The document discusses key concepts in finance for non-accountants including: 1. The differences between the cash method and accrual method of determining profit. 2. How to prepare a trading profit and loss account including calculating gross profit. 3. Components of a cash flow statement including net cash from operating activities, capital expenditures, financing activities, and other line items.

1. Finance for Non-accountant
Arriffin Mansor
Finance for NOn-accountant 1

2. Course Contents
1. Cash and accrual profit determination
2. Trading, profit and loss account and Balance
Sheet
3. Year end adjusted enteries, dividends and
appropriation accounts
4. Cash flow statement
5. Discounted cash flow techniques
6. Cash Budgeting
Finance for NOn-accountant 2

3. Question 1
• The cash method and accrual method of profit
determination
Finance for NOn-accountant 3

4. Cash Method
Cash Receipts 10,500
Meterial 3,250
Motor Vehicle expenses 600
Administratrion expense 500
Wages 2750
New motor vehicle 4000
Insurance 400
Sundry 100 11,600
(1,100)
Finance for NOn-accountant 4

5. ACCRUAL METHOD
Gross Margin 10,700
Motor Vehicles expenses 650
Administration expenses 500
Wages 2,750
Insurance 400
Sundry 100
Deoreciation - plan 100
Depreciation - Motor 500 5000
Profit for the year 5,700
Finance for NOn-accountant 5

6. ACCRUAL METHOD
Sales - Cash Sales 10,500
Credit Sales 3,000
Less - Cost of sales
Opening stock 1,750
Add Purchases 3,550
5,300
Less - Closing stock 2,500 2,800
Gross Profit 10,700
Finance for NOn-accountant 6

7. ACCRUAL METHOD
10,700
Motor Vehicles expenses 650
Administration expenses 500
Wages 2,750
Insurance 400
Sundry 100
Deoreciation - plan 100
Depreciation - Motor 500 5000
Profit for the year
Finance for NOn-accountant 7

8. ACCRUAL METHOD
10,700
Motor Vehicles expenses 650
Administration expenses 500
Wages 2,750
Insurance 400
Sundry 100
Deoreciation - plan 100
Depreciation - Motor 500 5000
Profit for the year
Finance for NOn-accountant 8

9. ACCRUAL METHOD
10,700
Motor Vehicles expenses 650
Administration expenses 500
Wages 2,750
Insurance 400
Sundry 100
Deoreciation - plan 100
Depreciation - Motor 500 5000
Profit for the year
Finance for NOn-accountant 9

10. ACCRUAL METHOD
10,700
Motor Vehicles expenses 650
Administration expenses 500
Wages 2,750
Insurance 400
Sundry 100
Deoreciation - plan 100
Depreciation - Motor 500 5000
Profit for the year
Finance for NOn-accountant 10

11. Q2- Trading Profit and Loss account
Sales 19,740
Cost of good sold 2,970
Opening stock 11,280
Add Purchase 14,250
Closing stock 3,510 10,740
Gross Profit 9,000
Finance for NOn-accountant 11

12. Q2- Trading Profit and Loss account
Sales 19,740
Cost of good sold 2,970
Opening stock 11,280
Add Purchase 14,250
Closing stock 3,510 10,740
Gross Profit 9,000
Finance for NOn-accountant 12

13. A3- Trading Profit and Loss account
Sales 19,740
Cost of good sold 2,970
Opening stock 11,280
Add Purchase 14,250
Closing stock 3,510 10,740
Gross Profit 9,000
Finance for NOn-accountant 13

14. A4- Cash flows
Net cash flow from operating activities 6,600
Capital expenditure and investments -3,000
Finance 2,000
capital introduced -8000
Sundry -2,400
Deoreciation - plan 100
Depreciation - Motor 500 5000
Profit for the year
Finance for NOn-accountant 14