Unit 5: Accounting for Businesses Part 2 - Statements

theory stuff + statements: bold = what column; () = minus; | = line; || = double line; italics = info

Distribution costs

any expense related to selling/distributing goods to customers

Administrative expenses

any expense not in distribution and finance

Finance costs

any interest expense

Income statement stuff

mid sales, (less: sales returns)| net sales, right less CoGS
mid opening inventory, left add: purchases, (less: purchase returns)|
mid net purchases, STUFF| goods available for sale, (closing inventory)| right (total CoGS)| gross profit

mid add: other income, STUFF| total other income| add GP & OI

mid less: expenses, STUFF| right (total expenses)| net profit

Balance sheet stuff

mid current assets, STUFF| TOTAL

mid non-current assets, STUFF| right total assets

mid less: liabilities, current liabilities, (STUFF)|

mid non-current liabilities, (STUFF)| right (total liabilities)| net assets $__||

mid equity, opening capital, plus: profit for the year i.statement, (less: drawings)| closing capital $__|| *←=net assets