Accounting for Management Decisions: Custom Furniture Business

This assignment analyzes the accounting practices for a custom furniture business. It begins with an introduction to the business model, which focuses on online custom furniture orders within the UK. The assignment covers key accounting concepts, including journal entries, ledger accounts, and the preparation of financial statements (balance sheet, income statement, and cash flow statement). It provides detailed journal entries for various transactions, from initial capital investment and asset purchases to sales, expenses, and adjustments. The assignment also includes the creation of ledger accounts, a trial balance, and adjusted entries to correct errors in the initial records. The student demonstrates an understanding of financial statement preparation and provides insights into the business's financial performance, including key ratios. The assignment also addresses the impact of customization on pricing and customer satisfaction, offering recommendations for future improvements. The report concludes with a discussion of the company's financial position and a projection of its future financial performance.