Vision & Purpose Academic Institute

CSEC Accounting – Formats & Templates

Inside:…
1. Income Statement/Trading & Profit and Loss
2. Balance Sheet / Statement of Affairs
3. Control Accounts
4. Partnership Accounts / Current Account
5. Manufacturing Accounts
6. Company Appropriation Accounts/Balance sheet extract
7. Co-operatives Appropriation
8. Subscriptions Account
9. Non-Profit: Receipt & Payments/Income & Expenditure
10. Depreciation/ Provision for Doubtful Debts
11. Bank Reconciliation
12. Accounting Ratios
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Income Statement / Trading and Profit & Loss

Formulas:
1. Trading Account: Sales less Cost of Goods Sold = Gross Profit
2. Profit & Loss Account: Gross Profit less Expenses = Net Profit

ABC
Income Statement
For the year ended 31 December 2022
$ $ $
Sales 600,000
Less Returns Inward (5,000)
595,000
Less Cost of Goods Sold/Sales:
Opening Stock/Inventory 75,000
Add Purchases 350,000
Less Returns Outward (3,000) 347,000
Add Carriage Inwards 6,000
Cost of Goods Available for Sale 428,000
Less Closing Stock/Inventory (28,000)
Cost of Goods Sold (400,000)
Gross Profit 195,000
[Add any extra profit or revenue here]
Discount Received/Interest Received/Rent Received etc. 5,000
200,000

Less Expenses:
Rent/Rates 5,000
Salaries/Wages 30,000
Carriage Outwards 3,500
Discount Allowed 4,000
Insurance 3,000
Sundry expenses 2,000
Bad debts 7,000
Depreciation: Motor vehicles 6,000 (60,500)
Net Profit 139,500
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Balance Sheet / Statement of Financial Position/ Affairs

Formulas:
1. Balance Sheet Equation: Assets minus Liabilities = Capital
2. Working Capital/Net Current Assets: Current Assets less Current Liabilities

ABC
Statement of Financial Position
As at 31 December 2022
Represented By
Cost Acc. Dep NBV
Fixed Assets: $ $ $
Buildings 600,000 (10,000) 590,000
Machinery/Equipment 400,000 (12,000) 388,000
Motor Vehicles 100,000 ( 6,000) 94,000
Fixtures & Fittings 50,000 ( 5,000) 45,000
1,150,000 33,000 1,117,000

Current Assets:
Stock (closing) 28,000
Debtors/Accounts receivables 160,000
Bank 350,000
Cash 200,000
Prepaid expenses 55,000 793,000

Less Current Liabilities:

Creditors/Accounts payables 90,000
Accrued expenses 30,000 (120,000)
Working Capital 673,000
Total Assets less Current Liabilities 1,790,000

Less Long term Liability – Mortgage (90,000)

1,700,000
Financed By
Capital 2,000,000
Add Net profit for the year 139,500
2,139,500
Less Drawings (439,500)
Total 1,700,000
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Control Accounts
NOTE: Control Accounts are used to locate errors and find missing figures. Here are the two
types of control accounts you need to be aware of.
Type 1:
Sales Ledger Control Account
Dr Cr
Balance b/f 1,894 Bank 7,284
Sales (credit) 10,290 Return Inwards 296
Dishonored cheque 575 Bad debts 300
Discount allowed 650
Set off: Purchases 100
Balance c/d 4,129
12,759 12,759
Balance b/d 4,129

Purchases Ledger Control Account

Dr Cr
Bank 3,620 Balance b/f 3,890
Return Outwards 96 Purchases (credit) 4,936
Discount received 350
Set off: Sales 100
Balance c/d 4,660 __________
8,826 8,826
Balance b/d 4,660
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Control Accounts ctd.

