Financial Statements of a Sole Proprietor (Trading Business)
Principles of Accounts · Secondary 3 · Preparation of Financial Statements · 4.º Período

Financial Statements of a Sole Proprietor (Trading Business)

Students learn to prepare financial statements for a trading business, calculating gross profit and profit for the year. They will account for cost of sales, returns, and carriage inwards.

MOE Syllabus OutcomesMOE POA Syllabus 7087, Section 7.3MOE POA Syllabus 7087, Section 7.4

About This Topic

Students learn to prepare financial statements for a trading business, calculating gross profit and profit for the year. They will account for cost of sales, returns, and carriage inwards.

Key Questions

  1. How is the cost of sales calculated for a trading business?
  2. What is the difference between gross profit and profit for the year?
  3. How is inventory presented in the financial statements?

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