Formats for IGCSE/O Level Accounting 0452/7707

 

These are formats of IGCSE/O Level Accounting. You these formats to be fully prepared for your exam!

Bad/Irrecoverable debts

Double Entry

1. Bad debts                                      XYZ

Trade Receivable (Debtor)                                         XYZ

2. Income Statement (P & L)                 XYZ

Bad Debts                                                                 XYZ

Provision for doubtful debts account:

Creating / increasing the provision

Income statement / P&L (Exp)                   XYZ

Provision for doubtful debts                                      XYZ

Reducing the provision

Provision for doubtful debts                       XYZ

Income statement / P&L (Income)                              XYZ

Bad Debts Account

2021 Mr. A Mr. B    2022 Mr. C Mr. D

$ XX XX XYZ   XX XX XYZ

2021  Income Statement   2022   Income Statement

$ XYZ       XYZ

Provision for Doubtful Debts Account

Balance c/d Income Statement (Reduced/Income) Balance c/d

$ XYZ XYZ XYZ

Balance b/d Income Statement (Increased/Exp) Balance b/d   Balance b/d

$ XYZ XYZ XYZ XYZ XYZ

INCOME STATEMENT EXTRACT

Gross Profit                                                                                                   XYZ
Add: Decrease in allowance for doubtful debts (Other Income)                           XYZ
                                                                                                                    XYZ
Less: Expenses:
Bad debts expense (if any)                                                                             (XYZ)
Increase in allowance for doubtful debts (Expense)                                           (XYZ)
XXX

Profit for the year                                                                                            XYZ

BALANCE SHEET EXTRACT

Current Assets
Trade receivable                                                                                              XYZ

Less:  Provision for doubtful debts                                                                   (XYZ)
XYZ

Net Receivables                                                                                               XYZ

Depreciation
METHODS OF DEPRECIATION
Straight line method =                        Cost – Scrap value
                                                                    Useful life

              OR
           (Cost – Scrap Value)  X Rate%

Reducing balance method = (Cost – Accumulated depreciation) x Rate%

Revaluation Method

Asset NBV Account (Loose Tools, Crockery)

Opening Value b/d                    xyz Bank / Liability (Addition)          xyz

Disposal                                          xyz Income Statement / P & L (Current Year Depreciation)         xyz Closing value  c/d

DOUBLE ENTRY FOR DEPRECIATION

Income statement                                                           xyz
Provision for depreciation                                                            xyz
(To record the depreciation expenses for the year)

DISPOSAL ENTRIES

1) To write off cost of an asset
Disposal account                                                             xyz
Machine/Vehicle/Equipment                                                         xyz
(To write off an assets account on its disposal)

2) To write off total depreciation charged from the date of purchase to date of sale.
Accumulated Dep / Provision for depreciation                    xyz
Disposal Account                                                                          xyz
(To write off the total deprecation of the asset sold)

3) To record the cash or cheque receipt on disposal
Cash/Bank/Debtor                                                                        xyz
Disposal account                                                             xyz
(To record the cash or cheque received on sale)

4) To record the Gain or loss on disposal (Gain Entry)
Disposal Account                                                             xyz
Income Statement (Gain)                                                             xyz
(To record the gain on disposal)

(Loss Entry)
Income Statement (Loss)                                               xyz
Disposal Account                                                                        xyz
(To record the loss on Disposal)

Asset Account (Equipment / Machine / Vehicle / Building)

Opening balance b/d                    xxx Bank / Liability (Addition)            xxx                                                   xxx Opening balance b/d                   xxx

Disposal                                         xxx Closing balance c/d                         xxx                                                       xxx

Provision for Dep / Accumulated Dep (Machine / Vehicle / Building)

Disposal                                         xyz Closing balance c/d                         xyz                                                       xyz

Opening balance b/d                     xyz Income Statement (Current Year Depreciation)           xyz                                                     xyz Opening balance b/d                     xyz

Disposal Account

(Machine / Vehicle / Building)        xyz Income Statement (Gain)              xyz                                                     xyz

