PROFORMA FOR GRADE 12 ACCOUNATNCY- Modified.pdf

SOWNDARYA SHREE (M.Com, B.Ed)
PROFORMA FOR GRADE 12 ACCOUNATNCY (MATRIC SYLLABUS)
Chpater-01
Accounts from Incomplete records:
1. Statement of profit & loss a/c:
2. Statement of affairs:
Computation of Opening/Closing balance:
In the book of xxx a/c:
For the period ending xxx:
Liabilities Amount Assets Amount
Creditors XXX Cash in hand XXX
Bills Payable XXX Cash at bank XXX
Bank loan XXX Inventories XXX
Capital (Balancing
figure) XXX Investment XXX
Prepaid expenses XXX
Furniture XXX
Land and building XXX
Plant and
machinery XXX
Bills Receivable XXX
XXX XXX
Particulars Amount
Closing capital XXX
Add:
Drawings XXX
XXX
Less:
Additional capital XXX
Adjusted closing capital XXX
Less:
Opening capital XXX
Profit/ loss made during the year XXX

3. Total debtors a/c:
Particulars Amount Particulars Amount
To balance b/d
(Opening) XXX By cash (Received) XXX
To Bills receivable
(Dishonor) XXX
By discount
allowed XXX
To Credit sales
(Balancing figure) XXX By Sales return XXX
By Bills receivable
(Received) XXX
By balance c/d
(Closing) XXX
XXX XXX
Total sales= Cash sales + Credit sales
4. Bills receivable a/c:
To balance b/d
(Opening) XXX
By debtors a/c
(Bills dishonor) XXX
To sundry debtors
(Balancing figure) XXX
By balance c/d
(Closing) XXX
XXX XXX
5. Total creditors a/c:
To cash (Paid) XXX
By balance b/d
(Opening) XXX
To discount received a/c XXX By bank (Dishonor) XXX
To purchase return a/c XXX
By credit purchase
(Balancing figure) XXX
To balance c/d (Closing) XXX
XXX XXX
Total purchase = Cash purchase + Credit purchase

6. Bills payable a/c:
To cash (Bills paid) XXX
By balance b/d
(Opening) XXX
To balance c/d
(Closing) XXX
By creditors
(Bills accepted) XXX
XXX XXX
7. Trading and proft loss account
In the book of XXX a/c:
For the period ending xxx
Particulars Amount Amount Particulars Amount Amount
To Opening stock Xxx By sales
To purchases Cash xxx
Cash xxx Credit xxx
Credit xxx less:
Less: xxx Sales return xxx xxx
Purchase return xxx Xxx By closing stock xxx
To Direct
expenses Xxx
To Gross profit
c/d (Balancing
figure) Xxx
By Gross loss c/d
(Balancing figure) xxx
XXX XXX
To Gross loss b/d Xxx By Gross profit b/d xxx
To Rent paid Xxx
By discount
received xxx
To salaries Xxx
By commission
received xxx
To sundry
expenses Xxx
By Net loss c/d
(Balancing figure) xxx
To Net profit c/d
(balancing figure) Xxx
XXX XXX

Balance sheet
In the book of xxx a/c:
As on ***:
Liabilities Amount Assets Amount
Capital xxx
Add: Net profit /Less:
Net loss xxx
Less: Drawings xxx XXX Cash in hand XXX
Creditors XXX Cash at bank XXX
Bills Payable XXX Inventories XXX
Bank loan XXX Investment XXX
Prepaid expenses XXX
Furniture XXX
Land and building XXX
Plant and
machinery XXX
Bills Receivable XXX
XXX XXX
List of direct expenses:
1. Royalty
2. Octri Duty
3. Carriage inward
4. Freight inward
5. Import duty
6. Lightning etc…
Notes:
In case both the accounts of debtors and bills receivable is asked always your
first account should be bills receivable and Vice vera for other two acounts.

