ZeePedia Add to Favourites   |   Contact us


Financial Accounting

<<< Previous FINANCIAL STATEMENTS OF LISTED COMPANIES Next >>>
 
img
Financial Accounting (Mgt-101)
VU
Lesson-44
FINANCIAL STATEMENTS OF LISTED COMPANIES
QUESTION
Beta Ltd.
Trial Balance for the Year June 30, 2002
Debit
Credit
Rs.
Rs.
Fixed Assets at Cost:
Building
500,000
Furniture and Fixture
85,000
Vehicles
460,000
Accumulated Depreciation
Building
190,500
Furniture and Fixture
43,500
Vehicles
210,000
Sundry Debtors
165,000
Long Term investments
300,000
Goodwill
100,000
Cash in hand
33,000
Cash at bank
146,000
Purchases
755,000
Stock July 01, 2001
Raw Material
19,000
Work in Process
14,500
Finished Goods
35,000
Salaries
125,000
Misc. Expense
6,600
Carriage inward
4,300
Fuel & Power
15,400
Wages
143,500
Salaries Sales Staff
86,000
Financial Charges
2,300
Sundry Creditors
105,000
Share Premium Reserve
300,000
Provision for tax payable.
29,500
Accumulated Profit Brought Forward
93,300
Sales
1,363,800
Gain on sale of vehicle
30,000
Return on Investments
30,000
Loan from Bank (Long Term)
100,000
Issued Share Capital
500,000
283
img
Financial Accounting (Mgt-101)
VU
TOTAL
2,995,600
2,995,600
Additional Information:
The authorized capital of the company is Rs. 800,000 divided into 80,000 shares of Rs. 10 each.
During the year, a vehicle whose cost and accumulated depreciation were Rs. 150,000 and Rs.
80,000 respectively was sold for Rs. 100,000. The entry has already been recorded in the books
Depreciation is to be charged on Building 5%, Furniture and Fixture @ 10% and Vehicles 20% on
written down value. Full years depreciation is charged in the year of purchase whilst no depreciation
is charged in the year of disposal..
Stock on June 30, 2002
o  Raw Material
22,000
o  Work in Process
15,000
o  Finished Goods
40,000
Distribution of fuel and power:
o  Administrative Expenses 40%, Cost of Goods Sold 60%
The management of the company has decided to maintain a provision for doubtful debts at 5% of
debtors from this year.
Long term loan of Rs. 25,000 is payable in the next financial year.
Provision for current year's tax Rs. 20,000.
You are required to prepare a set of financial statements for the year ended June 30, 2002.
284
img
Financial Accounting (Mgt-101)
VU
SOLUTION
Beta Ltd.
Balance Sheet as at June 30, 2002.
Note
2002
2001
Operating Fixed Assets
3
531,375
671,000
Investments
300,000
50,000
831,375
721,000
Intangible Assets
Goodwill
100,000
100,000
Current Assets
Sundry Debtors
4
156,750
175,000
Stock in Trade
5
77,000
84,300
Cash in hand
33,000
25,800
Cash at bank
146,000
100,700
412,750
385,800
Current Liabilities
Sundry Creditors
105,000
150,500
Current Maturity of Long Term Loan
25,000
25,000
Tax Payable
6
49,500
38,000
179,500
213,500
Working Capital
233,250
172,300
Net Capital Employed
1,164,625
993,300
Financed by
Share Capital and Reserves
Authorized Capital
80,000 share of Rs. 10 each
800,000
800,000
Share Capital
500,000
500,000
Share premium reserve
300,000
300,000
Un-appropriated Profit
289,625
93,300
Total Share holders Equity
1,089,625
893,300
75,000
100,000
Long Term Loans
7
TOTAL
1,164,625
993,300
285
img
Financial Accounting (Mgt-101)
VU
Beta Ltd.
Profit and Loss Account for the year ended June 30, 2002.
Note
2002
2001
Rs.
Rs.
