final accouants

7/30/2019 Final Accouants

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Dr.P.Neelakantan-Faculty -SMM Page 1

FORMAT of Trading Account of ABC Ltd.,for the year ending 31st March 2012

Particulars Rs. Rs. Particulars Rs. Rs.

To Opening StockTo Purchases(Less) Return Outwards(Less) Purchases Returns

To Wages(Add) Outstanding Wages

To Factory rentLess: Prepaid Factory rent

To FreightTo Carriage InwardsTo Clearing ChargesTo Packing Charges

To Dock DuesTo Power (factory)

To Octroi DutyTo Gross Profit c/d(Transferred toP&L A/c)

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xxxxxx

xxxxxx

xxx

xxx

xxx

xxx

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xxxxxx

xxxxxx

By SalesLess : Returns InwardLess : Sales Returns

By Closing stock

By Gross Loss c/d(Transferred toP&L A/c)

xxxxxx xxx

xxx

xxx


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FORMAT of Profit or Loss Account of ABC Ltd.,

for the year ending 31st March 2012Particulars Rs. Rs. Particulars Rs. Rs.

To Trading A/c(Gross Loss)

To Salaries

(Add) Outstanding

To Rent & rates

To StationeriesTo Postage expenses

To Insurance(Less) Prepaid Insurance

To RepairsTo Trading expensesTo Office expensesTo Interest paid(Add) Outstanding

To Bank chargesTo Sundry expensesTo Commission paidTo Discount allowedTo AdvertisementTo Carriage outwardsTo Travelling expenses

To Distribution expensesTo Repacking chargesTo Depreciation

To Bad debts (New)(Add) Bad Debts ( Old)(Add) Provision for Bad

Debts (New)(Less) Provision for Bad

Debts (Old)

To Discounts ( New)

xxx

xxx

xxxxxx

xxxxxx

xxxxxx

xxx

xxx

xxx

xxx

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xxxxxx

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xxx

By Trading A/c(Gross profit)

By Commission earned

(Add) CommissionAccrued but notyet received

By Rent received

(Less) Rent received inadvance

By Interest receivedBy Discount received(Add) Provisions for

Discounts oncreditors (New)

(Less) Provision for

Discounts oncreditors (Old)

By Net Loss(Transferred to CapitalA/c)

xxxxxx xxx

xxx

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xxx


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(Add) Discounts (Old)(Add) Provisions for

Discounts (New)(Less) Provision for

Discounts (Old)

To Net Profit (transferred

to Capital A/c)

xxx

xxx

xxx xxx

xxx

FORMAT of Balance Sheet of ABC Ltd.,for the year ending 31st March 2012

Particulars Rs. Rs. Particulars Rs. Rs.

Capital

Add: Net profitLess: Net lossLess: DrawingsLess: Interest on DrawingsLess: Income tax

Sundry creditorsLess: Provision for Discount

on Creditors

Loan

Add: Interest on loanOutstanding

Bills payableBank overdraftOutstanding expenses

Mortgage loansReserve fund

Incomes Received inAdvance

xxx

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xxx

xxx

xxx

xxx

xxx

xxx

xxx

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xxxxxx

xxx

Cash in hand

Cash at bankBills receivableLess : Bills Receivable

Dishonored

Sundry debtorsAdd: Bills Receivable

Dishonored

Less: Bad Debts (New)

Less: Provision for BadDebts (New)

Less: Provision forDiscounts (New)

Investments

Closing stockPrepaid expenses

Furniture & fittingsLess : Depreciation

Plant & machineryLess : Depreciation

Land & buildingsLess : Depreciation

xxx

xxx

xxx

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xxxxxx

xxx

xxxxxx

xxxxxx

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xxx

xxx

xxx

xxx

xxx

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Business premisesLess : Depreciation

Patents & trade marksGood willAccrued Commission

xxxxxx xxx

xxxxxxxxx

Prepare Trading, Profit / Loss A/c and Balance Sheet

Trial Balance of Company A as on 31-March -2009Debit Balances (LHS) Credit Balances (RHS)

Particulars Rs. Particulars Rs.

