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Accounting Fundamentals: Profit and Loss, Financial Position, and Ratio Analysis

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Added on  2023-06-18

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This article covers the basics of accounting fundamentals, including profit and loss statements, financial position statements, and ratio analysis. It includes a sample statement of financial position and a comment on the financial position of Chocco Plc.

Accounting Fundamentals: Profit and Loss, Financial Position, and Ratio Analysis

   Added on 2023-06-18

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FUNDAMENTALS
Accounting Fundamentals: Profit and Loss, Financial Position, and Ratio Analysis_1
Table of Contents
Question 1........................................................................................................................................3
Profit and loss & Financial position............................................................................................3
Statement of financial position balance......................................................................................4
Question 2........................................................................................................................................5
Ratio analysis..............................................................................................................................5
Comment on financial position of company...............................................................................6
REFERENCES................................................................................................................................7
Accounting Fundamentals: Profit and Loss, Financial Position, and Ratio Analysis_2
Question 1
Profit and loss & Financial position
Profit and loss statement
Sales 826650
Less:
Cost of sale (578650)
Gross profit 248000
Administrative expenses (30000)
Interest paid (4000)
Distribution cost (28000)
Salesman commission (3000)
Corporation tax (68000)
Director remuneration (5000)
Net profit 110000
Ordinary dividend paid (20000)
Preference dividend paid (30000)
Net income 60000
Statement of financial position
Assets Amount
Plant and equipment 632730
Stock 329620
Debtor 171105
Cash at bank 12900
Accounting Fundamentals: Profit and Loss, Financial Position, and Ratio Analysis_3

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