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10. On 31st May 2018 paid Rs.5,000/- for electricity, Rs.20,000/- towards salary, Rs.2,500for transportation.
17. On 30th June 2018 paid Rs.4,000/- for electricity, Rs.20,000/- towards salary, Rs.2,000for transportation,
Rs.1,700 for local conveyance. Rs. 350 for office maintenance. All payments made by cash
ransportation.
transportation,
Profit & Loss Statement
Income
PL I Sales 979,000
Total 979,000
Expenses
PL Exp COGS 600,000
PL Exp Electricity 9,000
PL Exp Transport 4,500
PL Exp Local Coveyance 1,700
PL Exp Rent 50,000
PL Exp Salary 40,000
PL Exp Printing & Stat 1,200
PL Exp Maintenance 350
Profit 272,250
Total 979,000
Balance Sheet
Source
BS S Capital 1,000,000
BS S SBI Loan 1,500,000
BS S Cltd 350,000
2,850,000
Profit 272,250
BS A Purchases 1,250,000
BS A SBI CA 1,202,500
BS A Cash in Hand 39,750
BS A Furniture 60,000
BS A Computer 60,000
BS A Air Con 50,000
BS A Alfa Ltd. 125,000
BS A Techno Ltd. 135,000
BS A Security Deposit 200,000
3,122,250
TRIAL BALANCE
DEBIT CREDIT
BS S Capital 1,000,000
BS S SBI Loan 1,500,000
BS A Purchases 1,250,000
PL I Sales 979,000
PL Exp COGS 600,000
BS A SBI CA 1,202,500 1077500
BS A Cash in Hand 39,750 164,750 1,242,250
PL Exp Electricity 9,000 1242250
PL Exp Transport 4,500
PL Exp Local Coveyance 1,700
PL Exp Rent 50,000
PL Exp Salary 40,000
PL Exp Printing & Stat 1,200
BS A Furniture 60,000
BS A Computer 60,000
BS A Air Con 50,000
BS A Alfa Ltd. 125,000
BS S Cltd 350,000
BS A Techno Ltd. 135,000
BS A Security Deposit 200,000
PL Exp Maintenance 350
3,829,000 3,829,000
Purchase Account
Date Particulars Quantity Amount Date Particulars Quantity Amount
4.4.2018 Bank 10000*10 100000 5.4.2018 cogs 7000 70000
9.4.2018 Bank 10000*10 100000 11.4.2018 10000 100000
19.4.2018 Bank 5000*13 65000 20.4.2018 5000 56000
25.4.2018 Bank 7000*14 98000 26.4.2018 2000 26000
30.4.2018 Bank 9000*15 135000 30.4.2018 5000 69000
41000 498000 29000 321000
Closing Stock = 41000-29000 = 12000 units
Sales Acoount
Date Particulars Quantity Amount Date Particulars Quantity Amount
5.4.2018 Bank 7000*13 91000
11.4.2018 Bank 10000*14 140000
20.4.2018 Bank 5000*17 85000
26.4.2018 Bank 2000*15 30000
30.4.2018 Bank 5000*16 80000
29000 426000
If there is difference between physical stock and book stock at the end of the year following steps need to be taken:
1 Recheck the sales, Purchase & Inventory register for any calculation error
2 Check if any qty given as sample or gif
3 Check if there is any sales or purchase return
4 Check with quality control department if any stock rejected and lying at their end
5 If all above are found in order check the technicality of the product for shrinkage or evaporation.
6 Check for pilferages, thef and unreported damages
ABC Analysis
Qty Value
A 10% 70%
B 20% 20%
C 70% 10%
FIFO Method
Balance Stock Profit
3000 105000
3000 Inventory
3000 177000
1000 Weighted Mean Method
Price 12.14634
Inventory 145756.1
tock = 41000-29000 = 12000 units COGS 352243.9
Profit 73756.1
age or evaporation.
Inventory Valuation
1 Specific Identification - Designer Jewellary and Fashion product COGS = Purchase - Closing Stock
2 FIFO Priciple of Conservatism
3 LIFO Account for all anticipated losses but do not a
4 Weighted Average
5 HIFO Anticipation:
6 Retail Inventory Method Apprehension for Losses
Inventory Valuation
The closing inventory will be valued at cost or market price which ever is lower.
The market price can also be substituted with net realization value.
If value of Closing Stock dereases profit will also decrease
hase - Closing Stock
Expectation
Profit
Accounting for Revenue
US GAAP FASB
Indian GAAP SEBI
IAS SEC
IFRS Indian Accounting Standards
Expense
Loss in value of Asset
Expired/Utilized portion of Asset
Income
Return on expired asset
Revenue generated in exchange of expired portion of asset
Matching Concept
Expenses will be accounted only to the extent, the corresponding income has been accounted for.
2 Credit Sales
Credit Sales: Rs 1,00,000 /-
Income: Rs 1,00,000 /-
Dr. Trade Receivables 100000 Debt Actual Receipt 97500/- ( Afer 1 Year)
Cr. Sales 100000 Income Provisions for Doubtful Debts
(Based on principle of conservatism)
Provisions for Bad Debts
Whenever, there will be a reduction in any liability without corresponding reduction in assets,
the same shall be treated as Income.
Source
Capital 100
Loan 200
C Ltd 50 This credit purchase is settled for 45.5 will be treated as Income.
350
Bank 200
Other Assets 150
350
OTS
Principal = 20 Crores + Interest Accrued but not paid 20 crores = 40 crores
Settled for 30 Crores. Therefore income will be equal to 10 Crores
Interest on borrowings will be allowed as deduction from the income provided the same has been paid before filing of T
1. Certainity is the criteria for recognizing the income for a particular period
2. Bank deposit made on 1.10.2017 for 366 days. Interest accrued but not due as on 31.03.2018 is Rs 25 Lakhs.
The same shall be treated as Income for the period ended on 31.03.2018
3. Dividend declared on 30.6.2018 for the financial year 2017-18 amounting to Rs 20 Lakhs.
The same shall be treated as Income for the financial year 2018-19
2500
Chapter - 4
Revenue Pg 112
Non-Current assets are abroadly divided into 3 parts:
1 Intangible Assets
Financial statements are produced on historical costs not on the basis of fair value subject to ce
Valuation of closing stocks or inventory.
Valuation of P.P.E - When the process of revaluation is initiated.
nding notes on
on of revenue : Measurement of Income
Incase a company has the same EPS and Diluted EPS, It means that company has no convertible instrument as on the date of re
The EPS is one of the indicator for the rise or fall of market price of share.
3.2018 or for the period ended 31.3.2019)
Tax Implications:
Shares Listed in Stock Exchange on which STT is Paid at time of Buying and Selling
15 % for short term & 10 % for long term gain
Long term = more than 12 months holding in case of shares or > 24 months in other assets other than depriciable assets
For other assets Long term gain tax is 20%
/w the profit as per the Company's Act or the income taxable under the Income Tax\