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Balance sheet and profit and loss account of any company. If your business sells services it may not have any direct costs. The third financial statement is called the cash flow statement. Profit and loss and balance sheets 63 p 218 fixed assets valuable items not easily turned into cash the balance sheet should include all fixed assets the value of buildings land large machinery and so on minus any depreciation that period that you have already allowed for in your profit and loss account.

The main aim of a balance sheet is not to show how much cash youve made or lost but to shed some light on how your company is funded instead. This should help improve the business practices to create profit andor increased profit. Liabilities including loans credit card debts tax liabilities money owed to suppliers.

Owners equity the amount left after liabilities are deducted from assets. For example the cost of buying materials to make goods to sell and the cost of delivering finished goods to customers would be direct costs. Profit and loss account.

Assets including cash stock equipment money owed to business goodwill. Rent of an office would be an overhead. On the other side are all the liabilities the company has including both long and short term debts.

Business assets and everything else. Second effect shown on the assets side of balance sheet by way of deduction from the debtors after the deduction of bad debts and provision for doubtful debts if any. The document will address business income and business expenses.

The pl statement shows a companys ability to generate sales manage expenses and create profits. A balance sheet is in three sections. The assets are everything the business owns including its inventory any money in the bank and intangibles like copyrights.

A balance sheet simply provides a snapshot of how your company is doing at a particular moment in time rather than over a period of months as a profit and loss sheet would do. A profit and loss statement pl or income statement is a financial report that provides a summary of a companys revenues expenses and profitslosses over a given period of time. Download the profit and loss balance sheet template that once completed and calculated will determine profit or loss in any business.

The balance sheet is made of two different parts.

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