Report on Trading and Profit & Loss account of Domestic Dog Homes for year ended December 31 2011.
Report prepared by Nancy Whittle Dated 09/01/2013
1.0 Introduction
This report will be explaining the Trading and Profit and Loss account on what has been lost and what has been made in Domestic Dog Home’s company within the last 1 year.
2.0 Findings
From the information on the profit and loss and trading account, I found information about the finances from the previous financial year.
Trading account
The Trading Account is part of the Profit and Loss Account which shows sales turnover, costs of sales and changes in stocks.
2.1 Sales
The Sales in the trading account show information of what the company has sold in the financial year, in this case, it would show information about the sales of what Domestic Dogs Home have sold including products such as dog tents, incontinence beds for mature dogs which don’t leak and can be washed every day for 1 year.
The Sales for Domestic Dog Home’s was £250,000 at the end of 2011.
2.2 Sales returns
A Sales Return is products that are sent back by a customer to the seller, usually for one of the following reasons:
• Excess quantity shipped
• Excess quantity ordered
• Defective goods
• Goods shipped too late
• Wrong items shipped
In this case, it would be that a customer who brings a product back to the Domestic Dog’s Home and the people who are in – charge of the finance department would record this return as a debit to a Sales Returns account.
A seller can closely control the amount of sales returns by requiring a sales return authorization number before its receiving department will accept a return. Otherwise, some customers will return goods with impunity, some of which may be damaged and which can therefore not be re-sold.
The Sales Returns for Domestic Dog Homes at the end of 2011 were (5,400)
2.3 Net