Financial Analysis: Recording Business Transactions and Ratios

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Added on  2022/12/29

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This report provides a comprehensive analysis of business transactions and financial performance. It begins with an introduction to accounting and its applications in recording, measuring, and interpreting business transactions. Part A focuses on journal entries, T-accounts, balance sheets, trial balances, and income statements. Part B delves into financial ratio calculations, including net profit, gross profit, current, quick, accounts receivable, and accounts payable ratios, and compares Linda's business performance with industry competitors. The report concludes with a summary of the importance of accounting applications for business sustainability and highlights the significance of financial ratios in evaluating organizational performance.
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Recording business
transactions
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Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Journal transactions of T- accounts:............................................................................................1
Balance the accounts and an opening balances:..........................................................................2
Trial balance:...............................................................................................................................5
Income statement for the period 31st Oct. 2020:.........................................................................6
Preparation of financial position 31st Oct. 2020:........................................................................6
PART B............................................................................................................................................7
Ratio calculation for Linda's business:........................................................................................7
Analysis of ratio analysis in comparison to its competitors:.......................................................8
CONCLUSION...............................................................................................................................9
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INTRODUCTION
Accounting is systematic procedure which help in recording, measuring, collecting as
well as interpret business transaction. This report has been formulated to define how manager
use accounting applications for collecting, recording analysis and interpreting financial as well as
non financial data by formulating journal, ledger, trial balance and income statement. This
report also showcase relevance of financial ratio for measuring performance of Linda's
organization with its competitors.
PART A
Journal transactions of T- accounts:
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Balance the accounts and an opening balances:
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