Sole Proprietor – Income Statement
1. The Income statement for sole proprietor shows income less expenses
2. There is no taxation shown
3. The profit will be posted to the capital account in balance sheet / statement of financial statement
4. Note that the title is “income statement FOR THE PERIOD ….” because income statement captures the whole year activity.
5. This is in contrast to statement of financial statement / balance sheet which only captures the value of the assets AS AT the year end date.
3. The profit will be posted to the capital account in balance sheet / statement of financial statement
4. Note that the title is “income statement FOR THE PERIOD ….” because income statement captures the whole year activity.
5. This is in contrast to statement of financial statement / balance sheet which only captures the value of the assets AS AT the year end date.
Stay tune for income statement and balance sheets of partnership and company
Comments: 1
[…] balance sheet)3. Net assets and total equity has to tally ($14,200)3. The profit is from the income statement4. Note that the title is “Statement of Financial Position as at ….” […]
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