This part focuses on identifying the discrepancies for the valuation as mentioned in the balance sheet of the company. Balance sheet, profit and loss issues discrepancies and required calculations that will help in understanding the company’s financials. The analysis focuses on the various financial numbers that seem unusual in the balance.
Using the Red Pen, the assets and liabilities of the company are circled in red to easily identify the valuation in terms of assets and liabilities.
Profit is marked as red in the given balance sheet provided by the company, attached in the appendix below.
The unusual query is in the owner’s capital as the balance sheet indicates the owner capital and then also indicates the drawing by the owner.
All the numbers are mentioned in the balance sheet in red colour.
The below table analyses the balance sheet and the financials that mentioned in the data, which provided by the company to understand it better.