Profit and Loss Account

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Ahsanul Islam                                           11RRI                                               09/02/09

Task 2

Task 2 Part 1

Financial Documents

No matter how good a person Henry is or how good a business idea he has unless he manages his cash flow really well his business will experience problems. This will help Henry to keep an eye on how much he spends and how much money comes into his business. If he can track this well his business should not run out of money to pay for items. I will now outline key documents Henry will need to use in his business to track and record his business activity.

  1. Invoice: (To request payments)

This is a document used by business to request payment for goods they have sent to other businesses. This will list goods sent and money that will need to be paid. An invoice will usually need paying within thirty days.

  1. Cheque:

A cheque is usually the best way for a business to make payments (to other businesses) and receive payments from others. A cheque will also provide a record of any transaction that takes place.

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  1. Recording money coming into a business and going out of a business:

Henry will need to use a two column cash book that will record payments he makes and payments he receives.

Task 2 Part 2 / Part 3 / Part 4

In this section I will carry out the various financials that my DJ business will have to carry out in order to operate or function effectively. I will look at each operation and outline how it is ...

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