The Income Statement which is also known as the Trading Account

The Income Statement which is also known as the Trading Account and the Profit and Loss Statement is basically a statement that you prepare to calculate your Gross Trading Profit by calculating how much Sales MBT Kimondo Shoes you made, how much was your Purchases and Cost of Goods Sold and any other expenses which are directly connected with your sales and purchases, for example Transport Charges for goods purchased or Delivery Charges for goods sold. 

After determining your Gross Trading Profit you would then deduct it from your Administrative and other expenses to calculate you Nett Profit or Nett Loss for the year.

-- Balance Sheet

The Balance Sheet is used to calculate and get a snapshot of your company's current financial position by listing all the Current and Fixed Assets, the Current and Long Term Liabilities, the Shareholdings and Capital MBT Changa Birch,and the Profit or Loss for the year and the Accumulated Profit or Loss of your company.

It will reflect what is known as your company's Nett Worth. A positive Nett Worth means that your company has more Assets than Liabilities and a negative Nett Worth means that your company has more Liabilities than MBT Fora,Assets and would be hard pressed to meet payments to Creditors and banks.