This document provides an overview of financial accounting and financial statements. It discusses the objectives, components, and characteristics of financial statements, including the balance sheet, income statement, and statement of cash flows. The key components covered are the trading account, profit and loss account, manufacturing account, and appropriation account. Examples are provided of how to prepare trading and profit and loss accounts from given financial information. The document also discusses the treatment of adjustments in financial statements such as closing stock, outstanding expenses, prepaid expenses, and depreciation.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
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This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
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Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
Investment Decision — Capital Budgeting Techniques — Pay Back Method — Accounting Rate Of Return — NPV — IRR — Discounted Pay Back Method — Capital Rationing — Risk Adjusted Techniques Of Capital Budgeting. — Capital Budgeting Practices
An introduction to the three main financial statements using a tree analogy. If you like this, just imagine what I can do in person at your next event. Go to www.geniwhitehouse.com or www.evenanerd.com for more information and my list of topics, expertise, and nerdy obsessions.
My next deck is going to include basset hounds (see my post from 2023). That is a promise.
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
By Arvinder Pal Kaur
Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
Investment Decision — Capital Budgeting Techniques — Pay Back Method — Accounting Rate Of Return — NPV — IRR — Discounted Pay Back Method — Capital Rationing — Risk Adjusted Techniques Of Capital Budgeting. — Capital Budgeting Practices
An introduction to the three main financial statements using a tree analogy. If you like this, just imagine what I can do in person at your next event. Go to www.geniwhitehouse.com or www.evenanerd.com for more information and my list of topics, expertise, and nerdy obsessions.
My next deck is going to include basset hounds (see my post from 2023). That is a promise.
hi all , i am uploading a ppt of Financial statment analysis ,which is very important for analysis of any company. kindly check it & suggest me if any thing required....
Financial Planning - Helping You Sail Successfully into the FutureFrank Wiginton
This is a short e-book I wrote to help dispel some of the myths about financial planning and educate the public on what financial planning really is and what it can do and provide.
This presentation will help you build a realistic financial plan for your start-up. It‘s important to have a detailed plan that identifies how you spend money and how you make money. To do this, you need to be familiar with the basic tools of financial planning, including income statements, cash-flow forecasts, expense statements and balance sheets.
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http://www.marsdd.com/events/details/financial-planning-2011/
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Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
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What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
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2. Introduction
Financial statements are the end products of
the accounting process, which reveals the
financial results of the specified period and
financial position as on particular date. It is
the basic and formal annual report through
which a business communicates financial
information to its various user groups.
3. Nature of Financial Statement
1. Recorded facts
2. Accounting conventions
3. Postulates(Assumptions)
4. Personal Judgements
4.
5. Framework
for preparing Financial
Statement
Qualitative characteristics
of
financial statements
Objectives of financial
statemjents
Components of
financial statements
k
l
6. Objectives
1. To provide reliable financial information
about economic resources(assets) and
obligations(liabilities) of a business firm
2.To provide information about the earning
capacity of the business firm
7. 3. To provide reliable information about the changes
in resources and obligations arising out of business
activities.
4.To disclose , the various accounting policies
followed in preparing the financial statement to its
various user groups.
5.To disclose, to the extent possible, other related
information to financial statement that is relevant
to the needs of the users.
8. Characteristics of Ideal financial statement
1.Relevency
2.Reliability
3.Understandibility
4.Comparability
9. Importance of financial statement
1. Importance to management
2. Importance to Creditors
3 Importance to Bankers
4. Importance to Investors
5. Importance to Government
10. Limitation of financial statement
1.Provide only interim reports
2.Aggregate information
3.No qualitative information
4.Personal biasness
5.Historical cost
11. Components of Financial Statement
1. Income Statement
(a)Manufacturing Account
(b)Trading account
(c)Profit and loss account
2. Statement of Financial Position
*Balance sheet
12. Manufacturing Account
Meaning : Those Concerns which convert the raw materials into finish
goods are required to find out the cost of goods manufactured besides
gross and net profit of the concern. These are manufacturing cum
trading concerns. In order to have full information about the cost of
goods manufactured, the concerns firstly prepare Manufacturing
Account & then prepare the Trading & Profit & Loss Account.
Object of Manufacturing Account :
1. Cost of finished goods produced and
2. Constituent items thereof such as cost of material consumed,
productive wages , direct & Indirect expenses.
13. Manufacturing Account
for the year ended………….
Particulars Amount Particulars Amount
To Raw Materials Consumed:
(Opening Stock Of raw Material +
Purchases During The Year – Closing
Stock Of Raw Materials)
To Direct Wages
To Direct Expenses(as carriage on
purchases)
Prime Cost
Factory Expenses:
To Factory Lighting
Factory Rent
Indirect Expenses
Supervisor’s Salary
Stores Consumed etc.
