Cost Sheet Format

Cost sheet for the period ----------------------

Production _____________________Units

Particulars Amt Rs. Amt Rs. Total Rs. CPU

Direct Material Consumption -

Opening Stock of raw materials,Primary packing X

Add - Purchases X
Add - Carriage Inward X
Less - Closing Stock of raw materials,Primary packing X
Less - Scrap of raw materials X

= Direct Material Consumed XX

Direct Wages XX
Direct Expenses XX

= Prime Cost XXX

Add - Factory Overheads

Indirect Materials XX
Loose Tools XX
Indirect wages XX
Rent rates taxes of factory XX
Lighting and heating - Factory XX
Power fuel , utilities XX
Repairs Maintenance XX
Cleaning XX
Drawing offcie expenses XX
Cost of research and experiments XX
Depreciation of factory plant XX
Works stationery XX
Insurance - Fixed assets - plant XX
- Stocks XX
Salaries of works XX
Other Manufacturing costs XX

= Works cost / Factory cost - Gross XXX

Add - Opening WIP XX
Less - Closing WIP XX
= Net Works / factory cost XXX

Add - Administrative / office Overheads

Rent rates taxes of office / admin XX
Lighting and heating - office XX
Power fuel , utilities - office XX
Repairs Maintenance - office XX
Cleaning office XX
Legal Fees XX
Audit fees XX
Depreciation of office XX
Office stationery XX
Insurance - Fixed assets - office XX
Salaries - office XX
Salaries of M.D / CEO XX
Bank Charges XX
Other office costs XX
= Cost of goods Produced /Cost of Production XXX
Particulars Amt Rs. Amt Rs. Total Rs. CPU

Add - Opening Stock of Finished Goods XX

Less - Closing Stock of Finished goods XX
= Production Cost of goods sold XXX

Add - Selling and distribution expenses

Rent rates taxes of sales office XX
Lighting and heating - sales XX
Secondary Packing material XX
Repairs Maintenance - sales XX
Salaries - sales XX
Office stationery - sales office XX
Salesman Travelling XX
Advertisement , sales promotion XX
Bad debts XX
Showroom rent , rates XX
Trade Discount XX
Commission XX
Depreciation of delivery van etc XX
Carriage outward XX
Free gifts and samples XX
Debt collection expenses XX

= cost of sales XXX

Profit / Loss XXX

Sales = XXX

Items to be excluded from cost sheet -

Provision for bad debts / doubtful debts

Income tax
Dividends
Commission out of profits
Capital gain / loss
Interest on loans
Donations
Capital expenses
Discount on shares / debentures
Under writing commission
Goodwill / preliminary expenses written off
Cash discount
 Cost Classification

Based on Based on Based on Based on Based on Based on Based on

Nature of element Traceability Behaviour Functions / Activity Mgt DM Prod process Time

1 Material 1 Direct 1 Variable 1 Production 1 Marginal 1 Job Cost 1

2 Labour 2 Indirect 2 Fixed 2 Admin 2 Differential 2 Process cost 2
3 Expenses 3 Semi Variable 3 Selling 3 Opportunity 3 Operating
4 Distribu 4 Replacement 4 Contract
5 Finance 5 Relevant
6 R&D 6 Irrelevant
7 Avoidable
8 Unavoiadable
9 Normal
10 Abnormal
 Based on
Time

Historical / Sunk
Pre determind
Standard
estimated
 Classification of accounts

Personal

Natural Artificial Representative

Mr Sharma BOB outstanding comm

Mr Ratan Tata BOM outstanding rent
Drawings SBI rent recd in advance
Capital Tata Motors prepaid salary
Loan from mehta outstanding salary

Rules of accounting

Personal ( Natural / artificial ) accounts

Debit the receiver
Cerdit the giver

Representative personal account

Debit the receivables
Credit the payables

Real accounts
Debit what comes in
Credit what goes out

Nominal accounts
Debit the expenses and losses
Credit the incomes and gains

Examples of all types of accounts

Real Nominal

Machinery Commission
Building Bank charges
Furniture Bad debts
land Freight
Cash/ Bank salary
Goods clearing charges
Office equipment travelling
Loose tools wages
Motor car audit fees
Type writer insurance premium
Shares discount
Elect fittings royalty
Goodwill brokerage
Patent dividend
Copy right interest
Investment subscription
Live stock import duty
Stock of staionery elect
Debentures advrt
Fixtures s expenses
Stock of goods loss by fire / theft
Bills receivables trade exp
Premises repairs
printing
leasehold building
sales
interest recived
commission received
tion of accounts

