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Module 2

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22 views54 pages

Module 2

Uploaded by

nidhasadiq9645
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BBA2B02 Financial Accounting

Module 2

MUJEEB RAHIMAN KATTALI


Asst.Prof. in Management Studies,
SIAS-Vazhayoor.
Module II
Final Accounts of Proprietary
Concerns: Preparation of final
accounts of sole proprietor and
partnership with adjustments.
20 hours
M
financial

Fi Fi
Manufacturing Account

• A manufacturing concern buys raw materials,


processes them and produces finished goods for
sale.
• Hence a manufacturing concern has to find out
the cost of goods manufactured by it during a
period before finding out the gross profit.
• In such a case, an account called manufacturing
account is prepared to ascertain the cost of
manufacturing goods.
-Format
Provision for discount on Debtors will be shown: Debited in the
P/L account and also shown on the B/S -Asset side deduct from
Sundry debtors.
1
Ga
1

https://slideplayer.com/slide/7658034/
2

2017
Continue…
Question
From the following trial balance of Sharan, prepare trading and profit and loss
account for the year ending 31st December, 2017 and balance sheet as on that
date. The closing stock on 31st December, 2017 was valued at Rs. 2,50,000.
Solution
From the following Trial Balance of M/s. Ajay and Vijay, you are required to
prepare Trading and Profit and Loss Account for the year ended 31st March,
2009 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2009
• Particulars Debit Amt. (Rs.) Credit Amt. (Rs.)
• Capital A/c’s – Ajay 60,000
• Vijay 35,000
• Purchases and Sales 46,700 85,000
• Sundry Debtors and Creditors 28,000 25,000
• Bills Receivable and payable 5,000 6,000
• Commission 4,600 1,800
• Opening stock 18,000
• Wages 9,900
• Investment 13,500
• Postage and Telegrams 3,600
• Insurance 1,200
• Plant and Machinery 40,700
• Furniture 18,000
• Cash in hand 2,500
• Carriage 3,200
• Bad debts 400
• Prepaid Rent 7,000
• Salaries 10,500
Total 2,12,800 2,12,800
Adjustments:
1) The closing stock is valued at Rs. 31,000.
2) Outstanding expenses were wages Rs. 1,400, salaries Rs. 800.
3) Depreciate Plant and Machinery by 10%.
4) Insurance at Rs. 500 is paid in advance.
5) Provide for further bad debts of Rs. 1,500.
6) Commission due but not received Rs. 1,200.
6,000
6,800
QUESTION

From the above trial balance and adjustments prepare Trading, Profit and Loss Account
For the year ended 31st March ,2010 and balance sheet as on that date.

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