To Work In Progress
Beginning
Less: Closing Work In Progress
Sale of Scrap
By Cost of Goods Manufactured
transferred to Trading A/c
15. Horizontal form
Horizontal form is called ‘T form’ under which the Trading
account is prepared in the Format of Ledger account having
two sides i.e. debit side and credit side
16. Trading Account
Dr for the year ended on………….. Cr
Particulars Amount(₹) Particulars Amount(₹)
To Opening Stock
To Purchases
Less: Purchase Return
Or
Returns Outward
To Wages
To Wages and Salaries
To Direct Expenses
To Carriage ,Carriage Inward or
Carriage on Purchase
To Duty On Purchase
To Gas ,Fuel And Power
To Freight/Cartage
To Octroi
To Dock Charges
To Excise Duty
To Import Duty on custom duty
To Profit And Loss A/C
(GROSS PROFIT TRANSFER)
By Sales
Less: Sales Return or Return
Inward
By Closing Stock
By Profit & Loss A/C
To Gross Loss Transferred
17. Vertical Form
Vertical form is a form under which the trading
account is prepared in vertical order i.e. in the form of a
statement. These are shown below
18. Particulars Amount(₹)
Dr
Amount(₹)
Cr
Sales
Less: Sales Return
Less: Cost of Good Sold:
Opening stock
Purchases less Returns
Wages
Carriage
Less: Closing Stock
Gross Profit
………………..
………………..
………………..
………………..
………………..
………………..
……………….
……………….
……………….
__________
__________
Trading Account
For the Year ended…………
19. Profit and loss Account
Meaning:
According to R. N. Carter : “ A profit and loss
account is an account into which all gains and losses
are collected, in order to ascertain the excess of gains
over the losses or vice-versa.”
Net Profit=Operating Profit – Non operating expenses +
Non operating Income
20. Profit and Loss Account
Dr For the year ended on……………….. Cr
Particulars Amount() Particulars Amount()
To Trading A/c
(Gross Loss transferred)
Office & Administration
Expenses:
To Salaries
To Salaries and Wages
To Rent, Rates & Wages
To Printing & Stationary
To Postage & Telegram
To Lighting
To Insurance
Premium(Office)
To Telephone Charges
To Legal Charges
To Audit Fees
To travelling expenses
To Establishment Expenses
To Trade Expenses
To General Expenses
To Royalty on sales
By Trading Account
(GROSS Profit
Transferred)
By Rent
By DISCOUNT Received
By Commission Received
By Interest on investment
By Sundry Receipts
BY Bad Debt Recovered
By Sale of scrapes
By Interest on Drawings
By Capital a/c
(net loss transferred)
21. MEANING and FEATURES of Profit and Loss
Appropriation Account
Meaning:
Profit and Loss Appropriation Account is an account which is prepared
with an objective of appropriating or distributing the net profits among
the partners.
Features:
•It is prepared after the Preparation of Profit & Loss A/C
•It is an extension of Profit & Loss A/C.
•It is Prepared by partnership firm ( and Companies) for appropriations
( distribution) of profits among partners.
• It discloses how the net profit for an accounting period has been
appropriated.
•It is prepared in terms of the partnership Deed or the Partnership Act.
22. Profit and Loss Appropriation Account
For the year ended ……..
Particulars Amount
(Rs)
Particulars Amount
(Rs)
To Interest on Partners
Capital A/c
To Partners Salary a/c
To Commission to
partner’s a/c
To General Reserve a/c
To Partner’s Capital a/c*
( share of profits )
By Net Profit b/d
(Net Profit transferred)
By Interest on Drawings
a/c
By Balance of
Undistributed Profit
(brought forward from
previous year)
By Partner’s Capitala/c*
( share of loss )
23. Balance Sheet
According to J.R. Batliboi , “ A balance sheet is a
statement prepared with a view to measure the exact
financial position of a business on a certain fixed date.”
Importance of Balance Sheet :
1. To Ascertain the financial position
2. To Ascertain the Information about the exact
amount of capital
3. Helpful in the preparation of books of account in the
next year
24. Characteristics of Balance Sheet
The balance sheet is a statement not an account.
The word ‘to’ and ‘By’ are not used before the names of
the accounts shown in the balance sheet.
The total of the two sides of the balance sheet must be
equal.
It Shows the financial position of the business
according to the going concern concept.
The balance sheet does not have Debit or Credit Side.
The two sides of the balance sheet are called “Assets”
And “Liability”
25. Marshalling of Assets & Liabilities
Marshalling can be made in one of the following two
methods
(a)Liquidity; or
(b)Permanence
Generally , sole proprietors and partnership firms
prepare their Balance Sheet in the order of Liquidity.
