Orange Trading Business

01_investment.goluca

PTA Source

# Step 1: Equity investment
# Investor puts £25 cash into the business

2024-01-01 * Investor puts cash into business
  Equity:Input -> Asset:Cash investment 25.00 GBP

SVG Output

Input -25.00 GBP Cash 25.00 GBP 25.00 GBP Equity Asset

02_buy_oranges.goluca

PTA Source

# Step 2: Buy oranges for cash
# Business spends £25 buying 25 oranges from farmer

2024-01-01 * Investor puts cash into business
  Equity:Input -> Asset:Cash investment 25.00 GBP

2024-01-02 * Buy 25 oranges from farmer
  Asset:Cash -> Expense:Purchases oranges 25.00 GBP

SVG Output

Input -25.00 GBP Cash 0.00 GBP Purchases 25.00 GBP 25.00 GBP 25.00 GBP Equity Asset Expense

03_sell_oranges.goluca

PTA Source

# Step 3: Sell oranges at market
# Sell 25 oranges for £37.50, making £12.50 profit

2024-01-01 * Investor puts cash into business
  Equity:Input -> Asset:Cash investment 25.00 GBP

2024-01-02 * Buy 25 oranges from farmer
  Asset:Cash -> Expense:Purchases oranges 25.00 GBP

2024-01-03 * Sell 25 oranges at market
  Income:Sales -> Asset:Cash market sales 37.50 GBP

SVG Output

Input -25.00 GBP Sales -37.50 GBP Cash 37.50 GBP Purchases 25.00 GBP 25.00 GBP 25.00 GBP 37.50 GBP Equity Income Asset Expense

04_buy_on_credit.goluca

PTA Source

# Step 4: Buying on credit
# Instead of paying cash, farmer extends credit (a liability)

2024-01-01 * Investor puts cash into business
  Equity:Input -> Asset:Cash investment 25.00 GBP

2024-01-02 * Buy oranges on credit from farmer
  Liability:Farmer -> Expense:Purchases oranges on credit 25.00 GBP

2024-01-03 * Sell oranges at market
  Income:Sales -> Asset:Cash market sales 37.50 GBP

SVG Output

Input -25.00 GBP Sales -37.50 GBP Farmer -25.00 GBP Cash 62.50 GBP Purchases 25.00 GBP 25.00 GBP 25.00 GBP 37.50 GBP Equity Income Liability Asset Expense