Net Sales
1,363,800
x
Less: Cost of Goods Sold
8
903,540
x
Gross Profit
460,260
x
Add: Other Income
9
60,000
x
520,260
x
Less:
Administrative Expenses
10
215,635
x
Selling Expenses
11
86,000
x
301,635
x
Operating Profit
218,625
x
Less: Financial Charges
2,300
x
Net Profit / (Loss) Before Tax
216,325
x
Lees: Provision for Tax
20,000
x
Net Profit / (Loss) After Tax
196,325
x
Accumulated Profit / (Loss) Brought Forward
93,300
x
Accumulated Profit / (Loss) Carried Forward
289,625
x
286
img
Financial Accounting (Mgt-101)
VU
Alfa Ltd.
Cash Flow Statement for the year ended June 30, 2002
Note
2002
Cash Flow From Operating Activities
Profit / (Loss) Before Tax
216,325
Adjustment for:
Depreciation
69,625
Provision for Doubtful Debts
8,250
Gain on Disposal of Fixed Asset
(30,000)
Operating Profit Before Working Capital changes
264,200
(Increase) / Decrease in C. Assets
Sundry Debtors
10,000
Stock in Trade
7,300
17,300
Increase / (Decrease) in C. Liabilities
Sundry Creditors
(45,500)
(45,500)
Cash Generated From Operations
236,000
Income Tax Paid
(8,500)
Net Cash Flow from Operations
227,500
Cash Flow From Investing Activities
Vehicles
100,000
Investments (Long Term)
(250,000)
Net Cash Flow From Investing Activities
(150,000)
Cash Flow from financing Activities
Long Term Loan Repaid
(25,000)
(25,000)
Net Increase in Cash & Cash Equivalents
52,500
O/B of Cash and Cash Equivalents
126,500
C/B of Cash and Cash Equivalents
179,000
287
img
Financial Accounting (Mgt-101)
VU
Beta Ltd.
Statement of Changes in Equity for the Year Ended June 30, 2002
Share
Share
Premium
Un-app.
Total
Capital
Reserve
Profit
Balance as on June 30, 2000
x
x
x
x
Profit after tax for the year
x
x
Dividend
(x)
(x)
Balance as on June 30, 2001
500,000
300,000
93,300
893,300
Shares Issued
x
x
Profit after tax for the year
196,325
196,325
750,000
250,000
289,625
1,089,625
NOTES TO THE ACCOUNTS
1. Company and its operations
o  The company is a public limited company incorporated in Pakistan and manufacture ---
---------
2. Significant accounting policies
o  These accounts have been prepared in accordance with the requirements of the
Companies Ordinance 1984 and International accounting standards as applicable in
Pakistan.
o  Historical costs
 Historical costs are used as a basis for valuing transactions.
o  Revenue Recognition
 Sales are recorded upon delivery of goods to the customers.
o  Other Policies
 Income from bank deposits, loans and advances are recognized on accrual basis.
 Working of all figures and Fixed assets schedule are included in the notes to the
accounts
288
img
Financial Accounting (Mgt-101)
VU
Note # 3
Fixed Assets at WDV
Rs' 000
Cost
R
Accumulated Depreciation
WDV
Particulars
As On
As On
A
As On
On
For
As On
As On
Jul 01
Add.
Disp.
Jun 30
T
Jul 01
Disp.
