Finance and Accounting Concepts for Successful Operations

ACCOUNTANCY AND
FINANCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION A.....................................................................................................................................1
Question 1....................................................................................................................................1
SECTION B.....................................................................................................................................4
Question 3....................................................................................................................................4
Question 4....................................................................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Finance and accounting are two important aspect of the business for running the
operations smoothly and efficiently. Finance is a very broad term and involves all the activities
and transactions involving money. Management ensures that the financial resources are used by
the company in best efficient manner. Accounting on the other deals with recording the financial
transactions carried out by the organisation for preparing the financial statements to represent the
performance and position of the enterprise. Present report is based over the financing and
accounting concepts that are essential for running the operations successfully. It will provide
numerical on accounting and difference between different forms of business and the legal
requirements for external audit.
SECTION A
Question 1
a) Statement of Profit or Loss of Bogota plc for year ending 31st December 2019.
Statement of Profit or Loss
Revenues
Sales 1015400
(Less sales return)
Cost of goods sold 720500
Opening Inventory 66600
Purchases (less returns) 732400
Closing inventory 78500
Carriage Inwards 1300
Gross Profits 293600
Carriage outwards 2400
Advertising Expenses 10400
Consulting Fees 7600
Wages and salaries 4900
1