I am getting good day by day with your help.
I am unable to understand the balance sheet.
I am running a publishing house.
I got an order to print 1000 Books. which price is for example 1000
I recieve 50% advance but when i create a sale invoice it would be the full amount invoice.
I also add recieve money and after it shows me the due amount as well. All is well here.
I am only dealing with a cash account which is my bank account also.
Now the problem is here
My total sale is 190000 and some projects are under process.
Less expenses 1412536
Net Profit 560222
But as i mentioned some projects are under process and i haven’t recieved the full amounts of said invoices.
Now according to Manager My assets
Account recieveable = 707,693
Cash & cash equivalents = 264,956
Less Liabilities = 84737
Retained earnings = 560,222
Suspense = 330,390
If I follow Manager it tells me that I have 264,956 cash
But i have not in real.
Can you please explain me which points i am not getting.