PROFIT AND LOSS ACCOUNT

SPECIMEN
(A) SINGLE STEP FORM:
Plutonics & Company
Trading and Profit and Loss Account
For the year ended on December 31, 20x1
Particulars
$
INCOMES:
Sales net
Other income
Less: EXPENSES:
Cost of goods sold:
Merchandise inventory Opening
Purchases net
Merchandise Inventory Closing
Wages
Operating expenses:
General expenses
Depreciation
Rent and rates
Bad debts
Advertisement
Insurance
Miscellaneous
Financial charges
Net Profit before Tax

$
175,000
2,300
177,300

30,000
61,975
91,975
(5,000)
86,975
57,770
4,400
4,150
6,000
1,000
3,000
1,000
3,000

144,745

22,550
1,250
(168,545)
8,755

(B) MULTIPLE-STEP FORM:

Plutonics & Company
Trading and Profit and Loss Account
For the year ended on December 31, 20x1
Particulars
Sales net
Less: Cost of Goods Sold:
Merchandise Inventory Opening
Purchases net
Goods available for sale
Merchandise Inventory Closing
Wages
Gross Profit
Less: Operating expenses:
General expenses
Depreciation
Rent and rates
Bad debts
Advertisement
Insurance
Miscellaneous
Operating Net Profit
Less: Financial charges
Add: Other income
Net Profit before Tax

30,000
61,975
91,975
(5,000)
86,975
57,770

4,400
4,150
6,000
1,000
3,000
1,000
3,000

$
175,000

(144,745)
30,255

(22,550)
7,675
1,250
6,425
2,300
8,725

BALANCE SHEET
SPECIMEN
(A) SINGLE YEAR BALANCE SHEET:
Plutonics Traders
Balance Sheet
As at December 31, 20x1
Assets:
Fixed Assets:
Equipment (net)
Furniture (net)
Total Fixed Assets

600,000
20,000
620,000
120,000

Long-Term Investments
Current Assets:
Merchandise inventory Dec 31, 20x1
Accounts receivable
Loans & advances
Prepaid expenses
Other receivables
Cash & bank balances
Total Current Assets
Less: Current Liabilities:
Accounts payable & other payables
Interest accrued
Short-term running finance
Total Current Liabilities
Working Capital

110,000
310,000
136,000
74,100
8,500
104,700
743,300
441,300
3,000
179,000
623,300
120,000
860,000

Less: Non-Current Liabilities:

Bank loan
Net Assets
Represented by:
Owners Capital:
Balance as at December 31, 20x1
Total Owners Capital

220,000
640,000
$

$
640,000
640,000

(B) COMPARATIVE BALANCE SHEET:

Plutonics & Sons
Balance Sheets (Comparative)
Dec 31
20x1
Assets:
$
Fixed Assets:
Plant & machinery
1,100,000
Less: Accumulated depreciation
406,500
693,500

1,200,000
440,000
760,000

60,000

50,000

300,000
1,160,000
40,000
517,500
2,017,500
2,771,000

260,000
1,000,000
44,000
434,000
1,738,000
2,548,000

806,000
68,000
250,000
1,124,000
287,000
837,000

566,000
164,000
155,000
885,000
79,000
806,000

409,000

402,500

1,508,000
10,000
7,000
1,525,000
2,771,000

1,322,500
12,000
5,000
1,339,500
2,548,000

Investments
Current Assets:
Merchandise inventory
Accounts receivable
Prepaid salaries
Cash & bank balances
Total Assets

Add:

Less:

Owners Equity:
Plutonics Capital
Additional investment
Net profit
Drawings
Liabilities:
Long-term borrowings
Current Liabilities:
Accounts payable
Utilities payable
Rent payable
Total Owners Equity & Liabilities

Dec 31
20x0
$

STATEMENT OF OWNERS EQUITY

SPECIMEN
Plutonics Traders
Statement of Owners Equity
For the year ended on December 31, 20x1
Capital as on January 1, 20x1
Add: Net profit after tax
Additional investments by owner during the year
Less: Drawings by owner during the year
Capital as on December 31, 20x1

