formats of financial statements

8/4/2019 Formats of Financial Statements

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SIMPI.E FINAL ACCOT.NTSTRADING-ACCOLNT OF M/SJor thc year "ndi"g o"-..::.:..Particulars

To Opening StockpurrchasesI,ess purchases retums(or Ketums outward)(or Retums Cr. BaI)rlrpenses incurrcd inbringing rhe goods tourerr present condilionand locarion :" Wages, or

iiffi"T". $l;ff,;:,,, ManulacturingWages,Lamage, orCarriage Inwards, orLarrilrge on purchases,, &,:r"ttn, Inwards; l** Charges (InwarayLusloms Duty on Irnpon"dgoods" Motive power,


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PROFIT AND LOSS ACCOIINTfor the yearllnlf-year ending ou...

Particulars

'l-o Gross Loss translerredfrom trading AicTo Salarics

AnrountR:;

Rent, Ratcs and TaxesStationery and PrintiugPcrstage and TclegramsAudit FeeiLegal Charges and LarvCosts,, Telephone Expenses., Insurance Premiutn,, Eatertainment Expenses,, Repairs and Renervals,, Dcpreciatir-rn of variousasSets,, Iitterest,. Surtdly Trade Expcnses,, C;rnveyance,. Ch:rrity,, Bank Charge,, Oilice Expenses,;, Establishnrent Expenses,, General Expenses,. Stablc Erpenses,. Loss in Exchange,, I icence Fec,, Brokerage,, Upkeep of Cars or Vans,, Otiice Lighting,, Loss by F.ire, Loss byTI:eft,, Commission,, Advertisement,, Freight & CarriageOutward,, Export Duty,, Discount,, Packing Expenses,, Travelling Expenses,, Distributive Expenses,, Bad Debts or Bad Debtsuritten off,,'}{et Frofit translerred to

Capital A/c Rs.

It is desirable, - according. to mode'r thi'kin_e, that the profitalld Loss Account should be prepared in such i manner as willenable the reader fo form a correct idea about the profit earned or

Palticulars

By Cross Profit translerredirorn Trading Account,, Rent from Tenants,, Discount (Cr.),, Conimission (Cr.),, Interest (Cr,);, Bad Debts Recovcreilr,-. Appreritice.;hip Plenr i iiil.. fnconre fi'ont Investurcrri.,, Dividends on Shares.,, Di{l'erence in excirange(cr.),, Misccllaricous RcvenueCairrs,. Iircolne fronr airy cthersource,, Net Loss (tlanslerrecl tocapital A c)


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S!MPLE FINAL ACCOUNTS 10.26BALANCE SHEET OF..........

as at.,......,.........Liabilities

Sunci:y or Trade CreditorsBills FayableBank OverdraftEmployees Provident FundLoans (Cr.)Mortgage -Reserve or Reserve FundCrrpit"alAdd Interest on Capital......lda'Net ProfitZc.ss Drawings --

,, Income T'ax,, Intereit onDrawings,, Net Lo::s

Cash in Hand & PettyCashCash at BankBills Receivable.Sundry Debtors/BookDebtsLoans (Dr.)Closing StockInvestnlentsFurniture & FittinerLoose ToolsPlant and MachinervHorses and Carts :.Land and BuildingsFreeholdileasehold LandBusiness PrenrisesPatents and Trade rnarks,etc.Goodwill

AmountRs. P. AmountRs. P.

The br'lance sheet rras certain charasteristics which srrould benoted. These are the follorving :. (i) lt.is prepared at a particular date" rethcr on the closc oftheday, and.not f'trr a pe'iod. Ir is true onry "n-triai;ot.;;;;;ri'rut.r.Llpposs '1 trie examp.le gir.,on above a pnrt {)l the goocls is sold orrlst January, 1973. This rvill rrean thaithe value 6r tii. itn"t *irrbereduced, th-: cash in hand rvill increase arld tr.".apiioi *i[ utroincrease by the p'ofit ear.ed ; if the tra'sactior is ai a rois thecaprl"al ilccount rvrll bc rcduccd.

., _(iilThe l",alance s.heet is preparecl only after the preparation ofrne I'ront a'ri Loss Account ; this is the reason why^ tire pr.ofitarid Loss Accorrrt 1i'clu,ling the Tracling Accou't) and ihe Bnla'cc')neet .are togrihci' calle,l "finrl accounts". (o[ ccurse the Balarrcc)uccr rs not arl lccruitt ; the 1!vo sidcs are not the clcbit und tht.,.ct'edit sidcs) \\/itho't being accompanied by rhe p.oni"o,ioro*Account the Bai^nc: shect riiil not be able io irr*r uJ.q.,ut! right.n the financial. p.sirion of rhe firm. For rhat p;p;r;;;;pp-re"ia_tron of the profils ol the firm is trecessary.,. , .,.(iiil Sincc capital always equals the difference of the assets ancrilaDrttttes and since .the capital account will independently atrive atthisfigur-e, the trvr'r sicles of^the barance rh.;;-,;;;;"iuui tTr"'runr",, totals. If it is not, there is certainly un somewhere.

formats of financial statements

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