Rent Expense A/C

Date Details Amt Date Details Amt

2023 2023
Jan 1 Balance b/d (asset) XX Jan 1 Balance b/d (liability) XX
(prepaid of last year) (outstanding of last year)
Dec 31 Bank (paid) XX Dec 31 Income statement (annual) XX
Dec 31 Balance c/d (liability) XX Dec 31 Balance c/d (asset) XX
(prepaid in this year) (prepaid in this year)
XXXX XXXX
2024 2024
Jan 1 Balance b/d (asset) XX Jan 1 Balance b/d (liability) XX
(prepaid of last year) (outstanding of last year)
Things to keep in mind:
• Expense A/C .. dr
Bank A/C .. cr Therefore, bank will always be on the debit side
• Expenses are usually debited, but everything flips in the ledger. Therefore, income statement
will always be on the credit side
• "Annual" or "yearly" = Income Statement
• "Paid"= bank / cash
 Rent Income A/C
Date Details Amt Date Details Amt
2023 2023
Jan 1 Balance b/d (asset) XX Jan 1 Balance b/d (liability) XX
(outstanding of last year) (pre-received of last year)
Dec 31 Income statement (annual) XX Dec 31 Bank (received) XX
Dec 31 Balance c/d (liability) XX Dec 31 Balance c/d (asset) XX
(pre-received in this year) (outstanding in this year)
XXXX XXXX
2024 2024
Jan 1 Balance b/d (asset) XX Jan 1 Balance b/d (liability) XX
(outstanding of last year) (pre-received of last year)
Things to keep in mind:
• Bank A/C .. dr
Income A/C .. cr Therefore, bank will always be on the credit side
• Incomes are usually credited, but everything flips in the ledger. Therefore, income statement
will always be on the debit side
• "Annual" or "yearly" = Income Statement
• "Received"= bank / cash
 Provision for Depreciation A/C
Date Details Amt Date Details Amt
2021 2021
Dec 31 Balance c/d (accumulated PFD) XX Dec 31 Income statement (PFD for XX
XXXX this year) (adj.) XXXX
2022 2022
Dec 31 Balance c/d (accumulated PFD) XX Jan 1 Balance b/d (accumulated PFD) XX
Dec 31 Income statement (PFD for XX
XXXX this year) (adj.)
XXXX
2023 2023
Dec 31 Disposal (accumulated PFD of XX Jan 1 Balance b/d (accumulated PFD) XX
asset being sold) Dec 31 Income statement (PFD for XX
Dec 31 Balance c/d (remaining XX this year) (adj.)
accumulated PFD) XXXX XXXX
2024
Jan 1 Balance b/d (accumulated PFD) XX
 Asset A/C
Date Details Amt Date Details Amt
2021 2021
Dec 31 Bank / capital / name XX Dec 31 Balance c/d (asset with the XX
(purchase of new asset) business at the end of the
year)
XXXX XXXX
2022 2022
Dec 31 Balance b/d (asset with the XX Dec 31 Disposal (original value of XX
business at the start of the asset being sold)
year) Dec 31 Balance c/d (remaining asset XX
with the business)
XXXX XXXX
2023
Dec 31 Balance b/d (asset with the XX
business at the start of the
year)
 Disposal A/C
Date Details Amt Date Details Amt
2022 2022
Dec 31 Asset (original value of the XX Dec 31 Provision for depreciation XX
asset being sold) (accumulated depreciation of
Dec 31 Income statement (profit) XX asset being sold)
Dec 31 Bank / cash / name (value XX
received for selling the
asset)
Dec 31 Income statement (loss) XX
XXXX XXXX
Journal Entries:
• Increase in PFD: Income statement .. dr
Provision for depreciation .. cr
• Purchase of asset: Asset .. dr
Cash / bank / name .. cr
• Disposal of asset: Disposal .. dr
Asset .. cr
• Cash received for disposal: Cash / bank / name .. dr
Disposal .. cr
• Loss on sale of asset: Income statement .. dr
Disposal .. cr
• Profit on sale of asset: Disposal .. dr
Income statement.. cr
 Provision for Doubtful Debts A/C
Date Details Amt Date Details Amt
2021 2021
Dec 31 Balance c/d (total PFDD) XX Dec 31 Income statement (expense) XX
XXXX XXXX
2022 2022
Dec 31 Balance c/d (total PFDD) XX Jan 1 Balance b/d (existing PFDD) XX
Dec 31 Income statement (expense) XX
XXXX XXXX
2023 2023
Dec 31 Income statement (income) XX Jan 1 Balance b/d (existing PFDD) XX
Dec 31 Balance c/d (total PFDD) XX
XXXX XXXX
2024
Jan 1 Balance b/d (existing PFDD) XX
 Debtors A/C
Date Details Amt Date Details Amt
2021 2021
Dec 31 Sales (credit sales) XX Dec 31 Bank (cheque received) XX
XXXX XXXX
2022 2022
Dec 31 Sales (credit sales) XX Dec 31 Bad debts (loss) XX
XXXX XXXX
2023 2023
Dec 31 Bad debts recovered (income) XX Dec 31 Bank (cheque received) XX
XXXX XXXX
 Bad debts A/C
Date Details Amt Date Details Amt
2022 2022
Dec 31 Debtors (unable to pay) XX Dec 31 Income statement (loss) XX
XXXX XXXX
Bad debts recovered A/C
Date Details Amt Date Details Amt
2023 2023
Dec 31 Income statement (income) XX Dec 31 Debtors (able to pay) XX
XXXX XXXX
Journal Entries:
• Increase in PFDD: Income statement .. dr
Provision for doubtful debts .. cr
• Decrease in PFDD: Provision for doubtful debts .. dr
Income statement .. cr
• Credit sales: Debtor .. dr
Sales .. cr
• Bad debts written off: Irrecoverable debts .. dr
Debtors .. cr
• Bad debts recovered: Bank .. dr Debtor .. dr
Debtor .. cr + Bad debts recovered .. cr
 Profit and loss appropriation account
Details $ $ $

