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Final result of trading is known through Profit and Loss Account.
Company final account vertical format. Profit and Loss Account. It helps in finding out the gross profit or gross loss during an accounting year which is an important indicator of business efficiency. Final accounts are prepared with the following objectives.
The Company Final Accounts consists of. Section 210 of the Companies Act governs the preparation of final account of a Company. To Salaries Administrative To Office Rent Rates Taxes To Lighting To Legal Charges To Postage To Printing.
You are required to prepare Trading and Profit and Profit and Loss Account Income Statement for the year ended May 31 st 2020 and Balance Sheet as on that date. The latter form is given below as per the notification. Company Law also has a definite format for the final accounts of a company.
Let us study company accounts and their format. Preparation of Trading Account. 1 FORMAT OF FINAL ACCOUNTS VERTICAL FORMAT Name of Business Statement of Profit or Loss for the year ended eg 31 December 2015 RM RM RM Sales XX Less.
To determine the financial position of the company. Preparing for Final Account. By a notification dated 23rd December 1978 the Government have permitted companies to prepare the balance sheet either in the horizontal form as given earlier or in the vertical form.
Cost of Goods Sold Opening inventory XX Purchases XX Less. All excel templates are free to download and use. Name of the Company.
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