Premium Essay

Accoounting

In: Business and Management

Submitted By lindalinh
Words 1139
Pages 5
ASSIGNMENT 1

Module: BUSINESS ACCOUNTING Deadline: 10th March 2014 Student ID Number: 21236743

CAROL'S T'-ACCOUNTS

Bank

Capital

Loan

Loan Interest

Van

Rent

Purchase

Sales

Drawings

Insurance

Diesel

Wages

Trial Balance for Carol as at 30 September 2013

Carol's Income Statement for the month ended 30 September 2013

Carol's Statement of Financial Position as at 30 September 2013

123 Old Road Newtown London SW1 23E

9th March 2014

Ms. Carol Smith
98 Anywhere Street
London
WE1 56S

Dear Carol,

I am writing for the purpose of giving an evaluation of your sales in the past month and some recommendations as to how your business can improve in the future. This letter also aims to give you a clear understanding of some concepts used in accounting and to explain the difference between treatment of the van and treatment of and wages.

As your accountant, I have prepared for you cash flow statement which consists of a cash statement incorporating both cash and bank transactions, an Income Statement and a Statement of Financial Position for the month ended 30th of September 2013. All these three statements were conducted in accordance with appropriate international accounting principles, conventions and standards. Such methodology grants me, as your accountant, accurate evaluation, forecast and recommendations.

Firstly, I would like to make a commentary on the sales acquired since the commencement of your business. According to your cash flow statement for September 2013, the business is clearly in a good progress,

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