Impersonal

Nominal Real
Tangible Intangible

Expenses Incomes Cash Goodwill

Building Patent
Bank charges sales
Bad debts interest recived
Freight commission received
salary
clearing charges
travelling
wages
audit fees
insurance premium

Personal

Representative personal a/c

commission recd in advance
outstanding comm
outstanding rent
rent recd in advance
prepaid salary
outstanding salary
Outstanding wages
prepaid insurance
advance received
interest receivable
int recd in advance
outstanding int
Unexpired ins

Artificial person a/c

BOB
BOM
SBI
Tata Motors
J J hospital
GOI

Natural person a/c

Mr Sharma
Mr Ratan Tata
Drawings
Capital
Loan from mehta
Common Adjustments made in financial Accounting

Adjustments for Entry passed Effect to be given by student

Depreciation Depreciation a/c Dr 1 To be debited to P&L

To Asset a/c 2 Deduct from Respective asset

Closing stock Stock a/c Dr 1 Credited to trading a/c

To Trading account 2 Shown under asset side

Bad debts Bad debts a/c Dr 1 To be debited to P&L

To Debtors 2 Deduct from debtors under balance sheet

Outstanding expenses Expense a/c Dr 1 To be debited to P&L

Or added to item if alreasy exist
To Outstanding expense a/c
2 Shown under current liability

Outstanding Income Outstanding income a/c Dr 1 To be added in item in P&L

To Income A/c 2 Shown under Assets side

Prepaid expense Prepaid expense a/c Dr 1 Shown under Assets side

To Expense a/c 2 To be deducted from item in P&L

Pre received income Income a/c Dr 1 To be deducted from item in P&L

To Prereceived income a/c 2 Shown under Liability side

Interest on capital Interest a/c Dr 1 Debited to P&L

To Capital 2 Added to capital a/c

Goods used for personal use Drawings a/c Dr 1 Shown as deduction from capital

To Purchases a/c / Goods a/c 2 Deducted from Purchases

Distribution of goods as Advertisement a/c Dr 1 Shown as advt in P&l a/c

free samples
To Purchases a/c 2 Deducted from Purchases

Interest on drawings Capital A/c Dr 1 Deducted from capital

To interest on drawings 2 Credited to P&L a/c

Reserve for discount on Creditors Res For disc on crs A/c Dr 1 Credited to P&L a/c

To Profit and loss a/c 2 Deducted from creditors

under liability side
Reserve for discount on Debtors Profit and loss a/c Dr 1 Debited to P&l

To Res for dis on debtors 2 Deducted from debtors

If new reserve + discount is

> old reserve,
Then on debit side of p&l
a/c -
New reserve + disc - old reserve

If new reserve + discount is

< old reserve,
Then on Credit side of p&l
a/c -
Old reserve - disc - new reserve

Loss of stock - theft or fire Loss of stock a/c Dr 1 Dr to profit and loss account
total loss less recovered from ins company
is shown
To Trading account 2 Cr to trading account
total value of loss is shown
3 Recovered amt from ins co is shown under
asset side
for example, total loss due to fire was 1000 out of which ins co admits a claim of
60% only, then we can recover 600 and we loose 400
entry will be -

loss of stock a/c Dr 1000

to Trading account 1000

Ins co a/c Dr 600

to Loss of stock account 600

Trading account will be credited by 1000

profit and loss a/c debited by 400
current asset will show 600 from ins company as amount receivable

Following Items given in Trial balance appear only once as follows

Closing Stock Asset side of balance sheet

Outstanding expenses Liability side of balance sheet

Outstanding income Asset side of balance sheet

Expenses paid in advance Asset side of balance sheet

Income received in advance Liability side of balance sheet

Depreciation Debit side of profit and loss a/c

Provision for depreciation Deduct from asset side of balance sheet

 Ready reckner for Balances

Different account heads with their balances

Particulars Dr Cr

1 Cash xx
2 Bank xx
3 Drawings xx
4 Purchases xx
5 Furniture xx
6 Land xx
7 Machinery xx
8 Op stock xx
9 Cl stock xx
10 Debtors xx
11 Postage xx
12 Taxes xx
13 Rent rates xx
14 Salaries / wages xx
15 Carriage xx
16 Discount allowed xx
17 Discount received xx
18 Printing xx
19 Gas and elect xx
20 Lighting xx
21 Repairs xx
22 Cartage xx
23 Advertisement xx
 Ready reckner for Balances

