Process to prepare Financial Statement of a sole proprietor

Course details

Financial statements (or financial report) is a formal record of the financial activities and position of a business, person, or other entity. It mainly consist of Trading account, Profit & Loss account and the balance sheet.

It is standard practice for businesses to present financial statements that adhere to generally accepted accounting principles (GAAP) to maintain continuity of information and presentation across international borders.So it is very important for companies to prepare financial statement which gives true and fair view of the business.

So, In this course we will be taking you through different Steps to prepare financial statement of a sole proprietary concern. When recording manually,this is the general procedure that is followed. It is important to understand this base even when we follow a non traditional way of book keeping.

So it's begin with the,

1st stage which is collecting data:

-Source documents

2nd stage which is recording & transferring:

-Journal entries

-Posting entries from Journal to ledger.

-Introduction to Subsidiary Books, Preparing a Cash book and Petty cash book

-Bank Reconciliation Statement

Then the 3rd stage which is finalizing stage:

-Trial Balance

-Rectification of errors

-Depreciation

-Closing Stock

-Adjustments in accounting

-Bad Debts 

-Financial Statements

Then the 4th and final stage which is analyzing stage:

-Reading and analysis of Financial Statements

-Comparing & Analyzing two Financial Statements

-Finding missing information by comparing Financial Statements

-Deriving Missing financial Statement from available information

-Deriving Cash/Bank Summary from 2 years statement

There are also some Accounting Test Time videos arranged for your practice/revision wherever needed.
We have focused more on understanding of concepts and tried to explain it in a simple and easy to learn format for all. We believe anyone can learn accounting!