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Preparation of reports: profit and loss statement

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    Tashika B.
    US
    Tashika B.

    When the preparation of reports such as profit and loss statement shows any type of errors, who then corrects these errors and what are ways to improve where this can not happen again?

    BabaJide Martins F.
    TR
    BabaJide Martins F.

    What step can someone take to avoid errors in preparing profit and loss statement?

    Alice B.
    GQ
    Alice B.

    What are some of the steps which can be taken to avoid possible errors in drawing up profit and loss statement?

    Hermina S.
    LC
    Hermina S.

    What are the measures that can be applied to avoid errors mentioned above?

    Morne V.
    ZA
    Morne V.

    The most common examples are the treatment of 'accounting fees' as finance rather than administrative and the inclusion of 'legal fees' as administrative, rather than finance

    Sunday O.
    NG
    Sunday O.

    balance is knowing how to prepare your tables in accounting

    Thomas Haingura M.
    NA
    Thomas Haingura M.

    Operating expenses will be classified incorrectly. The most common examples are the treatment of 'accounting fees' as finance rather than administrative and the inclusion of 'legal fees' as administrative, rather than finance

    Odongo M.
    UG
    Odongo M.

    Accounting -> Preparation of reports: profit and loss statement Profit and loss statement Different aspects of the Profit and Loss statement are discussed earlier in this resource. The Profit and Loss statement, drawn from the 10 column worksheet prepared on the previous page, is presented below. Profit and Loss satement for the six months ending 30 June Revenue $ $ $ Cash sales 79 000 Credit sales 40 000 119 000 Less cost of goods sold 40 200 Gross profit 78 800 + commission 400 79 200 Less operating expenses Selling expenses Advertising 3 000 Sales wages 22 000 Depreciation of motor vehicles 700 25 700 Administrative expenses Cleaning 500 Insurance 4 500 Office salaries 19 500 Depreciation of equipment 1 100 Rent 6 000 31 600 Finance expenses Interest on loan 4 400 61 700 Net profit 17 500 In the preparation of the Profit and Loss statement the following errors are likely to occur: buying expenses, such as: carriage, cartage and freight inward duty and wharfage import duty insurance on stock will be treated as operating expenses the total for cost of goods sold will be shown as gross profit operating expenses will be classified incorrectly. The most common examples are the treatment of 'accounting fees' as finance rather than administrative and the inclusion of 'legal fees' as administrative, rather than finance 'aliens' are items that do not belong. In the Profit and Loss statement the most common aliens are 'drawings', 'loan repayments' and the inclusion of a non-current asset which has been bought during that period failure to classify operating expenses is a common error treatment of items, such as petty cash, as an expense rather than a current asset wrong titles, such as 'accumulated depreciation' instead of depreciation

    Manish K.
    NP
    Manish K.

    This course is giving information about profit and loss accounts. It has given the amount of net profit. However, some errors have been found out. Some titles are misled. It helps us to find out the errors while posting in the statement.

    Penelope M.
    US
    Penelope M.

    just thinking about all the assets accumulated in the business should always be separated., be careful of your spending.

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