gO 4 aw O-LEVEL ACCOUNTIN: ORMATS OME ME MSESOSCIOOSSSCOSOOOOOSSOS3O09005fe ee een ooco 2 geacoeocecotooesocot: 7 Teal balance 7 tach bask 7 Wey cash book 7 Vale alate 7 Sole ace © Income statoments Page 10 Saleen of fnancal postion (wong om Page— 14 4 Statements of nancial postion (total assets shown) Page 12 4 _Shlements of fnancilpastin (New formal) i Page 15 7 tani reconcetion ae Paget F Conic accom, aaa Page 15 7 tio malysis % ae erent AVC of parness 4 Slatemensof financial postion 41 Stuteinentsot financial poston i “Rofl and losappropiation NC 4+ Staemen'sffnanca position 4+ Sslenentso changes ell (Tol value o sui) 7 Single enixy and incomplete records ‘Page ~ 18 7 ectiis and payments accounts, income and expenditure accounts ob Suberlplion AIC Page ~20 4 Bactrading AIC Page~21 4 Tacome &exyenditure ANC Page—21 4 Statevents of fnancal position Page~22 [77 anetactning Acs ea 4 Manufacturing NC Page 23 4 Income scene Page ~25 intemensof ancl postion Page-25 sip nce ® 4 fscomesotements Page-26~| 4 Profit and os appropriation A/C (Old and New four Page-29International standards: terminology “The list below isto help Centres became familar with intemationat terminology which Cambridge uses in accounting syfabuses. Cambridge Wil include wellknown standards, which ar@ relevant 10 the level of study, {question papers, mark schemes and associated documents. {tls recommended that Centres use ths terminology in thelr teaching and learning materials, however, candidates will not lose mars fr using dfforont terms. Statement of thane position (balance sheet) Bonk fond other toans Intorest booting loans and boxrowing | Loans repayebie after 12 months i - fone a . | i onk ovordeats and iosns Inierest bearing loans end borrowing Loans repayable within 12 months Cepita or equity/sharooldors' equity ‘Coch fand cash equivalents) Cost of sas Curent assats | Curent Kabitios Fivanco costs | France incomefinastmont revenies Firancal statements Gross profit {Income statement Tadiog and profit & loss account Intangibie assets Good, otc. Inventoryfewanrries Stock (ot raw materials and fisted goods) Investmant property Investmanis Finad assets Non-curcent sssets Non erent ables Long-term habilios Crediors: amounts faling dew etter mora then one yeareecocecceocoeocsoot ecoseoecosooosns ther eporating expensas Other operating income | Other receivables Plant and equipment 1 Raw maori Ordinary goods purchased Revers cue see Shor cota a bles ado receivables Workin progress9999090932 eooonr reeeoeceetene Za Capital ied Siock /nventory ———_} | Discount allowed i ‘Allowance for Doubiful Debis ae Bad Debts ae oe 7 Carriage Inward a Carriage Outward ae 7 Debtors / Tide Receivables aad Creditors Trade Payables a [ Return Inwards / Seles Return ae Return Ourwards / Purchases Retara = we Drawing Heating and Lighting Rent, Rafe and Insurance Salaries and Wages | Provision for depreci [| Cash in hand ee Bank Balance co ‘Bank overdraft (O/D) aE Loan we Commission Received ae ‘Commission Paid, etc. wae Mote: All assets and expenses appear in the debit (OR) column, Allincome, copttal ond liabilities oppear in the credit (CR) column,1egmeeceeseeeeco CASH BOOK Ww Siagle Column Cash Book Date | Details | Wank/Cash | Date | Details s BankiCash $ Date | Delails | Cash] Bank | Date | Details. [Cash ae ae Vos Date [Details | Discount | Cash [Bank | Date | Details Allowed) | Sf Ss $ Note, All receipts are recorded on Debit side. All paynientsare recorded on Credit side.Y PETTY CASH BOOK [Receipts] Date | Deiails [Toral] School] Tenvclling Postage | Cleaning | Ledger AICS