1. Welcome to The TMTC & LAMCON GeMS training program Finance Management

2. LAMCON counts where money matters What is Profit ? Income - Expenses = Profit 4.00 7.50 ? Machinery5.00 Raw Materials2.00 Sales4.00 Salaries0.50 The TMTC & LAMCON training program

3. LAMCON counts where money matters Expenditure Spending AssetExpense What is Profit ? The TMTC & LAMCON training program

4. LAMCON counts where money matters Income - Expenses = Profit 4.00 7.50 ? Machinery5.00 Raw Materials2.00 Sales4.00 Expense Asset Salaries0.50 What is Profit ? The TMTC & LAMCON training program

5. LAMCON counts where money matters Profit & Loss Account Cr Dr Sales 4.00 Balance Sheet Dr Cr Raw Matl 2.00 Machinery 5.00 Salaries 0.50 What is Profit ? Sales 4.00 Machinery 5.00 Raw Materials 2.00 Salaries 0.50 The TMTC & LAMCON training program

6. LAMCON counts where money matters Cr Dr Sales 4.00 Dr Cr Raw Matl 2.00 Machinery 5.00 Salaries 0.25 Pre Paid Salaries 0.25 Sales 4.00 Machinery 5.00 Raw Materials 2.00 Salaries 0.50 What is Profit ? Profit & Loss Account Balance Sheet The TMTC & LAMCON training program

7. LAMCON counts where money matters Cr Dr Sales 4.00 Dr Cr Raw Matl 2.00 Machinery 5.00 (-) 0.50 4.50 Depn 0.50 Depn 4.00 Profit 1.00 Salaries 0.50 Sales 4.00 Machinery 5.00 Raw Materials 2.00 Salaries 0.50 What is Profit ? Profit & Loss Account Balance Sheet The TMTC & LAMCON training program

8. LAMCON counts where money matters Cr Dr Sales 4.00 Dr Cr Raw Matl 2.00 Machinery 5.00 4.00 Profit 4.00 Expenses Nil Salaries 0.50 Sales 4.00 Machinery 5.00 Raw Materials 2.00 Salaries 0.50 What is Profit ? Profit & Loss Account Balance Sheet The TMTC & LAMCON training program

9. Cr Dr Sales 4.00 Dr Cr Raw Matl 2.00 Machinery 5.00 4.00 Profit 3.50 Salaries 0.50 Sales 4.00 Machinery 5.00 Raw Materials 2.00 Salaries 0.50 What is Profit ? Profit & Loss Account Balance Sheet LAMCON counts where money matters The TMTC & LAMCON training program

10. LAMCON counts where money matters Trader Profit & Loss Account (Year 1) x10 Purchases 10000Sales 9000 x6 Buys @ 1000 eachSells @ 1500 each Cl Inventory 4000 13000 Profit 3000 Purchases NIL Sales 6000Op Inventory 4000 6000 Profit 2000 Concept of Profit Profit & Loss Account (Year 2) The TMTC & LAMCON training program

11. LAMCON counts where money matters Impact of Inventory on Profit Profit & Loss Account Purchases 10000Sales 9000 Cl Inventory 2000 11000 Profit 1000 Profit & Loss Account Purchases 10000Sales 9000 Cl Inventory 3000 12000 Profit 2000 Profit & Loss Account Purchases 10000Sales 9000 Cl Inventory 4000 13000 Profit 3000 of A of B of C The TMTC & LAMCON training program