TOPIC + CLAIM = THESIS STATEMENT Examples:
5. HOW TO WRITE A ROUGH DRAFT.
Pelumi Ltd
Statement of Profit and Loss and other Comprehensive Income Account for the year ended xxxx Dr Cr
N N N N
Opening Inventory xx Sales xx
Add: Purchases xx Less: Return inwards xx
Carriage inwards xx
Less: Return outwards xx xx
xx Less: Closing Inventory xx
COST OF GOODS SOLD xx
GROSS PROFIT xx __
xx xx
Expenses: Gross Profit b/d xx
Wages and salaries xx Discount received xx
General expenses xx Income from quoted investment xx
Advertising xx Income from unquoted investment xx
Insurance xx Reduction in provisions xx
Debentures Interest xx Interest receivables xx
Provisions for doubtful debt xx Directors remuneration xx
Auditors remuneration xx
Depreciation xx
NET PROFIT xx __
xx xx
Dr Appropriation Account Cr
N N
General reserve xx Profit b/f from last year xx
Revenue reserve xx Net profit b/d xx
Corporate tax xx
Proposed divided xx
Goodwill written off xx
Balance c/f xx __
xx xx
Dr Statement of Financial Position As At xxx Cr
N N Non-Current N N N
Authorised Capital: Assets: Cost Depr. NBV
500 ordinary share at N0.25 each x Land & Building x x x
8% preference share @ N1 each x Furniture x x x
x Equipment x x x
Issued Capital: Premises x x x
250 ordinary shares at N0.25 each x x x x
8% Preferences shares at N1 each x Goodwill x
Reserves: Investments:
Retained profit x Quoted Investments x
Share premium x Unquoted investments x
Revaluation reserve x Shares in group company x x
General reserve x x Current Assets:
Non-Current Liabilities: Inventory x
10% Debenture x Receivables x
Current Liabilities: Bank x
Trade payables x Cash x
Overdraft x Accrued Income x
Bank loan x Prepared expenses x
Bills payable x Bills receivables x x
Accrued expense x
Prepaid income x
Proposed dividend x
Corporate tax x x __
xx xx
b. Vertical Format (Internal Use) Formats PRINCE PLC
Statement of Profit or Loss Account for the period ended 31st March 20xx
Turnover xx
Less returns inward (xx)
Net sales xx
Less Cost of Sales
Opening Inventory xx
Add purchases xx
Add carriage inwards xx Less returns outward (xx) Cost of goods available for sales xx Less closing inventory (xx)
Cost of goods sold (xx)
Gross Profit xx
And Other Incomes
Commission income xx
Rental income xx
Dividend/Investment income xx Royalty receivable/income xx
Other incomes xx xx
Total income xx
Less Expenses
Salaries and wages xx
Rent and rates xx
Insurance premium xx
Carriage outwards xx
Electricity xx
General expenses xx
Advertisement xx
Bad debts/irrecoverable debts xx Increase in provisions for
doubtful debts xx
Audit fees xx
Director’s remuneration xx Debenture interest/loan interest xx
Other expenses xx (xx)
Profit before tax xx
Income tax expense (i.e. taxation) (xx) Profit for the period xx
Statement of Financial Position as at 31st March 20xx
Non-Current Assets Cost Accum. Depn NBV
Freehold land & building (properties) xx xx xx
Plants and equipment xx xx xx
Motor vehicles xx xx xx
Furniture and fittings xx xx xx
xx xx xx
Goodwill xx
Long term investments xx
Other intangible assets xx
Total non-current assets xx
Current Assets
Inventory (i.e closing inventory) xx
Trade receivables (i.e. trade debtor) xx
Less provision for doubtful debts (xx) xx
Prepaid expenses xx
Accrued incomes xx
Bills receivables xx
Short term investments xx
Bank balance xx
Cash in hand xx
Total current assets xxx
Total assets xxx
Equity and Liabilities Equity (Capital & reserves):
Share capital xx
CRRF xx
Share premium xx
Revaluation surplus reserves xx
Other reserves xx
Retained earnings xx
Shareholders’ funds xxx
Non-Current Liabilities
Debentures stock xx
Loan stock/loan notes xx
Other long term loans xx
Deferred tax xx
Long term provisions xx xx
Current Liabilities
Trade payable (i.e. trade creditors) xx
Accrued expenses xx
Accrued loan/debenture interest xx
Income in advance xx
Bills payable xx
Short term loans xx
Income tax payable xx
Short term provisions xx
Total equity and liabilities xx
Total equity and liabilities xxx
FORMAT FOR EXTERNAL USERS (Published Account)
A complete set of published financial statement will include the following:
i. Statement of financial position (formally known as balance sheet).
ii. Statement of profit or loss and other comprehensive income iii. Statement of changes in equity
iv. Statement of cash flows
v. Statement of value added (not compulsorily required by the IFRS).
vi. Accounting policies and explanatory notes.
HOLINESS PLC
Statement of Profit or Loss and Other Comprehensive Incomes For the Period ended 31st December, 20xx
$
Revenue x
Cost of sales (x)
Gross profit x
Other incomes x
Distribution costs (x)
Administrative expenses (x)
Other expense s (x)
Financial costs (x)
Profit before tax x
Income tax expense (x)
Profit for the period (or year) x Other comprehensive income
Gains on property revaluations x
Total comprehensive income xx The following should be noted:
That the impact or effect of a discontinued operation has been ignored for simplicity purpose.
That the other items of other comprehensive income have been ignored for easier understanding.
Other comprehensive income includes:
Actuarial gains or losses on defined benefits pension, exchange difference on translating foreign operations, cash flow hedges etc.
Explanation and Breakdown of the Format 1. Revenue
Sales x
Less return inwards (x)
Revenue xx
That is revenue represent net sales and the above sales doe not includes sales tax, VAT and ttrade discounts to customers.