University of West London: Recording Business Transactions BA30592E

This report provides a detailed analysis of recording business transactions, including the process of starting a new business as a decorator, identifying decision-makers in a London Stock Exchange-listed company, and preparing journal entries and ledger accounts. It includes a comprehensive income statement for P Moore ending September 31st, 2021, and a prediction of the company's profitability for the year 2022 based on previous financial statements. The report also features examples of sales day books, purchase day books, sales returns day books, and purchase ledgers, offering a thorough overview of financial recording and analysis.

Recording Business
Transactions
Table of Contents
1

Part – A............................................................................................................................................3
(1) Process for starting a new business enterprise as a Decorator..............................................3
(2) Identify the decision makers of the business organization which are responsible for the
process of the decision making in context to the company listed on the London Stock
Exchange.....................................................................................................................................4
Part – B............................................................................................................................................5
(a) Journal Entries for the month September, 2021....................................................................5
Part – 4.............................................................................................................................................9
(a)Income Statement of P Moore ending 31st September, 2021..................................................9
(b) Based on the income statements of previous year predict that whether the company will
attain profits or losses in the year 2022.....................................................................................10
References......................................................................................................................................10
Books & Journals......................................................................................................................10
2

PART – A
(1) Process for starting a new business enterprise as a Decorator.
Sole A business organisation can be defined as a company that is run by a single natural person
who is responsible for the entire operation (Prewett, Prescott and Phillips, 2020). As a result,
the process of forming a business organisation is stated as follows:
• Idea generation: The first stage in beginning a business is to come up with a concept on
which the entire firm will be built. As a decorator, the owner must carefully consider and
assess what novelties may be presented to the target market in order to entice them to visit
the business. As a result, both the concept of uniqueness and the quality of the work can aid
in gaining a competitive advantage over competitors.
• Funding Proposal: The second and most significant stage is to approach a financial
institution, because it is critical for a firm to have adequate funds to operate. Business
owners must seek out authentic and dependable sources of funding in order to properly
invest in the company and reach a healthy financial position.
• Company location: It is critical for any company to establish itself as one of the best places to
attract and retain a big number of clients on a daily basis. In exchange for your work as a
decorator, you will be offered the opportunity to engage in commercial operations in large
cities. The main reason for this is that there are more options for business organisation, such
as event decoration, and it is relatively easy for a firm to develop and be successful over
time.
• Human Resource Selection: It is critical for a successful company organisation to have an
efficient and productive workforce to assist in the management of its. in the most
appropriate manner to flourish in a more consistent manner in the decorative company
environment, it is vital to have a workforce with the characteristics of innovation, hard
effort, and a high level of devotion.
• Tax planning: Taxes can eat into a company's profits, reducing the amount of money in the
owner's hands. As a result, we advise the respective company to do proper tax planning in
order to lower its tax liability for the current fiscal year.
 Creating a business venture: It's time to start the business when you've finished all of
the preceding processes (Maurer, 2017). After completing all of the above-mentioned
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processes, methods, and procedures in the Decorator business context, the company may
effectively market with the goal of success and enormous long-term earnings.
(2) Identify the decision makers of the business organization which are responsible for the
process of the decision making in context to the company listed on the London Stock Exchange.
Business managers and leaders in the business who have the ability and power to make various
types of strategic and essential decisions are known as decision makers. Acquisitions,
mergers, and expansions are examples of these decisions (Susanto and Almunawar, 2018) .
Various decision makers are also involved in the decision-making process for all topics
relating to the business at Unilever, which is considered one of the leading businesses on the
London Stock Exchange. The following are the various decision-makers and their respective
organisations:
• CEOs and business owners: Business managers play a critical role in the development of
action plans that help companies achieve their objectives in the most efficient way possible
(Teece, 2018). Managers at Unilever always make sure that all of the company's employees
are functioning efficiently and adopting all of the manager's strategies.
• Investors: They are the company's most crucial decision-makers. The key reason for this is that
they are the ones that contribute to increasing shareholder value, lowering capital expenses,
and establishing a strong reputation in the investment community over time. The investors
are exclusively responsible for making judgments in the many affairs of the firm so that it
can operate properly in the framework of the specific business.
• Analysts: They are proponents of taking a proactive approach before dealing with a specific
type of circumstance. In the case of Unilever, they have a team of analysts who are primarily
involved in the process of examining financial data in order to take action. They also have
excellent company management skills and are most likely to handle all stages of the
decision-making process (Tripathi, 2018).
Part – B
(a) Journal Entries for the month September, 2021
Date Particulars Debit
Amount
Credit
Amount
4

