Page 113 - DCOM409_CONTEMPORARY_ACCOUNTING

Contemporary Accounting

Notes (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(f) Amounts withdrawn, as no longer required, from provisions created previously for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’.

6. Tax Expense – Others: Others shall be specified separately.
Any item for which the expense exceeds one percent of the revenues from operations of
the Company or `1,00,000 whichever is higher, shall be shown as a separate and distinct
item under the appropriate head of expense in the notes to accounts and shall not be
combined with any other item.

Results from discontinued operations included in the statement of profit and loss i.e.
income (loss) from activities and gain (loss) from disposal of assets/settlement of liabilities
shall be disclosed separately in the notes to accounts.
The given below is the proforma of profit & loss account:
Profit & Loss account of ...Ltd., for the year ended...

` `
Opening Stock Sales
Purchases Less: Sales returns
Less: Purchases Returns Closing stock
Carriage/Carriage Inwards/

Carriage on Purchases
Freight, Duty & Clearing Charges
Wages/manufacturing wages,
productive wages
Packing Materials (Primary)
Fuel and Power
Coal, Gas and Water
Motive Power

Salaries / Salaries and wages By Gross Profit b/d
Rent Rates and Taxes Interest Received
Lighting Discount Received
Contd...

108 LOVELY PROFESSIONAL UNIVERSITY