Q1 -a Express (Pvt) Ltd

Trading Profit & Loss Account

For the year ended 31st March 2010
Sales
(-)Return inwards
Net Sales
Cost of goods sold
Opening stocks
Purchases
Return outwards
Transport costs
(-)Closing stocks
Gross profits
Other Income
Bad debts recobered
Interest Inocme

Office and Establishment Expenses

Rent & Rates
Saff Salaries
Sundry Expenses
Electricity expenses
Telephone and Fax expenses
Genral office expenses
Depreciation for land and building
Depreciation forMachinery
Depreciation for Furniture and Fittings
Depreciation for Office Equipment

Selling and distribution expenses

Bad Debts
Transport costs
Advertising expenses
Sales Promotional expenses
Increase in proision for doubtful debts
Prepaid General Office expenses

Finance and other costs

Bank Charges
Interest
Loss on disposal
Net profit Before Tax
Tax
Net profit after Tax
 Dividends
Interim
Proposed
Trasfer to Dividend Equalisation reserve
Profit for the year

b) Express (Pvt) Ltd

Balance Sheet
As at 31st March 2010
Non Current Assets
Cost Acc.Depn
Land & Building 5,000 570
Machinery 8,000 3,200
Furniture and fittings 3,500 1,994
Office Eqipment 1,500 1,125

Current Assets
Stocks 275
Debtors 3,200
Provision for Doubtful debts (160) 3,040
General Office Expense 18
Cash at Bank 500
Cash in hand 300

Total Assets

Equity
Share Capital 6,000
Retained Profits 265
Asset replacement reserve 200
Dividend Equilaisation Reserve 700

Long term liablity

Term Loan 3,000
Debentures 320

Current Liabilites
Trade Creditors 2,600
Accrued Transport expenses 200
Tax payable 50
 Proposed Dividends 400
Bank Overdraft 1,800

Equty and Liabilities

c)
To Chief Executive Officer
From Accountant
Subject Financial Accounting Process
Date 25-Sep-10
Accounting process begins by analysing transactions to determine how they
effect the equation. Then, those effects are recorded in accounting records,
informally referred as the books. Additional processing steps summarize and
classify the effect of all transactions. The process is not complete until it
provides useful information to decision makers in financial statements or other
reports.Recording refers to copying all the transactions in the primary journals
and there respective ledger accounts in the ledger.summarisation refers to
extracting all the balances in the ledgers to Trial balance to prepare final
accounts.Finally prepares Financial Statements for users to make viable
decission

W1 - Calculation of closing provision for Doubtful debts

Opening provision for doutbthful debts
Increse in provision (P& L)

w2 Disposal of Fixtures
Office Fixtures 200000 Provision for Depreciation
Bank
loss on disposal

200000
w3 Depreciation for land and building
Depreciation forMachinery
Depreciation for Furniture and Fittings
Depreciation for Office Equipment

Q3

1.04.2009 Balance B/f

1.07.2009 Cash
Accounts Payable/Cash
31.03.2010 Account payable /Cash

1.1.2010 Disposal of Machinery

31.3.2010 Bank
Dispoal of Machinery
Account Payable

1.06.2009 Machinery A/c

1.1.2010 Machinery A/c

Profit & Loss A/c

31.3.2010 Machinery A/c

31.3.2010 Disposal
Machinery
of Machinery
A/c
 Profit & Loss A/c

Accumilated depreciation of Disposed machi

Accumilated depreciation of Disposed machi

Accumilated depreciation of Disposed machi

B) Depreciation is a systematic allocation of cost of non

useful life and it is recommended to provided for depre
outflow in order to match the relavant revenue with the
that revenue.

