Page 85 - DCOM302_MANAGEMENT_ACCOUNTING

Management Accounting

Notes The second method of determining the fund from operations under the fi rst classification is the

Accounting Statement Format

Adjusted Profit & Loss A/c
Dr Cr
To Depreciation xxxx By Opening Balance Profi t Xxxx

To Goodwill Written off xxxx By Profit on Sale of Fixed Assets Xxxx
To Patent Written off xxxx By Profit on Sale of Investments Xxxx

To Loss on Sale of Fixed Asset xxxx By Profit on Redemption of Liability Xxxx
To Loss on Sale of Investment xxxx By Transfer from General Reserve Xxxx
To Loss on Redemption of Liability xxxx By Balancing Figure fund from Xxxx
Operations (FFO)
To Preliminary Expenses off xxxx
To Proposed Dividend xxxx
To Transfer to General Reserve xxxx
To Current Year Provision for Taxation xxxx
To Current Year Provision for Depreciation xxxx
To Balancing Figure xxxx
(Fund Lost in Operations)

5.3.2 Sales Method

Under this method, the following is the statement format is used to arrive fund fl ow from
operations.

Sources:
Sales xxxxx
Stock at the end xxxxx
Less:
Application:

Stock at Opening xxxx
Net Purchases(Purchase-Returns) xxxx
Wages xxxx
Salaries xxxx

Telephone expenses xxxx
Electricity charges xxxx
Office stationery expenses xxxx

Other operating cash expenses xxxx
Fund from Operations xxxx

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