Provision for Dep / Acc Dep        xyz Bank / Cash / Debtor                 xyz Income Statement (Loss)           xyz                                                  xyz

Income Statement Extract

Gross Profit                                                                           XYZ
Add: Other Income
Gain on Disposal of Asset                                                        XX
                                                                                            XYZ
Less: Expenses
Depreciation Building                                  XYZ
Depreciation Equipment                              XYZ
Loss on Disposal of Asset                            XYZ                    (XYZ)

Profit for the year                                                                    XYZ

Statement of Financial Position Extract

Non Current Assets	Cost	Accumulated Dep	NBV
Buildings	XYZ	(XX)	XX
Equipment	XYZ	(XX)	XX
Motor Vehicles	XYZ	(XX)	XX
			XYZ

Accruals & Prepayments

Expense Account

	$		$
Prepaid expenses (opening) b/d	XYZ	Accrued expense (opening) b/d	XYZ
Cash / Bank	XYZ	Income Statement / P & L	XYZ
Accrued expenses (closing) c/d	XYZ	Prepaid expense (closing) c/d	XYZ
	XYZ		XYZ

Income Account

	$		$
Accrued Income (Opening) b/d	XYZ	Prepaid Income (Opening) b/d	XYZ
Income Statement / P & L	XYZ	Cash / Bank (Income received During the year)	XYZ
Prepaid Income (Closing) c/d	XYZ	Accrued Income (Closing) c/d	XYZ
	XYZ		XYZ

Statement of Financial Position (extract)

Current assets
Other Receivables
Prepaid Expense (Insurance, Rent etc)                            XYZ
Accrued Income (Subscription, Fees etc                          XYZ
Less: Current liabilities
Other Payables
Accrued Expense (Electricity, Wages, Interest etc)           XYZ
Prepaid Income (Subscription, fees etc)                          XYZ

Final Accounts for Sole Traders with Adjustments

Waleed Traders
Income Statement for the year ended 31 Dec, 2022

	$	$
Sales	XYZ
Less: Return inward / Sales Returns	(XYZ)
Net Sales		XYZ
Less: COST OF SALES
Opening Inventory	XYZ
Add: Purchases	XYZ
Add: Carriage Inwards	XYZ
Add: Custom duty	XYZ
Less: Return outward / Purchases return	(XYZ)
Less: Closing Inventory	(XYZ)
Cost of Sales		(XYZ)
Gross Profit		XYZ
Add: OTHER INCOME
Discount received	XYZ
Commission received	XYZ
Reduction in Provision for Doubtful Debts	XYZ
Gain on Disposal of NCA	XYZ	XYZ
Less: EXPENSES
Salaries and wages	XYZ
Rent expenses	XYZ
Insurance expense	XYZ
Heating and Lighting	XYZ
Sundry expenses	XYZ
Depreciation expense	XYZ
Increase in Provision for Doubtful debts	XYZ
Discount allowed	XYZ
Carriage outward / Carriage on sales	XYZ
Bad debt expense	XYZ
Financial cost (interest expense)	XYZ
Repair and maintenance	XYZ	(XYZ)
Profit / (Loss) for the year		XX/(XX)

Waleed Traders
Statement of Financial Position as at 31 December 2022

Assets	$	$	$
Non-Current Assets	Cost	Acc Dep	NBV
Land	XYZ	–	XX
Building	XYZ	(XX)	XX
Equipment	XYZ	(XX)	XX
			XYZ
Current Assets
Inventory		XYZ
Trade Receivables / Debtors	XYZ
Less: Provision for doubtful debts	(XYZ)	XYZ
Prepaid Expense		XYZ
Accrued Income		XYZ
Bank		XYZ
Cash		XYZ	XYZ
Total Assets			XYZ
Capital and Liabilities
Opening Capital		XYZ
Add Profit  / Less (Loss)		XX/(XX)
Less: Drawings		(XYZ)	XYZ
Current Liabilities
Trade payables / Creditors		XYZ
Bank O/D (Over Draft)		XYZ
Accrued Expenses		XYZ
Prepaid Income		XYZ	XYZ
Non Current Liablities
7% Bank Loan or Other Loan			XYZ
Total Capital and Liabilities			XYZ

