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How to Understand the Balance Sheet and Other Periodical Statements by a Chartered Accountant

How to Understand the Balance Sheet and Other Periodical Statements by a Chartered Accountant


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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1905 Excerpt: ...statement entitled Profit and Loss Account is of a very different nature. In the specimen Balance Sheet we have already met with the item, "Balance Profit for the year ending 31st December, 1901, 700." This figure is the balance or net result of the detailed Profit and Loss Account for the year 1901, which account, were it before us, would be found to set forth the gross Profits on one side and the various Expenses on the other, the excess of the former over the latter being this 700, the Balance for the year. The Profit and Loss Account is therefore a statement showing in detail the Income, and the Expenditure chargeable against Income, of a concern for a definite period, usually one year. Where the books are kept by double-entry, the Balance Sheet is a summary of all the Ledger Accounts, whilst the Profit and Loss Account is one of those Ledger Accounts. Limited Companies, from motives of policy, do not, in many cases, publish a detailed Profit and Loss Account with the periodical Balance Sheet, and it has been thought unnecessary to supply a specimen herewith; moreover, the typical items need little or no explanation further than such as already has been incidentally given; suffice it to explain the nature of the statement and the essential difference in principle between it and the Balance Sheet. There should be mentioned that although in the Balance Sheet Receipts appear on the Debit side and Expenditure on the Credit, the reverse is the case with the Profit and Loss Account, as usually set forth, showing on the Debit side the Expenses and on the Credit side the gross Income. This method is now used, it may be presumed, as a matter of custom; but when a detailed Profit and Loss Account is submitted to those interested it would cer...


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Product Details
  • ISBN-13: 9781154461763
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 28
  • Spine Width: 2 mm
  • Width: 189 mm
  • ISBN-10: 1154461769
  • Publisher Date: 09 May 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 68 gr


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