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Production of the main components of financial statements of a business | UK US Essays
  • January 30th, 2016

Production of the main components of financial statements of a business

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You and two of your best friends have decided to start a career in the trading business by incorporating a private limited company in the United Kingdom. You contributed £20,000 for 20,000 ordinary shares of £1 each (i.e. 40% of the total share capital of the Company) while your other two best friends contributed equally towards the balance of the share capital of the Company. Three of you are executive directors of the Company and the Company further employed one employee to manage the business operations.
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ACC2220 Group Assignment AY1516
The Company is incorporated on 1 October 2015 and commenced operations on the same day. The Company involves in three (3) products and adopts perpetual inventory system whereby the sales and purchases include both cash and credit transactions. The board of directors have decided to use Sage accounting software to keep the accounting records of the Company.

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