Q6
Membership subscription Account
Balace B/F 20,000 Balance B/F

Income & Exenditure

199,000A/c
Bank -Subscription received

Balance C/d 12,000 Balance C/d

231,000

Life membership Account

Income & expenditue account

30,000 Bank -Membership fees

Balance C/d 270,000

 300,000

Bar Trading Account

Bar Sales
Bar purchases

Barman slaries

Staff Salaries
Electircity cost
Bar maintance Expenses

Optimists Anonymous
Income and Expenditure Account
for the year ended 31.03.21010
Net profit from the annual dinner dance
Net profit form printing clun T Shirts
Members subscriptiopn
Life time membership
Income from the raffel draw

Expenses
Staff salaries
Electricity cost
General Expenses
Upkeep of the club faclity
Club house maintenace costs

Deficit over Income

Q5
Excellent Products
Manufacturing account for the year ended March 31 2010

Direct Material
Opening stocks
Purchases
Carriage inwards
Closing stocks
Raw Material consumed
Direct Wages

Royalty

Prime Cost

Production overheads
Electricity Cost 60,000
Depreciation of building 140,000
Factory cleaning expenses 50,000
Rent & rates 200,000
Depreciation of factory machinery 80,000
Machine maintenance cost 40,000
Factory labour 40,000
Production related salaries 300,000
Factory Insurance 50,000

Opening Work in progress

Closing Work in progress

Production Cost -to be transferred to Trading A/C

 13,680
(400)
13,280

200
5800
-600
400
-275 5,525
7,755

20
100

300
2400
200
130
80
142
90.4
800
358.4
375 4,876

280
600
1800
1348
10
18 4,056

60
150
18 228
(1,285)
(50)
(1,335)
 500
400
300
(2,135)

W.D.V.
4,430
4,800
1,506
375
11,110

4,133
15,243

(292)
 15,535

determine how they

accounting records,
steps summarize and
t complete until it
ial statements or other
in the primary journals
marisation refers to
e to prepare final
s to make viable

oubtful debts 160

150
10

72000
110000
18000

200000
 90.4
800
358.4
375

Machinery Account
10,000,000 31.08.2009 Accounts Payable/Cash
250,000 1.06.2009 Disposal of Machinery
2,500,000 1.06.2009 Disposal of Machinery
800,000
500,000 1.1.2010 Disposal of Machinery
400,000
31.3.2010 Disposal of Machinery
500,000
200,000 1.1.2010 Disposal of Machinery
31.3.2010 Disposal of Machinery
600,000
50,000
100,000 31.3.2010 Disposal of machinery
30,000
Balance C/d - 10,830,000 31.3.2010 Disposal of Machinery
31.3.2010 Balnce C/d
13,380,000 13,380,000

Disposal of Machinery Account

800,000 1.06.2009 Provision for Depreciation
220,000
1.06.2009 cash 420,000
Profit & Loss A/c 160,000

400,000 1.1.2010 Provision for Depreciation

123,333
1.1.2010 Cash 100,000
23,333 1.1.2010 Machinery 200,000

500,000 31.3.2010 Provision for depreciation

287,500
31.3.2010 Machinery A/c 100,000
Profit & Loss Ac 112,500
600,000 31.3.2010 Provision for depreciation
600,000
 20,000 31.3.2010 Cash 20,000

2,343,333 2,343,333

Depreciation for the year

epreciation of Disposed machinery on 1st June 2009 9 Machines purchased on 1.7.2009
220,000 Machine sold on 1.6.2009
new machine bought on 31.3.2010
epreciation of Disposed machinery on 1st Jan 2010 Machine sold on 31.1.2010
123,333 Machine exchanged on 31st March 201
Existing Assets
epreciation of Disposed machinery on 31st March 2010 Exchange new assets
287,500 Exchange new asstes

matic allocation of cost of non current asset over its economic

mended to provided for depreciation though there is no cash
the relavant revenue with the expenses incurred to generate

16,000

200,000

15,000
231,000

300,000
 300,000

300000
125,000

40,000

80,000
25,000
20,000

45,000
22,000
199,000
30,000
40,000
336,000

320,000
50,000
90,000
50,000
150,000
660,000
(324,000)

ear ended March 31 2010

Rs

50,000
450,000
30,000
(80,000)
450,000
 130,000

100,000

680,000

(it is assumed that its indirectly linked to production function)

960,000

80,000
(40,000)

1,680,000
 Existing Assets 7,700,000

Provision for Depreciation Account

9 Disposal of Machinery 220,000 1.04.2009 Balance B/f 3,500,000

31.3.2010 P& L 988,750

Disposal of Machinery 123,333

0 Disposal of machinery 287,500

0 Disposal of Machinery 600,000

0 Balnce C/d 3,257,917
4,488,750 4,488,750
ation for the year
168750
13333.33
0
33333.33
0
770,000.0
3333.33
0
988750