Financial Statements - I

balances of all fixed assets and long-term investment under the heading of ‘non-current assets’. Balance Sheet of Ankit as at March , (in order of permanence) Liabilities Assets Owners Funds Non Current Assets Furniture Add Profit , Current Assets Non-Current Liabilities Debtors , Long-term loan Bank Current Liabilities Cash Creditors , , Fig. . (c): Showing assets and liabilities arranged in logical groups Do it Yourself Arrange the following items in the order of both permanence and liquidity. Also group them under logical heads : Liabilities Assets Long-term loans Building Bank overdraft Cash in hand Bills payable Cash at bank Owner’s equity Bills receivable Short-term loans Sundry debtors Sundry creditors Land Finished goods Work in progress Raw material Illustration From the following balances prepare a trading and profit and loss account and balance sheet for the year ended March , Carriage on goods Cash in hand , purchased Bank overdraft , Carriage on goods sold , Motor car , Manufacturing expenses , Drawings Advertisement , Audit fees , Excise duty , Plant , , Factory lighting , Repairs to plant , Debtors , Stock at the end , Creditors , Purchases less return , , Dock and Clearing charges , Commission on purchases , Postage and Telegram Incidental trade expenses , Fire Insurance Premium , Investment , Patents Interest on investment Income tax , , , Office expenses , Sales less return , , Salest tax paid Discount allowed , Discount on purchases , Trading and Profit and Loss Account for the year ended March , Expenses/Losses Revenues/Gains Purchases less return , , Sales less return , , Commission on purchases , Carriage on goods purchasesd Manufacturing expenses , Factory lighting , Dock and Clearing charges , Gross profit c/d , , , , , , Carriage on sales , Gross profit b/d , , Advertisement , Interest on investment Excise duty , Discount on purchases , Postage and telegram Fire Insurance premium , Office expenses , Audit fees , Repairs to plant , Incidental trading expenses , Sales tax paid Discount allowed , Net profit , , (transferred to capital account) , , , , Balance Sheet as at March , Liabilities Assets Bank overdraft , Cash in hand , Creditors , Debtors , , , Closing stock , Add Net profit , , Investment , , , Motor car , Less Drawings ( , ) Plant , , ,47400 Patents Less Income tax ( , ) , , , , , , Illustration From the following balances prepare trading and profit and loss account and balance sheet for the year ended March , , , , , Drawings , , Sundry debtors , Returns (Dr.) , Sundry creditors Returns (Cr.) , Depreciation , Factory rent , Charity Custom duty , Cash balance , Coal, gas & power , Bank balance , Wages and salary , Bank charges Discount (Dr.) , Establishment expenses , Commission (Cr.) , Plant , , Leasehold building , , Bad debts recovered , Sales tax collected , Apprenticeship premium , Goodwill , Production expenses , Patents , Adminstrative expenses Trademark Carriage , Loan (Cr.) , Interest on loan , The value of closing stock on March , was Rs. , Solution Trading and Profit and Loss Account for the year ended March , Expenses/Losses Revenues/Gains , Sales: , , Purchases: , Less Returns ( , ) , , Less Returns : ( , ) , Factory rent , Closing stock , Custom duty , Coal, gas, power , Wages and salary , Production expenses , Carriage , Gross profit c/d , , , , , Discount (Dr.) , Gross profit b/d , , Commission , Administrative expenses Bad debts recovered , Depreciation , Apprenticeship premium , Charity Bank charges Establishment expenses , Interest on loan , Net profit , (transferred to capital account) , , , , Balance Sheet as at March , Liabilities Assets Sales tax collected , Cash balance , Sundry creditors Bank balance , Loan , Sundry debtors , , , Closing stock , Add Net profit , Leasehold building , , , , Plant , Patents , Less Drawings ( , ) , , Goodwill Trade mark , , , , ,