Comprehensive Analysis: Recording Business Transactions Report

This report provides a comprehensive analysis of recording business transactions for Anne York. It includes journal entries, ledger accounts, a trial balance, an income statement, and a statement of financial position. The report also features a letter to Linda addressing concerns about drawings impacting the business. Part B focuses on calculating and evaluating profitability, liquidity, and efficiency ratios, comparing organizational performance with competitors, and assessing the impact of COVID-19. The analysis utilizes financial data to provide insights into the company's financial health and strategic decision-making, highlighting areas of strength and potential improvement.

Recording Business
Transactions

TABLE OF CONTENT
PART A...........................................................................................................................................2
a. Providing journal entries.........................................................................................................2
b) Formulating ledger accounts ..................................................................................................5
c) Preparing trial balance as at 31st October 2021....................................................................13
d) Preparing Income Statement ................................................................................................13
e) Formulation of financial position.........................................................................................14
f) Preparing letter to Linda........................................................................................................15
PART B.........................................................................................................................................16
a) Calculation of ratios..............................................................................................................16
b) Evaluation of organizational performance by comparing with competitors and assessing
impact of COVID 19 ................................................................................................................17
REFERENCES..............................................................................................................................19
1

PART A
a. Providing journal entries
2

3

4

b) Formulating ledger accounts
Bank A/c
Dr. Cr.
Date Particulars J.F Amount £ Date Particulars J.F Amount £
01/10/21 To capital 10000 04/10/21 By Computer A/c 800
05/10/21 To sales A/c 2800 04/10/21 By Printer A/c 200
21/10/21 To Rent A/c 800 24/10/21 By Laptop A/c 1700
26/10/21 By Wages A/c 820
30/10/21
By Rent of office
flat A/c 850
31/10/21
By Withdrawal
A/c 1200
31/10/21 By Balance c/d 8030
Total 13600 Total 13600
01/11/21
To opening
balance b/d 8030
Cash A/c
5

Dr. Cr.
Date Particulars J.F
Amount
£ Date Particulars J.F Amount £
01/10/21
To capital
A/c 4800 12/10/21 Repairs of printer A/c 110
23/10/21 To sales A/c 1800 31/10/21 By Balance c/d 7340
23/10/21 To sales A/c 700
31/10/21
To Rayan
A/c 150
Total 7450 Total 7450
01/11/21
To opening
balance b/d 7340
flat A/c
Dr. Cr.
Date
Particular
s J.F
Amount
£ Date Particulars J.F Amount £
01/10/21 To capital 45000
31/10/2
1 By Balance c/d 45000
Total 45000 Total 45000
01/11/21
To opening
balance b/d 45000
6

Capital A/c
Dr. Cr.
Date
Particular
s J.F
Amount
£ Date Particulars J.F Amount £
31/10/21
To Balance
c/d 71800 01/10/21 By Bank A/c 10000
01/10/21 By Cash A/c 4800
01/10/21 By flat A/c 45000
01/10/21 By car A/c 12000
Total 71800 Total 71800
01/11/21
opening balance
b/d 71800
Furniture A/c
Dr. Cr.
Date
Particular
s J.F
Amount
£ Date
Particul
ars J.F Amount £
02/10/21
To Home
Ltd A/c 5400 18/10/21
By
Home
Ltd A/c 250
31/10/21
By
Balance
c/d 5150
7

Total 5400 Total 5400
01/11/21
To opening
balance b/d 5150
Home Ltd A/c
Dr. Cr.
Date
Particular
s J.F Amount £ Date
Particular
s J.F Amount £
18/10/21
To
furniture
A/c 250 02/10/21
Furniture
A/c 5400
31/10/21
To Balance
c/d 5150
Total 5400 Total 5400
01/11/21
opening
balance b/d 5150
Laptop A/c
Dr. Cr.
Date
Particular
s J.F Amount £ Date
Particular
s J.F Amount £
24/10/21 To bank 1700 31/10/21 By 1700
8

A/c
Balance
c/d
Total 1700 Total 1700
01/11/21
To opening
balance b/d 1700
Rent of office flat A/c
Dr. Cr.
Date
Particular
s J.F
Amoun
t £ Date Particulars J.F Amount £
30/10/21
To bank
A/c 850 31/10/21 By Balance c/d 850
Total 850 Total 850
01/11/21
To opening
balance b/d 850
Computer A/c
Dr. Cr.
Date
Particular
s J.F
Amount
£ Date Particulars J.F Amount £
9

04/10/21
To bank
A/c 800
31/10/2
1 By Balance c/d 800
Total 800 Total 800
01/11/21
To opening
balance b/d 800
Printer A/c
Dr. Cr.
Date
Particular
s J.F
Amoun
t £ Date Particulars J.F Amount £
04/10/21
To bank
A/c 200 31/10/21 By Balance c/d 200
Total 200 200
01/11/21
To opening
balance b/d 200
Sales A/c
Dr. Cr.
Date
Particular
s J.F
Amount
£ Date Particulars J.F Amount £
31/10/21 To Balance 5600 05/10/2 By Bank A/c 2800
10

c/d 1
23/10/2
1 By cash A/c 1800
23/10/2
1 By Rayan A/c 300
23/10/2
1 cash A/c 700
Total 5600 Total 5600
01/11/2
1 opening balance b/d 5600
Repairs of printer A/c
Dr. Cr.
Date
Particular
s J.F
Amoun
t £ Date Particulars J.F Amount £
12/10/21 to cash A/c 110 31/10/21 By Balance c/d 110
Total 110 110
01/11/21
To opening
balance b/d 110
11