$
388,500
136,400
1,100
526,000
6,000
520,000

STATEMENT OF CASH FLOWS

SPECIMEN

Plutonics Traders
Statement of Cash Flows
For the year ended on December 31, 20x1
$
Cash Flow from Operating Activities:
Cash received from customers
1,150,000
Interest received
10,000
Cash provided by operating activities
Cash paid to suppliers
820,000
Cash paid to employees
48,000
Interest paid
15,000
Rent and rates paid
27,000
Advertisement paid
3,000
Insurance paid
2,000
Cash disbursed for operating activities
Net cash flow from operating activities
Cash Flow from Investing Activities:
Purchase of Government Securities
(10,000)
Advances and loans made to employees
(13,000)
Collections on advances and loans
7,000
Cash paid to acquire plant assets
(180,000)
Proceeds from sale of plant assets
5,000
Net cash flow from investing activities
Cash Flow from Financing Activities:
Additional cash investment by owner
50,000
Cash drawings
(48,000)
Net cash flow from financing activities
Net increase in cash
Cash balance January 1, 20x1
Cash balance December 31, 20x1

1,160,000

(915,000)
245,000

(191,000)

2,000
56,000
48,700
104,700

CORPORATE FINANCIAL STATEMENTS

SPECIMEN
Plutonics Limited
Statement of Comprehensive Income
For the year ended on December 31, 20x1
Note
Revenue
Sales tax & discount
Revenue net
Cost of sales
Gross profit
Other operating income

25
26

Distribution costs
Administrative expenses
Other operating expenses
Finance cost

29
30
31
32

Profit before taxation

Taxation
Profit after taxation
Other comprehensive income
Total comprehensive income
Earnings per share basic and diluted

27
28

33

20x1
$ 000
28,803
(6,424)
22,379
(13,101)
9,278
15
9,293
3,509
377
211
72
(4,168)
5,125
(174)
4,951
4,951

34

$
36.14

The annexed notes form an integral part of these Financial Statements.

_______________
_______________
Chief Executive
Director
------------------------------------------------------------------------------------------------------------

NOTES TO FINANCIAL STATEMENTS

SPECIMEN
Plutonics Limited
Notes to the Financial Statements
For the year ended on December 31, 20x1
Note
25

26

REVENUE
Sales Manufactured goods
Sales Imported goods

28,264
539
28,803

SALES TAX DISCOUNT

Sales tax Manufactured goods
Sales tax Imported goods

5,101
27
5,127
1,297
6,424

Sales discount

27

COST OF SALES
Finished goods January 1, 20x1:
Manufactured goods
Imported goods
Cost of goods manufactured
Finished goods purchased Imported goods

27.1

Finished goods December 31, 20x1

Manufactured goods
Imported goods

605
22
627
12,754
329
13,710
577
33
(610)
13,101

27.1 Cost of goods manufactured

Raw material stock January 1, 20x1
Purchases
Raw material stock December 31, 20x1
Raw material consumed
Salaries, wages and benefits
Stores and spares consumed
Depreciation and amortisation
Utilities

20x1
$ 000

27.2

876
11,302
12,177
(1,063)
11,115
651
90
450
312

Repairs and maintenance

Stationery and office expenses

134
29
12,780
37
(63)
(26)
12,754

Work-in-process January 1, 20x1

Work-in-process December 31, 20x1
Cost of goods manufactured

27.2 Salaries, wages and benefits include contributions to provident fund

(defined contribution plan) and gratuity fund (defined benefit plan)
amounting to $ 14,850 and $ 12,100 respectively.
28

$ 000

OTHER OPERATING INCOME

Income from financial assets:
Dividend income
Return on savings account

6
1
7

Income from non-financial assets:

Scrap sales

29

DISTRIBUTION COSTS
Salaries, wages and benefits
Depreciation and amortization
Stationery and office expenses
Repairs and maintenance
Utilities
Advertisement and sales promotion
Outward freight and handling

