In this assignment I ma going to prepare a trading and profit and loss account for the ended 31 of October 2006 for Alex Ali enterprises

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Unit 10 final accounts

Introduction

In this assignment I ma going to prepare a trading and profit and loss account for the ended 31 of October 2006 for Alex Ali enterprises.

Trading & profit and loss for the year ended 31st October 2006

Task 2

The profit and loss account: The profit and lose account shows how much money an organisation made over a period of time, most organisation use it for one year. It shows how much profit was made and what losses occurred over the period of time. It also helps the organisations to keep track of records and can use it whenever they see something different or bad than their previous records.

The profit and loss account shows the costs of the past year, it help the business to make decisions about their self by looking and observing the previous years records.

The profit and loss account is a summary of all the business actions, for the director of the business, shareholder or anyone who might want to invest into it.

Like shareholders in a limited company, they are mostly interested in trends in