Académique Documents
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DR
CR
FINANCIAL STATEMENTS
An Overview
General Journal Special Journals
Ledger Accounts
Objectives
At the end of the lesson, students should be able to : know the purpose of preparing Final Accounts. know what is a Trading Profit & Loss Statement. know how to draw up a Trading P & L statement and a Balance Sheet on the last day of the accounting period.
$
XX Sales Less: Returns Inwards
$
XX (XX)
$
XX
$
1,000 Sales Less: Returns Inwards 10,000 11,000 (2,300)
$
23,000
(1,400) 21,600
Net Profit **
XX
Revenues
XX
XX
XX
An Example Profit & Loss Account for the year ended 31 Dec 2000 $
Rent Expense Insurance Expense Wages Depreciation Interest Expense Transport Expenses Net Profit ** 1,000 3,400 7,000 3,000 1,200 2,580 3,220 Gross Profit * Commission Revenue Interest Revenue
$
12,900 7,500 1,000
21,400
21,400
Recall.Balance Sheet
Assets = Owners Equity + Liabilities BALANCE SHEET AS AT 1 Jan 2000
Fixed Assets $ Building Office Equipment Motor Vehicle Fixtures Current Assets Stock (*closing) Debtors Bank Cash
$
Owners Equity Capital Add: Profits Less: Drawings Long Term Liabilities Loan from bank Current Liabilities Creditors Other creditors
Same figure
Example
OE + L
38000
Long Term Liabilities Loan from bank 3000 Current Liabilities Creditors 6650
47650
IN CLOSING