8
15

29.1

355
129
46
8
312
2,020
640

29.1 Salaries, wages and benefits include contributions to provident fund

(defined contribution plan) and gratuity fund (defined benefit plan)
amounting to $ 8,100 and $ 6,600 respectively.
30

ADMINISTRATIVE EXPENSES
Salaries, wages and benefits
Depreciation and amortization
Stationery and office expenses
Repairs and maintenance
Utilities
Legal and professional charges
Auditors remuneration

30.1

30.2

$ 000
178
64
40
16
37
36
7
377

30.1 Salaries, wages and benefits include contributions to provident fund

(defined contribution plan) and gratuity fund (defined benefit plan)

amounting to $ 4,050 thousand and $ 3,300 respectively.
30.2 Auditors remuneration
Audit fee
Tax consultancy charges
Out-of-pocket expenses

31

32

33

34

$ 000
4
2
1
7

OTHER OPERATING EXPENSES

Workers profit participation fund
Workers welfare fund
Donations
Loss on disposal of property, plant & equipment
Exchange loss

FINANCE COST
Financial charges on short-term borrowings
Financial charges on lease

129
49
4
2
1
7
$ 000
67
6
72

TAXATION
Current
Prior
Deferred

720
(546)
174

EARNINGS PER SHARE basic and diluted

The calculated of basic and diluted EPS is based on the following
calculations:
Profit for the year

Weighted average number of ordinary shares

4,951
(No. of
shares)
137,000

$
Basic and diluted earnings per share

36.14

FINANCIAL STATEMENTS OF
A PARTNERSHIP FIRM
SPECIMEN

M/S A, B & C
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED ON JUNE 30TH, 20X2
$
Sales
Less: Cost of goods sold:
Stock on hand, July 1st, 20x1
Add: Purchases
Cost of goods available for sale
Less: Stock on hand, June 30th, 20x2
Gross profit
Less: Operating expenses:
Bad debt expense
Depreciation furniture & fixture
Depreciation land & building
Insurance expense
Salaries and wages
Office and trade expenses
Net profit

450,000
1,800,000
2,250,000
400,000

5,000
40,000
50,000
10,000
50,000
45,000

$
3,253,000

1,850,000
1,403,000

200,000
1,203,000

M/S A, B & C
STATEMENT OF ALLOCATION OF NET PROFIT
FOR THE YEAR ENDED ON JUNE 30TH, 20X2
A
B
C
Total
$
$
$
$
Partners salaries
120,000 84,000 60,000
264,000
Interest on capital @ 6% p.a.
60,000 42,000 27,000
129,000
Balance of profit (shared equally)
270,000 270,000 270,000
810,000
Allocation of net profit
450,000 396,000 357,000 1,203,000

M/S A, B & C
BALANCE SHEET
AS ON JUNE 30TH, 20X2
ASSETS:
Current Assets:
Cash in hand
Cash at bank
Debtors (net)
Prepaid insurance
Stock on hand

57,250
600,000
650,000
40,000
400,000
1,747,250

Total Current Assets

Fixed Assets:
Furniture and fixture
Less: Accumulated depreciation

400,000
80,000
320,000

Land and building

Less: Accumulated depreciation

1,000,000
100,000
900,000
Total Fixed Assets

1,220,000
2,967,250

TOTAL ASSETS
LIABILITIES AND PARTNERS EQUITY:
Liabilities:
Creditors
Office and trade expenses payable
Total Liabilities
Partners Equity:
Partners Capital Account:
A
B
C
Partners Current Account:
A
B
C
Total Partners Equity
TOTAL LIABILITIES & PARTNERS EQUITY

400,000
10,000
410,000

1,000,000
700,000
450,000
2,150,000
200,000
55,500
151,750
407,250
2,557,250
2,967,250

Note: All the figures and companies names given in this document are fictitious. All the
examples are given for demonstration purpose.