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FORMAT OF FINAL ACCOUNTS OF NON-CORPORATE ENTITIES

Final Accounts

Trading and
Balance Sheet
Profit & Loss a/c

1.1) Trading Account


Trading means buying and selling. The trading account shows the result of buying and selling of
goods.
TRADING ACCOUNT OF XYZ ltd

for the year ending..

Particulars Amount Particulars Amount


(Rs.) (Rs.)
To Opening Stock xxx By Sales xxx
To Purchases xxx Less : Sales return or
Less : Purchase Return or Return inward xxx xxx
Return inward xxx xxx By Closing Stock xxx
To Direct Expenses:
Carriage Inward xxx
Coal , gas & water xxx
Wages xxx
Freight xxx
Clearing charges xxx By Gross Loss c/d xxx
Power (factory) xxx (transferred to P&L A/c)
Octroi Duty xxx
Custom Duty xxx
Manufacturing expenses xxx
Import Duty xxx
Factory Expenses xxx
Productive Expenses xxx
Consumable Stores xxx
Royalty xxx
Supervisors Salary xxx
To Gross Profit c/d xxx
(transferred to P&L A/c)
xxx xxx
1.2) Profit & Loss Account

The aim of profit and loss account is to ascertain the net profit earned or net loss suffered
during a particular period.

PROFIT & LOSS ACCOUNT OF XYZ ltd

for the year ending..

Particulars Amount Particulars Amount


(Rs.) (Rs.)
To Gross Loss b/d xxx By Gross Profit b/d xxx
To Office & Administration expenses : By Commission earned xxx
To Rent , rates & taxes xxx By Rent received xxx
To Office salaries xxx By Interest received xxx
To Rent & rates xxx By Discount received xxx
To Stationeries xxx By Dividends xxx
To Postage expenses xxx By Income from Investments xxx
To Insurance xxx By Bad debts recovered xxx
To Audit fees xxx By Net Loss xxx
To General expenses xxx (transferred to Capital A/c)
To Unproductive expenses xxx
To Repairs xxx
To Trading expenses xxx
To Office expenses xxx
To Interest paid xxx
To Bank charges xxx
To Sundry expenses xxx
To Selling & Distribution expenses :
To Commission paid xxx
To Brokerage xxx
To Warehouse rent xxx
To Delivery vans expenses xxx
To salesman Salary xxx
To Discount allowed xxx
To Advertisement xxx
To Carriage outwards xxx
To Travelling expenses xxx
To Distribution expenses xxx
To Packing charges xxx
To Bad debts xxx
To Depreciation xxx
To Net Profit xxx
(transferred to Capital A/c)

xxx xxx
1.3) Balance Sheet
It is a statement showing the financial position of a business. Balance sheet is prepared by
taking up all personal accounts and real accounts (assets and properties) together with the net
result obtained from profit and loss account.
Balance sheet is defined as a statement which sets out the assets and liabilities of a business
firm and which serves to ascertain the financial position of the same on any particular date.

BALANCE SHEET of XYZ Ltd.


As on ..

LIABILITIES Amount ASSETS Amount


(Rs.) (Rs.)
CURRENT LIABILITIES: CURRENT ASSETS:
Sundry creditors xxx Cash in hand xxx
Bills payable xxx Cash at bank xxx
Bank overdraft xxx Bills receivable xxx
Outstanding expenses xxx Sundry debtors xxx
Short-term loans xxx Short term Investments xxx
Closing stock xxx
LONG TERM LIABILITIES: Prepaid expenses xxx
Mortgage loans xxx
Long term Loans xxx FIXED ASSETS:
Debentures xxx Furniture & fittings xxx
Plant & machinery xxx
FIXED LIABILITIES: Land & buildings xxx
Reserve fund xxx Business premises xxx
Capital xxx Vehicles xxx
Add: Net profit (or)
Less: Net loss xxx INTANGIBLE ASSETS :
xxx Patents & trade marks xxx
Less: Drawings xxx Good will xxx
xxx Copyrights xxx
Less: Income tax xxx xxx

xxx xxx