Financial Statements for Service Sector

Waleed Traders
Income Statement for the year ended 31 Dec 2022

	$	$
Income
Fees Income (w)	XYZ
Gain on disposal of Asset	XYZ
Photo Copy Income	XYZ
Income from Canteen	XYZ
Rent from Auditoriums	XYZ	XYZ
Less: Expenditure
Staff Salaries	XYZ
Loss on disposal of asset	XYZ
Depreciation of Furniture and Fixtures	XYZ
Interest on loan	XYZ
Administration Expenses	XYZ
Maintenance	XYZ
Utilities	XYZ	(XYZ)
Profit / (Loss) for the year		XX / (XX)

Financial Statements for Manufacturing Sector

Waleed khan Textiles
Manufacturing Account for the year ended Dec 31, 2022

	$	$
Direct Raw material
Opening inventory of RM	XX
Add:  Purchases of RM	XX
Less: Purchases return RM	(XX)
Add:  Carriage Inwards RM	XX
Less: Closing inventory of RM	(XX)
Cost of Raw material consumed		XX
Add: Direct Labour / Factory wages		XX
Add: Direct Expense / Royalty		XX
Prime Cost		XYZ
Add:  Factory Overheads / Indirect Cost
Salaries & wages (Factory Supervisor/Mgt salary)	XYZ
Insurance (factory)	XYZ
Indirect overheads (Factory)	XYZ
Heat and lighting (Factory)	XYZ
Rent (Factory)	XYZ
Depreciation (Factory equipment)	XYZ
Sundry expenses (factory)	XYZ	XYZ
		XYZ
Add:  Opening Work in Progress	XYZ
Less: Closing Work in Progress	(XYZ)	XX(XX)
Production / Manufacturing cost		XYZ

Waleed Textiles
Income Statement for the year ended Dec 31, 2022

	$	$
Sales Revenue (Finished Goods)		XYZ
Less: Cost of Sales
Opening Inventory of (FG)	XYZ
Add:  Production / Manufacturing cost	XYZ
Add:  Purchase of finished goods (FG)	XYZ
Less: Purchases return (FG)	(XYZ)
Less: Closing inventory (FG)	(XYZ)
Cost of Sales		(XYZ)
Gross profit		XYZ
Add: Other Income
Interest received	XYZ
Decrease in Provision for doubtful debts	XYZ
Discount received	XYZ	XYZ
Less:  Non-Manufacturing Overheads
Heat and lighting (Office)	XYZ
Office salaries	XYZ
Rent (Office)	XYZ
Depreciation (Office Related Assets)	XYZ
Carriage Outward / Distribution Costs	XYZ
Bad debts	XYZ
Increase in Provision for doubt debts	XYZ
Interest expense / financial cost	XYZ	(XYZ)
Profit / (Loss) for the year		XX/(XX)

Waleed khan Textiles
Statement of Financial Position as at 31 December 2022

Assets	$	$	$
Non-Current Assets	Cost	Acc Dep	NBV
Land	XYZ	–	XX
Building	XYZ	(XX)	XX
Equipment	XYZ	(XX)	XX
			XYZ
Current Assets
Inventory
Raw Material	XX
Work in Progress	XX
Finished Goods	XX	XYZ
Trade Receivables / Debtors	XXX
Less: Provision for doubtful debts	(XXX)	XYZ
Prepaid Expense		XYZ
Accrued Income		XYZ
Bank		XYZ
Cash		XYZ	XYZ
Total Assets			XYZ
Capital and Liabilities
Opening Capital		XYZ
Add Profit  / Less (Loss)		XX/(XX)
Less: Drawings		(XYZ)	XX
Current Liabilities
Trade payables / Creditors		XYZ
Bank O/D (Over Draft)		XYZ
Accrued Expenses		XYZ
Prepaid Income		XYZ	XYZ
Non Current Liablities
7% Bank Loan or Other Loan			XYZ
Total Capital and Liabilities			XYZ

