Particular Debit Amount Credit Amount

Opening Stock 25000 -

Capital - 225000

Debtors and Creditors 30000 17500

Purchase and sales 200000 350000

Returns 7500 5000

Wages and Salaries 16500 -

Commission - 6500

Machinery & Furniture 50000 -

Bad Debts 4000 -

Provision for debt & doubtful debts - 5000

Bills Receivable & Bills Payable 15000 3500

Land & Building 200000 -

Insurance 14500 -

Cash and Bank 25000 -

Drawing 25000 -
 Additional information:

 Value of closing stock as on 31-03-

2009 is Rs. 20000.

 Wages and salaries outstanding Rs. 500.

 Insurance prepaid Rs. 2000.

 Provision for doubtful debts on Debtors @ 5%.

 Depreciation on machinery and Furniture @ 10%.

 Goods costing Rs. 1200 were sold on approval basis for Rs. 15000. These
goods were not approved by customer as yet.

Solution:
 Trading Account

Dr. For year ending 31-03-2009 Cr.

Profit & Loss Account

Dr. for the year ending 31-03-2009 Cr.

Particulars Amount Particulars Amount

To Bad debts 4000 500 By Gross Profit b/d 122500

Add: New provision 1500 12500 By Commission 6500
Less : Old provision 5000 5000
To Insurance 14500 111000
Less: Prepaid 2000
To Depreciation on Machinery
& furniture
To Net Profit

129000 129000

Balance Sheet

Liabilities Amount Assets Amount

Capital 225000 311000 Fixed Assets 200000
Less: Drawing 25000 3500 Land & Building 45000
Add: Net Profit 111000 17500 Machinery & Furniture 50000 15000
Current Liabilities 500 Less: Depreciation 5000 13500
Bills Payable Current Assets 25000
Creditors Bills Receivable 2000
Outstanding wages & salaries Debtors 30000 32000
Less: Sales on
approval basis 15000
Less: Provision for
bad debts 1500
Cash and Bank
Prepaid Insurance
Stock in trade 20000
Add: Sales on
approval Basis 12000

Total 332500 Total 332500

As on 31-03-2009

Final Accounts

A formal records of business transactions in order to have an overview of the

Companies profitability and financial condition at the end of the year.

Requirement
Money is invested in a business with the primary aim of earning profit. For
knowing this, it is necessary that the Accountant must measure and accumulate
accounting data in such a manner that a amount of profit earned or loss suffered
by the business may be determined and reported.

For the purpose of determining the profit or loss figure and financial position
at the end of year a statement knows as Final Account is prepared at the end of
accounting year which include all the figures in details income, expenditure,
assets and liabilities of the Firm .
 
Corporate Governance ReportCorp
 
orate Governance Report
It is report prepared by Board of DirectorsIt is report prepared by Board of
Directorsof Co. It is represent that governance of of Co. It is represent that
governance of company is how fair & good. Usually CGcompany is how fair
& good. Usually CGreport have following contents:report have following
contents:

Board of DirectorsBoard of Directors

Audit CommitteeAudit Committee

Shareholder CommitteeShareholder Committee

Managerial remunerationManagerial remuneration

 
Financial StatisticsFinancial Statistics
It contents the past record such as annualIt contents the past record such
as annualturnover, profit , debts of company andturnover, profit , debts of
company andtotal wealth of the company andtotal wealth of the company
andcomparative time series analysis of thesecomparative time series
analysis of theserecords to show the growth trend of records to show the
growth trend of companycompany

 
Major Accounting Policies Major Accounting Policies

Accounting policies refers to the specificAccounting policies refers to the
specificaccounting principal and methods for accounting principal and
methods for applying those principles adopted by theapplying those
principles adopted by theCo.Co.

According to AS - 1 of ICAI, a Co. is freeAccording to AS - 1 of ICAI, a Co.
is
freeto formulate its own accounting policies.to formulate its own accounting 
policies.

These policies have to disclosed withThese policies have to disclosed
withFinancial Statement.Financial Statement.

FINAL ACCOUNTSandandReports to be AnnexureRep

 
orts to be Annexure
``By: Dhirender Kumar By: Dhirender Kumar Rakesh Kumar Rakesh
Kumar Devender Kumar Devender Kumar Manish Kumar Manish Kumar Fanish
Kumar Fanish Kumar Ajay Kumar Ajay Kumar 
 
Final AccountsFinal Accounts
A formal records of businessA formal records of businesstransactions in order to
have antransactions in order to have anoverview of the Companies
profitabilityoverview of the Companies profitabilityand financial condition at
the end of theand financial condition at the end of theyear.year.

 
RequirementReq
 
uirement
Money is invested in a business with the primaryMoney is invested in a
business with the primaryaim of earning profit. For knowing this, it isaim of
earning profit. For knowing this, it isnecessary that the Accountant must
measure andnecessary that the Accountant must measure andaccumulate
accounting data in such a manner thataccumulate accounting data in such
a manner thata amount of profit earned or loss suffered by thea amount of
profit earned or loss suffered by thebusiness may be determined and
reported.business may be determined and reported.For the purpose of
determining the profit or lossFor the purpose of determining the profit or
lossfigure and financial position at the end of year afigure and financial
position at the end of year astatement knows asstatement knows as
Final AccountFinal Account
is prepared atis prepared atthe end of accounting year which include all
thethe end of accounting year which include all thefigures in details income,
expenditure, assets andfigures in details income, expenditure, assets
andliabilities of the Firm .liabilities of the Firm .