Class 10 Accountancy, Final Account.pptx

This slide is prepared to help the students of class 10. Its main objectives is to provide the basic knowledge and concept of final account. This is Part I Slide, Further more please see new updates. Class 10 Account notes. #Final Account #Help for Student #Students Notes.

1. Final Account Class 10 Accountancy

2. Introduction to Final Account The function of accounting begins with the recording of transaction in the book of origin.(Journal & Subsidiary book) Second step of accounting is posted to related account of the journals. Third step of accounting is prepared trial balance by transferring the debit and credit balance of each ledger. At last final account is prepared at the end of accounting period. Under Final account Trading, Profit & Loss, balance sheet is prepared. Prepared by : Govinda Khanal

3. Introduction to Final Account Prepared by : Govinda Khanal

4. Statements used in Final account Prepared by : Govinda Khanal

5. Profit and Loss Account Prepared by : Govinda Khanal Operating Expenses Salaries and Wages : Payments made to employees. Rent : Costs for leasing office or production space. Utilities : Expenses for electricity, water, and other utilities. Depreciation : Allocation of the cost of tangible assets over their useful lives. Insurance : Premiums paid for insurance coverage. Items on Debit side

6. Profit and Loss Account Prepared by : Govinda Khanal Administrative Expenses Office Supplies : Costs for stationery, computer supplies, etc. Legal and Professional Fees : Payments for legal advice, accounting services, etc. Travel and Transportation : Expenses for business travel and transportation. Items on Debit side

7. Profit and Loss Account Prepared by : Govinda Khanal Advertising and Promotion : Costs for marketing and promotional activities. Sales Commissions : Payments made to sales personnel based on performance. Shipping and Freight : Costs associated with the delivery of goods to customers. Items on Debit side

8. Profit and Loss Account Prepared by : Govinda Khanal Financial Expenses Interest Expense : Cost of borrowing funds, such as interest on loans or overdrafts. Other Expenses Bad Debts : Amounts considered uncollectible from customers. Loss on Sale of Assets : Losses incurred when selling assets below their book value. Items on Debit side

9. Profit and Loss Account Prepared by : Govinda Khanal Adjustments and Provisions Provisions for Taxes : Estimated taxes for the accounting period. Accrued Expenses : Expenses that have been incurred but not yet paid or invoiced. Exceptional Items Losses from Unusual Events : Costs arising from events that are not part of the regular business operations. Items on Debit side

10. Profit and Loss Account Prepared by : Govinda Khanal The credit side of a Profit and Loss (P&L) account typically includes all income and gains that a business earns during the accounting period. Here’s a list of common items found on the credit side of a Profit and Loss account: 1. Gross profit Gross profit : Gross profit is outcome result from trading account Items on Credit side

11. Profit and Loss Account Prepared by : Govinda Khanal 2. Other Income Interest Income : Earnings from investments or savings accounts. Dividend Income : Income received from investments in other companies' shares. Rental Income : Earnings from renting out property or equipment. Items on Credit side

12. Profit and Loss Account Prepared by : Govinda Khanal 3. Gains Profit on Sale of Assets : Gains realized from selling assets above their book value. Foreign Exchange Gains : Profits arising from favorable exchange rate fluctuations. Items on Credit side

13. Profit and Loss Account Prepared by : Govinda Khanal 4. Operating Income Service Income : Revenue from providing services rather than selling goods. Commission Income : Earnings from commissions earned on sales or transactions. Items on Credit side

14. Profit and Loss Account Prepared by : Govinda Khanal 5. Other Operating Revenue Royalty Income : Earnings from licensing intellectual property or patents. Fees and Charges : Income from various fees, such as administrative charges or consulting fees. Items on Credit side

15. Profit and Loss Account Prepared by : Govinda Khanal 6. Exceptional Items Gain from Unusual Events : One-time gains from events not part of normal business operations, such as a legal settlement. Items on Credit side

16. Profit and Loss Account Prepared by : Govinda Khanal

17. Profit and Loss Account of …………………………….. Company as on…………………………………………….. Prepared by : Govinda Khanal Particulars Amt Particulars Amount CR DR