order to collect various forms of taxation, including federal and secondary taxation.
 Supervisors: These would be the ones who plan for the long term and execute the
necessary plans. The strategy is created in accordance with the company's objectives.
Users of financial accountancy utilize it to organize, manage, and make simple decisions.
It aids them in assessing the company's appearance and stance.
 Venture capitalists: When donating, businesses must inspect and assess the financial
situation utilising an organization's financial information (Ryu and Kim, 2016).
PART B
1. Record the journal entries in the F Polk books.
JOURNAL ENTRIES – F POLK
Date Particulars Debit Credit
01/09/21 Assets A/c
Fixtures
Stock
Debtors (105 + 311)
Bank
Cash
Creditors (229 + 80)
Capital
5700
2800
5200
416
1060
85
309
14952
01/09/21 Bad Debts
P Mullen
105
105

(Bad Debts written-off)
05/09/21 Syme Ltd
Office Fixtures
(Office fixtures bought through credit was written-off)
150
150
10/09/21 Bank
Bad Debts
M Abel
(M Abel declared bankruptcy and received the amount
in full settlement)
180
131
311
18/09/21 Machinery
Cash
Bank
Brown Ltd
(Purchased a machinery and the amount paid by
cheque, cash and on credit)
1800
100
500
1200
26/09/21 Brown Ltd
Bank
(Half of the amount due paid through cheque)
600
600
28/09/21 Insurance Expenses
Drawings
Bank
(Insurance expenses paid by bank but later realised that
£70 is of personal house)
60
70
130
2. Make the ledger accounts in the books of Maurice and brothers.
a) GENERAL LEDGER – MAURICE BROTHERS
Cash Account
Date Particulars Ref Amount Date Particulars Ref Amount
03/08/21 Bank 2800 15/08/21 Office Fixtures 110

19/08/21 Toyota Co. 8700
31/08/21 Balance c/d 6440 25/08/21 Bank 430
9240 9240
Bank Account
Date Particulars Ref Amount Date Particulars Ref Amount
03/08/21 Cash 2800
01/08/21 Capital 36800 04/08/21 Van 6200
25/08/21 Cash 430 05/08/21 Office Fixtures 1000
02/08/21 Loan Payable 12400 28/08/21 Office Fixtures 750
31/08/21 Balance c/d 38880
49630 49630
Van Account
Date Particulars Ref Amount Date Particulars Ref Amount
01/08/21 Capital 32000
04/08/21 Bank 6200 31/08/21 Balance c/d 46900
08/08/21 Toyota Co. 8700
46900 46900
Office Fixtures
Date Particulars Ref Amount Date Particulars Ref Amount
01/08/21 Capital 1200
05/08/21 Bank 1000
05/08/21 Sharp Office Ltd 2400 31/08/21 Balance c/d 5460

15/08/21 Cash 110
28/08/21 Bank 750
5460 5460
Sharp Office (Creditor)
Date Particulars Ref Amount Date Particulars Ref Amount
31/08/21 Balance c/d 2400 05/08/21 Office Fixtures 2400
2400 2400
Toyota Co. Accountable
Date Particulars Ref Amount Date Particulars Ref Amount
19/08/21 Cash 8700 08/08/21 Van 8700
8700 8700
Loan Payable Account
Date Particulars Ref Amount Date Particulars Ref Amount
31/08/21 Balance c/d 12400 02/08/21 Bank 12400
12400 12400
Capital Account
Date Particulars Ref Amount Date Particulars Ref Amount
31/08/21 Office Fixtures 1200
31/08/21 Van 32000 31/08/21 Balance c/d 70000
31/08/21 Bank 36800
70000 70000
b) Trial Balance

TRIAL BALANCE
Maurice & Brothers
Debit Credit
Bank 38880
Cash 6440
Van 46900
Office Fixtures 5460
Sharp Office Ltd (Creditor) 2400
Loan Payable 12400
Capital 70000
TOTAL 91240 91240
PART C
Create a income statement for B Morre
Particulars Amount (£)
Sales 95000
Less: Sales Returns 3500
Less: Carriage Inwards 890
Net Sales (A) 90610
Opening Stock 18000
Purchases 110000
Less: Return Outwards 720
Less: Closing Stock 13000
Net Purchases (B) 114280
Motor Expenses 1400
Rent 7000

Telephone Charges 830
Wages and Salaries 14000
Insurance 1030
Office Expenses 800
Sundry Expenses 250
Operating Expenses (C) 25310
TOTALS (A – B - C) -48980
b) Describe how the revenue for the year 2022 can be boosted or diminished in light of the
COVID–19 epidemic
For several businesses, the year 2020 was among the most difficult in current memory.
Whereas many businesses progressed normally in early 2020, the COVID-19 epidemic halted
development throughout most parts of the globe in mid-March. From disruptions in the routine
activity of operations to the outright shutdown of some businesses. The corporation had made a
deficit, as per the financial statements. This meant that spending had outstripped earnings.
Nevertheless, while the firm's transactions generate considerable revenue, they are insufficient to
support its costs. This may be owing to the COVID-19 epidemic that has reduced consumption
for the products and operations, resulting in fewer revenue. The anticipated outcomes range from
minor immediate impact, including a firm shutdown, to long-term and secondary implications,
like modifications in corporate direction. The importance of comprehending the firm's influence
and fiscal ramifications for the company operator cannot be overstated (Turner, Weickgenannt
and Copeland, 2016).
CONCLUSION
It could be inferred from the preceding research that developing a corporate approach is
critical while beginning a company. The monetary status of the organization is reflected in the
record, accounting records, and statement of comprehensive income. The financial statement
displays the operating revenue. Marks and Spencer is profiled in this study, along with the
organization's decision makers.

REFERENCES
Books and Journals
Brijs, B., 2016. Business analysis for business intelligence. CRC Press.
Martiník, I., Friedrich, V. and Pomp, M., 2016, October. Recording, Publication, Testing and
Evaluation of Quantitative Knowledge in e-Learning Environment. In European
Conference on e-Learning (p. 476). Academic Conferences International Limited.
Mergel, I., Rethemeyer, R. K. and Isett, K., 2016. Big data in public affairs. Public
Administration Review. 76(6). pp.928-937.
Pipattanasomporn, M., Kuzlu, M. and Rahman, S., 2018, October. A blockchain-based platform
for exchange of solar energy: Laboratory-scale implementation. In 2018 International
Conference and Utility Exhibition on Green Energy for Sustainable Development
(ICUE) (pp. 1-9). IEEE.
Ryu, S. and Kim, Y.G., 2016. A typology of crowdfunding sponsors: Birds of a feather flock
together?. Electronic Commerce Research and Applications, 16, pp.43-54.
Turner, L., Weickgenannt, A.B. and Copeland, M.K., 2016. Accounting information systems: the
processes and controls. John Wiley & Sons.