Accounting for Business Management - Practical Implication of Financial Statements and Ratio Analysis

ACCOUNTING FOR
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Task 1 P&L......................................................................................................................................2
Task 2 Balance Sheet.......................................................................................................................3
Task 3: Limitation of Profit and Loss Statement.............................................................................4
Task 4: Limitation of Balance sheet................................................................................................5
Task 5 Ratio analysis.......................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
1

INTRODUCTION
Financial statements are the reports that determine the company’s financial information. It
acts as base that will lead to the making of decision along with determination of company’s
performance (Lessambo, 2018). This report will highlight the practical implication of financial
statements in terms of its preparation along with an analysis of ratio with its interpretation in the
context of Dysn Ltd.
MAIN BODY
Task 1 P&L
Profit and Loss account for Dysn Ltd
Particulars Amount
Sales 290357
-Opening Stock -18310
-Purchases -157300
Closing Stock 25550
Gross Profit 140297
-Delivery Cost -10132
-Salaries and Wages -41263
-Advertising -5478
-Insurance -9306
-Rent and Rates -18612
-Heat and Light -11013
-prepaid Insurance -850
-Accrued Heat and Light -1210
-Prepaid Rates -3482
2