BPR Limited keeps books on Integrated Accounting System. Following balances appear in the books as on April 1, 2018: Cr. ($) Dr. ($) 40,950 38,675 52,325 Stores Control A/c Work-in-Progress A/c Finished Goods A/c Bank A/c Creditors A/c Fixed Assets A/c Debtors A/c 22,750 18,200 1,47,875 27,300 Share Capital A/c Provision for Depreciation A/c Provision for Doubtful Debts A/c 1,82,000 11,375 3,725 6,250 Factory Overheads Outstanding A/c Pre-Paid Administration Overheads A/c 9,975 Profit & Loss A/c 72,800 3,17,100 3,17,100 The transactions for the year ended March 31, 2019 were as given below : 1,97,925 Production overheads Outstanding 11,375 2,27,500 Administration Overheads paid 2,50,250 4,550 Selling Overheads Incurred Direct Wages Indirect Wages Purchase of Materials (on credit) Materials issued to Production Materials issued for Repairs Goods Finished during the year (at cost) Credit Sales Cost of Goods Sold Production Overheads Absorbed Production Overheads paid during the at the end of year 7,775 during the year 27,300 31,850 2,29,775 6,59,750 14,789 Payment to Creditors 4,89,125 Payment received from Debtors 6,82,500 Depreciation of Machinery 5,00,500 Administration Overheads 1,09,200 Outstanding at the end of year Provision for Doubtful Debts at the end of the year 2,225 91,000 4,590 year Required : Write up Accounts in the Integrated Ledger of BPR Limited and prepare a Trial Balance.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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