2,000,000 365,000 1,555,000 15,000 120,000 22,000 325,000 18,000 Sales Inventory, January 1 Purchases Purchases returns and allowances Salaries Delivery expenses Retained earnings, January 1 Dividend income Gain on sale of fixed asset Light and power Travel and transportation Interest and bank charges Miscellaneous operating expenses Bad debts written off Depreciation Income tax 7,000 80,000 18,000 35,000 6,000 4,000 15,000 39,950 Dividends declared and paid Inventory, December 31 85,000 325,000

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…