STATEMENT OF FINANCIAL PERFORMANCE AND POSITION PART 1

NOT an income

• discount received

• commission income

• discount allowed

NOT an expense

• motor vehicle

• motor vehicle expenses

• discount allowed

Profit =

• GP + other income - other expenses

• GP - other income + other expenses

Non-current liability

• long term borrowings

• trade PAYABLE

CURRENT asset

• office equipment

• Equipment

• Property

• inventory

Assets =

• Equity - Liabilities

• Equity + Liabilities

NOT a current asset

• inventory

• trade receivable

• property

• cash at bank

Bank OVERDRAFT =

• current ASSET

• current LIABILITY

Cash at bank

Deposit = $100

Withdrawal = $400

Balance =

• $300

• ($300)

Profit for the year =

• Capital INCREASE

• capital DECREASE