fd2dbtraditional & mordern formats of finanancial statements (1)
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7/29/2019 Fd2dbTraditional & Mordern Formats of Finanancial Statements (1)
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llustrative example (1) - Traditional Format of Trading A/c & Profit and Loss A/c
Trading Account of Arjun
for the year ended 31 December 2011
Opening Stock 5,000 Sales 980,000
Add: Purchases 500,000 Less: Sales Returns 15,000
Less: Purchases Return 10,000 Refunds 5,000
Drawings 20,000 20,000
NET PURCHASES 470,000 NET SALES 960,000
475,000
Add: Other Expenses
Duty 2,000
Cartage Inwards 900
Buying Expenses 500
3,400
COST OF GOODS
AVAILABLE FOR SALE 478,400
Less: Closing Stock 50,000
COST OF GOODS SOLD 428,400
GROSS PROFIT 531,600
960,000 960,000
Profit and Loss Account of Arjun
for the year ended 31 December 2011
OPERATING EXPENSES Gross profit 531,60
SELLING & DISTRIBUTION Add: OPERATING INCOME
Advertising 75,000 Discount received 2,000
Salesmens Salaries 60,000 Rent received 30,000
Salesmens commission 20,000 Bad Debts recovered 4,000
Motor vehicle expenses 15,000 Interest received 10,000
Cartage outwards 3,000 Commission received 50,000
Depreciation 96,00
- Motor vehicles 7,600 TOTAL OPERATING INCOME 627,60
- Shop Fittings 3,900
184,500 OFFICE & ADMINISTRATIVE
Salaries 90,000
Printing & stationery 5,900
Electricity 4,800
Telephone 3,700
Travelling 400
Entertainment 2,000
Rent paid 12,000
Depreciation
- Office equipment 3,700
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- Buildings 9,700
- Furniture 3,600
Postage 2,000
Legal fees 900
Petty cash expenses 500
Sundry expenses 2,000
141,200
FINANCIAL EXPENSES
Bad debts 1,600Discount allowed 400
Interest paid 15,000
Doubtful debts 3,000
20,000
TOTAL OPERATING EXPS 345,700
NET OPERATING PROFIT 281,900
627,600 627,60
NET OPERATING PROFIT 281,90
Less: NON-OPERATING EXPAdd: NON-OPERATINGINCOME
Loss on Sale of Fixed assets Rent 50,000
Donation 5,000Damages received in courtcase 35,000
Losses by fire 14,000 Gain on sale of fixed assets 39,900
Theft 2,000 124,90
Damage paid in court cases 10,000 TOTAL REVENUES 406,80
31,000
NET PROFIT 375,800
406,800 406,80
llustrative example (2) - Modern Format- Profit and Loss Statement
7/29/2019 Fd2dbTraditional & Mordern Formats of Finanancial Statements (1)
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Profit and Loss Statement of Karan
for the year ended 31st December 2011
Sales 375,000
Less: Sales returns 2,500
NET SALES 372,500
LESS COST OF GOODS SOLD
Opening stock 8,900
Add: Purchases 290,000
Less: Purchases returns10,00
0
Drawings50,00
0 60,000
NET PURCHASES 230,000
Add: Other Expenses
Buying expenses 3,500
Duty 5,900
Cartage Inwards 2,000
Wharfage 4,800 16,200
Total Goods available for sale 246,200
Less: closing stock 45,900
200,300
COST OF GOODS SOLD 209,200
Gross Profit 163,300
Add: Operating Income
Discount received 2,000
Interest received 10,500
Bad debts recovered 4,000 16,500
TOTAL OPERATING INCOME 179,800
Less: OPERATING EXPENSES
Selling & Distribution Expenses
Advertising 12,000
Cartage Outwards 900
Salesmens salaries 20,000Salesmens commission 2,000
Motor vehicle expenses 3,000
Depreciation
- Motor vehicles 500
- Shop fittings 200
Wharehouse houses 1,000
39,600
Office & Administrative Expenses
Office salaries 30,000
Electricity 2,900
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Telephone 1,900
Postage & stationery 290
Legal fees 900
Rent paid 12,000
Petty cash expenses 450
Depreciation
- Buildings 4,000
- Equipment 2,900
- Furniture 1,80057,140
Financial Expenses
Bad debts 200
Discount allowed 190
Interest paid 6,000
6390
TOTAL OPERATING EXPENSES 103,130
Net Operating Profit (Loss) 76,670
Add: Non- Operating Gains
Rent 36,000
Gain on sale of fixed assets 5,900
Damages from court case 12,000 53,900
130,570
Less: Non-Operating Expenses
Damages paid for court case 6,700
Donations 2,800
Loss on sale of assets 5,800
Theft 500 15,800
Net Profit (Loss) 114,770
llustrative example (3) - Traditional Format of Balance Sheet
Balance Sheet of Karan
as at 31 October 2012
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Current Liabilities Current Assets
Creditors 35,000 Cash on hand 500
Expenses due 5,900 Cash at bank 45,900
Income in advance 12,700 Closing stock 38,000
Bank overdraft 70,000 Debtors - Bad debts 60,000
123,600 Less: Prov. For D. Debts 5,800 54,200
Non Current Liabilities Prepayments 590
Debentures 200,000 Income due 4,000
Loan 100,000143,
Mortgage 120,000 Non Current Assets
420,000 543,600 Land 80,000
Proprietorship Buildings (cost) 190,000
Capital 250,000 Less: Accum. Depn 18,000
Add: Net Profit 120,000 172,000
370,000 Motor vehicles (cost) 90,000
Add: Additional Capital 50,000 Less: Accum. Depn 18,000
420,000 72,000
Less: Drawings 170,310 Furniture (cost) 96,000Less: Accum. Depn 4,900
249,690 91,100
Equipment (cost) 120,000
Les: Accum. Depn 20,000
100,000
515,1
Investments
Shares in ABC Co. 100,0
Intangible Assets
Goodwill 20,000
Preliminary expenses 15,000
35,0
793,290793,
Illustrative example (4) - Modern Format- Profit and Loss Statement
Proprietorship
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Capital 400,000
Add: Net Profit 80,000
480,000
Less: Drawings 15,000
465,000
This is represented by
Current Assets
Cash on hand 500Cash at bank 29,000
Closing stock 12,000
Prepayments 5,900
Income due 2,900
Debtors 12,700
63,000
Current Liabilities
Creditors 20,000
Expenses due 3,700
Income in advance 2,800
26,500
Working Capital 36,500
Add: Fixed Assets
Land 120,000
Buildings (cost) 190,000
Less: Accum. Depn 10,000
180,000
Furniture (cost) 98,000Less: Accum. Depn 3,000
95,000
Equipment (cost) 120,000
Less: Accum. Depn 40,000
80,000
475,000
Intangible Assets
Goodwill 10,000
521,500
Less: Long Term Liabilities Loan 56,500
465,000
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