prepare a balance sheet and income statement using the data given.
Transcribed Image Text:Nr
Business Activity
Amount, EUR
A man sets up a business. He has invested 1000
his own money in a company's share
capital
He has invested his own auto truck
1
2
1200
He has got money from bank (short term
credit). Money were transferred to.
company's account
Primary goods were delivered. 60% of
them were paid at once by money from
company's account
Primary goods were utilized during
production process
Net wages for production workers were
calculated
200
4
Primary goods 220
Value of utilized
primary goods=105
6
20
10
Wages were paid
Salaries for administrative personnel
7
15
8.
were calculated and paid
Interest for credit was calculated and paid 5
Depreciation of fixed asset was calculated
Finished goods were moved from
manufacturing department to a stock
Finished goods were delivered to
purchaser. Invoice was made out.
10
200
11
300
12
Value of finished
goods = 280
Invoice
amount=1000
500
Purchaser has paid for finished goods
The invoice for renting the stock was
received
The invoice for renting the stock was paid
13
14
10
15
10
N3
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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