Type 2:

Total Debtors/Accounts Receivable Control A/c

Dr Cr
Balance b/f 5500 Receipts: Cash/Bank 61,500
Sales (missing figure) Balance c/d 6,600
68,100 68,100

Missing figure is 62,600

Total Creditors/Accounts Payable Control A/c

Dr Cr
Payments: Cash/Bank 31,600 Balance b/f 1,600
Balance c/d 2,600 Purchases (missing)
34,200 34,200

Missing figure is 32,600

Partnership Appropriation Account

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ABC
Partnership Appropriation Account
For the year ended 31 December 2022
$ $ $

Net profit for the year 50,000

Add: Interest on Drawings:

A: 500
B: 300
C: 200 1,000
51,000

Less: Interest on Capital:

A: 3,000
B: 2,000
C: 1,000 6,000

Less: Salary B: 3,000 (9,000)

42,000

Share of Profits: 3:2:1 A: 21,000

B: 14,000
C: 7,000
42,000

Sample of Partner’s Current Account

Partner B Current A/c
Dr Cr
Drawings 5,000 Balance b/f 2,000
Int on drawings 300 Int on Capital 2,000
Salary 3,000
Bal c/d 15,700 Share of profit 14,000
21,000 21,000
Balance b/d 15,700

Manufacturing Accounts
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ABC Manufacturing Account

For the period ended 31 December 2022
$ $
Opening Stock of raw materials 8,000
Add Purchase of raw materials 87,000
Add Carriage Inwards on raw materials 2,000
97,000
Less Closing Stock of raw materials (10,500)
Cost of Raw Materials Consumed 86,500
Direct Wages 39,600
Direct Expenses 1,400
Royalties 1,500
Prime Cost 129,000
Indirect Manufacturing Costs/Factory Overheads:
Factory Fuel and power 9,900
Indirect wages 25,500
Factory rent 7,200
Depreciation of plant and machinery 4,200
Insurance 1,500
General factory expenses 3,300 51,600
180,600
Add Opening Work-in-progress 3,500
184,100
Less Closing Work-in-progress (4,100)
Production Cost of Goods Completed 180,000_

ABC Trading Account

For the period ended 31 December 2022

Sales 250,000
Less Cost of Goods Sold:
Opening Stock of Finished Goods 3,500
Add Production Cost of Goods completed 180,000
183,500
Less Closing Stock of Finished Goods (4,400)
Cost of Goods sold (179,100)
Gross Profit 70,900

Less: Administrative Expenses 8,000

Selling & Distribution Expenses 12,000
Financial Charges 900 20,900
Net Profit 50,000

Company Appropriation Account / Statement of Equity

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ABC Company Appropriation / Statement of Changes in Equity

For the year ending 31 December 2022

Profit before taxation 250,000

Less Corporation tax (15,000)
Profit after taxation /Retained profits 235,000

Add Retained profits b/f from last year 175,000

410,000
Less:
Transfer to asset replacement reserve 20,500
Preference dividend of 5% 10,000
Ordinary dividend of 15% 60,000
Transfer to General Reserve 50,000 (140,500)

Retained profits c/f to next year 269,500

Balance Sheet (extract) for Company Accounts

ABC Company Balance Sheet (extract)

Equity $ $
Share Capital
Authorised 30,000 shares @$1 each 30,000
Issued 20,000 ordinary shares @ $1 each 20,000
Reserves
Share premium 1,200
General Reserve 3,800
Retained profits 2,000 7,000
Total Equity 27,000

Co-operatives Appropriation Account

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ABC Cooperative Ltd

Appropriation Account
For the year ended 31 December 2022

$ $

Surplus 65,000
Add: Undistributed Surplus b/f 125,000
190,000

Less: Appropriations
Transfers to reserves
Members Educational Fund 38,000
Disaster Relief Fund 57,000
Patronage Fund 17,500
Proposed Dividends 50,000 (162,500)

Undistributed Surplus c/f to next year 27,500

Note: Balance Sheet extract for Co-operatives same as company

accounts.

Non-Profit: Receipt & Payments/Income & Expenditure

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Note: The Receipts and Payments Account is simply a summary of the Cash Book.
Items on the left (DR) represent cash receipts and items on the right (CR)
represent cash payments.