27. Horizontal Form:-
Under this form of presentation of Balance
Sheet the Assets are shown on the right hand side. And
the Liabilities are shown on the Left Hand Side . This
form is also called ‘T’ form. This shown below
28. Balance Sheet
as on …………………………
Liabilities Amount(Rs) Assets Amount(Rs)
Current Liabilities
Bank Overdraft
Sundry Creditors
Bills Payable
Outstanding
Expenses
Unearned
Income
Fixed Liabilities
Long term Loans
Reserves
Capital
Add- Net Profit
Less-Net Loss
Less-Drawings
Current Assets
Cash in Hand
Cash at Bank
Bills Receivable
Short term
Investments
Sundry Debtors
Closing Stock
Prepaid
Expenses
Accrued Income
Fixed Assets
Loose Tools
Motor Vehicle
Furniture
Long term
Investments
Plant and
Machinery
Patent
29. Vertical Form:-
Under vertical form of preparing a
balance sheet, the liabilities and assets
are shown one after another in vertical
order i.e. in the form of a statement.
30. Figures as at the
end of current
financial year
Figures as at the
end of previous
financial year
Assets
Current Assets:
Cash
Sundry Debtors
Less: Provision for Doubtful Debts
Stock
Prepaid Expenses
Fixed Assets:
Furniture and Fixtures
Land and Buildings
Plant and Machinery
Less: Deprieciation
Goodwill
Total Assets
Liabilities and Capital:
Current Liabilities:
Sundry Creditors
Outstanding Expenses
Total Current Liabilities
31. Prepare Trading account form the given information for
X LTD. For the year 31st December 2006
Opening stock- 40,000
Purchases- 1,75,000
Sales- 3,03,000
Return Inwards- 3,000
Return Outwards- 5,000
Wages – 30,000
Carriage Inwards – 5,000
Closing Stock- 65,000
32. Trading Accountof X ltd. For the Year 31st Dec. 2006
Particulars Rs. Rs. Rs.
Sales
3,03,000
Less Sales return
3,000 3,00,000
Opening stock
Purchases
Less purchase return
Carriage Inward
Wages
Less Closing Stock
Cost of Good sold
Gross profit
1,75,000
5,000
5,000
30,000
40,000
1,70,000
35,000
2,45,000
65,000
1,80,000
1,20,000
33. Prepare Profit and loss account for X Ltd. For the year 31st Dec.
2006
Discount Recd.- 12,000
Dividend Recd.- 16,000
Profit on Sale of an asset- 16,000
Salaries to sales people- 15,000
Salaries to Administrative- 25,000
Telephone Charges- 1,500
Audit Fees – 1,000
Depreciation on Furniture- 200
Bad Debts –200
Interest paid on loans- 200
Loss by Fire- 3,000
34. Profit and loss account for X Ltd. For the year 31st Dec. 2006
Particulars Rs Rs. Rs
Gross Profit
Add: Other Income( Dis. Recd.)
Non Trading income (Div. Recd.
Abnormal gains ( Profit on asset sale)
Less:Mgt. Expenses ( Admin. Salary)
Telephone Charges and Audit Fees
Less: Maintenance Expenses( Dep.)
Less: Selling &Dist.Exp(sales Salary)
Bad debts
Less: Financial expenses ( Interest)
Less: Abnormal Losses ( Fire loss)
Net profit Transferred to capital account
25,000
2,500
15,000
200
12,000
16,000
16,000
27,500
200
15,200
200
3,000
1,20,000
44,000
1,64,000
46,100
1,17,900
35. Balance Sheet
A business firm has following Assets and Liabilities . From the
following information prepare a balance sheet
Machinery –Rs 100000
Furniture -Rs 30000 Depreciation on machinery-10000
Prepaid expences-2000 Profit of the year-90000
Outstanding income-1000 cash in hand-3000
Long term loan-1000
Closing stock 5000
Outstanding expences-100
Income received in advance-500
Capital of the partners-
A-400000
B-400000
36. Balance sheet
as on
Liabilities Amount Assets Amount
Long term loan 100000 Machinery 100000
Income received in Less : Depreciation
Advance 200 10000 90000
Furniture : 169000
Outstanding expenses 100 Closing Stock 5000
Capital :: Cash in Hand 3300
A: 40000 Prepaid expenses 2000
Add : profit 45000 Outstanding income 1000
B: 40000
Add : Profit 45000 170000
270300 270300
37. Treatment of Adjustments
Closing Stock: If this item is given inside the trial balance
then only mention as Current assets in Balance Sheet.
But if given in adjustments then show the same in trading
account as well as in Current Asset side of Balance Sheet.
Outstanding Expenses : ( due for accounting period but
not paid) Add this amount in the particular expense either in
trading or P&L A/c and show as Current Liabilities in Balance
Sheet.
Prepaid Expenses: (Expenses paid in advance) Deduct this
amount in the particular expense either in trading or P&L
A/c and show as Current Assets in Balance Sheet.
38. Outstanding Income: (Income due in accounting
period but still not received) Add this amount in the
particular income in P&L A/c and show as Current
Assets in Balance Sheet.
Income Received in advance: (Income received in
advance by business before it being earned by the
business.) Deduct this amount in the particular income
in P&L A/c and show as Current Liabilities in Balance
Sheet.
Depreciation: Show this amount in the P&L A/c and
deduct form that particular fixed asset in the Balance
Sheet.
Interest on Capital: Show this amount as Financial
expense P&L A/c and added in capital in Balance Sheet.