Analysis of Financial Statements of Rohit Gauchan Company for May

Running head: ACCOUNTING AND INFORMATION SYSTEM
Accounting and Information System
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ACCOUNTING AND INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
Analysis of the Financial Statements...............................................................................................2
Reference.........................................................................................................................................6
Appendix..........................................................................................................................................7

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ACCOUNTING AND INFORMATION SYSTEM
Introduction
The main purpose of the assignment is to analyze the financial statement which are
prepared by the business for the month of May. The business for which the financial statements
are to be prepared is Rohit Gauchan Company which is engaged in the business involving
trading of socks. The financial statements are prepared for a period ending 31st May and for the
same the business passes journal entries for all the transactions the business was involved in
during the month. In addition to this, the business passes ledger accounts on the basis of which
Trial Balance is prepared by the business. The financial statements which are prepared for the
company for the month is shown in the appendix at the end of the assignment.
Analysis of the Financial Statements
The transactions which are recorded which are recorded in the ledger accounts are used
for preparing the trial balance of the business. The main purpose of the trial balance which is
prepared by the company is test the numerical accuracy of the entries and their figures which
have been recorded in the books of accounts of the company (Karaninak, Bykova and Ilysheva
2014).
As per the trial balance of the company which is shown in the appendix sections shows
that the trial balance is prepared according to the accounting rules and in addition to this, the trial
balance matches which shows that there is no error in trial balance. The trial balance shows all
expenses, income, assets and liabilities of the business at the end of the month. The sales of the
business which is generated is shown in both Trial Balance and Profit and loss account and the
same is shown as $ 9,829 for the month. The major expenses of the business which is directed
related to the product is the cost of good sold which is shown in the trial balance as well as the