Plus One Accountancy Notes Chapter 8 Financial Statements – I & II

Students can Download Chapter 8 Financial Statements – I & II Notes, Plus One Accountancy Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Accountancy Notes Chapter 8 Financial Statements – I & II

Summary:
Financial Statements:
Meaning and types Financial statements are the statements which present periodic reports on the process of business enterprises and the results achieved during a given period. Financial statement includes trading, profit & loss account, balance sheet and other statements.

Trading and Profit & Loss Account:
Trading and Profit & Loss account is prepared to ascertain the net result of business operations during a given period.

Format of Trading and Profit & Loss Account (In horizontal form):
Trading and Profit & Loss Account for the year ended ………………
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 1

Plus One Accountancy Notes Chapter 8 Financial Statements - I & II

Need for Adjustment:
For the preparation of financial statements, it is necessary that all adjustments arising out of the accural basis of accounting are made at the end of the accounting period. Entries which are given outside the trial balance are called adjustment entries.

Treatment of various types of adjustments:
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 2

Balance Sheet:
The balance sheet is a statement of assets and liabilities of a business enterprises and shows the financial position at a given date. It is not an account. It is only a statement.
Assets and liabilities shown in the balance sheet are marshalled in order to liquidity or in order to permanence.

Plus One Accountancy Notes Chapter 8 Financial Statements - I & II

Format of Balance Sheet (In horizontal form)
Balance sheet as on …………….
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 3
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 4

The Performa of income statement and balance sheet in vertical form.

Income Statement for the period ended ……..
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 5
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 6

Plus One Accountancy Notes Chapter 8 Financial Statements - I & II

Balance sheet as on………..
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 7
Plus One Accountancy Notes Chapter 8 Financial Statements - I & II img 8

Leave a Comment

error: Content is protected !!