01/09/2021 Bad Debts A/C Dr.
To P Mullen A/C Cr
(Being debts written off)
105
105
05/09/21 Syme Ltd A/C Dr.
To Office Fixtures A/C Cr.
(being office fixtures returned)
150
150
10/09/21 Cash or bank A/C Dr.
Bad Debts A/C Dr.
To M Abel A/C
(being amount recovered in the full settlement)
180
131
311
18/09/21 Machinery A/C Dr.
To cash A/C cr.
To bank A/C Cr.
To Brown Ltd A/C Cr.
(Being machinery purchased by cash, bank and on
credit)
1800
100
500
1200
26/09/21 Brown Ltd A/C Dr.
To Bank A/C Cr.
(being half amount paid to Brown Ltd)
600
600
28/09/21 Insurance A/C Dr.
Drawings A/C Dr.
To Bank A/C Cr.
(Being insurance paid)
60
70
130
(2)
a. Prepare Ledger Accounts for August, 2021.
Cash A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
5

To bank A/C
To bank A/C
2800
430
By office fixtures A/C
By balance c/d
110
3120
TOTAL 3230 TOTAL 3230
Bank A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
To Satandar A/C
To sharp office A/C
To balance c/d
12400
2400
7050
By cash in hand A/C
By secomd hand van A/C
By office fixtures A/C
By Toyota A/C
By office fixtures A/C
2800
6200
3400
8700
750
TOTAL 21850 TOTAL 21850
Satandar A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
To balance c/d 12400 By bank A/C 12400
TOTAL 12400 TOTAL 12400
Second hand van A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
To balance c/d 6200 By bank A/C 6200
TOTAL 6200 TOTAL 6200
6

Office Fixtures A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
To bank A/C
To Sharp Office Ltd A/C
To Cash A/C
To Bank A/C
1000
2400
110
750
By balance c/d 4260
TOTAL 4260 TOTAL 4260
Sharp Office A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
To bank A/C
To balance c/d
1000
2300
By office fixtures A/C 3400
TOTAL 3400 TOTAL 3400
Van A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
To Toyota A/C 8700 To balance c/d 8700
TOTAL 8700 TOTAL 8700
Toyota A/C
Particulars Amount
(Debit)
Particulars Amount
(Debit)
To bank A/C 8700 By van A/C 8700
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TOTAL 8700 TOTAL 8700
Trial Balance
Particulars Amount
(Debit)
Amount
(Credit)
Cash A/C 3120
Bank A/C 7050
Satandar A/C 12400
Second hand van A/C 6200
Office fixtures A/C 4260
Sharp office Ltd A/C 2300
Van A/C 8700
Toyota A/C - -
Suspense A/C 11870
TOTAL 27950 27950
Part – 4
(a)Income Statement of P Moore ending 31st September, 2021.
Trading A/C as on 31ST SEPTEMBER, 2021
Particulars Amount (DR.) Particulars Amount (CR.)
To opening stock
To Purchases(110000)
Less: purchase returns(720)
To carriage inwards
To wages & salaries
18000
109280
890
14000
By Sales(9500)
Less: sales return(3500)
By Closing Stock
By carriage outwards
By gross loss
6000
13000
500
107870
8

To motor expenses 1400
TOTAL 123730 TOTAL 123730
Profit & Loss A/C as on 31ST SEPTEMBER, 2021
Particulars Amount (DR.) Particulars Amount (CR.)
To Gross loss
To rent
To telephone charges
To insurance
To office expenses
To sundry expenses
107870
7000
830
1030
800
250
To net loss 117780
TOTAL 117780 TOTAL 117780
(b) Based on the income statements of previous year predict that whether the company will attain
profits or losses in the year 2022.
It can be seen from the above statistics on B Moore's financial records that the company has been
losing money since 2020. The new type of corona virus has had a significant impact on
commercial organisations, and its consequences could be catastrophic. As can be seen in the
above profit and loss statement, the company is still losing money in 2020, with a severe
loss of 6500, and the company is continuing losing money in 2021. However, if the
corporation adjusts to new and distinct changes in the industry during the post-covid period,
the position will have improved by 2022 (Albayati, Kim and Rho, 2020).Situations may
return to normal, allowing the business organisation to maintain a high number of sales and
enhance earnings. Once the market conditions have stabilised, the company's operations and
operations will automatically improve. As a result, it's expected that business will get back
to stability and profitability by the year 2022.
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References
Books & Journals
Prewett, K. W., Prescott, G. L. and Phillips, K., 2020. Blockchain adoption is inevitable—
Barriers and risks remain. Journal of Corporate accounting & finance, 31(2), pp.21-28.
Maurer, B., 2017. Money as token and money as record in distributed accounts. Distributed
agency, pp.109-16.
Teece, D. J., 2018. Profiting from innovation in the digital economy: Enabling technologies,
standards, and licensing models in the wireless world. Research Policy, 47(8), pp.1367-
1387.
Albayati, H., Kim, S. K. and Rho, J. J., 2020. Accepting financial transactions using blockchain
technology and cryptocurrency: A customer perspective approach. Technology in
Society, 62, p.101320.
Susanto, H. and Almunawar, M. N., 2018. Information security management systems: A novel
framework and software as a tool for compliance with information security standards.
Apple Academic Press.
Tripathi, A. M., 2018. Learning Robotic Process Automation: Create Software robots and
automate business processes with the leading RPA tool–UiPath. Packt Publishing Ltd.
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