Profit of the year XXXX

Add interest on drawings: X XX
Y XX XXX
XXXX
Less interest on capital: X (XX)
Y (XX) (XXX)
XXXX
Less salaries: X (XX)
Y (XX) (XXX)
Residual profit: X XX
Y XX XXXX
 FIXED CAPITAL METHOD
Partners capital account
Date Details $ Date Details $

2020 2020
31 Balance c/d XX 1 Bank / Cash XX
XXXX XXXX
2021 2021
31 Balance c/d XX 1 Balance b/d XX
XXXX XXXX
2022
1 Balance b/d XX

Partners current account

2020 2020
31 Drawings XX 31 Interest on capital XX
31 Interest on drawings XX 31 Salary XX
31 Residual loss XX 31 Residual profit XX
31 Balance c/d XX
XXXX XXXX
2021
1 Balance b/d XX

Partners current account

2020 2020
31 Drawings XX 31 Interest on capital XX
31 Interest on drawings XX 31 Salary XX
31 Residual loss XX 31 Residual profit XX
31 Balance c/d XX
XXXX XXXX
2021
1 Balance b/d XX
 FLUCTUATING CAPITAL METHOD
Partners current account
Date Details $ Date Details $

2020 2020
31 Drawings XX 1 Bank / Cash XX
31 Interest on drawings XX 31 Interest on capital XX
31 Residual loss XX 31 Salary XX
31 Balance c/d XX 31 Residual profit XX

XXXX XXXX
2021
1 Balance b/d XX

Partners current account

2020 2020
31 Drawings XX 1 Bank / Cash XX
31 Interest on drawings XX 31 Interest on capital XX
31 Residual loss XX 31 Salary XX
31 Balance c/d XX 31 Residual profit XX

XXXX XXXX
2021
1 Balance b/d XX
 INCOME STATEMENT FOR THE YEAR ENDING
DETAILS AMOUNT AMOUNT AMOUNT

Sales XXX
- Sales Returns (X) XXX
- Cost of Goods Sold:
+ Opening Stock XXX

+ Purchases XXX
- Purchase Returns (X)
- Goods Taen For Own Use (X) XXX

+ Carriage Inwards XXX

- Closing Stock (X) (XXX)

ee
GROSS PROFIT XXX
Incomes :

Commission Received
rB XXX

7
76
+ Accrued X XXX

Rent Received XXX 45

77
86

- Pre-received
te
(X) XXX
+9

Discount Received XXX

&

Provision for Doubtful Debts (Trial Balance) XXX XXX

igh
7
98

Expenses :
50

Salaries XXX
07

+ Outstanding
92

X XXX
Br
+9

Rent XXX
- Prepaid (X) XXX

Electricity Charges XXX

General Expenses XXX

Provision for Doubtful Debts (Adjustment) XXX

Bad Debts XXX

Interest on Loan XXX

Provision for Depreciation XXX

Administration Expenses XXX

Repairs of NCA XXX (XXX)

PROFIT OF THE YEAR / NET PROFIT XXX

54
 STATEMENT OF FINANCIAL POSITION
DETAILS AMOUNT AMOUNT AMOUNT

Non Current Asset (long):

Equipment XXX - XXX
Plant and machinery XXX (X) XXX
Land XXX (X) XXX
Building XXX (X) XXX
Fixtures and Fittings XXX (X) XXX

XXX
Current Assets (short):

ee
Trade receivables XXX
- Bad Debts (X)
- Provision for Doubtful Debts
rB (X) XXX

7
76
Other receivables XXX
45
77
Cash / Bank XXX
86
te
Closing Inventory XXX XXX
+9

TOTAL ASSETS XXX

&
igh
7

Non Current Liabilities (long):

98
50

Long term loans XXX

07

Current Liabilities (short):

92
Br
+9

Trade payables XXX

Other payables XXX
Loan (bank overdraft) XXX XXX

TOTAL LIABILITIES XXX

Financed By:
Capital XXX
- Drawings (X)
+ Additional capital XXX
+ Profit of the year / - Loss of the year X / (X) XXX

FINANCED BY + TOTAL LIABILITIES XXX

55
 PROFIT & LOSS APPROPRIATION ACCOUNT (PARTNERSHIP)
DETAILS AMOUNT AMOUNT AMOUNT

Profit of the Year XXX

+ Interest on Drawings: Partner A XXX
Partner B XXX XXX
- Interest on Capital: Partner A (X)
Partner B (X) (X)
- Partner’s Salary: Partner A (X) (X)

Profit share: Partner A XXX

Partner B XXX XXX

ee
rB
7
76
45
77
86
te
+9
&
igh
7
98
50
07
92
Br
+9

57
 MANUFACTURING ACCOUNT
DETAILS AMOUNT AMOUNT AMOUNT

Cost of material consumed:

+ Opening inventory of raw material XXX
+ Purchases of raw material XXX
+ Carriage on raw material XXX
- Closing inventory of raw material (X) XXX
Direct wages XXX
Direct expenses XXX

PRIME COST XXX

ee
+ Factory Overheads:
Indirect wages rB XXX
Factory rent and rates XXX

7
76
Factory insurance XXX
45
77
Factory fuel and power XXX
86
te
Factory general expenses XXX
+9

Depreciation of factory machinery XXX XXX

&
igh
7

XXX
98
50

+ Opening work in progress XXX

07

XXX
92
Br
+9

- Closing work in progress (XXX)

PRODUCTION COST OF GOODS

XXX
COMPLETED

58