PRESENTATION ON FINAL

ACCOUNTS

BY- ABHINAV K YADAV

FINAL ACCOUNTS
Final accounts are organized summaries
of detailed information about the financial
position of an enterprise.
Final accounts are denoted by two basic
statements-
1. Trading and profit and loss
account
2. Balance sheet
Asset

Liability

Income and expenses

The following is the trial balance of Mohan as on 31st March
2008
Particulars Dr.(Rs) Cr.(Rs)
Land and Building 1,42,500 -
Plant and Machinery 42,500 -
Furniture 47,500 -
Motor vehicles 47,500 -
Opening Stock 75,000 -
Purchases & Sales 5,25,000 6,30,000
Returns 10,000 5,000
Carriage Inwards 1,000 -
Carriage Outwards 2,000
Wages 4,000
Salaries 20,000
Discount 2,000 1,000
Commission 1,500 2,000
Particulars Dr.(Rs) Cr.(Rs)
Interest 2,500 3,000
Rent 3,000 -
Postage 500 -
Depreciation 20,000 -
Debtors & creditors 2,05,000 50,000
Cash in hand 5,000 -
Cash at bank 24,000 -
Capital account - 5,00,000
Drawings 10,000 -

Closing Stock as on 31.3.2008 was Rs. 42,000

Solution:
Trading and profit and loss account as on 31st March 2008
Particulars Rs. Particular Rs.
To, Opening stock 75,000 By, Sales
6,30,000 6,20,000
(-)returns 10,000
To, Purchases 5,25,000 By, Closing stock 42,000
(-)returns 5,000 5,20,000
To, Carriage inwards 1,000
To, Wages 4,000
To, Gross profit transferred 62,000
. to P&L A/c
6,62,000 6,62,000

To, Depreciation 20,000 By, Gross Profit b/d 62,000

To, Carriage Outwards 2,000 By, Discount 1,000
To, Salaries 20,000 By, Commission 2,000
To, Discount 2,000 By, Interest 3,000
To, Commission 1,500
Particulars Rs. Particulars Rs.
To, Interest 2,500
To, Rent 3,000
To, Postage 500
To, Net Profit transferred to 16,500
. Capital A/c
68,000 68,000
Balance sheet of Mohan as on 31 March 2008
Liabilities Rs. Assets Rs.
Capital 5,00,000 5,06,500 Land & Building 1,42,500
(+) Net Profit 16,500

(-) Drawings 10,000

Creditors 50,000 Plant & Machinery 42,500
Furniture 47,500
Motor Vehicles 47,500
Cash in hand 5,000
Cash at Bank 24,000
Debtors 2,05,000
Closing Stock 42,000
5,56,000 5,56,000
THANK YOU FOR
YOUR PATIENCE