
Explore the trading account format, including opening stock, purchases, direct expenses, and purchase returns, and show how it flows into the profit and loss account and balance sheet.
Learn to prepare a profit and loss account from the trading account, detailing office and administration expenses, salaries, rent, utilities, marketing, travel, depreciation, and its link to the balance sheet.
Analyze the profit and loss account's right side inflows, from gross profit to commission, rent, interest, discount, dividend, royalty, and investment income, and learn how net profit transfers to capital.
Learn to prepare a balance sheet by classifying assets and liabilities, understanding equity, and applying the assets equals liabilities plus equity principle, with examples of fixed and current assets.
Explore debit and credit basics: debits increase assets and decrease liabilities, while credits decrease assets and increase liabilities, with examples on the balance sheet including loans and money received.
Explore the balance sheet, the statement of financial position, and how it shows a company's financial position at a specific time, with assets equal to liabilities plus equity.
Identify loss as the excess of expenses over income, where higher expenses reduce income, and explain why businesses must avoid loss and may consider shutdown.
Explore asset accounts, including cash, accounts receivable, prepaid expenses, and short-term investments, and distinguish current assets like office equipment, automobiles, and copyrights within a trading and profit and loss framework.
Explore how capital funds a business, sourced from owners or outside shareholders, with big companies selling shares to investors and paying dividends from profits.
Purchase is the act of buying items for use in production or for resale to customers or retailers, driving production, inventory, and eventual sales.
Trading Account, Profit and Loss Account Master Class
Real Life Case Study and Experience Method
You will learn:
1. What is Trading Account
2. What is Profit and Loss Account -Part 1
3. How Profit and Loss Account works - Part 2
4. How to make a Balance Sheet
5. Accounting Terms All Business - Debit & Credit
6. Accounting Terms for Business - Balance Sheet
7. Accounting Terms All Business -Loss
8. Asset Accounts
9. Accounting Terms for Business - Capital
10. Real Life Case Study and Experience Method Application
Hello, I'm Noble.
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