s $s s $s 300 “Sept. | Gash 4 Petcol 16 16 3| SGreen | 23 23 : 3] Postage | 12 asia Meeeeeat, t 4 | Davies | 32 32 E 7| Cleaning | 11 7 = iT “| 9] Petvot a ai iH ~ 12] Kiones [13 a 14 | Petol 23 23 eal | 15 | Black 5 ns 16 | Cleaning | 11 F Ee it 18 | Peicot [22 BR 20 | Postage | 12 12 22 | Cleaning | Ti i 2A | CrWood | 7 7 27 | CBrowa | 13 ie 3] 29 | Postage | ~12 a aa a = 34a ©) 36 Bl 244] 30 | Cash =| 30}ed 300 at 344 He 300] Oak aa Yon can create all expenses indian! T-aocount, ifthe question asked for. As well as you can Grea cash aecout aud here wil be two cred entries as petty cash in exsh account a8 $00 and 24,(POOMOOTSCOCOSOOCOSSCOCIGOSUUMUGYUwoOUUY & VALUE ADDED TAX Date Details s Details & Purchase Daybook(Trade Payables) “ ~T Sales Daybook(Trade Receivables) = Retuen In, Daybook (Trade Receivables) <= |__| Retum Out, Daybook{Trade Payables) - [~~ | Cash Book (Expenses/Nox-Curvent Assets) |_* ‘Cash Book Sales) Baines = la it ; = fi | cry ae CREDIT Balance > DEBIT Batance * CREDIT Balance vepresents the budtiess owes the tax. authority. This (VAT) sceount balance wl be nesgpti 25 a current iabtlity. DEBIT Balance represents thé tax authority owes the business. This (VAT) account balavce will be accepted as a current asset.S999999922>7002; rn ere BAD DEBTS, ALLOWANCE FOR DOUBTFUL DEBTS, RECOVERY OF BAD DEBTS Jourmal Entry © Bad debts A/C debit * Deblors / Trade receirables AC Credit Example, Bad Debts A/C for'3 years Bad Debts A/C Yet Debtors 250 FL A/C (Income Statement) 250 Yer2 Debtors — 5€0LAJC (income Statement) Yr3- Debtors FILA/C (Income Statement) 300 Note Bad Debts totals are teasferred to the profit and Joss Alc (income statement) at cach year end. Eames 1 Provision / allowance for doubiful debi licenses, itis loss for the business, Journal Entry, ‘Profit and Loss AC (Income Statement) debit Provision / Allowance for Doubital Debt A/C credit Exanples If Provision / allowarce for doubtful debts decreases, i Journal Entry, ‘income for the business, ‘+ Provision / Allowance for Doubtful Debt A/C debit ‘© Profit and Loss AJC (Income Statement) creditIPOSOCSCESOSSSOCOCOSOSCOSSSISOSSO9S6059939599 BAD DEBT RECOVERY A/C Year2 Income Statement Bil) [Vear 2Trade Receivables / |= ] Debtors (From Year 1) Bad debts and inceeases in doubttial debts both are added in the profit and loss AC (income statement) and subtracted from grass profit as expenses. Bad debls recovery and decreases in doubtful debts, both are added in the incoime statement with gross profit as Income. Only the fotal amount of allowance for doubtful debts is subtracted from trade receivables A/Cs or debtor in the balance sheet / statement of financial position.»‘ceoeecececescocoo DOUBLE ENTRY RECORDS FOR DEPRECATION Journal for proviston for depreciation account Oe >) Hh >), Journal for disposal account Profit and toss A/C dit entry 7 Frovlsion for depreiaton A/C crit entry Caciepaadede re ehh ani, Depreciation A/C debitentry : Fixed Asset a/Ccrel ery {Depreciation Incurred during the year) Disposal A/C debitenty * Non-current assets A/Ccredit entry (Original cost of the non-current asset) Provision for depreciation A/C debit entry Disposal A/C credit entry t {Total depreciation ofthe sold out non current asset) Bank or Cash A/C debit entry Disposal A/Ceredit entry {Amount received on dsposa).