Accounting for Sole Proprietor without Debit Credit

About Accounting for Sole Proprietor without Debit Credit

Sole Proprietor is basically single individual who starts any business e.g. Grocery Shop, Fruit Vendor, Local Cloth Store, Artist, Writer etc.

This sole proprietor need to determine the profitability of its business and hence profit and loss account need to be prepared and also he need to understand what are its overall assets and liabilities as on particular date for which balance sheet is to be prepared.

Profit and Loss account basically records transactions during the period e.g. sales during the particular period, expenses during the particular period, profit during the particular period. This period could be yearly, half yearly, quarterly etc.

Balance Sheet basically records balances since start of the business e.g. accumulated cash balances since start of the business, accumulated profit since start of the business etc. It also records bank balances, cash balances, investments made, loans taken from bank, capital , payable towards suppliers etc.

Students find it difficult to understand Debits Credits in accounting and hence this series will help students and learners to understand how to prepare profit and loss account, balance sheet and cash flow statement that too without Debit Credit in much simpler manner.

This series will also explain trial balance and how to record each and every item of trial balance in profit and loss account and balance sheet.

In this series you will also learn how to prepare profit and loss account and balance sheet for single entry system i.e. imperfect accounts.

So Lets Learn accounting for Sole Proprietor that too without doing Debit Credit along with Single Entry System.