Chapter-02
Non profit organisations:
1. Receipts and payment account:
To balance b/d
Cash
Bank
Xxx
Xxx
By rent Xxx
To subscription a/c
Previous year
Current year
Subsequent year
Xxx
Xxx
Xxx
By telephone charges
To life membership fee Xxx By interest on bank
charges
Xxx
To Legacies Xxx By Insurance premium Xxx
To Sale of an old
newspaper
Xxx By upkeep of ground Xxx
To sale of investment Xxx By balance c/d
Cash
Bank
Xxx
Xxx
XXX XXX
Items to be excluded:
i. Depreciation
ii. Outstanding
2. Income and expenditure account:
Expenditure Amount Income Amount
To loss on sale of asset Xxx By subscription Xxx
To salary Xxx By interest received Xxxx
To Rent Xxx By entrance fees Xxx
To Travelling expense Xxx By locker rent recived Xxx
To printing & Stationery xxX
To insurance of assets
To Surplus (Balancing
figure)
Xxx By deficit (Balancing
figure)
Xxx
Items to be excluded:
1. Opening and closing balance

2. Purchase and sale of asset
3. Legacy
4. Life membership fees
3. Consumption of materials, medicines:
Income and expenditure account:
Expenditure Amount Income Amount
To opening stock xxx
Add:
Purchases xxx
Less:
Closing stock xxx XXX
By sale of …. xxx XXX
Balance sheet:
Liability Amount Assets Amount
Closing stock XXX
4. Subscription account:
Given year balance as per question ***
Add:
Pertaining to Current year ***
Less:
Previous and Subsequent year ***

Chapter- 03
Fundamentals of partnership accounting:
1. Format of fixed capital account method:
(a) Partners capital account:
Date Particulars A B Date Particulars A B
By balance b/d xxx xxx
To balance c/d xxx Xxx
By cash/ bank a/c(fresh
capital introduced) xxx xxx
xxx Xxx xxx xxx
(b) Partners current account:
To balance b/d xxxxxx By balance b/d xxx xxx
To drawings a/c xxxxxx By interest on capital a/c xxxXxx
To interest on drawing a/c xxxxxx By salary a/c xxxXxx
To P&L appropriation
a/c(share of loss) xxxxxx By commission a/c xxxXxx
To balance c/d ? ?
By p&l appropriation a/c
(share of profit) xxxXxx
By balance c/d ? ?
xxxxxx xxxXxx

2. Fluctuating Capital Method:
To balance b/d xxxxxx By balance b/d xxxxxx
To drawings a/c xxxxxx By interest on capital a/c xxxxxx
To interest on drawing a/c xxxxxx By salary a/c xxxxxx
To P&L appropriation
a/c(share of loss) xxxxxx By commission a/c xxxxxx
To balance c/d ? ?
By P&L appropriation a/c
(share of profit) xxxxxx
By balance c/d ? ?
xxxxxx xxxxxx
3. Interest on capital = Amount of capital * Rate of interest* Average period.
4. Journal entry for Interest on capital:
Date Particulars L.F Dr (Rs) Cr (Rs)
Interest on capital A/c Dr. Xxx
To Partners capital a/c
(Being interest provided) Xxx
Date Particulars L.F Dr (Rs) Cr (Rs)
P&L appropriation a/c dr. Xxx
To interest on capital a/c
(Being IOC closed) Xxx

5. Methods for computing IOD:
• Direct method
Interest on drawings = Amount of drawings x Rate of interest x Period of
interest
• Product method
Interest on drawings = Sum of products x Rate of interest p.a x 1/12
Average period method
Frequency of withdrawal
Average period of months
Time of withdrawal
At the beginning At the middle At the end
Monthly 6.5 6 5.5
Quarterly 7.5 6 4.5
Half-yearly 9 6 3
6. Managers commission
a. Commission as a percentage of net profit before charging commission =
Net profit before commission × % of commission/100
b. Commission as a percentage of net profit after charging commission =
Net profit before commission X % of commission/ 100+ % of
commission
7. Profit and loss appropriation:
Particulars Rs. Particulars Rs.
To Interest on partners capital a/c XXX By P&L a/c XXX
To partners salary a/c XXX By Interest on drawing a/c XXX
To partners commission a/c XXX
To partners capital/ current a/c (profit) ?