- Profit and Loss A/C debt ertty Disposal A/C credit ently (Floss on dispose eure Disposal A/C debit entry Profit and Loss A/C credit entry AIF profit from disposal imuried) 1eeeocaceecocecoeo NOTE: The difference in the esposal Is transferred tothe Profit and Less A/C (lacome statement), NON-CURRENT ASSET Balance b/d ¥e T Disposal - Bank / Cash BE Balance a Batance b/a oe PROVISION FOR DEPRECIATION Bisposal Balance b/d we Balance ea FE | Profit andes Ne ud ‘Balance b/d oo bbisposaL asc Non-curent assets 4+ provision ar deprecation | ™** Bank /Cash Wee [Profitand Losga/Corincame | *** | Profit andLoss A/C or income | *°* Statemiént (Profit) Statement Loss) 42eegooeccecoegcoeococecctsa ew ACCRUALS & PREPAYMENTSS A/Cs FOR EXPENSES & INCOME NOTES: Expenses Owhngs/Accrued / Unpaid / outstanding are current labilities. * Expenses Prepold/ prepayment / in advance are current astets. EXPENSE A/C co Balance b/d (prepaid) +*« 7 Balance b/d (owing) Brad | Bank / Cash “+4 | Profit and Loss WC (Income Statement) ? Balance ¢/d (owing) w4* | Balance ¢/d (prepaid) [ee Balance b/d (prepaid) We] Balance b/d (owing), ae aes Balance b/d (owing) | *#* [Balance b/d (prepaid) [>= Profit and Loss A/C (income Statement) 2? | Bank/ Cash Saad Balance «/d (prepaid) $2 | Batance a (owing) ae Balance b/d (owing) +" Balance b/d (prepaid) a 13INCOME STATEMENT Betalis Sales Revenue Yurnover (Wess) Retuinin/Salesretures Tet Soles Mess Com oftakess Opening inventory Td, Purchases (Wess) Goods Drawings (Goss) Return Out. Purchases Retura ‘Ra Caroge inward ‘Net Purchase Total inventory vaitable for sale [ess] inventory stolen / Damaged (less) Closing inventory Cost of sales (GROSS PROF uf: ‘Ad Profit rom doposal ‘discount ecsived / Commission Received ae ‘Add, Decrease in Allowance F, D, Debts ‘esa menses: Rent Rates ‘Advertising | ted bebe 1 ‘Carloge Outward “Salaros& Woger Tighting& Heating General Expenses Thefease allowance for Doubtful Debits Depredation of om Cureent Assets ‘Blicount alowed Tnterest oan Total Bxpenses i RETROFIT iss % ‘tncomestotement isa koawn os Trading ant Profit ond toss Account ‘& Only Tading Account means, you have to find only “Gross Profit’ from income st Only Prop ond tas Account‘ means, you have to fladanly ‘Net Prof from Income statement (where Gross ‘Prof or lacome wile gen} 14 ment.Be ‘PoeececeseocosecoococowlsoogTosanesD5 ‘Motor vehicle ‘Good will Premises Fixtures and fittings, ete ‘Surent Assets: Closing inventory Trade Receivables (Les) Allowance for doubtful Debts Bank Balance Cashin hand var Expenses prepaid (Other Receivables) ‘Income owing / Arresr (Other Receivables) 5] Current liabilties: ‘Trade Payables Bark overdraft, Expenses owing / Tear in advance | (Other Payables)” ‘Working Copltal ‘Won-Current linbilties: ‘Loan form Bank or others ‘NET ASSETS/ CAPITAL EMPLOYED [FINANCED BY: Capital ‘Add, New Capital Add. Net Protit Thess) Drawing ae TOTAL EQUITY905 ocd DOODOSSOSIDSS SEeeooSsoSeogeoece Motor vehicle Good wil Premises Fintures and fitings, etc. Ginrent sets: ‘lasing inventory “Trade Recelvables (hess) Aiowance for Doubtful Debts ‘Bank Balance Cash in hand WAT T ‘Expenses prepaid (Other Recelvables) Tacome owing / Arrear (Other Receivables). Total Assets Tesh Current Lables: Trade Payables [Bank overdraft Expenses owing/ Income In advance {Other Payables) Tiabities ‘Toan form Bank or others thas EMPLOYED = Goptal ar “add, New Capital ¥ “Add, Net Profit ve (Less) Drawing. FOTALEQUITY Working capital it not shown inthis Format 46yf STATEMENT OF FINANCIAL POSITION (New Format) Details YT fast oe NetBook value | a $ 3 _s Tort is Motor vehicle a a ae Good wil ao = <7 Premises wae = a Fixtures and ftings, etc ee o = Current Assets es ‘losing inventory wa ‘Trade Recelvables a9 {hess} Allowance for Doubtful Debts Bank Batance Cashin hand vat Expenses prepald (Other