top of page
SOLE TRADER
The Trading Profit & Loss account
The Balance Sheet
Trading profit and loss account is prepared at the end of the financial year. Its purpose is to show how much profit ot loss the business has made
The balance sheet is financial statement that shows what the business is worth at one point in time.
EXAMPLE
To Calculate ;
Cost Of Goods Sold
Opening stock + Purchases - Closing stock
Gross Profit
Sales - COGS
Net Profit
Gross Profit - Expenses
To Calculate ;
Working Capital // Net Current Assets
Current Assets - Current Liabilities
Net Assets
Fixed Asset + Current Assets - Current Liabitities
Capital Employed & Net Assets Should be the same
bottom of page