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report on domestic dogs

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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.

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