of Commerce mrsksk college beed COMPANY FINAL ACCOUNT Accounting is an art it is an art of recording transaction and reporting results Final account are for results Final accounts are prepared to show business profit over a period of time and business position at a point of ti ID: 1029775
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1. Dr.S.S.JadhavHead, Dept of Commercemrs.k.s.k. college beed
2. COMPANY FINAL ACCOUNT• Accounting is an art, it is an art of recording transaction and reporting results. Final account are for results.• Final accounts are prepared to show business profit over a period of time and business position at a point of time.• Final Account supply a wealth of information incomes, expenses, profits, assets, liabilities, reserves, almost everything about the business.• Final account explain the performance and the position of a company far better than a whole library of books. They are such a wonderful statements.• Preparation of final accounts is compulsory for a company. The final accounts of company consist of – 1. Profit and Loss Account 2. Profit and Loss Appropriation Account 3. Balance Sheet. Profit and Loss AccountProfit and Loss account shows the result of business operations during a particular period of time. The profit and Loss account itself is divided in to two parts- the first part for calculating gross profit and second part for calculating net profit. It is prepared at the end of an accounting period and shows profit or loss made during that period. The Specimen account given below
3. ParticularsL/FRsParticularsL/FRs.To Opening StockTo PurchasesTo wagesTo fuelsTo coal and cokeTo carriage inwardTo frightTo factory exp To Gross Profit c/d--------------------------------…………........By SalesBy Closing Stock--------…….....……….…..Co.Ltd. Profit and Loss A/c For the year ended …………. Dr.Cr.……--------------------------……
4. ParticularsL/FRsParticulars4L/FRs.To salariesTo indirect wages To Rent and ratesTo InsuranceTo Stationery & Printing To Postage & TelegramsTo Directors feesTo AdvertisementTo discount allowedTo commission paidTo carriage outwardsTo provision for doubtful debtsTo Provision for income taxTo Debenture interestTo travelling expensesTo Legal expensesTo sundry expensesTo General expenses To trade expensesTo RepairsTo DepreciationTo Net Profit c/d…..….…..…..…..….….….….….….….….….….….….….….….…._____By Gross Profit b/dBy Rent receivedBy Interest Received By Discount receivedBy commission receivedBy Dividend receivedBy Bad debts recoveredBy Miscellaneous receiptsBy Transfer Fees…..….…..…..…..….….….….….…….....……______……….…..Co.Ltd. Profit and Loss A/c For the year ended …………. Dr.Cr.
5. ParticularsL/FRsParticularsL/FRs.To dividend paidTo Dividend proposedTo interim dividend To Bonus to shareholdersTo Transfer to sinking fund for redemption of debenture To Transfer to capital redemption reserveTo transfer to dividend equalisationTo Transfer to investment fluctuation reserve To transfer to general reserveTo Transfer to contingency reserveTo Balance carried to Balance sheet --------------------------------…….......…..…..…..…..…..By Previous year profit By current year profitBy transfer from reservesBy provision no longer required --------…..……Profit and Loss Appropriation AccountAppropriation means division. Profit and Loss Appropriation Account shows the division of company’s profits. The Profit and Loss Appropriation appears as follows: ……….…..Co.Ltd. Profit and Loss Appropriation A/c For the year ended …………. ……--------------------------……----------------------
6. LiabilitiesRsAssetsRs.Share Capital:AuthorisedIssued: Subscribed:Less: Call in arrearsAdd: Forfeited sharesReserves and Surplus:Capital reserved General Reserved Share premium Debenture redemption fund Capital redemption reserveProfit and Loss Appropriation A/c------------------------…….......…..…..….Fixed Assets :GoodwillLand and BuildingLeaseholdsRailway sidingsPlant and MachineriesFurniture and FittingsPatents and TrademarksDevelopment of propertyLive stocksVehicals Investments:Govt. Bonds ----------------------------…….......…..…..Balance SheetA balance sheet is a statement of assets and liabilities. It shows the financial position of a business on a particular date. The balance sheet of a company must be prepared in the prescribed for, the summarised version of which is given below: The Indian companies Act,1956Schedule VI Part I(Section 211)……….…..Co.Ltd. Balance Sheet As at …………. ……--------------------------……----------------------
7. LiabilitiesRsAssetsRs.Secured Loans :DebenturesBank LoansInterest due on aboveUnsecured Loans:Public deposits Short term LoansInterest due on aboveCurrent Liabilities:Bill payableSundry CreditorsUnclaimed dividendOutstanding expensesInterest accrued but not dueProvisions:Provision for taxation Proposed dividend Provident fundPension fundInsurance fund ------------------------......…..…..…..………..…..…..…..…..Shares and debentures in other companiesCurrent Assets:Interest Accrued on InvestmentsStores and Spare partsLoose toolsClosing stockSundry debtorsCash in handCash at bankLoan and Advanced:Bill receivablePrepaid insuranceMiscellaneous Expenses:Preliminary ExpensesDiscount on Issue of shares and DebentureUnderwriting CommissionInterest paid out f capital during construction Advertising suspense AccountProfit and Loss account: Net Loss----------------------------…….......…..….….….….….….….….……--------------------------……----------------------