Page 203 - DMGT104_FINANCIAL_ACCOUNTING

Unit 8: Financial Statements

Prepare the Final Accounts for the year ending 31st March, 2008, after taking into accounts Notes
the following adjustments:
(a) Write off 3,200 for bad debts and make provision for Bad debts @5% on debtors.

(b) Depreciate Machinery by 10% and Motor Car by 12%.
(c) Interest 15,000 is outstanding of Loan.
(d) It was decided to transfer 5,000 every year to charity fund.
(e) 1/3 of car expenses and depreciation amount is to be transferred to owner’s account.

(f) Stock valued on 31st March, 2008 was 4,70,000.

Answers: Self Assessment

1. Final accounts 2. Internal, External
3. Capital expenditure 4. Revenue expenditure
5. Revenue 6. Gross inflow of cash

7. Trading and Profit & Loss Account 8. Trading account
9. Manufacturing Account 10. Final account
11. Balance Sheet 12. Marshalling

8.10 Further Readings

Books Khan and Jain, “Management Accounting”.
M.P. Pandikumar, “Accounting & Finance for Managers”, Excel Books, New Delhi.

R.L. Gupta and Radhaswamy, “Advanced Accountancy”.
S.N. Maheswari, “Management Accounting”.
V.K. Goyal, “Financial Accounting”, Excel Books, New Delhi.

Online links www.futureaccountant.com
http://www.globusz.com/

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