Unit
I 1 06
1 : Preparation
e i i i i of
n Final
i
Accounts
l l l l l l
Final Accountsconsistof
statement
ofProfit loss
statement
ofFinancialPosition
Notesto accounts
Comparativeinformation
Limitations financialstatements
of
historiccostinformation especially
duringinflation
creative accounting aimedat reducing gearing
seasonaltrading timing theyear
of
assetacquisition justbeforeyearend
effect relatedpartiesinvolving groupcompanies
of
, PracticalProblems
1 Dr TradingAlcfor31Dec20 5 or
Particulars Amount Particulars amount
Openingstock 70,000 sales 520,000
320,000 10,000 510,000
Purchases cess returnsinwards
1810001 312,000 110,000
less returnsoutwards closingstock
12,000
Carriageinwards
40,000
Wages
add 5,000 45,000
wages
Grossprofit old 181,000
620,000 620,000
Dr Profit loss Account or
Particulars Amount Particulars amount
salaries 60,000 grossprofit 181,000
Rent 30,000
insurance 10,000
lessprepaid 21000 8,000
Baddebts 5000
addfurtherdebts 4000
8152000 7600 16,600
provision 5
Depreciation
24,000
InterestonBankloan 8,000
Netprofit
O 181,000
Balancesheetas on 31Dec20 5
I 1 06
1 : Preparation
e i i i i of
n Final
i
Accounts
l l l l l l
Final Accountsconsistof
statement
ofProfit loss
statement
ofFinancialPosition
Notesto accounts
Comparativeinformation
Limitations financialstatements
of
historiccostinformation especially
duringinflation
creative accounting aimedat reducing gearing
seasonaltrading timing theyear
of
assetacquisition justbeforeyearend
effect relatedpartiesinvolving groupcompanies
of
, PracticalProblems
1 Dr TradingAlcfor31Dec20 5 or
Particulars Amount Particulars amount
Openingstock 70,000 sales 520,000
320,000 10,000 510,000
Purchases cess returnsinwards
1810001 312,000 110,000
less returnsoutwards closingstock
12,000
Carriageinwards
40,000
Wages
add 5,000 45,000
wages
Grossprofit old 181,000
620,000 620,000
Dr Profit loss Account or
Particulars Amount Particulars amount
salaries 60,000 grossprofit 181,000
Rent 30,000
insurance 10,000
lessprepaid 21000 8,000
Baddebts 5000
addfurtherdebts 4000
8152000 7600 16,600
provision 5
Depreciation
24,000
InterestonBankloan 8,000
Netprofit
O 181,000
Balancesheetas on 31Dec20 5