Cash Book

Two / Three Column Cash Book
For the year ended December 31, 2022

Date	Particulars	Discount Allowed	Cash   $	Bank   $	Date	Particulars	Discount Received	Cash   $	Bank $

The Journal

Waleed
The Journal / General Journal
For the period ended December 31, 2022

Date	Particulars	Debit ($)	Credit ($)
1. Jan 2022	Cash	XYZ
	Capital		XYZ
	Narration (To record the investment of the owner)

Bank Reconciliation

Updated / Revised / Amended Cash Book

Balance b/d                               XYZ Trader’s Credit / Transfer            XYZ Interest Credited                       XYZ Dividend Received                     XYZ Debtor Paid Directly                  XYZ Balance c/d (Overdraft)             XYZ                                                 XYZ Balance b/d                              XYZ

OR       OR

Balance b/d (Overdraft)                 XYZ Direct Debit                                  XYZ Standing Order                             XYZ Bank Charges                               XYZ Interest Charged                          XYZ Dishonored / Unpaid Cheque         XYZ Balance c/d                                 XYZ                                                    XYZ Balance b/d (Overdraft)                XYZ

Bank Reconciliation Statement

Bal as per Updated Cash book	XYZ
Add:  Un-Presented cheques	XYZ
Less:  Un-Credited lodgments	(XYZ)
Balance as per bank statement	XYZ

Control Accounts
Total debtors account or Sales Ledger Control Account (SLCA)

balance b/d                                                 xyz	AND /OR	balance b/d (Cr)                                xyz
Sales (Credit)                                               xyz		Cash / Bank (Payment received)      xyz
Dishonored/Unpaid/Bounced Chq           xyz		Discount Allowed                                xyz
Interest Charged to debtors                     xyz		Return inward / Sales return            xyz
Refunds to Debtors                                    xyz		Bad Debts                                           xyz
		Contra  – PLCA                                    xyz
balance c/d (Cr)                                        xyz	AND /OR	balance c/d                                         xyz
Totals                                                           xyz		Totals                                                  xyz
balance b/d                                                 xyz		balance b/d (Cr)                                xyz

Total Creditors account or Purchase Ledger Control Account (PLCA)

balance b/d (Dr)                                      xyz	AND /OR	balance b/d                                      xyz
Cash / Bank (Payment made)                xyz		Purchases (Credit)                           xyz
Discount Received                                   xyz		Interest Charged by Suppliers       xyz
Return Outwards/Purchase return         xyz		Refunds from Creditors                   xyz
Contra  – SLCA                                         xyz
balance c/d                                              xyz	AND /OR	balance c/d (Dr)                              xyz
Totals                                                       xxx		Totals                                               xxx
balance b/d (Dr)                                      xyz	OR	balance b/d                                      xyz

Ratios Analysis
Profit Markup vs. Profit Margin
Markup – Cost Margin – Sales

Markup 100 + Markup

Margin 100 – Margin

1. Profitability Ratios
   Gross Profit Margin (Gross profit to revenue)   = Gross Profit    X 100
   Revenue
   Gross Profit Mark up                                          = Gross Profit    X 100
   Cost of Sales
   %age of profit to revenue (Net Profit margin) = Net Profit       X  100
   Revenue
   Return on Capital Employed (ROCE)                 =Net Profit for the year   X 100                                                                                      Capital Employed
   [Capital Employed = Owner’s capital + long term liabilities]
   

   or
   [Total Assets – Current Liabilities]

    

2. Liquidity Ratios

Current ratio (Working Capital Ratio)	=	Current Assets Current Liabilities
Quick Ratio (Acid Test / Liquid Ratio)	=	Current Assets −Inventory Current Liabilities

Rate of Inventory Turnover (times)          =          Cost of Goods Sold
                                                                                 Average Inventory
OR
Inventory turnover (In Days)                    =          Average Inventory   X 365
Cost of Sales
Expenses To Sales Ratio                            =                Expenses           X 100
Net sales