The
Jun 30
Jun 30
2001
2002
E
2001
Year
2002
2002
Building
500,000
-
-
500,000
5
190,500
-
15,475
205,975
294,025
Furniture
and Fixture
85,000
-
-
85,000
10
43,500
-
4,150
47,650
37,350
Vehicles
610,000
-
150,000
460,000
20
290,000
80,000
50,000
260,000
200,000
1,195,000
-
150,000
1,045,000
524,000
80,000
69,625
513,625
531,375
Total 2002
Total 2001
x
x
x
x
x
x
1,195,000
524,000
671,000
Note # 4
Sundry Debtors
2002
2001
Debtors
165,000
175,000
Less: Provision for Doubtful Debts
(8,250)
-
156,750
175,000
Note # 5
Stock in Trade
Raw Material
22,000
25,000
Work in Process
15,000
16,800
Finished Goods
40,000
42,500
77,000
84,300
289
img
Financial Accounting (Mgt-101)
VU
Note # 6
Tax Payable
Tax Payable as Per Trial Balance
29,500
20,000
Current Year's Provision
20,000
18,000
49,500
38,000
Note # 7
Long Term Loans
Long Term Loan
100,000
125,000
Less: Current Maturity of Long Term Loan
25,000
25,000
75,000
100,000
Note # 8
Cost of goods sold
Opening Stock - Raw Material
19,000
Add: Cost of Material Purchased
Purchases
755,000
Add: Carriage Inward
4,300
759,300
Less: Closing Stock - Raw Material
22,000
Raw Material Consumed
756,300
Wages
143,500
Fuel and Power
9,240
909,040
Add: Opening Stock - Work in Process
14,500
Less: Closing Stock - Work in Process
15,000
908,540
Add: Opening Stock - Finished Goods
35,000
Less: Closing Stock - Finished Goods
40,000
903,540
290
img
Financial Accounting (Mgt-101)
VU
Note # 9
Other Income
Gain on sale of vehicle
30,000
Return on investments
30,000
60,000
Note # 10
Administrative Expenses
Salaries
125,000
6,160
Fuel and Power
Misc. Expense
6,600
Provision for Doubtful Debts
8,250
Depreciation
69,625
215,635
Note # 11
Selling Expenses
Salaries (Sales Staff)
86,000
291
Table of Contents:
  1. Introduction to Financial Accounting
  2. Basic Concepts of Business: capital, profit, budget
  3. Cash Accounting and Accrual Accounting
  4. Business entity, Single and double entry book-keeping, Debit and Credit
  5. Rules of Debit and Credit for Assets, Liabilities, Income and Expenses
  6. flow of transactions, books of accounts, General Ledger balance
  7. Cash book and bank book, Accounting Period, Trial Balance and its limitations
  8. Profit & Loss account from trial balance, Receipt & Payment, Income & Expenditure and Profit & Loss account
  9. Assets and Liabilities, Balance Sheet from trial balance
  10. Sample Transactions of a Company
  11. Sample Accounts of a Company
  12. THE ACCOUNTING EQUATION
  13. types of vouchers, Carrying forward the balance of an account
  14. ILLUSTRATIONS: Ccarrying Forward of Balances
  15. Opening Stock, Closing Stock
  16. COST OF GOODS SOLD STATEMENT
  17. DEPRECIATION
  18. GROUPINGS OF FIXED ASSETS
  19. CAPITAL WORK IN PROGRESS 1
  20. CAPITAL WORK IN PROGRESS 2
  21. REVALUATION OF FIXED ASSETS
  22. Banking transactions, Bank reconciliation statements
  23. RECAP
  24. Accounting Examples with Solutions
  25. RECORDING OF PROVISION FOR BAD DEBTS
  26. SUBSIDIARY BOOKS
  27. A PERSON IS BOTH DEBTOR AND CREDITOR
  28. RECTIFICATION OF ERROR
  29. STANDARD FORMAT OF PROFIT & LOSS ACCOUNT
  30. STANDARD FORMAT OF BALANCE SHEET
  31. DIFFERENT BUSINESS ENTITIES: Commercial, Non-commercial organizations
  32. SOLE PROPRIETORSHIP
  33. Financial Statements Of Manufacturing Concern
  34. Financial Statements of Partnership firms
  35. INTEREST ON CAPITAL AND DRAWINGS
  36. DISADVANTAGES OF A PARTNERSHIP FIRM
  37. SHARE CAPITAL
  38. STATEMENT OF CHANGES IN EQUITY
  39. Financial Statements of Limited Companies
  40. Financial Statements of Limited Companies
  41. CASH FLOW STATEMENT 1
  42. CASH FLOW STATEMENT 2
  43. FINANCIAL STATEMENTS OF LISTED, QUOTED COMPANIES
  44. FINANCIAL STATEMENTS OF LISTED COMPANIES
  45. FINANCIAL STATEMENTS OF LISTED COMPANIES