Financial statements of sole proprietorship

Financial statements of sole proprietorship:-

Financial statements:- Financial statements are those statement which shows the financial performance and financial position of the business.

It consists of three types :-
1. Balance Sheet
2. Trading Account
3. Profit & Loss A/C

1. Balance sheet shows the financial performance of the business that how much  assets and Liabilities it have at the accounting year.
2. Trading Account shows the gross profit of the business entity for whole year.It is the profit earned from purchase sale of the business.
3. Profit & Loss A/C is prepared to find Net profit by putting the indirect expenses on Dr.  side and indirect income on credit side.

Format of Balance sheet :-

Format of Trading and P&L A/C:-

Thanx 

Konan Saifi