Скачать с ютуб Final Accounts with Adjustments | PART - 5 | MANAGER'S COMMISSION | CLASS 11 в хорошем качестве

Final Accounts with Adjustments | PART - 5 | MANAGER'S COMMISSION | CLASS 11

Trading Account! A Trading Account is a financial statement that shows the gross profit or gross loss of a business from its trading activities. Components: 1. _Sales_: Total revenue from the sale of goods. 2. _Cost of Goods Sold_: Total cost of purchasing or producing the goods sold. 3. _Gross Profit_: Sales minus Cost of Goods Sold. 4. _Gross Loss_: Cost of Goods Sold minus Sales. Format: 1. Sales 2. (-) Cost of Goods Sold 3. ______________________ 4. Gross Profit/Gross Loss Purpose: 1. To calculate the gross profit or gross loss from trading activities. 2. To provide a basis for preparing the Profit & Loss Account. Profit and Loss Account! A Profit and Loss Account (P&L) is a financial statement that shows the net profit or net loss of a business over a specific period. Components: 1. _Gross Profit_: Transferred from the Trading Account. 2. _Operating Expenses_: Expenses related to the day-to-day operations of the business. 3. _Non-Operating Expenses_: Expenses not related to the day-to-day operations of the business. 4. _Net Profit_: Gross Profit minus Total Expenses. 5. _Net Loss_: Total Expenses minus Gross Profit. Format: 1. Gross Profit 2. (-) Operating Expenses 3. (-) Non-Operating Expenses 4. ______________________ 5. Net Profit/Net Loss Purpose: 1. To calculate the net profit or net loss of the business. 2. To provide a basis for preparing the Balance Sheet. Key items to consider: 1. _Depreciation_: Expense related to the decrease in value of assets. 2. _Interest_: Expense related to borrowing or income from lending. 3. _Taxation_: Expense related to taxes payable. Balance Sheet! A Balance Sheet is a financial statement that presents the financial position of a business at a specific point in time. Components: 1. _Assets_: Resources owned or controlled by the business. 2. _Liabilities_: Debts or obligations owed by the business. 3. _Equity_: Owner's interest in the business, representing the residual interest. Format: 1. Assets Current Assets Non-Current Assets 2. Liabilities Current Liabilities Non-Current Liabilities 3. Equity Share Capital Reserves Retained Earnings Key equations: 1. Assets = Liabilities + Equity 2. Equity = Assets - Liabilities Purpose: 1. To present the financial position of the business. 2. To provide information about the business's assets, liabilities, and equity. 3. To help stakeholders assess the business's financial health and make informed decisions. Manager's Commission Adjustment in Final Accounts! Manager's commission is a percentage of the profit earned by the business. Adjustment in Final Accounts: Debit: Profit & Loss Account (Expense) Credit: Manager's Commission Payable Account (Current Liability) or Deduct from Capital Account Example: Manager's commission: 10% of profit = $5,000 Adjustment: Debit: Profit & Loss Account ($5,000) Credit: Manager's Commission Payable Account ($5,000) Effect: Increases the expense in the Profit & Loss Account Increases the current liability in the Balance Sheet Purpose: To recognize the manager's entitlement to a commission on profits To accurately reflect the financial position and performance of the business #education #bestcommerceclasses #accountsclass11 #classxiaccounts #class11accounts #financialstatements #tradingandprofitandlossaccountandbalancesheet #finalaccountswithadjustments #finalaccount Final Accounts with Adjustments | PART - 5 | MANAGER'S COMMISSION | Class 11 | Financial Statements with Adjustments