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Statements of Financial Position and Income Statements

   

Added on  2021-02-19

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FinancialAccounting
Statements of Financial Position and Income Statements_1

Table of ContentsINTRODUCTION...........................................................................................................................3TASK ..............................................................................................................................................31....................................................................................................................................................32....................................................................................................................................................43....................................................................................................................................................54....................................................................................................................................................65....................................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
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INTRODUCTIONFinancial accounting in business context refers to systematic collection of activitiesconcerned with recording and monitoring of different financial and accounting transactions of abusiness entity (Mulford and Comiskey, 2011). The report contains comparison and contrast ofdifference between statements of financial position and income statements, different aspects ofbank reconciliation statement and manner by which control and suspense accounts arereconciled. This report also includes practical presentation of income statements and balancesheet of sole trader and limited company. TASK 1.Income Statement for the year ended 31st April 2019ParticularsAmountParticularsAmountTo Opening Inventory160000By Sales1400000To Purchase840000By Closing Inventory100000To Wages440000Add: Outstanding20000460000To Gross Profit4000015000001500000To Heat and Light80000By Gross Profit40000Add: Outstanding gas payment800072000To Sundry Expenses170000Less: Prepaid Rent44000126000To Depreciation96000To Net Profit-254000Total40000Total4000Balance Sheet as on 31st April,2019LiabilitiesAssetsCapital960000Furniture and Fittings480000Less: Drawings110000Less: Depreciation96000384000Net Profit-254000596000Trade Receivables160000Bank Overdraft80000Inventory100000Outstanding Wages20000Prepaid Rent44000Outstanding Gas payment8000Other Current Assets16000Total704000Total704000
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