Financial Statement Analysis: Recording Business Transactions Project

This project provides a comprehensive analysis of recording business transactions, starting with journal entries and ledger accounts, and culminating in the preparation of a trial balance, income statement, and balance sheet. It includes a letter addressing concerns about withdrawals impacting business performance. The project also involves ratio analysis to evaluate the company's financial health, assessing the impact of COVID-19 on its performance. The analysis covers profitability, liquidity, and efficiency ratios, providing insights into the company's strengths and weaknesses. The report concludes with recommendations for improving financial management and ensuring sustainable growth. Desklib provides access to similar solved assignments and study tools for students.

RECORDING BUSINESS
TRANSACTIONS
PROJECT2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
a) Journal entries..........................................................................................................................1
b) ledger account..........................................................................................................................1
c) Preparing Trial balance as at 31st October 2021...................................................................12
d) Illustrating Income Statement for the period ended 31st October 2021................................13
e) Formulating balance sheet....................................................................................................14
f) Preparing letter for Anne........................................................................................................16
PART B.........................................................................................................................................17
a) Calculation of ratios...............................................................................................................17
b) Evaluating performance of company and assessing impact of covid 19..............................20
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23
APPENDIX....................................................................................................................................23

INTRODUCTION
Recording business transaction is associated with paying attention on having summarized
data regarding organizational activities related to financial practices. In current era, there are
several actions which are required to be taken into consideration for gaining crucial information
to formulate sound decision. The current report will highlight the essential type of activities that
aids in attaining required level of details so that appropriate decision can be made. The present
report
PART A
a) Journal entries
Enclosed in appendix
b) ledger account
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