Not for Profit / Club Accounts

Subscription Account (Income)

	$		$
Subscription in Arrears (opening)	XYZ	Subscription Prepaid (opening)	XYZ
Subscription refund	XYZ
		Bank (Subscription received During the year)	XYZ
Income & Expenditure A/c	XYZ
		Bad Debts	XYZ
Subscription Prepaid (closing)	XYZ	Subscription in Arrears (closing)	XYZ
	XYZ		XYZ

OPENING ACCUMULATED FUND

	$	$
OPENING ASSETS
Cash / Bank	XYZ
Inventory of refreshment	XYZ
Equipment	XYZ
Subscription in arrears	XYZ
Prepaid Expense	XYZ

Premises	XYZ	XYZ
Less: OPENING LIABILITIES
Subscription in advance	XYZ
Accrued/Owings to supplier	XYZ
Overdraft / Loan	XYZ	(XYZ)
Opening Accumulated fund		XYZ

Waleed Club
Refreshments / Café Trading Account for the year Ended 31 Dec 2022

	Sale of refreshment		XYZ
Less	Cost of Sales:
	Opening inventory of refreshment	XYZ
Add	Purchase of refreshment	XYZ
Less	Closing inventory of refreshment	(XYZ)	XYZ
	Gross profit		XYZ
Less	Expenses (Only related to Refreshments / Café etc)		(XYZ)
	Profit from refreshment Trading		XYZ

Waleed Club
Income & Expenditure Account for the year Ended 31 Dec 2022

Income
Profit on sale of refreshment	XYZ
Gain on disposal of Asset	XYZ
Sale of tickets	XYZ
Subscriptions Income (w)	XYZ
Rent of hall/premises	XYZ
Donations (if specified as revenue receipt)	XYZ	XYZ
Less: Expenditure
Wages – Grounds man and assistant	XYZ
Loss on disposal of asset	XYZ
Depreciation of ground equipment	XYZ
Interest on loan	XYZ
Secretary’s expenses	XYZ
Ground upkeep	XYZ
Utilities	XYZ	(XYZ)
Surplus / Deficit  for the year		XX / (XX)

Waleed Club
Statement of Financial Position as at 31 December 2022

Assets	$	$	$
Non-Current Assets	Cost	Acc Dep	NBV
Land	XYZ	–	XX
Building	XYZ	(XX)	XX
Equipment	XYZ	(XX)	XX
			XYZ
Current Assets
Inventory		XYZ
Subscriptions in Arreas / Owing	XYZ	XYZ
Prepaid Expense		XYZ
Bank		XYZ
Cash		XYZ	XYZ
Total Assets			XYZ
Total Liablities
Opening Accumulated Fund		XYZ
Add Surplus  / Less (Defecit)		XX/(XX)
Add: Donations (Capital) / Legacy / Gift		(XYZ)
Add: Long term loan etc		XYZ	XYZ
Current Liabilities
Trade payables / Creditors		XYZ
Bank O/D (Over Draft)		XYZ
Accrued Expenses		XYZ
Subscriptions Advance / Prepaid		XYZ	XYZ
Total Liabilities			XYZ

Partnership Accounts

Waleed Partnership
Appropriation Account for the year ended December 31, 2022

	Profit for the year		XYZ
Add	Interest on drawings
	Mr. A	XYZ
	Mr. R	XYZ	XYZ
Less:	Interest on capital
	Mr. A	XYZ
	Mr. R	XYZ	(XYZ)
Less:	Salaries / Bonus / Commission:
	Mr. A	XYZ
	Mr. R	XYZ	(XYZ)
	Residual Profits		XYZ
	Mr. A  (Remaining profit X share)	XX
	Mr.R  (Remaining profit X share)	XX	(XYZ)

 