Receivables) income owing / Arvear (Other Receivables) Total Assets Ty Capital ‘Add. New Capital ‘Aad, Net Profit Thess) Drawing, ‘Non-Cufrent Uabiltles: ‘Loan form Bank or others Gurrent abies: Trade Payables Bank overdraft epenes oui [coe a wvance (Other Payables) Total Coplal and Habis SeemoeeoecocsesBOOB DE Coos DOTHSVSESSESSSOSHOOSAHOONOOSOS yy Bank Statement Date | Detals Dr. Withdrawals [Gr Deposit | Balance Balance b/d = ae Dei = Deposit we ious a Bark Giro Credit | ad Bank Cherges wr Diiee Debit ae Standlag Order a Credit Transfer a ] Date Detals $ [pate | (n. Detalls z Balance bidor Toiasofor_[*** |__| Balance b/d of Total so far_| *** Credit Transfer a Standing order a Bank Giro ae Sank charges ae Correctionofefror | **% Direct debit ae Dividends fezelved a Dishonor Cheques a Conection of Error a Balance FA (O/B)_ aa Balance of a BANK RECONCOLIATION STATEMENT. Tolanee os per ipdated Cash Book we Add. Unprevented Cheques: i. ae z san | aa {[lessjBank lodgement / Un credited Cheques: i. ae z ae Balance as per Bank Statement se ___ 28 Balance as Per Bonk Statenient aE [Less|Un-presented cheques roo) [hasur-eediad cheaves ae ‘Bolonce as per Updated Cash Book = ey6 CONTROL A/C o - . oe ‘* Sales ledger control A/C, also knowns Total Debtors or Trade C Receivables A/C 6 * Purchases ledger control A/C, also known as Total Creditors or Tracle a Payables A/C o > Sales Ledger ControtA/C o Balance b/d _|*** [Balance b/é* pore o Credit Sales =" Cash/ Bank a B Cash Refund *** Discount allowed eee 6 Dishonor Cheques #7" Return inward ae e Interest on Debt | “* [Bad Debts. om Ge Bad Debts (now recovered) | Set off (purchases ledger) | *** © Balance o/d* 265 [Balance cfd oar . Balance b/d ae ee "@ oe : ° Purchases Ledger Control A/C a Balance b/d* *s* | Balance b/d Laeied ° Cash/Bank “t** | Credit purchases oe 8 Discount Received t* | Cash Refund eee | e Return Outwards 1s* "| interest onoverdue Ales | === e Set off (sales fedger) * Vontnge Toward | 3 Balance c/a 2 | Balance ofé* wee ie Balance b/d 5 | Balance Bf vem le : i@ 16 /@ fo je 1G 6 P€ :¢@ 13of maanur: O. SIS the gross profit percentage calculated on cost price OF Markup: _G.P_ X 100 toes ‘MARGIN: Its the gross profit percentage calculated on sales. Margin: GPX 300 oe Bales: RELATIONSHIP BETWEEN MARK UP: MARGIN st of goods sold ‘Changing Mark up into Morain: IE Markup =X% So, Margin= _X_. X{multiply) 3100 300+ Margin =X % So, MarkUp= _ —. X{multiply), 200 300-x PROFITABILITY RATIOS 4. return on Capital Employed (ROCE) = _”__Net Profit x 100 Capital employed on ae Pe Operation x 100 * capital employed" 2.Gross profits percentage ofsates= G.P__X 100 y : Sales 3. Net profit as percentage of sales = Ne x 100 Sales LQUIDITY RATIOS 4. Current ratio \ = Gurrentassets {also known as warking copital rato) Current Habiities ‘current Assets: Current Labilties = 2; 1 [Regarded as standard ratio] 2. Acid test ratio » a = Closing inventor {Also known as Quick ratio} ‘Minimum roto of 1:3 fRegarded as safe ratio] ‘Cureent Liabilities. Capihal employed = Tata!f/ EFFICIENCY RATIOS 1. Rate of Stock/tnventory Tumover- Its the number of times the Inventory had been bought and sold ‘nan accounting period. inventory Turnaver = Cost of sales / good sole ‘Average Inventory (answer given in times) oR Inventory Turnover = Average inventory — X 365 days Cost of sales / good sold (Average inventory = (Opening inventory + Closing Inventory} 2 2. Accounts Recelvable/Sales Ratio = Not Trade Recelvable X 365 days Credit sales 3, Accounts Payable/Purchasos Ratlo= Net Trade Payable X365 days Credit purchases Other