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PREPARING COMPANY FINANCIAL STATEMENTS[6030].docx -...

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PREPARING COMPANY FINANCIALSTATEMENTSSOME STEPS/WORKINGS TO CONSIDER1.Sales (Adjust with Sales Returns or Returns inwards)Sales per trialbalanceXXXSales returns(X)XXX2.Cost of salesOpening inventoryXXPurchasesXXXPurchase returns(X)Carriage inwardsXXXXCost of goods available forsaleXXXClosing inventory(X)XXX3.Add in other operating income such as discount received.4.Expenses – classify into; administration, selling & distribution. FinanceA.Administration expensesWages & salariesXXXDirectors’ feesXXXDepreciation of office equipmentXXProvisions for damages/fines/penalties/health &safetyXIncrease/(decrease) in provisionsX/(X)Accruals/prepaymentsX/(X)XXXB.Selling & Distribution expenses
Salesmen CommissionXXAdvertisementsXXDiscount allowedXDelivery expensesXXDepreciation of Delivery VanXIrrecoverable (bad) debtsIncrease/(decrease) in allowanceforreceivableX/(X)Accruals/prepaymentsX/(X)XXXC.Finance expensesBank chargesXXInterestsXXAccruals/prepaymentsX/(X)XX5.Corporate TaxCurrent tax estimateXXUnder/(over) provision in prior yearX/(X)Total corporate tax charge for the yearX6.Other comprehensive IncomeRevaluation gain (see notes)XXExchange gain/lossX/(X)Total other comprehensive IncomeXX7.Trade receivablesPer trial balanceXXXIrrecoverable debts(xx)Provision for doubtful debts(Allowance forreceivables)(XX)To SFPXX
8.Movement in Non-Current AssetsLandBuildingsFixturesandFittingsMotorvehiclesTotalCost:Balance b/fwd01/01/XXXXXXXXXXXXRevaluationsXXXXXXXXXXAdditions/PurchasesXXXXXXXXXXDisposals(XX)(XX)(XX)(XX)(XX)Balance b/d31/12/XXAXXXXXXXXXXXXXXXDepreciationBalance b/fwdXXXXXXXXXXFor the yearXXXXXXBalance b/dBXXXXXXXXXXNet book value(A-B)XXXXXXXXXXXXXXX9.STATEMENT OF CHANGES IN EQUITYO/SharecapitalSharepremiumRevaluationReserveAccumulatedprofit/RetainedearningsReservesTotalBalance b/fXXXXXXXXXXXShares issues(atnominal/face valueXX---------XXShare premium(excess of issuedprice over nominalvalue)XX--------XXRevaluation gainXXXXProfit for the yearXXXXXXDividend (O/Shares
+Pref Shares(XX)(XX)Balance c/d(presented asseparate itemsunder EquityXXXXXXXXXXXXXXXXEXAMPLE 1The trail balance of PENTIUM IX, a company as at 31stDecember 2015 was as follows:DrCrGH¢GH¢Sales and purchase20,00050,000Inventory8,000Distribution costs8,000Administration expenses15,550Receivables and payment10,00020,000Fundamental reorganization costs2,400Cash at bank7,250Ordinary shares 50c8,00010% irredeemable preference shares9,00010%loan notes8,000

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Term
Spring
Professor
mine
Tags
Balance Sheet, Depreciation, Generally Accepted Accounting Principles, Plant and Equipment

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