Preparing a balance sheet, income statement and waste and

A balance sheet provides insight into the financial position of a company ‘at a specific point in time’. The income statement can be regarded as the history book of a company. It shows what ¬≠happened to turnover and costs in the past year and from this it can be deduced whether a profit or loss has been achieved.

The balance

A balance sheet provides insight into the financial position of a company ‘at a specific point in time’.

Debit / assets (possessions)

credit / liabilities (debts)

Pledge

100,000

Own money

 

Inventory

40,000

(equity)

50,000

Stocks

5,000

   

Bank

45,000

Loaned money

 

Kas

10,000

(debt)

150,000

Total

200,000

Total

200,000

The debit side contains the assets, the possessions of the company. These can be classified into a number of main groups. The most important are: Fixed assets These are things that are durable. They are unlikely to be converted into cash within one year. For example, land, bungalows, hotels, attractions, ‘all-weather facilities’ and means of transport. Current assets These are items that can quickly be converted back into money. For example, inventories and accounts receivable. Liquid assets This is money that is immediately available. For example, cash, bank and giro.

credit side

Long-term loan capital This is money that has been borrowed temporarily from third parties for more than one year. For example, loans and mortgages. Short-term loan capital This is money from third parties that can only be accessed for a short period (up to a maximum of one year). For example, creditors and current accounts. The resources are arranged on the balance sheet from bottom to top, from not at all liquid (the building) to very liquid, the money in the cash.

Waste and outages

Waste is raw material that is lost during production if, for technical reasons, not all raw material can be used and therefore does not end up in the end product. Products such as meat, fish, chicken and game in particular often have a high waste percentage. The products that still need to be processed are also called “dirty”, in contrast to the “clean” products, which have already been processed. Scrap is the loss of raw material if end products and semi-finished products are rejected during quality control. When determining the standard quantity, unavoidable waste and failure must be taken into account. This means that an attempt must also be made to determine standards for waste and failure, by examining what can be regarded as unavoidable waste and failure given the given production method, quality requirements and the like. Waste and failure must be distinguished from waste. Waste and failure can be included in the cost price of a product, this is not waste. Waste as an economic concept is the amount of raw material that has actually been consumed in excess of what is allowed by the standard. It is a loss of efficiency and is charged directly to profits. Take a steak for example: waste is the edge of fat that is cut away, waste is the steak that has been overcooked by an inattentive chef and is no longer edible, waste is selling a 200 gram steak while your menu price is based on 150 grams. calculated.

The income statement

The income statement can be regarded as the history book of a company. It shows what happened to turnover and costs in the past year and from this it can be deduced whether there is a profit or loss. Income statement, also called profit and loss account. Some important terms from the income statement are:

  • Turnover: sales value of the goods and/or services supplied.
  • Gross profit: added value (turnover minus purchases).
  • Operating balance: the result achieved from actual business operations.
  • Operating result: operating balance less depreciation, but including interest payments. This result is therefore independent of the way in which the company is financed.
  • Profit: the operating result minus the interest paid.