loformation’s 1. Sales st of sales / Good sold + Gross Profit 2, Costofsoles/GvodsSold = Opening Inventory + Purchases ~ Closing Inventory 3, Costofsales/ GoodsSold = Sales - gross profit 4. Gross profit =Soles Cost of sales / Goods sold 5 Net profit * Gross Profit Expenses 6. Working caphtat Current Assets~ Current Liablities 7. Net Assets =Non-Current Assets + Working Capital 8 Copia Employed += Closing Capital + Loan tif asked for end of the year) 2oO oe eeeoesesooo SHMOSSCELTOSOSCOOOD 6.7 List of accounting ratios Summary of commonly used ratios 1. Profitability ratios Gross Prof (Percentage goss plo van ss rot margin = SSE 109 Gross Prot ' Mark un» costot Sales 1? poder feve 6 eccortage ofr er te year to xen att rn = A FOCEES! «100 com yn (aroun tne ce = REA 109 {Capitel Employad = Owner's capital + fongtorm Fabio} 2. Liquidity Curoot Assets ae (0. Cucron rao = LATOR SEE so known as working capt ati) arent Assets = Invent (agg known as cis Test of “Liguld cat! current Latitias 8° ‘teks Tost oF “Liquid ratio’) Wh Oaick Ratio = 8) Root ventana = 288 SiS agar nin times) ventory Tarver = AVEEGS vet (Or tewertry Tw Tost of Goods Sad * 5° O°¥ 22ececeseoceecssoooas ™ SINGLE ENTRY & INCOMPLETE RECORDS ‘To find out CREDIT SALES (Prepare the total accounts receivable A/G) — r ‘Total Deblors or Trae Receivables A/C (Sales Ledger Control AIC) nce b/d +53 T Balance b/d* Credi)Sales ? | Cash/ Bank = CashRefund | *#* Discount allowed eae: Dishonor Cheques +* [Return inward lees Interest on Debt “++ [Bad Debts evita Set off (purchase ledger) ae Balance c/d* | #*8" [Balance c/d eer Total Sales = Credit sales + Cash sales To find out CERDIT PURCHASES (Prepare the total accounts payable A/C) + _ Total Creditor or Trade Fayables AIC (Purchases Ledger Control A/C) Balance b/d* _[ 8" Balance b/d ve Cash/Bank =** | Credit purchases 7 Discount Received #45" [interest on overdue A/G | oe Return Outwards #98 | Cash Refund ‘Set off (sales ledger) oe Balance ¢/d | Balance c/a* ae Total Purchases = Credit purchases + Cash purchases ‘To find out DEPRECIATION value from the Noo-Current Assets Fixed or Non-Current Assets A/C Balance b/d eas: Sales of Assets or Depreciation 2 Bank/Cash Balance ¢/d oeGROSOSIPII2932 3° eee090o o eos eeaeoaeseceses To find out CAPITAL (beginning of the year), apply the accounting equation to prepare a Be Sheet, Example: ‘All'Non-Gunent Assets ___*## [Non-Current Liabilities ae ‘All Current Assets #45 | Current Liabilities pees Total Assets TE [Total Liabilities a ‘To find out NET PROFIT, you can prepare a Capital A/C Capital = Total Assets — Total Liabilities Capital A/C Drawings FT Balance 6/4 ae Balance cld *#* | Add: New Capital _ died Net Loss _2 | Net Profit ae OR Capital sist Add. Net Profit take (Less) Drawing Total Equity Total Asc ~ Tos! Lise’ Net Assad. 24eegenecesstoos IP’ PAYMENTS A/C: A INCOME & EXPENDITURE A/Cs TERMS USED (Raivio [nematic income statement income & Expenditure A/C Net Profit Surplus of neome over Expenditure Nettoss Deflcit/Excess of Emenditure over Income Cash Book Recelpts & Payments A/C Capital ‘Accumulated Fund Talance Sheet Stotement of Finandil Postion Receipts Payments A/C 7 7 <= J Bank Balance bd +5 | Hank Balance (OD) _|** Subscriptions ceived 7] *** | Payments for bar supplies | *** Bar sales #397] Grounds man wages a Donalfon received #57] Barman wages Bar expenses ile of Coaches a Committee expenses a Printing & stationary a Bank balance fd (1D) _| $83 | Bank Balance cfd a i ae Bank Balance Wd ‘#5 | Bank Balance b/d (O/B) ae Subscription A/C Ss s Balance b/d (Owings) ___| ***__ | Balance bd (Prepaidy | Toeome & Expénditue 2 | Banke + Bad Delis a7 Balance oa(Prepald) | ¥* | Balance eld (Owings) co Balance b/d (Onings) | "** | Bafance bid (Prepaiay [=> 25ESSSeoeeseoceooeogeeseoooc , ye wo Bar Trading A/C Sales Less] Cost of Sales; Opening inventory ‘Add. Purchases Less. Closing inventory Gross Profit fhesslEmenses: ‘Bar-man’s wages Bar expenses PROFIT/LOSS FROM BAR Income & Expenditure AC Income: ‘Subscription rofitfom Bar 7 ‘Donation Received ete. Hess] Ewenditures: Groundman wages ‘Secrelarial expenses Comnitiee expenses Fire of Coaches Daprecation of Non-Current Assets ‘SURPLUS OF INCOME OVER EXPENDITURE o7 [EXCESS OF EXPENDITURE OVER INCOME 26oO 2BOD STATEMENT OF FINANCIAL POSITION ae Detals Cot [dec Benrediation $ $ Motor vehide a ae ae Good wil a = tam Premises ae : a Fixtures and ttngs, et z Te Current Asset ala hosing inventory a Trade ReceWables a 7 [Less] Allowance for Soubthal Debts [Bank Balance i ¥ Cashin and te VAT ‘Expenses prepald (Other Recelvables) ‘Subscription in Arrear (Other Receivables) Total Assets ‘Accumulated Fund and Liabilities ‘Accumulated Fund ‘add, Surplus / Deft of income Non-Current labiliies: oan form Bank or others ‘Current abies: ‘Trade Payables Bank overdraft Expenses owing (Other Payables) ‘Subscription in Advance (Other Payables) Total Accumulated Fund and iobilities 28rAC iG AC a Manufacturing A/C Details $ 3 te “Opening inventory of Raw Materials Chad sae oO Purchases of Raw Materials oer 8 {Less) Return Outward (***) 6 vee % Fda, Canoga inwards. wy lao ab on $leds C Total inventory of fav Materials ad o (Less) Closing inventory of Raw Materials ea ae o Cost of Raw Materfals consumed /used & o ‘Tadd. Direct wages/ Factory wages/ 6 er jryews ite) eG “Add. Direct expenses/Manufacturing wagés/Royaltles 6 i ° Tess) Serap value 5 o ‘PRIME COST nee o he ses/ Indi nufacturing cost: (Related with factory production) Rent of factory Tnsurance of factory “I we [- Depreciation of Plant and Machinery Tndirect wages ae ght & heat Fy one) a8 Factory Supervisors ete. ae Teer Bele ve [Loree ane ‘Add. Opening work in progress aaa (cess) closing work in progress ‘COST OF PRODUCTION “SCRAP MATERIALS VALUE can be subtracted from Purchases of Raw Materials, Primne Costor-from ‘he final value of Cost of Production. MEGDOEHOSTOSOOSOOOS _— 29Manufacturing A/C : - Det g | 5 | Ojsening Inventory of Raw Materials W . Purchases of Raw Materials o . {Less) Return Outward MSeL sis a eS Fa] / b |Add. Carriage inwards é siete o Total Inventory of Raw Materials 3 ieee fy (Less) Closing inventory of Raw Materials e ‘Cost of Raw Materials consumed /tised © “Fda. Direct woges/ Factorywages/7icieny ye eX ae eG ‘Add. Direct expenses/Manufacturing ‘wages/Royalties nee o ae oO (tess) Scrap value Heese oO ‘PRIME COST Wee oe GC ‘Add. Overhead Expenses/ indirect manufacturing cost: CG (Related with; factory production) Go Rent of factory ae © Insurance of factory ee 6 ‘Depreciation of Plant and Machinery : we 8 indirect wages ate 5 Light &heat — Miovaliny 1 von Pe i“ ° Factory Supervisots etc.” = ° ei ae ° C ae © “Add. Opening workin progress aa 0 we 6 {Less} Gosing work in progress rae e ‘COST OF PRODUCTION co 6 © cpap MATERIALS VALUE canbe subtracted from Purchases of Raw Materials, Prime Cest or fom C the final vatue of Cost of Production. 