Ali has been in business for some years as a petit trader. He simply calculates his profit by adding his sales (cash sales only) and deducting his purchase costs from it. As a grade 10 Accounting...

Ali has been in business for some years as a petit trader. He simply calculates his profit by adding his sales (cash sales only) and deducting his purchase costs from it.

As a grade 10 Accounting student, you are required to analyze the importance of FINANCIAL STATEMENTS (Income Statement and Statement of Financial Position) to Ali.

Guidelines:-

• Start off with an Introduction of what you want to analyze.


• Your analysis should include but not limited to:-


• Books of original entry


• Ledger accounts


• Trial Balance


• Accounting concepts ( which ones are needed when and where)


• Etc


• Your conclusion should be an advice to Ali.