The following information was received from the books of Sheetal & Co. for the quarter ending on March 31st, 2009. Particulars Rs. Stock of material on 31-3-2009 70,000 Stock of material on 01-1-2009 1,00,000 Purchase of materials 8,03,290 Office Travelling expenses 5,100 Carriage inwards 4,500 Carriage outwards 9,150 Drawing office Salaries 7,000 Depreciation on plant 8,000 Factory rent, rates and insurance 11,200 Office rent, rates and insurance 29,100 Showroom expenses 9,000 Productive wages paid 2,27,000 Repairs of machine, plant & tools 10,000 Expenses of Office stationery 11,350 Travelling Salesmen’s salaries and commission 9,000 Depreciation on office furniture 700 Director’s fees 8,000 Factory Fuel, gas and water 17,900 Manager’s salary 18,000 Income tax paid 12,000 Donations 4,600 Office Expenses 5,000 Air conditioning charges (office) 4,000 Labour welfare expenses 7,200 Outstanding productive wages 33,000 Sales 13,70,000 Prepare cost sheet giving following information, assuming manager devotes 2/3 of his time to factory. Material used Prime Cost Works overhead and its percentage on wages Factory cost Net Profit and its percentage on total cost.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
The following information was received from the books of Sheetal & Co. for the quarter ending on March 31st, 2009.
|
Particulars |
Rs. |
|
Stock of material on 31-3-2009 |
70,000 |
|
Stock of material on 01-1-2009 |
1,00,000 |
|
Purchase of materials |
8,03,290 |
|
Office Travelling expenses |
5,100 |
|
Carriage inwards |
4,500 |
|
Carriage outwards |
9,150 |
|
Drawing office Salaries |
7,000 |
|
Depreciation on plant |
8,000 |
|
Factory rent, rates and insurance |
11,200 |
|
Office rent, rates and insurance |
29,100 |
|
Showroom expenses |
9,000 |
|
Productive wages paid |
2,27,000 |
|
Repairs of machine, plant & tools |
10,000 |
|
Expenses of Office stationery |
11,350 |
|
Travelling Salesmen’s salaries and commission |
9,000 |
|
Depreciation on office furniture |
700 |
|
Director’s fees |
8,000 |
|
Factory Fuel, gas and water |
17,900 |
|
Manager’s salary |
18,000 |
|
Income tax paid |
12,000 |
|
Donations |
4,600 |
|
Office Expenses |
5,000 |
|
Air conditioning charges (office) |
4,000 |
|
Labour welfare expenses |
7,200 |
|
Outstanding productive wages |
33,000 |
|
Sales |
13,70,000 |
Prepare cost sheet giving following information, assuming manager devotes 2/3 of his time to factory.
- Material used
- Prime Cost
- Works
overhead and its percentage on wages Factory cost - Net Profit and its percentage on total cost.
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