8 8 © ood 38o oe oe Keeeesecegace i i | 4 Sales Revere Tara t = Tess) Retum awards! [Sood ra ‘Wet Ses 5 ae Wesel Contofaien; Opening Investory of Finished Goods “Ad. Cont of Production ‘Add Purchases of lashed Goods (ess) Closing ventory of Finished Goods Varandes fe Bre ‘Ada, Warehouse expenses Cost ofzoies Gaoss PROF ‘haa: Discount received 7 Commission Received “Add roti trom dieporal Tez Administration Exoenses ‘Rent Rates ‘General Expenses Salaries & Waees, isting & Heating ‘Depreciation of administration computer ‘ess Sling arid bouton Expenses ‘Carlage Outwrds ‘Sales rep slaries Commision on ses ‘ess Finance Gras Taterest on oan Total Expenses NEF PROFIT /1O5S 21C6 @ e Se © © 6 0 eS G o o ov @ 8 6 e STATEMENT OF FINANCIAL POSITION Details ‘Non-Current Assets: Motor vehicle Good wilh ~ Premises zi Fixtures and fitings, te, Current Assets: Closing Inventory of Raw materials Closing work in progress Closing inventory of finished goods Trade Recelvables {Lest} Allowance for Doubtful Debts ‘Bank Balance Cashin hand VAT Expenses prepaid (Other Receivables) ‘Income owing /Arrear (Other Receivabies) Total Assets Capital ‘Aad, New Capital ‘Add. Net Profit (hess) Drawing Non-Corrent abilities: Loan form Bank or others | Trade Payables Bank overdraft Expenses owing / Income in advance (Other Payables) Total Capital and Usbifities 22Qeeg*eeeogooo Working: Variable Cost + Fixed Cost = Cost of Production Y Cost of Production Per Unit = Total Cost of Production ‘No Of units Manufactured Total units Manufactured ~Clasing stock of finished goods = Total units sold ¥ Closing stock is always valued from Cost of Production 33eeaooenes ———— PARTNERSHIP BUSINESS sf {fess} Goods Drowns Giese) Return Out / Purchase Return INCOME STATEMENT eee ea Detalls: pee a] Revere Tao a Ta hmuminsslesetn ra ‘ass Cost of Sales fal +-—| ‘pening Inventory aes a phases “ad. Garage trwar Tet Purchose Total Inventory avaliablefor sole ‘esd Inventorystolen / Damaged es) Closing inventory Cost of sles ‘GROSS PROFT Faia Discount recelved [ Commission| Received “pd. Prh from dsposel Fad. Decreare fh lowance F, 0, Debte/P. F.C. ee, Tesshtouensess ent 6 Rates ‘Raver Bad Debi. Carriage Outward “Safares & Wages Tightng & Heating General Expenses Tereare Inaiowance for Doubtfl Debts we “ncreane in provision for Cash Discounts a ‘Depredation of Non-Current Assets ‘Biecount alowed Taerest oan Totol Expense WET PROFIT / 1055Ooresgers2are0202 O2O° € Profit and Less Appropriation A/C Betas Net Profit jaleraton Drawing: Cas) Interest on Caplin: ¥ ltereston Curvent AMC Ceasar a (Lis) ena Comaiton to XW a ince of prafis are at proar ¥ Profit and Loss Appropriation A/C few Format) Deiais Net Profi fea Drawing: XC ¥ (asi) Interent on Capita Y a Salaries ¥ (Lest) BonesIConiatision to XA nsble Profts/Balance of profs are ot promis: 35= ___ Current A/C of PARI TNERS t Details x |_Y¥, Details oC Balance b/d* wa [_#e% [Balance b/d ~ a Drawing. #44 | +¥%_ [Interest on Capital a Interest in Drawings voe_| #8 | Salaries 7 Transfer to Capital ae ‘Share of profits « ‘Shore of losses id ‘Bonus/Commission Salaries (fwithdravn) | *** | *** | Interest on Loan Balance eld aaa] $84 | Balance cfd UME] e / : : C ol STATEMENT OF FINANCIAL POSITION G Details g 5 5 2 Non-Current Assets: : i. Premises: we © Fintures andifitings ete, Yo iesaraea| . [Cnet Asses: G Inventory aa ~ a “Trade Receivables Beer 6 co 6 ‘Expense Prepaid (Other Receivables) we a ° ‘Total Assets. oe 6 ‘Capital and Liabilities ia] 6 | Capital: X. wae © : ¥ oe od : ane = 8 Current AICe Balance: : X (Credit Balance) au G YY (Credit Balance)... need to we a o subtract if there is debit balance. FE — e od © Won. Curent Li | © Loan’ : a oO :@ ae 4 Le Bank overdraft ae ¢€ Expense Owings (Other Payables) ae a 7 “Tofal Capital and Liabilities ie te € 36 PeDW ww 9OCF eeeaeoeosescs : ‘A "STATEMENT OF