Financial statements

The main source of revenue for a trading business

• Sales
• Dividends
• Fees received
• Capital

A possible main source of revenue for service business

• Fees received
• Sales
• Interest received
• Capital

Decrease in revenue of a trading business

• Sales returns
• Purchase returns
• Bad debts
• Drawings

Stock at the beginning of the year

• Opening Inventory
• Sales
• Purchases
• Drawings

Goods purchased during the year

• Sales
• Inventory
• Purchases

Goods returned to suppliers that decrease Cost of goods sold

• Sales returns
• Credit purchases
• Purchase returns

Expense on buying goods from overseas

• Distribution cost
• Administrative cost
• Cost of Goods sold

Expense on transportation of purchases

• Delivery expenses
• Freight outwards
• Cartage on goods purchased

Expense on transportation of goods sold

• Freight inwards
• Administrative cost
• Freight outwards

Expense on buying goods from overseas

• Rates
• GST
• Distribution cost
• Customs duty