FINAL SEMESTER EXAM'S FEVER....

Wishing my fellow students VERY BEST OF LUCK for your coming final exam.....

USAHA + DOA + TAWAKAL = BERJAYA!

TOPIC 5: FINANCIAL STATEMENTS (the format)

Final Accounts

·         Final accounts are prepared at the end of accounting year.

·         It consists of

     a)      Trading Account

     b)      Profit and Loss Account

     c)      Balance Sheet

·         Basically, by preparing a trading account, you will get a gross profit or gross loss, from profit and loss account you will get a net profit or net loss, and from balance sheet you will get back your accounting equation (A = L + C).

·         (Trading Account) + (Profit and Loss Account) = Income Statement. This is another version of final accounts. Instead of separately prepare the Trading Account and Profit and Loss Account, you can also combine them into one bigger version of statement to become an Income Statement. In this format, we are still using the same format as we used in preparing the Trading Account and Profit and Loss Account.

a) The format of Trading Account

Trading Account for the year ended ………………………………..
Sales		XXX
Less: Sales Returns		(XXX)	XXX
Less: Cost of Goods Sold
Opening Stock		XXX
Add: Purchases	XXX
Less: Purchases Returns	(XXX)	XXX
Wages		XXX
Carriage Inwards		XXX
Custom Duties		XXX
		XXX
Less: Ending Stock		(XXX)	(XXX)
GROSS PROFIT			XXX

b) The format of Profit and Loss Account

Profit and Loss Account for the year ended …………
GROSS PROFIT			XXX
Add: Revenues
Commission Received		XXX
Rent Received		XXX	XXX
			XXX
Less: Expenses
Insurance		(XXX)
Rent		(XXX)
Salaries		(XXX)
General Expenses		(XXX)	(XXX)
NET PROFIT			XXX

 c) The format of Income Statement

Income Statement for the year ended ………………………………..
Sales		XXX
Less: Sales Returns		(XXX)	XXX
Less: Cost of Goods Sold
Opening Stock		XXX
Add: Purchases	XXX
Less: Purchases Returns	(XXX)	XXX
Wages		XXX
Carriage Inwards		XXX
Custom Duties		XXX
		XXX
Less: Ending Stock		(XXX)	(XXX)
GROSS PROFIT			XXX
Add: Revenues
Commission Received		XXX
Rent Received		XXX	XXX
			XXX
Less: Expenses
Insurance		(XXX)
Rent		(XXX)
Salaries		(XXX)
General Expenses		(XXX)	(XXX)
NET PROFIT			XXX

 d) The format of Balance Sheet

Balance Sheet as at ………………………..

Non-current Assets: Furniture XXX Vehicle XXX Machinary XXX XXX Current Assets: Ending Stock XXX Accounts Receivables XXX Cash in Hand XXX Cash at Bank XXX XXX Total Assets XXX Current Liabilities: Accounts Payable (XXX) Bank overdraft (XXX) (XXX) Non-Current Liabilities: Bond / Debentures (XXX) Mortgage (XXX) (XXX) Total Liabilities (XXX) NET ASSETS XXX Capital: Cash Introduced XXX Add: Net profit for the year XXX XXX Less: Drawings (XXX) NET CAPITAL XXX