Accounting Fundamentals: Financial Statement Analysis of Eccles Plc & Chocco Plc

Accounting Fundamen-
tals
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Contents
Accounting Fundamentals...............................................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Income statement of Eccles plc...................................................................................................3
Financial statement of Eccles plc................................................................................................4
Interpretation................................................................................................................................5
TASK2.............................................................................................................................................5
Assessment of financial performance of Chocco Plc..................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Accounting fundaments are concept and rules on which the overall field of account has been
based. This report is prepare to solve problem of Eccles Plc & Chocco Plc by preparing financial
statement and analysing their financial performance.
TASK 1
Income statement of Eccles plc
Income statement
For the year ended on 31st December 2018
Particulars Amount(£)
Sales 826,650.00
Add: Goods sold on 31st 980.00 827,630.00
Cost of goods sold
-
578,650.00
Add: goods sold at 31st
-
980.00
Gross Profit 248,000.00
Less: Expenses
Administrative expenses 30,000.00
Directors Remuneration 5,000.00
Distribution cost 28,000.00
Add: commission not recorded 3,000.00 66,000.00
Operating Profit 182,000.00
Interest paid 2,000.00
Net income before tax 180,000.00
Less: Tax 68,000.00
Net income 112,000.00
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