Summary
Summary M1 Unit 6 Financial Accounting
- Course
- Institution
Distinction achieved in Unit 6 D*D*D overall
[Show more]
1 review
By: mostiz1 • 5 year ago
Seller
Follow
neil22patel
Reviews received
Content preview
Neil Patel 40068068 Unit 6 M1M1: Compare the final accounts of two organisations, explaining the similarities and
differences.
Similarities Sole Trader/Partnership
Statement of profit and loss When I had looked at both statements I have found out
Statement of financial position that between both of the business is that the way that
their statements are laid out is almost the same. When
looking at the perspective of the data, it is almost the
same in most aspects. Keeping the information
recorded on their profit and loss sheet such as sales,
expenditure and any other factors which would affect
the financial situation of the businesses is vital so that
they have a track record of where they are and where
their money goes. Also this can be an indication on all
activities regarding their key resources.
Both of the businesses also show similarities and have
a simple structure on their balance sheet as they both
start by stating the cost of their premises as well as
their shop fittings. This is usually stated because it is
the arguably the most crucial figures in their statement.
Regardless of their main expenditure, there are also
figures showing the costs which they must maintain
which are basic working necessities such as electricity,
gas, water etc...
Statement of profit and loss During both of the Partnership’s and Sole Trader’s
Statement of financial position profit and loss statement, i can This will then allow both
businesses to go back and review their overall
performances and compare it to previous years and
will then conclude on whether they have improved or
got worse. This can be used to show an overview of
the gross profit made in the year which can be done by
subtracting sales revenue to the cost of the sales.
When looking at the similarities within the two
statements, I could see that the way in which the
financial position statement was structured was almost
identical. For example when looking at the first column
which was the premises cost as well as the fittings it
was the first two figures written on the sheet as they
were the two which were fixed assets. Also the
structure of the columns which provide the cost figures
which were given in Pounds Sterling currency ( Cost,
Accumulated depreciation & Carrying amount).
Statement of profit and loss Another similarity within the profit and loss statement is
Statement of financial position that they both have a separate part which states the
less-expenses on their balance sheet and is set up
almost identically. In both occasions the details include
the staff’s wages as well as the shop expenses’
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller neil22patel. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now