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    Final Account

    Uploaded by

    2023hb79011
    FINAL ACCOUNT

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Final Account

    Uploaded by

    2023hb79011
    1 views5 pages
    FINAL ACCOUNT

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    FINAL ACCOUNT

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    FINAL ACCOUNT

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1 views5 pages

    Final Account

    Uploaded by

    2023hb79011
    FINAL ACCOUNT

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Trial Balance for the year ….

    Debit balances Amount Credit balances Amount


    Rs. Rs.
    Opening stock 40,000 Capital 2,70,00
    0
    Rent 2,000 Creditors 50,000
    Equipment 1,20,00 Bills payable 50,000
    0
    Buildings 2,55,00 Long-Term Loan from 1,10,00
    0 Bank 0
    Power 3,500 Discount 1,500
    Purchases 75,000 Sales (revenue) 1,50,00
    0
    Sales return 2,500 Provision for bad 1,000
    debts
    Telegram and Postage 400 General reserves 50,000

    Wages 4,500
    Salary 2,500
    Insurance Premium Paid 3,200
    Discount 1,000
    Repair and Renewals 2,000
    Legal charges 700
    Trade taxes 1,200
    Debtors 75,000
    Investment 65,000
    Bad debts 2,000
    Trade expenses 4,500

    Commission 1,250
    Travelling expenses 1,230
    Drawings 20,020

    Total 6,82,50 6,82,50


    0 0

    Adjustments

    1. Closing stock for the year was 35500

    2. Depreciation charged on equipment 5% andbuilding 6%.

    3. Interest on drawing @ 6% and Interest on loan taken @ 5%.


    Interest on drawing 0.06

    Interest on loan 0.05

    4. Interest on investments @ 4%.

    5. Further bad debts 2,500 and make provision for doubtful debts on
    debtors 5%.

    Further Bad Debt 2500

    New Provision 3,525

    6. Discount allowed to debtors @ 2%. 1450

    7. Salary outstanding 200

    8. Wages outstanding 100

    9. Insurance prepaid 500

    Statement of Income and Expenditure for the year


    ….
    Revenue
    Sales (revenue) 1,50,000
    Less: Sales return 2,500
    Net Sales 1,47,500
    Discount 1,500
    Interest on Drawing 1201
    Interest on Investment 2600
    Old Provision 1,000
    Toatl Income 1,52,801
    Expenses

    Opening stock 40,000


    Add: Purchase 75,000
    Less: Purchase Return 0
    Less: Closing Stock 35500
    Raw Material Consumed 79,500
    Depreciation on
    Equipment 6000
    Building 15300 21300
    Outstanding Interest on Loan 5500
    Salary 2,500
    Add: Salary Outstanding 200
    Total Salary Expense 2,700
    Wages 4,500
    Add:Wages Outstanding 100
    Total Wages Expense 4,600
    Insuarnce Premium Expense 3,200
    Less: Prepaid Insurance Premium Expense 500

    Total Insurance Expense 2,700

    Bad Debt 2,000

    Add: Further Bad debt 2500


    Add: New Provision 3553
    8,053

    7,053
    Discount allowed to debtors 1450

    Repair and Renewals 2,000


    Legal charges 700
    Trade taxes 1,200
    Trade expenses 4,500
    Commission 1,250
    Travelling expenses 1,230
    Rent 2,000
    Telegram and Postage 400
    Power 3,500
    Discount 1,000

    Total Expense 1,42,583

    Net Income 10,218


    Statement of Sources &
    Application of funds as on ….
    Owners Liabilities
    Equity Share Capital 2,70,000
    Add: Reserve & Surpluses 50,000
    Less: Drawings 20,020
    Less: Interest on Drawing 1201
    Add / Less: Profit / Loss 10,218
    3,08,997
    Long-Term Creditors Liabilities
    Long-Term Loan from Bank 1,10,000

    Short-Term Creditors Liabilities


    Creditors 50,000
    Bills payable 50,000
    Add: Salary Outstanding 200
    Add:Wages Outstanding 100
    Outstanding Interest on Loan 5500

    Total Sources of Funds 5,24,797

    Long-Term Assets
    Gross Block of Equipment 1,20,000
    Less: Depreciation (5%) 6000
    Net Block of Equipment 1,14,000

    Gross Block of Building 2,55,000

    Less: Depreciation (6%) 15300

    Net Block of Building 2,39,700


    Investment (Financial) 65,000
    Short-Term Assets
    Debtors 75,000
    Less: Further bad debt 2,500

    Less: Discount 1,450


    71,050
    Less: New Provision@5% 3553
    67,497
    Closing Stock of Inventories 35500
    Add: Prepaid Insurance
    Premium 500
    Add: Interest on Investment 2600

    Total Application of
    Funds 524797

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