UKCBC BA3UK92O Project: Recording Business Transactions & Analysis

This project solution covers the recording of business transactions, focusing on journal entries, ledger accounts, trial balance preparation, income statement formulation, and statement of financial position creation. It includes a letter addressing concerns regarding holiday expenses and their impact on the business. The project also involves computing and analyzing financial ratios to assess Anne's business performance, considering the impact of the Covid-19 outbreak. Key ratios such as gross profit margin, net profit margin, current ratio, and quick ratio are calculated and interpreted to provide insights into the company's profitability, liquidity, and efficiency. The analysis compares Anne’s business performance with competitors and identifies areas for improvement, emphasizing the importance of effective resource management and strategic decision-making. Desklib offers a variety of solved assignments and study resources for students.

PROJECT 2 PART A &
PART B

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PROJECT 2.....................................................................................................................................2
PART A...........................................................................................................................................2
a) Using double entry system to record transaction in n T account.............................................2
b) formulating ledge account to bring opening balance..............................................................6
c) Preparing Trial balance as at 31st October 2021...................................................................17
d) Formulating Income Statement for the period ended 31st October 2021.............................18
e) Preparing Statement of Financial Position as at 31st October 2020......................................19
f) writing letter to Linda............................................................................................................19
PART B.........................................................................................................................................20
a) Computing ratios...................................................................................................................20
b) analyisng performance of Anne’s performance and impact of Covid -19 outbreak ratios. .24
CONCLIUSION............................................................................................................................25
REFERENCES..............................................................................................................................26

INTRODUCTION
Recording business transaction is related with summarizing, analysing and interpreting the
business activities in order to offer significant information regarding firm. The present working
environment has changed which require firm to focus on developing significant strategy based
on the data so that appropriate ability to deal with commercial practice can become possible.
There are several areas of business which require firm to focus on having proper level of
decision in respect to gain the competitive edge which can be exerted by having effective
recording of transaction. The main reason behind keeping record is that there are several type of
transaction which are implemented by company with various parties and remembering each
details is possible in turn having this can contribute in accomplishing particular objective the
current report will include journal, ledger, trail balance, income and financial position and letter
to Linda. Current study will emphasize on computing ratios and interpreting information for
evaluating organizational performance.
1

PROJECT 2
PART A
a) Using double entry system to record transaction in n T account
2

3

4

5

b) formulating ledge account to bring opening balance
6

7

8

9

10