Final Accounts presented by Prof.K . MALARVIZHI

1. Final Accountspresented byProf.K. MALARVIZHI

2. Prior to Final Accounts Double Entry including accruals/prepayments to simple P&L and Balance Sheet Incomplete records Control Accounts – Subsidiary Books Depreciation and Disposal Correction of Errors Bank Reconciliations

3. Double Entry Two aspects to all transactions Matching of Debits and Credits

4. Double Entry

5. Summary of possible entries

7. Double Entry Assets and Liabilities – cash & credit, capital Purchases, Sales and Returns Revenue and expenses Drawings – cash, stock, expenses, f. assets Debtors & Creditors – discount, interest, bad debts Simple final accounts – two sided

8. Transfer to final accounts Record the following transactions in the appropriate accounts of An Other, balance the accounts and prepare final accounts and Bal Sheet, 1. Owner invested €45,000 in a Business Bank alc. 2. Paid rent by cheque €800. 3. Purchased goods on credit from S. Collins €8,400. 4. Sold goods on credit to J. Reilly €9,600. 5. Sold goods for cash €2,500. 6. Purchased goods by cash €2,000. 7. Paid rent by cash €600. 8. Paid S. Collins by cheque €2000. 9. Returned goods to S. Collins €700. 10. Cash sales lodged €5,650. 11. J. Reilly returned goods €200. 12. Paid wages by cheque €650. 13. J. Reilly paid €5,000 by cheque. 14. Received rent €400 cash.

9. Final Accounts – D Entry

10. Moving towards “normality” Split Trading from P & L Trial Balance Vertical Approach

11. Subsidiary Books Source documents List Reduce entries in accounts in nominal ledger

14. 1 Debit matching 6 Credits

15. Recording Transactions

16. Sequence Prepayments & Accruals Bad Debts Provision Simple Incomplete – ord level Control Accounts – Subsidiary Books Depreciation and Disposal Bank Reconciliations Final Accounts – ord level building adjustments

17. Adding adjustments to ord Qns Writing off some closing stock Goods on sale or return Bad debts recovered Adjusting BDP Building extension to premises – own labour and materials Built in accruals and prepayments

18. Adjustments • Hardest Part is sorting the English • Read a Little Talk a Little • Use Dr Cr grid • Make out the accounts