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HOW TO PREPARE PROFIT AND LOSS ACCOUNT AND BALANCE SHEET IN LESS THAN TEN MINUTES

Hi friends, here we are going to learn how to do balance sheet and statement of profit and loss in less than ten minutes.

Let us begin the topic with trail balance.
Trail Balance is a statement of debit and credit balances of various ledger accounts at the end of the financial year or any given date.As it is prepared by taking all ledger account balances , both debit and credit sides of the trail balance are always equal.Trail balance is used to prepare final accounts of entity.

MIS (Management Information System)

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MIS (Management information system) includes reporting of monthly expenses, Cash flow statement, Finished goods report, Debtors ageing, Creditors ageing and Bank reconciliation statement etc.
Above data is required for decision making. Management will get to know overall financial performance and working capital requirement by the above MIS report.
Even the above MIS report can be used in preparation of cost sheet by knowing fixed and variable expenses at par. So that management can know the break-even point on regular basis.  Following are some useful formats Cash Flow Statement for the month of XXXX Particulars CASH INFLOWS  Amount (Rs)  Opening Balance  -    Collection from Parties  -