Chapter-04
Goodwill :
1. Average profit = Total profit / No. of years of purchase
Goodwill = Average profit * No. of purchase of years
2. Weighted average profit = Total of weighted profits/Total of weights
Goodwill = Weighted average profit * No. of year of purchase
3. Super profit = Average profit – Normal profit
Normal profit = capital employed * normal rate of return
If capital employed not given directly in question, apply as
Capital employed = Current assets – Current liability
4. Total capitalized value of average profit = Average profit / Normal rate of
return *100
Goodwill = Total capitalized value of average profit – Capital employed

Chapter-05
Admission of partnership accounting:
1. Revaluation account:
2. Basic journal entries for adjustment for goodwill:
Case I: For bringing the share of goodwill:
Cash/ Bank a/c dr.
To Goodwill a/c
For transferring goodwill to the capital account of old partners in sacrificing ratio:
Goodwill a/c dr.
To old partners capital a/c
By combining above entries single entry can be passed as:
Cash/Bank a/c dr.
To old partners capital a/c
Case II: Goodwill brought in cash and withdrawn by old partner:
A. Withdrawn by old partners:
Old partners capital a/c dr.
To cash a/c
B. For the amount brought in for goodwill:
Cash a/c dr.
To Old partners capital a/c
Decrease in the value of
assets
XXX Decrease in the
value of liabilities
XXX
Increase in the value of
liabilities
XXX Increase in the value
of assets
XXX
Gain on revaluation a/c
(B/F)
Loss on revaluation
a/c (B/F)
XXX XXX

3. Partners capital account:
Particulars A B C Particulars A B C
To Profit and
loss a/c xxx xxx By balance b/d xxx xxx
By General
reserve xxx xxx
By Profit and
loss a/c xxx xxx
By Reserve fund
a/c xxx xxx
To balance c/d
(Balancing
figure) xxx xxx Xxx
By Bank/Cash
a/c xxx
By Workman
compensation
fund xxx xxx
By Investment
fluctuation fund
a/c xxx xxx
xxx xxx Xxx xxx xxx xxx
By balance b/d xxx xxx xxx
HINT:
1. If Goodwill bought by New partner share with sacrificing ratio.
2. Sacrificing ratio = Old ratio – New ratio

Chapter-06
Retirement and Death of partnership accounting:
1. Revaluation account:
2. Partners capital account:
Particulars A B C Particulars A B C
To Profit and
loss a/c xxx Xxx By balance b/d xxx xxx
By General
reserve xxx xxx
By Profit and
loss a/c xxx xxx
By Reserve fund
a/c xxx xxx
To balance c/d
(Balancing
figure) xxx Xxx Xxx
By Bank/Cash
a/c xxx
By Workman
compensation
fund xxx xxx
By Investment
fluctuation fund
a/c xxx xxx
xxx Xxx Xxx xxx xxx xxx
By balance b/d xxx xxx xxx
Decrease in the value of
assets
XXX Decrease in the
value of liabilities
XXX
Increase in the value of
liabilities
XXX Increase in the value
of assets
XXX
Gain on revaluation a/c
(B/F)
Loss on revaluation
a/c (B/F)
XXX XXX

Hint:
1. If retiring partner goodwill is given share it with Gaining ratio
2. Gaining ratio = New ratio – Old ratio
3. Goodwill -> Dr & Cr
4. Journal entries:
A. Paid immediately:
Retiring partner a/c dr.
To Cash/ Bank a/c
B. Not paid immediately:
To Partner Loan a/c
C. Half paid immediately and rest later basis:
To cash/ Bank a/c
To Loan a/c
Note:
In case of Death mention the deceased partner as Executor.

