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FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING. Preparation of Financial Statements Manufacturing Account Trading Account Profit and Loss Account Balance Sheet. FINANCIAL ACCOUNTING. Preparation of Final Accounts. FINANCIAL ACCOUNTING. Concept of Capital and Revenue Capital Expenditure (long Term)

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FINANCIAL ACCOUNTING

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  1. FINANCIAL ACCOUNTING Preparation of Financial Statements • Manufacturing Account • Trading Account • Profit and Loss Account • Balance Sheet

  2. FINANCIAL ACCOUNTING Preparation of Final Accounts

  3. FINANCIAL ACCOUNTING Concept of Capital and Revenue Capital Expenditure (long Term) Revenue Expenditure (Short Term) Deferred Revenue Expenditure (Medium Term) Capital Receipts (long Term) Revenue Receipts (Short Term) Capital Losses (long Term) Revenue Losses (Short Term)

  4. FINANCIAL ACCOUNTING Preparation of Manufacturing Account This account is prepared to know the “Cost of Finished goods Manufactured” and ‘Cost of Material consumed’ in the production process of the business.

  5. FINANCIAL ACCOUNTING Preparation of Trading Account This account is prepared to know the gross trading results of business. It helps to know the ‘gross profit’ earned by the business during the year

  6. FINANCIAL ACCOUNTING Preparation of Trading Account GROSS PROFIT = (Net Sales – Cost of Goods Sold) COST OF GOODS SOLD = (Opening Stock + Net Purchases + Direct Expenses – Closing Stock)

  7. FINANCIAL ACCOUNTING Preparation of Trading Account Trading Account for the year ending Dr Cr.

  8. FINANCIAL ACCOUNTING Preparation of Profit and Loss Account This account is prepared to know the net operating results of the business. It helps to know the ‘Net Profit’ earned by the business during the year

  9. FINANCIAL ACCOUNTING Preparation of Profit & Loss Account Profit & Loss Account for the year ending Dr Cr.

  10. FINANCIAL ACCOUNTING Preparation of Balance Sheet A Balance Sheet is a Statement prepared with a view to measure the financial position of the business as on a particular date.

  11. FINANCIAL ACCOUNTING Preparation of Balance Sheet A Balance Sheet is a Statement showing various ‘sources of funds’ and ‘application of funds’ in the business as on a particular date. ASSETS = (CAPITAL+ LIABILITIES)

  12. FINANCIAL ACCOUNTING Preparation of Balance Sheet

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