Note: From the Receipts and Payments Account the Income and Expenditure
Account is prepared which represents the Final Accounts of a non-profit entity.
However, you may be required to do a number of workings before drawing up
you I&E
These may include:
1. Statement of Affairs to find Accumulated Fund (See Balance Sheet format)
2. Bar Trading Account to find profit for bar (See Trading Account format)
3. Control Accounts to find missing figures (See Type 2 – Control accounts)
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Subscriptions Account
__Dr__________________________________________Cr___

Owing b/f 360 Prepaid b/f 80

Income & Exp (missing figure) Bank / Cash 7,420
Prepaid c/d 140 Owing c/d 220
7,720_ 7,720

Owing b/d 220 Prepaid b/d 140

 Missing figure for I & E = 7,220

Note: When accounting for subscriptions in the Balance Sheet of a non-

profit organization, Subscription owing is treated as a Current asset while
Subscriptions paid in advance is treated as a Current liability

Sample of an Income & Expenditure Statement showing Surplus of

Deficit
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ABC Football Club

Income & Expenditure Account
For the year ended 31 December 2022

Income $ $

Subscriptions for 2022 (obtained from Subs A/c) 7,220

Profit from bar or fundraising activity 13,500
Donations received 800
21,520

Expenditure

Wages – groundsman 9,000

Repairs to stands 700
Ground upkeep 1,500
Secretary expenses 630
Transport costs 2,455
Depreciation: Equipment 500
(14,785)
Surplus (Deficit) of Income over Expenditure 6,735

Depreciation
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Formulae: Straight Line Method

Cost – Estimated Disposal Value
Number of expected years of use
Answer is the fixed depreciation amount applied each year.

Cost 8,000
Depreciation: year 1 (1,875)
6,125
Depreciation: year 2 (1,875)
4,250
Depreciation: year 3 (1,875)
2,375
Depreciation: year 4 (1,875)
Disposal Value 500

Reducing Balance Method

Cost 8,000
Dep: Year 1 (50% 8,000) (4,000)
4,000
Dep: Year 2 (50% 4,000) (2,000)
2,000
Dep: Year 3 (50% 2,000) (1,000)
1,000
Dep: Year 4 (50% 1,000) (500)
Net Book Value 500

Note: Entries for Provision/Allowance for Doubtful Debts

Year 1: Dr Profit & Loss; Cr Allowance for doubtful debts
Increasing: Dr Profit & Loss; Cr Allowance for doubtful debts
Decreasing: Dr Allowance for doubtful debts; Cr Profit & Loss

Bank Reconciliation
Steps:
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1. Compare cash book with bank statement

2. Update the Cash book with items that are missing
3. Prepare reconciliation using items from the bank statement

Method 1:
Balance as per Cash Book 2,500
Add:
Unpresented cheques 1,500
4,000
Less:
Lodgements not yet entered on bank statement (800)
Balance as per Bank statement 3,200

Method 2:
Balance as per Bank Statement 3,200
Add:
Lodgements not yet entered on bank statement 800
4,000
Less:
Unpresented cheques (1,500)
Balance as per Cash Book 2,500

Ratios
Profitability Ratios:
1. Return on Capital Employed (ROCE)
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Net profit x 100 = 40%

Capital employed (opening capital + closing capital / 2)

2. Gross Profit as a percentage of Sales

Gross Profit x 100 = 25%
Sales

3. Net Profit as a percentage of Sales

Net Profit x 100 = 15%
Sales

Liquidity Ratios:
1. Current Ratio / Working Capital Ratio
Current Assets
Current Liabilities = 2:1

2. Acid Test Ratio

Current Assets – Stock
Current Liabilities = 2.5:1

Efficiency Ratios:
Inventory / Stock turnover
Cost of Sales / Goods sold
Average Inventory (opening + closing inventory/2) = 5 times

Formulae: Cost Price + Gross Profit = Selling Price

Mark-up: Gross Profit = 1 or 25 per cent

Cost Price 4
Margin: Gross Profit = 1 or 20 per cent
Selling Price 5