Evaluation of Financial Statements for 18770299 Yadgir Singh

Running head: ACCOUNTING AND INFORMATION SYSTEM
Accounting and Information System
Name of the Student:
Name of the University:
Author’s Note:

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ACCOUNTING AND INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
Analysis of Financial Statements.....................................................................................................2
Reference.........................................................................................................................................6
Appendix..........................................................................................................................................7

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ACCOUNTING AND INFORMATION SYSTEM
Introduction:
The report is prepared for demonstrating the evaluation of financial statements
of18770299 Yadgir Singh for gaining an in depth knowledge related to several book of accounts.
It can be seen that business of company are involves in transactions that are related to usual
functioning of business. The main activities of company are to carry out the trading of shares or
stocks and engagement in trading activities. Several transactions in which the business is
involves is recorded and presented in the books of account by passing it as journal entries. The
section of appendix presents the various financial statements of.
Financial Statements evaluation:
The trial balance is prepared by company for serving the purpose of detecting any
mathematic errors that have been encountered in the system of double entry accounting. Trail
balance is considered to be balanced if the total credits equal to total debits which is indicative of
the fact that the ledgers are free from any mathematical errors or it can be any errors in
calculation. For the transactions that have occurred in the month of May for 18770299 Yadgir
Singh, trail balance is prepared. The amount of sales made by company is presented in the trial
balance and the total sales generated are recorded at $ 9829. On other hand, cost of goods sold
has a direct impact on product cost of goods which the business sells to customers. The total
amount of cost of goods sold is recorded at $ 5932. Furthermore, trial balance incorporates all
the items that are associated with business transactions during a particular time and in this case,
the statement is prepared for month of May. The item that is listed in preparation of trial balance
includes owner’s capital, liabilities, expenses incurred by business and assets. As presented in the

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ACCOUNTING AND INFORMATION SYSTEM
section of appendix, the total amount of trial balance that makes the debit side equivalent to
credit side is recorded at $ 566660.
The profit and loss account is prepared for accounting the net loss or profit generated by
business during a particular time. Trail balance depicts the particulars that are required for
preparing the profit and loss account. Total amount of income earned and the loss that the
business incurs is summarized in the statement of profit and loss. It can be seen from the profit
and loss statement of 18770299 Yadgir Singh that the business has incurred loss of amount of $
2822 during that particular month. The reason that can be considered for incurring such loss is an
increase in operating expenses of business that is considerably huge and the amount stood at $
7425. The pie chart helps in analysis and classification of operating expenses that forms a part of
loss generated by business.
Depreciation
4%
Interest Expense
28%
Motor Vehicle Expenses
7%
Rent
61%
Operating Expenses
Depreciation Interest Expense
Motor Vehicle Expenses Rent
Figure 1: (Pie Chart presenting the expenses for Month of May)
Source: (Created by Author)