1st Reason : Utilize of Product for personal Use
Due to lack of accounting knowledge, Rahim's brother and his wife used product of Rahim's shop for their personal use without Rahim's permission. With this some of $ 85 loss was from this cause. Mr. Rahim told that all goods which will be taken by him or his wife must be recorded for finding drawing.
2nd Reason : Shortage of Purchase of Goods
Mr. Rahim also thinks that it may be possible that vendor gave him less goods when he bough last week. It is one of reason of his loss. For future, he thinks to return all such goods which be short quantity.
3rd Reason : Not to Taken Money from Customers
Due to not knowing accounting, Mr. Rahim's brother and his wife did not record of name of customers whether they gave money or not. It may be possible that some customers may cheat Mr. Rahim's brother and his wife during last week.
4th Reason : Goods Taken by Thieves
Due to lack of inventory management, Mr. Rahim's brother thinks that some of goods may be theft by thieves. So, in future, he ordered his brother to supervise the goods more seriously.
5th Reason : Keeping Money in Other Place
After deep inquiry, Mr. Rahim's brother told that he has remembered that $ 40 are in his pocket.
It means now $ 45 are the net loss of one week trading to Mr. Rahim. Now Mr. Rahim sent brother and his wife to Accounting Education for learning accounting first for operating business.
If you are also like Rahim's brother, you should learn financial accounting first from here before operating any small business.
Above is very simple and true example of a very small business. Without knowledge of proper accounting, a big corporate may face the losses. So, knowledge of accounting will be your weapon to get safety from losses.