Question

Suggestions of final accounts with the help of journal /subsidiary book of sole trading concern l

Answer 1

Profitability ratios are ratios that demonstrate how profitable a company is. A few popular profitability ratios are the breakeven point and gross profit ratio. The breakeven point calculates how much cash a company must generate to break even with their start up costs. The gross profit ratio is equal to gross profit/revenue. This ratio shows a quick snapshot of expected revenue.

Activity ratios are meant to show how well management is managing the company's resources. Two common activity ratios are accounts payable turnover and accounts receivable turnover. These ratios demonstrate how long it takes for a company to pay off its accounts payable and how long it takes for a company to receive payments, respectively.

Answer 2

"A Sole-Trader is a business affiliation which is had and directed by one person. Proposed in this is ownership is under one individual and this individual could use numerous individuals to work for him.

One key component of a sole merchant is that of confined commitment. A limited hazard implies the situation whereby the individual loses both the contributed capital and private property when the business twists up.

The gross profit proportion is equivalent to net profit/income. This proportion demonstrates a fast depiction of anticipated income. "