Final Accounts Formats
Trading Account:
This account is used to determine the gross profit or loss of a business over a specific period of time. It includes the direct costs associated with producing goods or services, such as raw materials, labor, and manufacturing expenses.
The formula is: Gross Profit/Loss = Sales - (Opening Stock + Purchases + Direct Expenses - Closing Stock)
   Dr.                             Trading Account                            Cr. Â
| Expenses/Losses | Amount (₹) | Revenues/Gains | Amount (₹) |
| Opening stock Purchases-Returns Wages Wages and Salaries Carriage inwards Cartage Freight inwards Gas and Fuel Power and Water Factory rent and rates Manufacturing expenses Dock and Clearing expenses Import and customs duty Royalties Packing expenses Gross profit (trfd. to Profit and Loss) | ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. | Sales-Returns Closing Stock Gross Loss (trfd. to Profit and Loss account) | ……… ……… ……… |
| Total | Total |
    Â
Profit and Loss Account:
This account is used to determine the net profit or loss of a business over a specific period of time. It includes all indirect expenses and incomes. The net profit or loss is calculated by deducting the total expenses from the total revenues. The formula is:
Net Profit/Loss = Gross Profit - Operating Expenses + Other Revenues
    Dr.                     Profit and Loss Account                              Cr.
| Expenses/Losses | Amount (₹) | Revenues/Gains | Amount (₹) |
| Rent/rates and taxes Salaries Printing and stationery Salaries and wages Postage and telephone Office Lighting Insurance Legal expenses Audit fees Travelling expenses Trade expenses General Expenses Carriage and Freight Commission Brokerage Advertisement Bad Debts Export Duty Packing Expenses Salesmen’s salaries Delivery van expenses Interest on Loan Discount Allowed Bank Charges Rebate allowed Depreciation Repairs and renewals Donations Charity Loss On Sale of Fixed assets Loss by fire Loss by Theft Net profit (trfd. to capital account) | ………. ………. ………. ………. ………. ……….. ……….. ……….. ………… ……….. ………… ………… ………… ………… ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. ……….. | Gross profit b/d Interest received Rent received Discount received Rebate received Commission Received Bad Debts recovered Apprenticeship Fees Gain on sale of fixed asset Net loss(trfd. to capital account) | ……… ……… ………. ………. ………. ………. ………. ………. ………. ………. |
| Total | Total |
Final Accounts Formats
Balance Sheet:
This is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes assets, liabilities, and shareholders' equity. The balance sheet follows the accounting equation:
Assets = Liabilities + Shareholders' Equity
                              Balance Sheet
| Capital and Liabilities | (₹) | Assets | (₹) |
| Capital Add Net profit Less Drawings Bank Overdraft Loans Creditors Bills Payable Outstanding Expenses |
………. ………. ………. ………. ………. ………. | Goodwill Land & Buildings Plant & Machinery Furniture Closing Stock Prepaid Expenses Debtors Short Term Investments Bills Receivables Cash in hand Cash at Bank | ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. ………. |
| Total | Total |
Identify Capital and Revenue Items
Activity 2
Final Accounts with Adjustments 1
Final Accounts with Adjustments 2
Final Accounts with Adjustments 3