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BA3UK92O: David Green is going to set up a sole trader business as a Decorator He knows that he would be personally responsible for his business’s debts: Recording Business Transactions Assignment, UOWL, UK
| University | University of West London (UoWL) |
| Subject | BA3UK92O: Recording Business Transactions |
Part A
(1) David Green is going to set up a sole trader business as a Decorator. He knows that he would be personally responsible for his business’s debts. He also would have some accounting responsibilities; however, he does not know about the steps for starting a business. As your area of studying is related to Business, he wants you to consult him in this matter.
Required: Provide steps for starting a new business as a Decorator.
(2) Accounting involves recording, analyzing, and summarising the transactions of an entity to provide information for decision making.
Required: Consider a large company listed on the London stock exchange and identify who are the decision makers referred to in the above definition.
Part B
(1) F Polk, after being in the Bakery business for some years without keeping proper records, now decides to keep a double-entry set of books. On 1 September 2021 he establishes that his assets and liabilities are as follows: Assets: Van £5,700, Fixtures £2,800, Stock £5,200, Debtors – P Mullen £105, M Abel £311, Bank £1060, Cash £85. Liabilities: Creditors – Syme Ltd £229, A Hill £80.
He is not sure about Journal entries for the following transactions in September 2021 as follows:
- A debt of £105 owing from P Mullen was written off as a bad deb
- Office Fixtures originally bought by credit for £150 were returned to the supplier Syme Ltd., as it was unsuitable. The full allowance will be given for this.
- The business is owed £311 by M. Abel. He is declared bankrupt and we only received £180 cash in full settlement of the debt.
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