Different account heads with their balances

Particulars Dr Cr
24 Commission paid xx
25 Commission received xx
26 Travelling xx
27 General exp xx
28 Loan Given xx
29 Loan taken xx
30 Bad debts xx
31 Bad debts reserve xx
32 Provision for Discount on Cr xx
33 Contribution to PF xx
34 Prize fund xx
35 Bills receivble xx
36 Bills payable xx
37 Equipments xx
38 Depreciation xx
39 Prov for Depreciation xx
40 Return inwards xx
 Ready reckner for Balances

Different account heads with their balances

Particulars Dr Cr
41 Return outwards xx
42 Interest paid xx
43 Interest received xx
44 Freehold property xx
45 Premises xx
46 Freight xx
47 Excise duty paid xx
48 Loose tools xx
49 Motive power xx
50 Purchase of stationery xx
51 Outstanding income xx
52 Capital xx
53 creditors xx
54 goodwill xx
55 patents xx
56 Unexpected expenses xx
57 Bank O/D xx
58 Petty cash xx
59 Investments xx
60 Profit / loss account xx
61 Outstanding expenses xx
62 Audit fees xx
63 Prov for dis on debtors xx
64 Legal Charges xx
 Ready reckner for Balances

Different account heads with their balances

Particulars Dr Cr
65 Income received in advance xx
66 Interest on debentures xx
67 Provident fund xx
 Proforma Trading Account

Dr
Particulars Amt Particulars

To op stock By Sales
Purchaaes less returns Inwards
Less Returns outward
Closing stock
Freight Goods distributed as samples
Carriage inward Goods destroyed by fire
Import duty goods lost by theft
Dock Dues goods withdrawn by the proprietor
Custom duty
Excise duty Gross loss transferred to profit and lo
Works manager salary
Factory repairs
Factory insurance
Other Factory expenses
Octroi duty
Wages
Fuel
Heating lighting
Factory rent / rates
Royalties
Gorss profit
Tr to Profit and loss account
xxx
 Cr
Amt

e proprietor

d to profit and loss

xxx
 Proforma Profit and Loss Account

Dr Cr
Particulars Amt Particulars Amt

To Gorss loss By Gross profit

Tr from Trading a/c Tr from Trading a/c

Office expenses Comm reced

Staff salary
rent Dis recd
gen exp
manager comm Int recd invetsments
insurance
printing Int on F.D
postage
tele Rent recd
S exp
Conveyance Royalty recd
Audit fees
Office repairs Misc income
Office cleaning
maintenance Prov for dis on creditors
depreciation
By Net Loss
Selling and dis Tr to capital

Carriage out
carriage on sales
export duty
Forwarding charges
advrt
Free samples
Comm on sales
Delivery exp
Sales salaries
Showroom exp
 Godown rent
Bad debts and prov

Finance expenses

Interest
Discount allowed
Bank cahrges
Bank Comm
Int on O/D
Prov for dis on debtors
Int on capital

NET Profit
Tr to capital a/c
xxx xxx
 Proforma Balance sheet - Sole Trader

Liabilities Amt Assets

Capital Land building

Op Bal Less dep
Add Additional cap Plant Machinery
Int cap Less dep
Furniture
Less Drawings Less dep
Net Loss( Tr from P& L) Motor car
Int on drawings Less dep
Trade marks
Add Net Profit Copy rights
Tr from P& L Loose tools
Net Capital XX Goodwill
Patents
Bills payable XX
S Creditors XX Investments
Outstanding expenses XX
Closing stock
Loans XX Stores and spares
Outstanding Int on loans XX Petty cash
Cash in hand
Income received in advance XX Cash at bank
Bank O/D XX prepaid exp
Outstanding income
Bills receivables
S Debtors
Less - New bad debts
Less - New R D D

XXX
 Amt

x
x xx
x
x xx
x
x xx
x
x xx
xx
xx
xx
xx
xx

xx

xx
xx
xx
xx
xx
xx
xx
xx
x
x
x xx

XXX