was doing a ques... just saw some uncommon terms..... carriage inward....carriage outward.... what are these exactly....???? plz explain..... Thanks & Regards...
Carriage refers to the cost of transporting goods into and out of a business. Carriage inwards is the shipping and handling costs incurred by a company that is receiving goods from suppliers. Carriage outwards is the shipping and handling costs incurred by a company that is shipping goods to a customer.
The following information has been extracted from the accounting records of Maanas Industries Ltd: Account Balances at 31 March 2011 (In ‘000) Administration costs -800 Bank overdraft -700 Debtors -1,300 Factory (Start of the year)cost -23,300 Factory(End of the year)depreciation- 1,800 Factory running costs- 1,200 Loan interest -1,680 Long term loans- 12,000 Machinery (End of the year) cost- 15,000 Machinery (End of the year)depreciation - 8,000 Manufacturing wages - 1,300 Materials — consumed- 1,600 Profit and loss account - 380 Sales - 13,000 Sales salaries - 1,600 Share capital - 12,000 Opening Stock-300 Closing Stock - 700 Trade creditors -600 Notes: (a) The corporation tax charge for the year has been estimated at 1,290,000. (b) The directors have proposed a dividend of 1,400,000. (c) At the year end the directors had the factory professionally revalued. The valuer’s report estimates the value of the property at 25,000,000. This value is to be incorporated into the balance sheet. (d) During the year the company charged depreciation of 460,000 on the factory and 2,000,000 on the machinery. The company purchased new machinery at a cost of 2,700,000. There were no other transactions involving fixed assets. All of these adjustments and transactions have been incorporated into the above figures. 1. Based on available information prepare profit and loss account for the year ended 31 March 2011 and the balance sheet as at that date. You should provide a note in respect of tangible fixed assets, but you are not otherwise required to provide notes to the accounts. You should, however, clearly show your workings. Ans..... Profit and Loss Account For the FY 2010-2011 Debit Credit Sales 13000 Less Factory running costs 1200 Material consumed 1600 Manufacturing wages 1300 -4100 Gross Profit 8900 Less Sales salaries 1600 Administration costs 800 Loan interest 1680 -4080 Net Profit 4820 Tax 1290 Dividend 1400 -2690 C. Y Profit 2130 why have we not included depreciation in this.... For reaching to gross profit we always subtract depreciation from sales.... but thats not done hre...???? Can anyone tell me the reason.....?????????? Thanks and Regards.....
I agree. This is very unusual. Is this a past question? I also notice that they've deducted the dividend when it's only proposed. These days, we don't deduct dividends from the income statement at all (we just write in a note underneath) and we only deduct dividends from the retained earnings reserve if they've been paid.
such terms will always play unto your mind until you check out and practice some question from a 11th standard accountancy book and refer chapter named FINANCIAL STATEMENTS for reference u my check accountancy by DK Goel as it has a simple language
accounts Hi, I am unable to find this question anywhere. Normally I would expect depreciation to be deducted from the sales as part of cost of sales, to get the gross profit.
