Beruflich Dokumente
Kultur Dokumente
Practice questions
Kamal Kalra 5 Aug 2012
ACCOUNTANC
Class XII
Capital Expenditure is expenses on long term assets . fixed assets, installation, patents etc Revenue expenditure is expenses of running business, goods, repairs, expenses etc Similarly Receipts can be classified as Capital or Revenue. Capital receipts can be share capital or money from sale of FA and Revenue receipt is anything not in nature of Capital receipt Eg A second hand car is purchased for 20000 and 5000 is spent in overhauling it means Rs.25000 is capital expenditure If Inward freight for a plant was 1000 and installation 200 means 1200 is capital expenditure
Final accounts
The Trading account gives the overall result of trading in a given period Rev-Exp The Trading account gives the Gross Profit (or loss) Eg The following figures are taken from a Trial Balance Purchases 30000 PR 5000 Sales 40000 SR 5000 Gives GP of 10000 Opening and closing stock In above example if CS is 5000 Cost of Goods Sold= Net Purchases-CS= 25000-5000=20000 Hence GP=Net sales- cost of Goods sold=35000-20000=15000 Excercise Stock as on 1.1.98 10000 Purchases 40000 PR 5000 Sales 60000 SR 10000 Closing stock 31.12.98 15000 Calculate GP
Solution
Sales 60000 Less SR 10000 50000 Cost of Goods sold Opening stock 10000 Add net purchases 35000 Less CS 15000 30000 GP 20000 In case any expenses are incurred on carriage in these are to be added COGS In the above case if Rs.5000 was incurred on Carriage In that would make the GP 15000. Merchandise can also be used for Goods Sales Direct expenses= GP GP-all other expenses= NP Closing stock is shown as an asset in the BS and appears on the credit side of the Trading account GP=Sales (Opening stock + purchases + Direct expenses closing stock) Or GP=Sales +CS OS-Purchases-Direct Expenses Closing entries are passed only for entries of Trading & P&L A/c
________ 12500
To Stock of FG (op) 20000 To cost of prod (Mfg a/c) 70000 To purchases FG 30000 To Cartage FG 2000 To GP to P&L 8000 Total 130000
130000
7299 1589 300 3403 13841 667 380 481 200 750 328 180 628 3614 By GP c/d By Comm
B To Dep Ins Printing Carriage out Salaries To Disc Bad Debts Net Profit to Capital a/c Total
3614
Balance Sheet
Liabilities BP Creditors Bank od Capital Add profit Assets 541 1780 4000 9228 628 9856 Cash petty cash BR Debtors closing stock Plant furniture 895 47 2730 1905 3700 6230 670 16177
16177
TB contd.
Particulars Factory Rent Taxes Factory Exp Royalty paid on Sales Sales Less returns Advertising Office Rent Insurance Printing Office Expenses Carriage Out Discounts Bad Debts Total Debit 3400 2500 1200 3000 4800 1000 5800 600 1400 750 215500 Credit
123400
2100 215500
Thank You