1. Financial Statements
A set of Financial Statements consist of four related accounting reports that summarizes the financial resources, obligations, profitability and cash transaction of a business in the few pages
Income Statement: Profitability of business
Balance Sheet: Financial resources and obligations
Statement of Owner’s Equity: Obligation of business to Owner
Statement of Cash Flow: Cash Transaction of a Business.

2. Income Statement
A statement that shows the profit or loss of the business for a specific time period. This statement consisting;
Revenue for the accounting period
Expenses for the accounting period

3. ABC Corporation Adjusted Trial Balance for the month of March 2009
S/No
L/No
Items Dr Cr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Cash
Accounts receivable
Land
Building
Accumulated Depreciation: Building
Office equipment
Accumulated Depreciation: equipment
Accounts payable
Capital: James Roberts
Drawings: James Roberts
Sales Commission earned
Advertising expenses
Salaries expenses
Telephone expenses
Depreciation expense: building
Depreciation expense: equipment
$ 15,490
17,890
130,000
36,000
5,400
2,800
630
7,100
144
150 45
23,814
181,000
10,640
Total
$ 215,649

4. ROBERTS REAL ESTATE COMPANY For the month ended March 30th, 2009
Income Statement
ROBERTS REAL ESTATE COMPANY
Income Statement
For the month ended March 30th, 2009
______________________________________________________________
Revenue:
Sales commission earned………………………………… $ 10640
Less; Expenses:
Advertising expense…………………………… $ 630
Salaries expense………………………… ,100
Telephone expense……………………………
Depreciation expense: building………………
Depreciation expense: office equipment (8,069)
Net Income……………………………………………………………….. $ 2,571*
* It is a part of owner’s equity because is to be paid to owner of the business

5. Income Statement - 1

6. Income Statement - 2

7. Statement of Owner’s Equity
This statement shows the obligation of business to its owner. This statement consisting ;
Capital invested by owner
Profit of the current accounting period
Drawings of the owner

8. ABC Corporation Adjusted Trial Balance for the month of March 2009
S/No
L/No
Items Dr Cr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Cash
Accounts receivable
Land
Building
Accumulated Depreciation: Building
Office equipment
Accumulated Depreciation: equipment
Accounts payable
Capital: James Roberts
Drawings: James Roberts
Sales Commission earned
Advertising expenses
Salaries expenses
Telephone expenses
Depreciation expense: building
Depreciation expense: equipment
$ 15,490
17,890
130,000
36,000
5,400
2,800
630
7,100
144
150 45
23,814
181,000
10,640
Total
$ 215,649

9. Capital: James Robert…….... $ 181,000
ROBERT REAL ESTATE COMPANY Statement of Owner’s Equity as on March 30th, 2009
Capital: James Robert…….... $ 181,000
Add: Profit for the period ,571*
$ 183,571
Less: Drawings: …………… ,800
Net Owner’s Equity…… $ 180,771
* Form Income Statement

10. Owner’s Equity Statement

11. Balance Sheet
That statement which shows the financial position of the business on a particular time is called “Balance Sheet”. This statement shows the resources of the business as well as the obligation of the business.
Balance sheet consisting;
Assets of the business
Liabilities of the business
Owner’s Equity

12. ABC Corporation Adjusted Trial Balance for the month of March 2009
S/No
L/No
Items Dr Cr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Cash
Accounts receivable
Land
Building
Accumulated Depreciation: Building
Office equipment
Accumulated Depreciation: equipment
Accounts payable
Capital: James Roberts
Drawings: James Roberts
Sales Commission earned
Advertising expenses
Salaries expenses
Telephone expenses
Depreciation expense: building
Depreciation expense: equipment
$ 15,490
17,890
130,000
36,000
5,400
2,800
630
7,100
144
150 45
23,814
181,000
10,640
Total
$ 215,649

13. ROBERT REAL ESTATE COMPANY Balance Sheet as on March 30th, 2009
Assets:
Cash ………………………………………………………… $ 15,490
Accounts receivable…………………………………..…… ,890
Land………………………………………………………..… ,000
Building………………………………………… ,000
Less: Accumulated Depreciation: Building… (150) ,850
Office equipment…………………………......… ,400
Less: Accumulated Depreciation: equipment (45) ,355
Total Assets……………………………………………………………. $ 204,585
Liabilities:
Accounts Payable………………………………… $ 23,814
Owner’s Equity:
James Roberts……………………………………………….. $ 180,771
Total Liabilities & Owner’s Equity…………………………….. $ 204,585

14. Balance Sheet - 1

15. Balance Sheet - 2

16. Cash Flow Statement
A statement that shows the flow of cash during an accounting period. That how much cash comes in to the business and from which sources? And how much cash goes out from the business and for what purposes?
Cash Flow Statement containing three type of activies:
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

17. Cash Flow Statement - 1