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MBA1610 FNM 2 Business Accounts
MBA1610 FNM 2 Business Accounts
Financial Manager
Business accounts
Business accounts 1
ANY COMPANY
TRIAL BALANCE
250,000 250,000
Business accounts 3
Cost COST OF SALES
of STOCK AVAILABLE
AT START OF PERIOD 10,000
sales STOCK PURCHASED
DURING THE PERIOD 100,000
STOCK SOLD
DURING THE PERIOD 90,000
110,000
THEREFORE:
COST OF SALES =
OPENING STOCK
+ PURCHASES
– CLOSING STOCK
Business accounts 4
The trading account
Sales
Less Cost of Sales
Equals Gross Profit
Business accounts 5
The profit and loss account
Gross Profit
Plus Other Income
Less Expenses/Overheads
Equals Net Profit
Business accounts 6
Profit
ANY COMPANY
Business accounts 8
ANY COMPANY
BALANCE SHEET
Business accounts 9
Limited company accounts
£
TURNOVER 150,000
TAXATION (2,000)
Business accounts 10
Legislation
Sole traders
Required to complete tax return
Self Assessment
Flexibility of format of accounts
Limited companies
statutory format for accounts
No flexibility of format of accounts
Possible audit requirement
Business accounts 11