Debtors

Plant & Machinery *

Interest

Rent &

Conveyance Charges

Wages*

Sales ReturnsPurchases

Opening Stock

Drawings

Trade Expenses

Salaries*

Advertising

Discount

Bad Debts

Business Premises*

Furniture & Fixtures*

Cash in Hand

92,000

20,000

430

5,600

1,320

7,000

5,400

1,50,00060,000

22,000

1,350

11,200

840

600

800

12,000

10,000

2,060

Capital

Purchase Returns

Sales

Sundry Creditors

Bank Overdraft

70,000

2,600

2,50,000

60,000

20,000

TOTAL 4,02,600 TOTAL 4,02,600

Additional Information(a)Closing Stock Rs.90,000.

(b)Provide Depreciation on Premises at 2.5%, Plant & Machinery 7.5%, Furniture 10%.(c) Outstanding Rent Rs.500 and Outstanding Wages Rs.400.

(d)Prepaid Insurance Rs.300 and Prepaid Salaries Rs.700


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Trail Balance Items will be posted in one place only Additional Information will be posted in two places LHS of Trial Balance will go to

- LHS of Trading A/c (OR)- LHS of P/L A/c (OR)- Assets of Balance Sheet-

RHS of Trial Balance will go to- RHS of Trading A/c (OR)- RHS of P/L A/c (OR)- Liabilities of Balance Sheet

Postings of Items Can be Done by- Concept Method- Side By Side Method- Remembrance Method

15 / 23 2 / 4 14 / 16

Trading Account

Left Hand Side ( Direct Expenses) Right Hand Side ( Direct Incomes)

To Opening Stock 60000

To Purchases 150000

(Less) Purchase Returns 2600 147400

To Wages 7000(Add) Outstanding 400 7400

TO GROSS PROFIT 119800

By Sales 250000

( Less ) Sales Returns 5400 244600

By Closing Stock 90000

TOTAL 334600 TOTAL 334600

Profit / Loss Account

Left Hand Side( In-Direct Expenses) Right Hand Side( In- Direct Incomes)

To Interest 430

To Rent & Insurance 5600

(Add) Outstanding Rent 500

(Less) Prepaid Insurance 300 5800

To Conveyance Charges 1320

To Trade Expenses 1350

BY GROSS PROFIT 119800


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To Salaries 11200

(Less) Prepaid Salaries 700 10500

To Advertising 840

To Discount 600

To Bad Debts 800

To Plant & Machinery Dep 1500To Business Premises Dep 300

To Furniture & Fixtures Dep 1000

TO NET PROFIT 95360


Balance Sheet

Liabilities Assets

Capital 70000

( Less) Drawings 22000

(ADD)NET PROFIT 95360 143360

Sundry Creditors 60000

Bank Overdraft 20000

Outstanding Wages 400

Outstanding Rent 500

Debtors 92 000

Plant & Machinery 20000

(Less) Depreciation 7.5% 1500 18500

Business Premises 12000

(Less) Depreciation 2.5% 300 11700

Furniture & Fixtures 10000

(Less) Depreciation 10% 1000 9000

Cash in Hand 2060

Closing Stock 90000

Prepaid Salaries 700

Prepaid Insurance 300



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Trial Balance of Company B as on 31-March -2009

Debit Balances Credit Balances

Particulars Rs. Particulars Rs.

Land & Buildings

Machinery

Patents

Opening Stock

Sundry Debtors

Purchases

Cash in Hand

Cash at Bank

Bills Receivable

Return Inwards

Wages

Fuel & PowerCarriage on Sales

Carriage on Purchase

Salaries

General Expenses

Insurance

Interest

Drawings

42,000

20,000

7,500

5,760

11,000

40,675

540

2,630

3,500

680

8,480

4,7303,200

2,040

15,000

3,000

480

120

5,245

Capital

Loan @ 6%

Returns Outwards

Sales

Sundry Creditors

Bills Payable

58,000

4,000

500

98,780

6,300

9,000


Additional Information

(a) Closing Stock Rs.6,800

(b) The manager is entitled to a commission of 5% on net profits after charging such commission

(Before Charging)

(c) Stock Destroyed by fire was Rs.600 and insurance company accepted the claim for Rs.360

(d) A bill for Rs.1,000 included in bills receivable has been dishonored

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