Current Accounts

	A	R			A	R
Balance b/d (Dr)	XYZ	XYZ	OR	Balance b/d	XYZ	XYZ
Drawings	XYZ	XYZ		Interest on Capital	XYZ	XYZ
Interest on Drawings	XYZ	XYZ		Salaries	XYZ	XYZ
Share of Loss	XYZ	XYZ		Bonus / commission	XYZ	XYZ
				Profit share	XYZ	XYZ
				Interest on Loan	XYZ	XYZ
Balance c/d	XYZ	XYZ	OR	Balance c/d (Dr)	XXX	XYZ
	XYZ	XYZ			XYZ	XYZ
Balance b/d (Dr)	XYZ	XYZ	OR	Balance b/d	XYZ	XYZ

Statement of Financial Position (Extract)

Equity
Capital A/cs       – A	XYZ
– B	XYZ	XYZ
Current A/c       – A	XX
– B	(XX) Dr	XX
Total Partners Equity / Net Assets		XYZ

Company Accounts

Waleed Limited
Appropriation Account for the year ended Dec 31, 2022

	Profit for the year (after interest)		XYZ
Less	Transfer to General Reserve		(XYZ)
Less	Interim dividend
	Preference shares dividends	XYZ
	Ordinary shares dividends	XYZ	(XYZ)
Less	Final Dividend
	Preference shares dividends	XYZ
	Ordinary shares dividends	XYZ	(XYZ)
	Retained profit for the year		XYZ
Add	Retained profit b/f (Opening)		XYZ
	Retained profit c/f (Closing)		XYZ

 

(working) Calculation of Profit after interest
Profit for the year before interest                                                                XYZ
Less:  Debentures / Loan interest (Debentures Amount X Rate%)                 (XYZ)
Profit for the year after interest                                                                     XYZ

Waleed Limited
Statement of Financial Position Extract for the year ended Dec 31, 2022

Equity & Reserves
AUTRHORIZED SHARE CAPITAL:
Preference shares Capital	XYZ
Ordinary Share Capital	XYZ	XYZ
ISSUED / CALLED UP / PAID UP SHARE CAPITAL:
Preference share Capital	XYZ
Ordinary Share Capital	XYZ	XYZ
General Reserves (Opening + Current Year)		XYZ
Retained profit c/f (Closing)		XYZ
Equity & Reserves / Total Shareholder funds			XYZ
Add: Debentures / Bank Loan			XYZ
Total Capital Employed			XYZ

Departmental Accounts

Waleed Cash n Carry
Departmental Income Statement for the year ended 31 Dec 2022

	Food Department		Cosmetics Department
	$	$	$	$
Sales		XYZ		XYZ
Less: Cost of Sales
Opening Inventory	XX		XX
Add: Purchases	XX		XX
Less: Closing Inventory	(XX)		(XX)
Cost of Sales		(XYZ)		(XYZ)
Gross Profit		XYZ		XYZ
Less: Expenses
Rent	X		X
Electricity	X		X
Heating & Lightning	X		X
Staff Wages	X		X
Miscellaneous	X	(XX)	X	(XX)
Profit / (Loss) for the year		XYZ		(XYZ)

Employee Pay

CALCULATION OF NET PAY

	Basic pay (Fixed or based on hrs/units)	XYZ
Add:	Overtime / Bonus / Commission	XYZ
	Gross Pay		XYZ
Less:	Employee’s Deductions
	Taxes	XYZ
	National Insurance / Social Security	XYZ
	Pension	XYZ	(XYZ)
	Net Pay		XYZ

CALCULATION OF LABOUR COST / WAGES EXPENSE

Gross Pay (Including any Commission / Bonus)		XYZ
Add: Employer’s Contributions
National Insurance / Social Security	XYZ
Pension Contribution	XYZ	XYZ
Total Labour Cost / Wages Expense		XYZ

 CALCULATION OF TOTAL DEDUCTIONS (Tax & Social Security)

Employee Deductions (Tax, social security / pension)	XYZ
Employer Contributions (social security / pension etc)	XYZ
Total Deductions		XYZ

 JOURNAL ENTRY

Particulars	Debits	Credits
Wages A/c / Salaries expense (Total Labour Cost)	XYZ
Income tax payable		XYZ
National insurance / Social Security payable		XYZ
Bank (Net Pay)		XYZ
(To record wage and deductions for the month of may)