• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

report on domestic dogs

Extracts from this document...

Introduction

Report on Domestic dogs Homes Introduction A profit and loss account is a summary of business transactions for a given period - normally 12 months. By deducting total expenditure from total income, it shows on the "bottom line" whether your business made a profit or loss at the end of that period. A profit and loss account is produced primarily for business purposes - to show owners, shareholders or potential investors how the business is performing. But most of the information is also used by HM Revenue & Customs to work out your tax bill. Do all businesses have to produce formal profit and loss accounts? By law, if your business is a limited company or a partnership whose members are limited companies, you must produce a profit and loss account for each financial year. Self-employed sole traders and most partnerships don't need to create a formal profit and loss account - the information they complete on the self-assessment tax return form amounts to the same thing. However, there are key benefits to producing formal accounts. If you are looking to grow your business, or need a loan or mortgage, for example, most institutions will ask to see three years' accounts. ...read more.

Middle

or converted into cash more than 12 months after the balance sheet date; Fixed Assets: A further classification other than long-term or current is also used for assets. A "fixed asset" is an asset which is intended to be of a permanent nature and which is used by the business to provide the capability to conduct its trade. Examples of "tangible fixed assets" include plant & machinery, land & buildings and motor vehicles. "Intangible fixed assets" may include goodwill, patents, trademarks and brands - although they may only be included if they have been "acquired". Investments in other companies which are intended to be held for the long-term can also be shown under the fixed asset heading. Definition of Capital: As well as borrowing from banks and other sources, all companies receive finance from their owners. This money is generally available for the life of the business and is normally only repaid when the company is "wound up". To distinguish between the liabilities owed to third parties and to the business owners, the latter is referred to as the "capital" or "equity capital" of the company. In addition, undistributed profits are re-invested in company assets (such as stocks, equipment and the bank balance). ...read more.

Conclusion

This can be seen by comparing the working capital from one period to another; slow collection may signal an underlying problem in the company's operations. Net Assets: Net assets are disclosed as part of the balance sheet. Net assets equals total assets on the balance sheet less total liabilities. Net Profit: Sales less cost of sales less expenses = net profit. Sales less cost of sales = gross profit. Therefore Net Profit = gross profit less expenses. In other words Net Profit represents the surplus of sales made over expenditure during the accounting period. If a deficit is made (i.e. if expenditure is greater than sales) then this results in a net loss and not a net profit. It shows the profit made after all the expenses. Conclusion: Domestic Dog homes are making profit as it shows in their trading profit and loss account and the balance sheet as well. They have a surplus of �11,600 which shows in the trading profit and loss account in the financial year 2007. As there expenses are less than the income from sales revenue. The balance sheet also shows us the business is making profit as it shows surplus of �48,000 for the financial year 2007. Akhtar Esmail Adam Unit 2 J35081 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Accounting & Financial Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Accounting & Financial Management essays

  1. Sources Of Finance

    it would be more expensive to pay so could take a lot longer to pay it off completely. How ever an overdraft is normally used as a short term source of finance that can help a business if they are experiencing small cash flow problems that can some times happen within a business.

  2. finance for soletrader and partnership

    Can not pay the mortgage down with most places and also unable to take advantage of lower interest costs if the market changes to lower rates. Loans Advantages - can have a fixed interest rate; can be protected if interest rates go up, monthly payments, can also lower down the

  1. Profit & Loss Accounts and Balance sheet.

    has been increased to 4:9:1 in the year 2006 and again in following year (2007)

  2. A2 Business CourseWork

    things by having a well-structured management and effective ways of measuring variables such as level of stock control. 'We try to get it right first time': Getting things wrong can have huge implications on anyone, businesses included. It is important that Tesco get things right first time otherwise their costs

  1. Accounting case study. I am writing this report to explain the contents thats on ...

    A shorter period than last year shows that the company is becoming more efficient, a longer period shows that the business needs to find out why and correct the trend. ST = (�35,700+�7,400/2)/�36,000*365 =77 days Assets turnover is the final ratio that can help to work out the performance of a business.

  2. Free essay

    `Accounting as a discipline has no theory`. Critically evaluate this statement and provide examples ...

    The prudence convention is defined as a cautious view taken for future problems. The consistency convention is defined as the accounting convention that holds that when a particular method of accounting is selected to deal with a transaction, this method should be applied consistently over time.

  1. Sainsbury's Ratio Analysis

    The interest rate at the bank is higher than that is seen, means that it would make investors to think before they put the money in. Liquidity: Businesses can ratios to work out their liquidity by using the Current Ratio and Acid test Ratio.

  2. Explain the difference between capital and revenue items of expenditure and income for a ...

    Intangible An intangible asset is something owned by the business, that cannot be touched but adds value to the business. Intangibles that exist within businesses. Goodwill: When you buy an existing business, its name and reputation will already be known and it may already have an established customer base or set of clients.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work