Page 340 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Unit 14: Preparation of Final Accounts

(iii) Sales persons’ travel and entertaining; Notes
(iv) Warehouse costs for finished goods;
(v) Transport costs arising on the distribution of finished goods;
(vi) All costs of maintaining sales outlets;

(vii) Agents commission payable;
(viii) Other selling and marketing expenses.
(b) Administrative expenses are expenses related to the general administration of the
company’s operations. These items shall include (to be disclosed separately):
(i) Payroll costs of office and administrative staff (ESOP and ESPP expenses to be
disclosed separately);

(ii) All costs of maintaining the administration buildings;
(iii) Bad debts;
(iv) Professional costs;
(v) Amount paid to the auditor, whether as fees, expenses or otherwise for services

(vi) Directors remuneration;
(vii) Insurance expense;
(viii) Utilities expense;
(ix) Other administrative expenses.

(c) Depreciation and amortization of assets other than used in the production process and
included in cost of sales.
4. Other income: This shall include (to be disclosed separately):

(a) Interest income;
(b) Dividend income;
(c) Rental on investment properties;
(d) Increase (decrease) in carrying amounts of investments;

(e) Gains and losses on trading derivatives;
(f) Amounts withdrawn, as no longer required, from provisions created previously for
meeting specific liabilities;

(g) Other miscellaneous income.
5. Other expenses: These shall be classified as:
(a) Finance costs.
(b) Others.

(a) Finance costs shall include (to be disclosed separately):
(i) Interest expense.
(ii) Dividends on preference shares classified as debt.
(b) Others shall include costs related to ‘other income’.

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