Business Transaction Analysis: Financial Statements and Performance

This report provides a comprehensive analysis of recording business transactions, covering journal entries, ledger accounts, trial balance, income statement, and financial position statement. It evaluates organizational performance through ratio analysis, including gross profit, net profit, current, and quick ratios, along with trade receivable and payable days. The report also includes a letter addressing withdrawal transactions and discusses the importance of proper fund allocation and management for improving financial performance. The analysis concludes that while the business shows good performance, there is a need for improvements in certain areas to achieve higher profitability and sustainability. Desklib provides access to this solved assignment and many more to aid students in their studies.

Recording Business
Transactions

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
a) Preparing double entry system to record transaction in journal entries..................................1
b) illustrating below ledge account to get opening balance........................................................5
c) Trial balance as at 31st October 2021.....................................................................................15
d) Illustrating income statement for the period ended 31st October 2021...............................16
e) Formulating financial position as at 31st October 2021.........................................................17
f) Preparing letter for Linda......................................................................................................18
PART B.........................................................................................................................................19
a) Calculating ratios for r Anne’s organization for October 2021.............................................19
b) evaluating performance of Anne’s organization...................................................................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
Recording Business Transaction (RBT) refers to taking all the information noted regarding
business activities exerted in monetary terms. The present working scenario has become tough
which needs firm to evaluate its transactions in order to make proper decision. The current report
will shed light on formulating basic knowledge about accounting though focusing on crucial
parts. It involves recording transaction in T account, ledger, trial balance, income and financial
position statement. This will focus on having insights related to calculations of crucial ratios in
order analyze organizational performance.
PART A
a) Preparing double entry system to record transaction in journal entries
1

2

3

4

b) illustrating below ledge account to get opening balance
5

6

7

8

9

10