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Which TWO of the following items are NOT one of the components of a set of financial statements produced by a sole trader?
Statement of financial position
Bank statement
Statement of profit or loss
Supplier statementThe answer is 2 and 4. My question is that 1 and 3 are also not mandatory for unincorporated businesses so why we are leaving 1 and 3 correct. According to me, for sole trader, Supplier statement and Bank Statement are more advantageous if the proprietor’s focus on them as most sole trading business are emerging business so they need to have healthy relations with their suppliers.
Please share your view on it, Sir.If you don’t have (1) and (3) in a set of FS, what are you going to have?
(2) and (4) are useful documents but they are never part of the financial statements ie not part of the Annual Accounts (as FS might still be known as).
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