Sole Trader, Partnership, Club/Society and Limited Company Accounts (Accounting for Non-Accountants Book 2)

The Book:

First, the rules to determine whether an item is trading, profit and loss or balance sheet. This will be followed by two worked examples for Sole Traders complete with year-end adjustments.

An introduction to business partnerships including the partnership agreement. An important document that will help if/when the partnership is being dissolved. A worked example of partnership accounts will include such things as interest on capital, salaries and share of profits/losses.

While a club or society is formed for the purpose of pursuing an activity, where members pay annual subscriptions and any other fees due; it is not formed for the purpose of making a profit. In the worked example we will show examples of Bar Trading account, Receipts and Payments account (similar to a cash account) and Income and Expenditure account (similar to a Profit and Loss account.

Final accounts for limited companies. Again, a set of rules to determine which items go in which accounts, i.e. trading account, income statement, appropriation account or balance sheet. Then a worked example from Trial Balance sheet with year-end adjustment through to Balance Sheet. In the second part of this section I will describe the main components of published accounts, including the chairperson's statement, the directors' report, the auditors' report, accounting policies, notes to the accounts and historical summaries.