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Income Statement in Nepali || Multi Step || Class 12 Account Financial Statement || BBS 1st Year
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This video is especially prepared for class 12 students under NEB (management faculty). Here, we have covered the chapter Financial Statement (Modern Method) from Grade 12 Accountancy where we have to learn the preparation of Income Statement, Statement of Retained Earning and Balance Sheet. Before this, we have prepared the income statement under single-step method. Here, we have explained the concept and format under multi-step. This video is also useful for BBS 1st year students.
First, we have to prepare a table with the two columns for Amount and one for Particulars. We begin with calculation of Sales (Net) by deducting discount allowed and sales return (return inward) from Sales Revenue. After that, we deduct Cost of Goods Sold (COGS) from Sales (net) to determine Gross Profit. COGS can be calculated from Opening Stock, purchase, custom duty and carriage. We calculate Operating Expenses by adding General and Administrative Expenses with selling and distribution expenses. The total operating expenses is deducted from Gross profit to determine Profit from Operation. We add other revenues and gains whereas deduct other expenses and losses from Profit from Operation. This calculates Income before tax to which we deduct tax/ provision for tax to calculate Net income/ loss.
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