MITTAL SCHOOL OF BUSINESS

ACADEMIC TASK 02
School of Business Name of the faculty: Abhay Grover
Course Code: ACC105 Academic Task Title: Types of Account.
Course Title: Financial Accounting
Date of Allotment: 19-10-2021 Student Roll No: A08
Date of Submission: 06-11-2021 Student Reg. No: 12106106
Term: 01 Max. Marks: 30
Section: Q2104 Marks. Obtained:

Evaluation Parameters Learning Outcomes:

Attached rubric will be followed for evaluation and I have learned Application of concept.
 DECLARATION

I declare that this Assignment is my individual work. I have not copied it from any other
students’ work or from any other source except where due acknowledgement is made
explicitly in the text, nor has any part been written for me by any other person. Evaluation
Criterion: Rubrics on different parameters.

Student’ Signature:

Evaluator’s Comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

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 TABLE OF CONTENTS

1. Trading Account...................................................................................04 - 06

2. Profit & Loss Account…………………..........................................................07 - 09

3. Asset Account…………………………………………………...……………………...……….10 - 11
 Trading Account

1.Sales:
Goods that a business sells in cash or credit fall under the head ‘Sales’.

In the above screenshot, we can see the sales statistics for year ended march 31, 2020 and 2021. The
sales get decreased from 59,926 to 46,379 in year 2021.

2.Opening stock and Closing Stock:

Opening stock is the carry forward of the unsold stock from the previous accounting period. It
consists of raw materials, work-in-progress inventory, and finished goods.

The unsold stock or inventory in hand at the end of the accounting period is recorded under the
Closing stock. It is valued at cost or net realized value whichever is lower.

3.Purchase:

Goods and services bought for business purposes are purchases. The goods may be purchased in
cash or credit.
4.Direct expenses:
Expenses incurred for performing the business activities are called direct expenses. In other words,
these are expenses incurred to the core business operations.

Here are several examples of direct expenses:

•The materials used to construct a product for sale.

•The cost of the freight needed to transport goods to and from a manufacturing facility.

•The labor incurred to produce hours billable to a client.

•Labor and payroll taxes paid based on the number of units produced.

•Production materials consumed during the manufacture of goods.

•The commission and payroll taxes related to the sale of goods or services.
5.Gross profit:
After all the items in the trading account are arranged. The trading account must be balanced to
determine profit or loss.

As per the above screenshot, the gross profit is 462.76 Lacs Rupees for the year ended March 31,
2021.

.
 Profit and Loss Account

1.Net Profit:

2.Revenue:

Revenue of the company is Rs. 46,379.23 Lacs.

3.Taxes:

Total Tax Expenses of the company is Rs. 305.72 Lacs.

4.Other Income:

Other Income of the company is Rs. 1653.41 Lacs.

5.Finance Cost:

Total Financial Costs of the company is Rs. 2144.00 Lacs.

6.Depreciation:

Total depreciation charged by the company is Rs. 2284.89 Lacs.

7.Cost of material consumed:

Total cost of material consumed is Rs. 21407.31 Lacs.

8.Employee Benefit Expense:

Total Employee Benefits Expense of the company is Rs. 5472.03 Lacs.

9.Purchase of Stock in Trade:

Total purchase of Stock-in-trade of the company is Rs. 3038.58 Lacs.

10.Other Expenses:

Other Expenses of the company is Rs. 12899.43 Lacs.

11. Changes in Inventories of Finished Goods and Stock-in-trade:

Changes in Inventories of Finished Goods and Stock-in-trade of the company is Rs. 17.72 Lacs.

12.Gross Profit:

After revenue from the operations and other income, total income for year ended March 31, 2021 =
Rs. 48,032.64 Lacs

After adding all the expenses mentioned above, total expenses for year ended March 31, 2021 = Rs.
47,264.16 Lacs

Total Tax Expenses = Rs. 305.72 Lacs

Gross profit for year ended March 31, 2021 = 48,032.64 - (47,264.16 + 305.72) = Rs. 462.76 Lacs
 Asset Account showing depreciation

1.Opening Balance:

2.Closing Balance:

3.Depreciation:
Method Used by Company:

Asset 1: Building

Depreciation Charged:

Depreciation charged for building for the year ended March 31, 2021 is Rs. 2368.00 Lacs.
Asset 2: Plant and Machinery

Depreciation Charged:

Depreciation charged for plant and machinery for the year ended March 31, 2021 is Rs. 13518.77
Lacs.

4.Sale/Purchase:

Sales of Property, plant and equipment is Rs. 15.22 Lacs for the year ended March 31, 2021.