Part 3 Basic BKK

Question 1

What is a trial balance?

Answer 1

-a list of all brought down T-account balances in general ledger
-if b/d is on the Dr side, then transfer it to Dr side

Question 2

How to complete statement of P&L?

Answer 2

1. sales at top
2. deduct cost of sales = gross profit
3. deduct overheads = net profit

Question 3

What is cost of sales made up from?

Answer 3

opening inventory + purchases - closing inventory

Question 4

How to complete statement of FP?

Answer 4

1.record NCA
2. record CA
3. deduct CL from CA = net current assets
4. add NCA to net current assets = net assets