SOLUTION: Recording Business transaction | My Assignment Tutor

Recording Business Transactions BA30592E1 | P a g eUNIVERSITY OF WEST LONDONThe Claude Littner Business SchoolRecording Business transactionResit Assignment A2Submission Deadline: April 24th 2021 at 11:59 pmPart ADavid started a small new business in Bicester at the 1st September 2020. He ispreparing accounts to 30th September 2020. His transactions in first monthwere as follows:1/09 David contributed to the business with a Computer with value of £2000,£20,000 in the Bank and £4200 cash and2/09 Purchased goods £800 on credit from Dawson3/09 Bought a brand new high speed Computer £2000 paying by cheque5/09 Sold goods for £400 and received the money in Bank6/09 Bought goods on cash £400 from M Maurice10/09 Paid rent by cheque £60012/09 Paid in Cash £100 for repairing Computer18/09 Goods returned to Dawson £10021/09 Let off part of the premises receiving rent by cheque £30023/09 Sold goods on credit to Joseph £40023/09 Sold goods of £1500 and received cash24/09Bought a car for business use paying by cheque £100030/09Paid the month’s wages by cash £70030/09David took cash for herself £450Recording Business Transactions BA30592E2 | P a g eRequired:a) Write double entry record the transactions in T-accounts 24marksb) Balance the accounts and bring down an opening balance 8marksc) Extract a Trial balance as at 30th September 202016 marksd) Prepare an Income Statement for the period ended 30th September2019 13 marks**Assuming closing inventory of £ 250.00e) Prepare a Statement of Financial Position as at 30th September 2019 15marks( marks 76)PART Bi. Use the information available in Income and Financial position statementin Part A and calculate the following ratios for DavidCompetitors Average• Net profit margin 28%• Gross profit margin 65%• Current ratio 2.10x• Acid test ratio 1.50x• Accounts receivable collection period 47 days• Accounts payable payment period 65 days( 12 marks)Recording Business Transactions BA30592E3 | P a g eii. Assuming David’s competitor’s ratio averages are as stated above: Analysehis performance with reference to each of the ratios calculated incomparison to those of her competitor. (Maximum of 300 words).(12 marks )(Total 100 Marks)IMPORTANT IN FORMATIONWord countThe assignment must not exceed 2,000 words.Pass mark and weighting of the assignmentTo pass the assignment you need a mark of at least 40%. The assignment carries a 60 %weighting towards your final mark for the module.Hand in dateAll assignments must be submitted on turnitin by the due date. Any late submissions will besubject to the penalties laid out below.Work handed in up to 7 days late will be awarded a maximum of 40 %. Work handed in afterthat will be given zero.Student supportAt the end of each seminar, there will be five minutes free to discuss any problems orambiguities in the assignment with the group.PlagiarismThe software checks assignments against other assignments as well as articles and internetsources so your assignment must not be too similar to other students’ assignments as wellas not being too closely extracted from articles and on-line sources.Important tip: You can submit drafts through turnitin and view the “originality report” whichwill indicate the similarity your assignment has with other sources.