The document discusses two major tools for records keeping - cash records and income statements. Both are necessary for entrepreneurs to understand cash position, detect market and price fluctuations, and enhance business awareness and control. Cash records should be kept separately and provide transaction details. Income statements are prepared using cash record data and identify business strengths and weaknesses over a defined period. Production costs, income, expenses, profits and their components are also defined.

1. Gaphor M. Panimbang Introduction of Financial Records Logo

2. Tools in Records Keeping 2 Major Tools Records Keeping Cash Record Income Statement

6. Exercises Answer 1. Inflow 2. Outflow 3. Outflow 4.Outflow 5. Inflow 6. Outflow 7. Non-cash 8. Non-cash TRANSACTIONS Tell whether inflow, outflow or a non-cash transaction 1. Loan from the group 2. Repaid loan to the group 3. Bought equipment 4. Bought materials 5. Husband paid back money he borrowed from enterprise 6. Deposit additional savings to the group 7. Goods consumed by husband 8. Harvest reduced by half

8. Net Cash Income Profit Sales Income Costs

9. Net Cash Income Fixed Assets Working Capital Capital It shall be used for the production costs/ costs of goods sold Production Costs are the costs incurred each time the output volume is produced. These are variable costs.

10. Components of Production Costs Production Costs These are costs like rent or fees paid to use land or facilities like drying facilities. Use of facilities Paid Labor Materials These are the costs we have to make the output volume ton purchase the materials that are consumed in producing the estimated output volume . These are the costs of hiring external labor force or for paying members to do a certain tasks.

13. Profit can be utilize in several ways Savings for child education 1 Consumption 2 Expansion of enterprise 3 Investment in new enterprise 4

14. Gaphor M. Panimbang Wassalam !