Textile Costing

Lecture 2
Financial Statements
Balance Sheet, Profit & Loss, Debit & Credit

Balance Sheet financial position of a business on a certain fixed date. P&L Account net profit or net loss resulting from the transaction during a period. Ahmed Inc. Profit & Loss Account for the month ended 31st December, xxxx

Sales Operating Expenses Wages expense Supplies Expense Depreciation Expense Rent Expense Utilities Expense Misc Expense Net Profit

Rs 2,000 550 400 200 50 25 75 1,300 700

Ahmed Inc. Balance Sheet as at 31st December, xxxx Assets Cash Supplies Equipment Less Accumulated Depreciation Total Assets Liabilities Trade Creditors Capital December 1, xxxx Profit for the month Less withdrawals Total Liabilities and capital Increase in property Debit Decrease in property Credit Increase in right to property Credit Decrease in right to property Debit Rs. 2,100 250 17,400 200 17,200 19,550

350 19,000 700 500 200 19,200 19,550

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Textile Costing

Journal Date xxxx Dec Description 1 Cash Ahmed, Capital Equipment Cash
Kitchen Equipment

Debit 19,000

Credit

19,000 17,400 17,400

Supplies Trade Creditors

Bought food supplies on credit

650 650

Trade Creditors Cash Cash Sales Wages Exp Rent Exp Utilities Exp Misc Exp Cash Supplies Exp Supplies
Monthly stock taking

300 300 2,000 2,000 550 50 25 75 700 400 400

31

31

Depreciation Exp Acc Depreciation Drawings Cash

200 200 500 500

31

Dec

1 e

Ahmed, Capital Sales

Ledger Cash 19,00 0 Dec 2,000

17,40 b d f 31 31
Equipment Trade Creditors Wage, Drawings Balance c/d

0 300 700 500 2,100 21,00 0

21,00 0 Jan 1
Balance b/d

2,100

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Textile Costing Ahmed, Capital 19,00 Dec Dec 1

Cash

Dec

Cash

Equipment 17,40 0 Dec

Dec

Trade Creditors

Supplies 650 Dec 650 250

31 31

Suppiles Exp Balance c/d

400 250 650

Jan

Balance b/d

Dec

d 31

Cash Balance c/d

Trade Creditors 300 Dec c 350 650 Jan 1 Sales Dec

Supplies

650 650 350

Balance b/d

Cash

2,000

Dec

Cash

Wages Expense 550

Dec

Cash

Rent Expense 50

Dec

Cash

Utilities Expense 25

Dec

Cash

Misc Expense 75

Dec

31

Supplies

Supplies Expense 400

Dec

31

Acc Dep

Depreciation Expense 200

Accumulated Depreciation
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Textile Costing Dec 31

Dep Expense

200

Dec

31

Cash

Drawings 500

Description Cash Ahmed, Capital Equipment Supplies Trade Creditors Sales Wages Expense Rent Expense Utilities Expense Misc Expense Supplies Expense Depreciation Expense Accumulated Depreciation Drawings

Ahmed Inc. Trial Balance Dec 31, xxxx Debits 2,100 17,400 250

Credits 19,000

350 2,000 550 50 25 75 400 200 200 500 21,550 21,550

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