16th January 2012
34 Mansion street
Dear Mr Han,
I was writing this letter to explain to you the element of your financial assertion, this includes the Balance sheet at 31st of March 2011 and the earnings and damage account for 12 months ended in 31st of 03 2011, hope you have a b etter understanding following reading my personal letter.
The Profit and Loss account shows if your business has turned profit or perhaps loss, more than your financial 12 months. This also shows just how much sales you have made and how much loss, it helps you make decisions in the future and improve on your business. You may also view whether you made Profit or loss weekly, month to month but usually it is shows yearly.
Revenue Costs is the cash you spend about items on the day to day basis. This may change depending on the Shop. Some examples of what may be included is usually, Premises costs, staff costs, purchase inventory. These are the Revenue expenditure from your bank account.
Rent and Prices - ВЈ6, 000
Salary and wages - ВЈ3, 920
Advertising - ВЈ1, five-hundred
Telephone and postage - ВЈ190
Revenue profits is the funds coming into the business from carrying out its daily tasks; these also fluctuate on the kind of business owned. Some of the instances of revenue profits within a organization are sales, commission received and also hire received. The revenue incomes from your bank account are Sales at an expense of ВЈ63, 850.
Balance sheet this really is a businesses' net worth by a particular level. Balance sheet also shows the value of a business mainly because it states the particular business owns also known as property and also called liabilities.
Capital Income is the funds that is put in into the organization by its owners and all other shareholders. The money is usually to set up the company, have tools. It is usually tools that will stay and be found in the business to get a longer time frame an example might be Premises. The main city income of your account is actually a capital of ВЈ16, 1000.