The final accounts

P.L.SUBRAHMANYAM (964 27 33 2 11)

The following is the Pro-forma Trading Account:

TRADING ACCOUNT FOR THE YEAR EDNING _ _ _ _ _ _ _ _ _ _ _

DR CR

PARTICULARS

AMOUNT

AMOUNT

PARTICULARS

AMOUNT

AMOUNT

To Opening Stock XXX By Sales XXX

To Purchases XXX By Sales Return (Return Inward)

(XXX) XXX

To Purchase Returns (Return Outwards)

(XXX) XXX By Closing Stock XXX

To Wages XXX By Gross Loss C/d * XXX

O/s Wages XXX XXX

To Octroi XXX

To Carriage Inwards XXX

To Import / Customs Duty

XXX

To Coal / Gas / Water / Power, etc…

XXX

To Factory Rent XXX

To Factory Expenses XXX

To Customs Insurance XXX

To Commission on Purchases

XXX

To Gross Profit C/d * XXX

XXXX XXXX

*EITHER OF TWO WILL APPEAR


The following is the Pro-forma Profit and Loss A/c:

Profit and Loss Account FOR THE YEAR EDNING _ _ _ _ _ _ _ _ _ _ _

DR CR

PARTICULARS

AMOUNT

AMOUNT

PARTICULARS

AMOUNT

AMOUNT

To Gross Loss b/d XXX By Gross Profit XXX

To Management Expenses

By Discount Received

XXX

Office Salaries & Wages

XXX By Interest Received XXX

Office Rent & Taxes XXX By Dividends Received

XXX

Office Lighting XXX By Interest on Drawings

XXX

Office Insurance XXX By Rent Received XXX

Printing & Stationery XXX By Commission Received

XXX

Telephone XXX By Profit on Sale of Assets

XXX

Postage & Telegram XXX By Bad debt Received

XXX

Legal Expenses XXX By Interest on Bank Deposit

XXX

Audit Fee XXX By Sundry Income XXX

Miscellaneous Expenses

XXX

General Expenses XXX XXXX

To Selling & Distribution

Godown Rent XXX

Packing Expenses XXX

Advertisement XXX

Assets Commission XXX

Bad Debts XXX XXXX


To Financial Expenses

To Net Loss Transferred to

Capital Account *

XXX

Discount Allowed XXX

Interest on Capital XXX

Interest on Loans XXX XXXX

To Maintenance Expenses

Repairs to Building XXX

Repairs to Furniture XXX

Repairs on Machinery XXX XXXX

To Depreciation on Fixed Assets

On Buildings XXX

On Machinery XXX

On Furniture XXX XXXX

To Net Profit Transferred to

Capital Account *

XXXX

XXXX XXXX


Closing Entries: 1 Trading A/c………………..Dr

To Profit & Loss A/c (Being the transfer of gross profit)

XXX XXX

2 Profit & Loss A/c…………Dr To Indirect Expenses A/c (Being various indirect expenses transferred)

XXX XXX

3 Indirect Incomes A/c….Dr To Profit & Loss A/c (Being various indirect incomes transferred)

XXX XXX

4 *Profit & Loss A/c………..Dr To Capital A/c (Being Net Profit transferred to Capital A/c)

XXX XXX

*Capital A/c………………..Dr To Profit & Loss A/c (Being Net Loss transferred to Capital A/c)

XXX XXX



The following is the Pro-forma Balance Sheet:

(In order to performance)

Balance of M/s _ _ _ _ _ _ _ _ _ _ _ as on _ _ _ _ _ _ _ _ _ _ _ _

LIABILITIES

AMOUNT

AMOUNT

ASSETS

AMOUNT

AMOUNT

Capital Accounts Fixed Assets

Capital Accounts XXX Good will XXX

Current Accounts XXX XXX Patents XXX

Trade Marks XXX

Land and Building XXX

Long-Term liabilities Plant and Machinery XXX

Debentures XXX Furniture XXX

Loans on Mortgage XXX XXXX Investments XXX XXX

Current Liabilities Current Assets

Bank overdraft XXX Stock in trade XXX

Sundry Creditors XXX Sundry Debtors XXX

Bills Payable XXX Bills Receivable XXX

O/s Expenses XXX P/p Expenses XXX

Income receivable in Advance

XXX XXX Accrued Income XXX

Cash XXX

Bank XXX XXX

XXXX XXXX



(In order to liquidity)


LIABILITIES

AMOUNT

AMOUNT

ASSETS

AMOUNT

AMOUNT

Current Liabilities Current Assets

Bank overdraft XXX Stock in trade XXX

Sundry Creditors XXX Sundry Debtors XXX

Bills Payable XXX Bills Receivable XXX

O/s Expenses XXX P/p Expenses XXX

Income receivable in Advance

XXX XXX Accrued Income XXX

Cash XXX

Bank XXX XXX

Long-Term liabilities

Debentures XXX

Loans on Mortgage XXX XXXX Fixed Assets

Good will XXX

Patents XXX

Trade Marks XXX

Capital Accounts Land and Building XXX

Capital Accounts XXX Plant and Machinery XXX

Current Accounts XXX XXX Furniture XXX

Investments XXX XXX

XXXX

Investments XXX XXX



(General)


LIABILITIES

AMOUNT

AMOUNT

ASSETS

AMOUNT

AMOUNT

Capital XXX Cash in Hand XXX

+ Net Profit XXX Cash at Bank XXX

Or Land & Building XXX

- Net Loss (XXX) -Depreciation (XXX) XXX

XXX

+Interest on Capital XXX Furniture and Fittings XXX

XXX -Depreciation (XXX) XXX

-Drawings (XXX)

XXX Plant and Machinery XXX

-Interest on Drawings (XXX) -Depreciation (XXX) XXX

XXX

-Income Tax (XXX) Loose Tools XXX

XXX Free hold premises XXX

-Life Insurance (XXX) XXX Trade marks XXX

Patents XXX

Investments XXX

Sundry Creditors XXX Goodwill XXX

Bank Overdraft XXX Bills Receivable XXX

Bank Loan XXX Sundry Debtors XXX

Bill Payable XXX P/p Expenses XXX

O/s Expenses XXX Accrued Income XXX

Income Receivable in Advance

XXX Closing Stock XXX

XXXX XXXX

Education

The final accounts