Financial Assessment of Alina Ltd: Trial Balance, P&L Account, Ratios, and Interpretation

Assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASESSMENT 1...............................................................................................................................1
TASK 1............................................................................................................................................1
Trial balance for Alina Ltd as at 31st December 2021 ..............................................................1
TASK 2............................................................................................................................................1
Formulating P&L account...........................................................................................................1
ASESSMENT 2...............................................................................................................................3
TASK ..............................................................................................................................................3
Calculating ratios........................................................................................................................3
Interpreting the financial performance........................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Financial information plays significant role in offering the understanding of the
prevailing circumstances of business. In the current era, it is important for the organization to
give emphasis on having relevant ability to gather financial information so that proper decision-
making can become possible. The current report will pay attention on formulating trial balance.,
income statement and financial position. It will give emphasis on calculating & interpreting
ratios in the present study.
ASESSMENT 1
TASK 1
Trial balance for Alina Ltd as at 31st December 2021
Particulars Debit £ Credit £
Capital 200
Sales 100
Stocks 20
Cash and cash equivalent 110
Bank loan 70
Furniture and Fittings 180
Trade Receivables 30
Trade Payable 20
Wages 50
Total 390 390
TASK 2
Formulating P&L account
Particulars Amount £ Amount £
Sales 1000000
1