FINANCIAL. POSITION Including | (CURRENT A/C Bealls Kost [Ace Depreciation | uses 3 { Non-Current Assets Premises a ae ro Fixtures and fittings, etc. ae ar [Caprent Assets; a ‘Tnventory_ we “Trade Receivables ar Bank va | Expense Prepaid (Other Receivables) oe Total Assets ate Hal and Liabilities Hn [Sania nates a [Seat —F na aa jlance: x ‘Balance b/d (Credit Balance) Le cad ‘Add, Interest on Capital dal ‘Add. Salaries eee ‘Add. Share of Profit, zee a Balance b/d (Debit Balance) oy (Less) Drawings: ‘inane | (Less) Ihterest on Drawings _ ey Balance cfd jad ee si Loan ee apie “Trade Payables ca Bank overdraft ay Exg ‘Owings (Other Payables) ae ee Total Capital and Liabilities ae vee 37)we as - LIMITED.COMPANY ‘Trading & Profit & Loss Approt priation A/C $ Details $ Tales [Revere] Turnover Teas} neturn inwards Wet Sates esi Cont of Salest ‘Gpening Taventory ‘had. Parchases Tess) Closing ventory ‘GROSS PROFIT “Rad, Biscount received / Commission Revelved ‘al, Profit ror doposal Rent & Rates ‘General Expenses Salaries & Wages Tighting & Heating ae ‘rectors remuneration ae Depreciation of administration computer ess Selig and Dbtibutlon Expenses ‘Garage Outwards ‘Sales reps salaries ‘Comission on Sles Tes FnanetalCharees | bebenture interest PROFIT before tax (ena corporation Tax ‘PROFIT forte year atiibutableto equity holders ‘fess Reseive: Transfer io GeneralReserve Transfert Forlgn Exchange Rererve THessi Proposed buldendss Proposed Preference Dividends Proposed Ordinary Dnidends interim Dien Tetained Profit forthe yeor ‘Add, Retained Profit 6/4 RETAINED PROFT C/O 38eeooeecs all Details ding & Profit & Loss‘ Appropti é Sales] Revenue /Torvover Tes) Return inwards ‘et oles ‘Hesahost of Sainet ‘Opening Inventory ‘ad. Purchases Ga Clas inventory ‘GROSS PROFIT "a Discount received / Commtssion Received “di. Prot from disposal es Administration xnenses ent @ ates {General Expenses Silares & Wages [phng & Heating Drectr'stemuneraton Depreciation of adeinistation computer eral Selig nd Disirbution fxventes Garage Outwards| ‘Solesreps salaries Commission on sales Profit rom Operations ‘esiinancal Charnes ‘Delentare interest PROF before tox Tes] corporation Tax ‘PROFIT forthe year attributable to equity holders isis “Transfer to General Reserve TTnafer to Forelgn Exchange Reserve Proposed Preference Dvidends Prepored Ordinary DMdends Trterim Dividends Fy ‘Retained Profit forthe year 7 “a. Retained Profi 0/8 - ‘RETAINED PROFIT C7D aoy STATEMENT OF CHANGES. IN EQUITY Deals Shas Capel [Camera Reveve | Retained Bavsings 5 $ g ‘Opening balance of the year we we we Tsoue of Share Capital Fi os T (Middle of the year) Transfer to general reserve > ae Cry Dividend paid = oy Profit for the year = > oe Giosing balance of the year a od ws 9 2 48 &STATEMENT OF FINANCIAL POSITION Deiails fost] Ace. Depreciation | NetBook Vaiue L s g 5 N Motor Van we ae Premises a = cee Machinery cry ae [ Curment Asset: Closing Inventory of ae Trade Receivables i (Less)Allowance for Daubifal Debis Trak ae VAT ae Income in artear (Other Receivables) ae : Prepaid expenses (Other Receivables) a 2 TOTAL ASSETS: ae 3 aie 6 Equity and Liabilities; 5 | Eauity and Reserve: Ordinary Share Capital { ase 7 Share Capital ae e Share Premium ad Fy e ‘General Reserve wae e Relained Profit ef ae ae . ul ies: ‘Debentu a o = * ie [ Cument Liabilities: Bese ie Trade Payables ve ie Debenture Interest due / Expenses Owing a 7 (Otter Payables) i : 7" ‘Tucome in Advance (Other Payables) a © Proposed dividends (Ordinary + Preference) | cc TO iG ‘TOTAL CAPITAL and LIABILITIES a ° | ie /@ & € 41