Final Accounts

FORMAT OF FINAL ACCOUNTS OF NON-CORPORATE NON-CORPORATE ENTITIES

Final Accounts

Trading and Profit & Loss a/c

Balance Sheet

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 To Opening Stock To Purchases Less : Purchase Return or Return inward To Direct Expenses: Carriage Inward Coal , gas & water Wages Freight Clearing charges Power (factory) Octroi Duty Custom Duty Manufacturing expenses Import Duty Factory Expenses Productive Expenses Consumable Stores Royalty Supervisor’s Salary To Gross Profit c/d (transferred to P&L A/c)

Amount (Rs.) xxx xxx xxx

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Particulars By Sales Less : Sales return or Return inward By Closing Stock

By Gross Loss c/d (transferred to P&L A/c)

Amount (Rs.) xxx xxx

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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 To Gross Loss b/d To Office & Administration expenses : To Rent , rates & taxes To Office salaries To Rent & rates To Stationeries To Postage expenses To Insurance To Audit fees To General expenses To Unproductive expenses To Repairs To Trading expenses To Office expenses To Interest paid To Bank charges To Sundry expenses To Selling & Distribution expenses : To Commission paid To Brokerage To Warehouse rent To Delivery van’s expenses To salesman Salary To Discount allowed To Advertisement To Carriage outwards To Travelling expenses To Distribution expenses To Packing charges To Bad debts To Depreciation To Net Profit (transferred to Capital A/c)

Amount (Rs.) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Particulars By Gross Profit b/d By Commission earned By Rent received By Interest received By Discount received By Dividends By Income from Investments By Bad debts recovered By Net Loss (transferred to Capital A/c)

Amount (Rs.) xxx xxx xxx xxx xxx xxx xxx xxx xxx

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1.3) Balance Sheet It is a statement showing the financial position of a b usiness. 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 (Rs.)

CURRENT LIABILITIES:

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LONG TERM LIABILITIES:

Mortgage loans Long term Loans Debentures

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FIXED LIABILITIES:

Less: Drawings Less: Income tax

Amount (Rs.)

CURRENT ASSETS:

Sundry creditors Bills payable Bank overdraft Outstanding expenses Short-term loans

Reserve fund Capital Add: Net profit (or) Less: Net loss

ASSETS

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Cash in hand Cash at bank Bills receivable Sundry debtors Short term Investments Closing stock Prepaid expenses

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FIXED ASSETS:

Furniture & fittings Plant & machinery Land & buildings Business premises Vehicles

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INTANGIBLE ASSETS :

Patents & trade marks Good will Copyrights

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