M.

Com (Semester-1)
Batch Fall-2020
Course: Financial Accounting
Study Credit Hours: 3
Book: Contemporary Financial Accounting (Pakistan Edition)
Robert L. Dansby, Micheal D. Lawrence, Burton S.
Kaliski, Saeed Ahmed Sabir
 Financial Statement
ACCOUNTING CYCLE
1. Journal

8. After-closing 2.
Trial Balance Ledger / T-
Account

7. Closing 3. Unadjusted
Entries Trail Balance

4. Adjustments /
6. Financial Adjusting
Statement Entries

5. Adjusted
Trial
Balance
 Financial Statement
Financial Statements represent a formal
record of financial activities of business.
These are written reports that quantify
the financial performance of business.
 Financial Statement
There are following parts of financial
statement in services business.

 Income Statement / Profit & Loss Statement

 Statement of Owner’s Equity

 Balance Sheet / Statement of Financial Position

 Income Statement
The income statement is a report made
by management of business that shows
the revenue, expenses, and net income or
loss for a period.
 Income Statement
Business Name
Income Statement
For the Year Ended……….
Particulars Rs. Rs.
Revenues:
Services Revenue XXXX
Interest Received XXXX XXXX

Expenses:
Salaries XXXX
Rent XXXX
Supplies Expenses XXXX
Interest Paid XXXX
Discount XXXX
Advertising XXXX XXXX
Net Profit / Loss XXXX
 Statement of Owner’s Equity

This statement shows the owner’s

investment in the business minus
the owner's withdrawals from
the business plus the net income (or
minus the net loss) since
the business began.
Statement of Owner’s Equity

Business Name
Statement of Owner’s Equity
For the Year Ended……….
Particulars Rs. Rs.
Capital at the Beginning XXXX
Add: Net Profit XXXX
Less: Drawings XXXX
Capital at the End XXXX
 Balance Sheet
A balance sheet is a financial statement
that reports a company's assets,
liabilities and owner’s equity at a specific
point in time.
 Balance Sheet
Business Name………
Balance Sheet
As on …………………..……….
Particulars Rs. Rs.
Assets
Cash XXXX
Receivables XXXX
Office Supplies XXXX
Office Equipment’s XXXX
Less: Accumulated Depreciation XXXX XXXX
Total Assets XXXX
Liabilities
Payables XXXX
Salaries Payable XXXX XXXX
Owner’s Equity
Capital at the End XXXX
Total Liabilities & Owner’s Equity XXXX