pmTycoon

F
I
N
A
pmTycoon
N
C
I
A
L

M
A
N
A
G
E
M
E
N
T
OVERVIEW
pmTycoon
pmTycoon
Understanding Accounting

pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
 Recap

pmTycoon
 Elements of Accounting

pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
 Recap

pmTycoon
pmTycoon
 Accounting Process

pmTycoon
pmTycoon
pmTycoon
pmTycoon
pmTycoon
 Closing
Balance of a
Ledger
Account
Example

pmTycoon
pmTycoon
pmTycoon
pmTycoon
 Trial Balance Report Accounts Debits Credits
Cash $26,300
Assets Accounts receivable $3200
Trial Balance Land $15000
Accounts payable $500
Report Liablities
Notes payable $10000
Sample Equity
Capital stock $25000
Service revenues $12000
Advertising expense $2000
Expenses
Utilities expense $1000
Total $47,500 $47,500

pmTycoon
pmTycoon
 Gross profit = (Net Sales + Direct
Revenue + Opening stock) – (Net
Purchases + COGS + Closing Stock).

Trading OR
account
calculations Net Sales + Direct Revenue + Opening
Stock – Net purchases – COGS – Closing
Stock

Trading account calculations gives us the

Value of Gross Profit.
pmTycoon
pmTycoon
 ABCXYZ Corporation
Income Statement for the year ending 31/03/XX
Revenues
Sales 50000
Less Sales returns 1000
Example of Interest received (Other Income) 2000
Total Revenue: 51000
Profit & loss Expenses
format COGS 20000
Depreciation 500
Rents Paid 4000
Interest Expense 250
Utilities Expenses 500
Total Expenses 25250

pmTycoon Net Income 25750

pmTycoon
pmTycoon
 Assets
Current assets 55000
Cash 20000
Accounts receivable 4000
Prepaid building rent 1000
Total current assets 80000
Long Term Assets 2000
Equipments 2200
Example of Less Depreciation 1000
Total Long Term assets 3200
Balance Total Assets 83200
sheet format Liabilities
Liabilities & Stockholders' equity

Accounts payable 15000

Salaries payable 2000
Income tax payable 1200
Total liabilities 18200
Assets = Liabilities + Equity. Shareholders Equity
Capital Stock 53000
Retained Earnings 12000
Total Shareholder equity 65000
Total Liabilities + Shareholders equity 83200
pmTycoon
 Cash flows Cash flows relating Cash flows relating
from to to
Operating activities investment activities financial activities

Cash flow for

Cash flow related to
Cash from issuing shares,
purchasing and
Revenues paying dividends or
selling of PP&E
purchasing shares

Investing in other Cash flow from

Cash paid for
business, banks, raising debt, or
operating expenses
etc. repaying debt etc.

pmTycoon
 Cash flows Cash flows relating Cash flows relating
from to to
Operating activities investment activities financial activities

Cash flow for issuing

Cash flow related to
shares, paying
Cash from Revenues purchasing and
dividends or
selling of PP&E
purchasing shares

Cash flow from

Cash paid for Investing in other
raising debt, or
operating expenses business, banks, etc.
repaying debt etc.

Net cash flow Net Cash flow Net Cash flow

From Financial
Cash Movement = from Operating From Investment
activities
activities activities

pmTycoon
 Company : ABCDE
Cash Flow Statements
Financial Year Ending 31 March 2020 2019 2018
Amount Amount Amount
A1 Beginning Cash balance 1200000 1171650 1148970

Cash Flow from Operating Activities

Net Income 2,55,000 1,78,500 1,42,800
+/- Prepaid Expenses 2,000 1,400 1,120
+/- Prepaid Rent -27,000 -18,900 -15,120

Example of
+/- Interest Expense -2,500 -1,750 -1,400
+/- Security Deposit (Net) -23,000 -16,100 -12,880
+/- Accounts Payable 78,000 54,600 43,680

Cash flow B1
+/- Deferred Revenue
Net Cash flow from Operating activities
-45,000
2,37,500
-31,500
1,66,250
0
-25,200
1,33,000
0

statement Cash Flow from Investing Activities

Sale of a Building 1,00,000
0
70,000
0
56,000
Fixed Assets: Computer Equipment -2,000 -1,400 -1,120
Fixed Assets: Machinery & Equipment -2,00,000 -1,40,000 -1,12,000
Fixed Assets: Leasehold Improvements -1,50,000 -1,05,000 -84,000
Fixed Assets: Other Intangible Assets -15,000 -10,500 -8,400
C1 Net Cash flow from Investing activities -2,67,000 -1,86,900 -1,49,520
0 0
Cash Flow from Financing activities 0 0
Debt paid -50,000 -35,000 -28,000
Cash flow for issuing shares 1,20,000 84,000 67,200

pmTycoon
D1 Net Cash flow from Financing acitivites 70,000 49,000 39,200

Ending Cash balance(A1+B1+C1+D1) for the year 12,40,500 12,00,000 11,71,650

 Recap
.

pmTycoon
Quite a bit of ground covered in Accounting subject
Snapshot of what you learnt!

pmTycoon
 3 Months of effort has gone into making this video

• If you like, Please give a thumbs-up. Share

• If it was helpful, Please subscribe for more.

Final Comments • Want to help channel and others, Please share.

Love to see your feedback or questions in the comments

and I will try my best to respond to your comments.

pmTycoon Comment
Consider Subscribing

Thank you
pmtycoon
concepts made easy!