Chapter-07
Company accounts:
Terms to know:
1. Share capital – A. Equity B. Preference
2. Face value -
A. Par (Equal to face value)
B. Discount (Less than face value)
C. Premium (More than face value)
3. Subscription:
A. Under subscription
B. Over subscription
4. Calls in arrear
5. Calls in advance
Common Entries:
Date Particulars L.F Dr.(Rs)
Cr.
(Rs)
Bank a/c dr. xxx
To share application a/c xxx
(Being application money
received)
Share application a/c dr. xxx
To Share capital a/c xxx
(Being application money
paid)
Share allotment a/c dr. xxx
To Share capital a/c xxx
(Being allotment money
paid)

Bank a/c dr. xxx
Entry for Forfeiture & Re-issue:
Forfeiture entry:
Bank a/c dr. Xxx
To share forfeiture a/c Xxx
To share capital a/c
(Being nonpayment of
money)
Re- Issue entry
Share forfeiture a/c dr. Xxx
Share capital a/c dr. Xxx
To Bank a/c Xxx
(Being Shares are
reissued)
Forfeiture should be transferred to capital reserve (Final entry)
To Share allotment a/c xxx
(Being allotment money
rcd)
Share calls a/c dr. xxx
To share capital a/c xxx
(Being call money paid)
Bank a/c dr. xxx
To share calls a/c xxx
(Being call money rcd)

Chapter-09
Ratios
1. Liquidity ratios
2. Profitability ratio
3. Solvency ratio
4. Turnover ratio
A. Liquidity ratio-> Liquidity means capable of converting into cash and to
meet out its short term financial obligation.
It can also be called as short term solvency ratios.
(i) Current ratio = Current assets/ Current liability
(ii) Liquid ratio = Liquid assets/ Current liability
 Liquid assets = Current assets – (Stock+ Prepaid expenses) Liquid
ratio can also be called as acid test ratio or quick ratio.
B. Long term solvency ratio:
It means the firm ability to meet its liabilities in long run. In order to repay its
debts in long run.
(i) Debt equity ratio = Long Term Debt/ Shareholders fund
 Long Term Debt: Debentures, long term loans & Borrowings.
 Shareholders fund: Share capital (equity and preference)+
Reserves and surplus.
(ii) Proprietary ratio = Shareholders fund/ Total assets Shareholders
fund = Share capital (equity and preference) & Reserves and surplus.
 Total assets = Current assets + Fixed assets
(iii) Capital gearing ratio = Funds bearing fixed interest & fixed dividend/
Equity shareholders fund.
Funds bearing fixed interest and fixed dividend: (Preference share
capital, Debentures, Bonds & long term borrowings with fixed
interest).

C. Turnover ratios/ Activity ratios/ Efficiency ratios:
(i) Inventory turnover ratio: Cost of revenue from operations/ Average
inventory.
Cost of revenue from operations:
A. Purchase of stock in trade + Change in inventories of finished goods
+Direct expenses.
B. Revenue from operations – Gross profit
Average inventory: Opening stock + Closing stock/ 2
(ii) Trade receivables turnover ratios: Net credit sales/ Average trade
receivables.
(iii) Trade payable turnover ratios: Net credit purchase/ Average trade
payable.
(iv) Fixed assets turnover ratios: Revenue from operations/ Average
fixed assets.
D) Profitability ratios:
1. Gross profit ratio
2. Net profit ratio
3. Operating cost ratio
4. Operating profit ratio
5. Return on investment (ROI)
(i) Gross profit ratio = Gross profit/ Revenue from operation *100
Gross profit = Revenue from operations- Cost of revenue from operations.
 Gross profit = Revenue from operation – Cost of revenue from operation.
 Cost of revenue from operation = Purchase of stock in trade + Change in
inventories

(ii) Net profit ratio= Net profit/ Revenue from operation *100
 Net profit = Revenue from operations- Cost of revenue from operation- Selling and
distribution- Administartive expenses
(iii) Operating cost ratio = Operating cost/ Revenue from operations*100
 Operating cost = Cost of revenue from operations+ Operating expenses
 Operating expenses= Employee benefit expenses+ Depreciation + Other
expenses related to office and administration, selling and distribution.
(iv) Operating profit ratio= Operating profit/Revenue from operations*100
 Operating profit= Revenue from operation- Operating cost
OR
 Operating profit= Gross profit – Operating expenses
(v) Return on capital = Net profit before tax and interest/ Capital employed *100
 Capital employed = Share capital +Reserves and surplus + Long term borrowings.

PROFORMA FOR GRADE 12 ACCOUNATNCY- Modified.pdf

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PROFORMA FOR GRADE 12 ACCOUNATNCY- Modified.pdf