Accounting-Balance sheets(10分)

Themoney receivable from debtors and payables to creditors in trading and in-servicecompany is quite different in amount. The nature of trading is the amount ofthe goods sold ( Sales ) to customers. The nature of servicing is the amount ofservice fees charged ( Service Income ) to customers. These two amounts asappeared in the Balance Sheet of each of the companies are very higher in tradingand smaller in servicing.

As the trading company is selling goods to the customers, normally there is aninventory of stock maintained at the Balance Sheet date. However, there isusually no such item in the servicing company.