logo

Accounting Fundamentals in Business Management - Desklib

12 Pages2312 Words292 Views
   

Added on  2023-06-18

About This Document

This report covers the accounting fundamentals present in business management. It includes financial statements, balance sheets, and ratio analysis. The report explains why financial statement balances are always equal and interprets the ratio analysis. The subject is Accounting Fundamentals and Business Management, and the course code and college/university are not mentioned.

Accounting Fundamentals in Business Management - Desklib

   Added on 2023-06-18

ShareRelated Documents
Business management
Accounting Fundamentals in Business Management - Desklib_1
Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
Accounting Fundamentals in Business Management - Desklib_2
INTRODUCTION
The report is about the accounting fundamentals present in business. It covers the
financial statement and gives the reason why balances of financial statement are always equal.
The report shows the ratio analysis and helps in determining whether the business is efficient to
be invested in or not.
MAIN BODY
Question1
a. Financial Statements
Profit and Loss statement for year ended 31st December, 2020
Profit and Loss statements are the financial statements that summarizes the revenues
earned or expenses incurred by the company in specific period.
Particulars Amount
Sales 826650
-COGS -578650
Gross Profit 248000
-Administrative Expenses -30000
-Directors Remuneration -5000
-Distribution Cost -28000
-Commission -3000
-Accrued Revenue -980
Net profit 181020
-Interest Paid -2000
Earning Before Tax 179020
-Corporate Tax -68000
Earning After Tax 111020
-Ordinary dividend -20000
Accounting Fundamentals in Business Management - Desklib_3
-Preference dividend -30000
Retained Profits 61020
Retained Profits at 1st January 2020 132000
Retained Earnings 193020
Balance Sheet of Kedison PLC as on 31st December 2020
Balance sheet determines the assets and liabilities and shareholder fund availability in a
company at specific point,
Particulars Amount
Assets:
Fixed Asset:
Plant and Equipments 632730
Current Asset:
Debtors 170125
Inventories 330600
Cash & Bank 12900
-Commission (3000) 9900
Total Assets 1144335
Liabilities:
Equity and Liability:
Shares 610000
4% Debentures 100000
Retained Earnings 193020
Accounting Fundamentals in Business Management - Desklib_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Statement Preparation and Analysis for Eccles plc and Chocco plc
|9
|1992
|90

Preparation of P&L and Balance Sheet with Ratio Analysis
|12
|2281
|225

Accounting Fundamentals: Analysis of Financial Performance and Position of Chocco plc
|16
|1964
|277

Accounting Fundamentals: Profit and Loss Statement, Financial Ratios, and Analysis
|8
|1384
|410

Accounting Fundamentals: Financial Performance Analysis of Chocco plc
|16
|2338
|93

Accounting Fundamentals for Financial Performance Assessment of Chocco Plc
|7
|634
|193