BA30592E Recording Business Transactions
Part A
1.Journal Entries
|
Date |
Particulars |
Debit £ |
Credit £ |
|
Sep. 1 |
Allowance for bad debts |
105 |
|
|
|
Account receivable |
|
105 |
|
|
Receivable from P. Mullen recorded as write off |
|
|
|
Sep. 5 |
Account Payable |
150 |
|
|
|
office Fixture |
|
150 |
|
|
office fixture returns |
|
|
|
Sep-10 |
cash |
180 |
|
|
|
Allowances for bad debt |
131 |
|
|
|
Account receivable |
|
311 |
|
|
Receivable from M. Abel recorded as payment and write off |
|
|
|
Sep-18 |
Machinery |
1800 |
|
|
|
Cash |
|
100 |
|
|
Bank |
|
500 |
|
|
account payable |
|
1200 |
|
|
Purchase of machinery |
|
|
|
Sep. 26 |
Account payable |
600 |
|
|
|
Bank |
|
600 |
|
|
Brown Ltd account is partial settled |
|
|
|
Sep-28 |
Insurance expenses |
60 |
|
|
|
Drawing (private insurance) |
70 |
|
|
|
Bank |
|
130 |
|
|
Payment for insurance |
|
|
2.General Ledger
|
Office Fixture |
|||
|
|
Amount £ |
|
Amount £ |
|
Opening Balance |
1200 |
||
|
Bank |
1000 |
||
|
Sharp office Ltd |
2400 |
||
|
Cash |
110 |
||
|
Bank |
750 |
Balance C/d |
5460 |
|
5460 |
5460 |
||
|
Van |
|||
|
|
Amount £ |
|
Amount £ |
|
Opening Balance |
32000 |
||
|
Bank |
6200 |
||
|
Toyota Co. |
8700 |
Balance C/d |
46900 |
|
46900 |
46900 |
||
|
Bank |
|||
|
|
Amount £ |
|
Amount £ |
|
Opening Balance |
36800 |
Cash |
2800 |
|
Loan |
12400 |
Van |
6200 |
|
Cash |
430 |
Office fixture |
1000 |
|
|
Toyota Co. |
8700 |
|
|
|
Office fixture |
750 |
|
|
|
Balance C/d |
30180 |
|
|
49630 |
49630 |
||
|
Loan |
|||
|
|
Amount £ |
|
Amount £ |
|
Opening Balance |
12400 |
Bank |
12400 |
|
12400 |
12400 |
||
|
Equity |
|||
|
|
Amount £ |
|
Amount £ |
|
Opening Balance |
70000 |
Balance C/d |
70000 |
|
70000 |
70000 |
||
|
Cash |
|||
|
|
Amount £ |
|
Amount £ |
|
Bank |
2800 |
Office fixture |
110 |
|
|
Bank |
430 |
|
|
|
Balance C/d |
2260 |
|
|
2800 |
2800 |
||
|
Sharp Office Ltd |
|||
|
|
Amount £ |
|
Amount £ |
|
|
Office fixture |
2400 |
|
|
Balance C/d |
2400 |
||
|
2400 |
2400 |
||
|
Toyota Co. |
|||
|
|
Amount £ |
|
Amount £ |
|
Bank |
8700 |
Van |
8700 |
|
8700 |
8700 |
||
|
Trail balance as of August 31, 2021 |
||
|
|
Amount £ |
Amount £ |
|
Equity |
|
70000 |
|
Office Fixture |
5460 |
|
|
Van |
46900 |
|
|
Bank |
30180 |
|
|
Loan |
|
12400 |
|
Sharp office ltd |
|
2400 |
|
Cash |
2260 |
|
|
|
84800 |
84800 |
3.A.
|
Income statement of B Moore |
||
|
For the year ending 30th Sep. 2021 |
||
|
|
Amount £ |
Amount £ |
|
Sales |
95000 |
|
|
Less: sales return |
3500 |
|
|
Total revenue |
|
91500 |
|
Less: Cost of goods sold |
|
|
|
Opening stock |
18000 |
|
|
Add: Purchase |
110000 |
|
|
Add: Carriage inwards |
890 |
|
|
Less purchase return |
720 |
|
|
Less Closing stock |
13000 |
115170 |
|
Gross profit |
|
-23670 |
|
Less: Expenses |
|
|
|
Carriage outwards |
500 |
|
|
Motor expenses |
1400 |
|
|
Rent |
7000 |
|
|
Telephone charges |
830 |
|
|
Wages and salaries |
14000 |
|
|
Insurance |
1030 |
|
|
Office expenses |
800 |
|
|
Sundry expenses |
250 |
|
|
Total expenses |
|
25810 |
|
Net Profit |
|
-49480 |
B.Percentage increase in profit and loss = (Current year profit – previous year profit)/previous year profit *100
2013 = £55800 Not applicable
2014 = (£77100-55800)/55800*100 = 38.17%
2015 = (£85500-77100)/77100*100 = 10.89%
2016 = (£98400-85500)/85500*100 = 15.17%
2017 = (£87600-98400)/98400*100 = -10.98%
2018 = (£97200-87600)/87600*100 = 10.95%
2019 = (£112400-97200)/97200*100 = 15.64%
2020 = (-£65400-112400)/112400*100 = -158.16%%
2021 = (-£49480-(-65400))/65400*100 = 24.34%
The profit of the company was dropped between 2017 and 2020, according to the results of the research. Profit dropped in the year 2017 but recovered in the year 2018 and 2019. The highest profit earned in the year 2019 was £112400. Because of pandemics, earnings in 2020 will drop by a considerable margin, -158.16 percent, compared to the previous year. The profit in 2021 is reduced, but when compared to the previous year, we see that the performance has improved by 24.34 percent, which is a great indicator for the firm. As a result of this, there is a likelihood that earnings will improve in 2020 due to the Business`s Favorable State.
