BUSINESS ACCOUNTS sample documents sourced from www.osbornebooks.co.uk
Sample documents document page invoice 3 statement 4 double-entry accounts 5 cash book 6 petty cash book 7 extended trial balance 8 sole trader financial statements 9-10 limited company financial statements 11-12 statement of cash flows 13 2
INVOICE invoice to invoice no account your reference date/tax point deliver to product description quantity price unit total discount net code % terms Net 30 days Carriage paid E&OE GOODS TOTAL VAT TOTAL 3
STATEMENT OF ACCOUNT TO account date date details debit credit balance AMOUNT NOW DUE 4
Dr Cr Date Details Date Details Dr Cr Date Details Date Details Dr Cr Date Details Date Details Dr Cr Date Details Date Details 5
Dr Cash Book Cr Date Details Folio Discount VAT Cash Bank allowed Date Details Folio Discount VAT Cash Bank received 6
Petty Cash Book Receipts Date Details Voucher Total number payment VAT Analysis Columns 7
EXTENDED TRIAL BALANCE name... date... Description Ledger balances Adjustments Profit and loss Balance sheet Dr Cr Dr Cr Dr Cr Dr Cr Closing stock: Profit and loss Closing stock: Balance sheet Accruals Prepayments Depreciation Bad debts Provision for bad debts:adjustment Net profit/loss 8
sole trader financial statements TRADING AND PROFIT AND LOSS ACCOUNT OF FOR THE YEAR/PERIOD ENDED TRADING ACCOUNT PROFIT AND LOSS ACCOUNT Sales Less Sales returns Net sales Opening stock Purchases Carriage in Less Purchases returns Net purchases Less Closing stock Cost of Goods Sold Gross profit Add other income, eg Discount received Reduction in provision for bad debts Profit on sale of fixed assets Other income Less expenses, eg Vehicle running expenses Rent Rates Heating and lighting Telephone Salaries and wages* Discount allowed Carriage out Other items, eg Provision for depreciation Loss on sale of fixed assets Bad debts written off Increase in provision for bad debts Net profit * Wages are sometimes listed as an expense in the trading account section 9
BALANCE SHEET OF AS AT Fixed Assets Cost Dep'n to date Net Intangible: Tangible: Goodwill Premises Equipment Vehicles etc Current Assets Stock (closing) Debtors Less Provision for bad debts Prepayments Bank Cash Less Current Liabilities Creditors Accruals Bank overdraft Working Capital Less Long-term Liabilities Loans NET ASSETS FINANCED BY Capital Opening capital Add Net profit (from profit and loss account) Less Drawings Practical point: when preparing handwritten financial statements it is usual practice to underline all the headings and sub-headings shown in bold print in the example layout. 10
limited company financial statements INCOME STATEMENT FOR THE YEAR ENDED Revenue Opening inventories Purchases Less Closing inventories Cost of Goods Sold Gross profit Less Overheads: Distribution costs Administration expenses Profit from operations Less Finance costs Profit before tax Less Tax Profit for the year Statement of changes in equity Retained earnings Balance at start of year Profit for the year Less Dividends paid Balance at end of year 11
STATEMENT OF FINANCIAL POSITION AT Impairment/ Non-current Assets Cost Dep'n to date Net Intangible Goodwill Property, plant and equipment Freehold land and buildings Machinery Fixtures and fittings Current Assets Inventories Trade and other receivables Cash and cash equivalents Less Current Liabilities Trade and other payables Tax liability Net Current Assets Less Non-current Liabilities 10% debentures NET ASSETS EQUITY Authorised Share Capital Ordinary shares of each Issued Share Capital Ordinary shares of each, fully paid Capital Reserve Share premium Revenue Reserve Retained earnings TOTAL EQUITY Note: ʻNet Current Assetsʼ is an alternative term for ʻWorking Capitalʼ and is commonly used in limited company statements of financial position. 12
STATEMENT OF CASH FLOWS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED Net cash (used in)/from operating activities Cash flows from investing activities Purchase of non-current assets Proceeds from sale of non-current assets Interest received Dividends received Net cash (used in)/from investing activities Cash flows from financing activities Proceeds from issue of share capital Repayment of share capital ( ) Proceeds from long-term borrowings Repayment of long-term borrowings ( ) Dividends paid (note: amount paid during year) ( ) Net cash (used in)/from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Reconciliation of profit from operations to net cash flow from operating activities Profit from operations (note: before tax and interest) Adjustments for: Depreciation for year (Gain) / loss on sale of non-current assets (Increase) / decrease in inventories Increase / (decrease) in trade and other receivables Increase / (decrease) in trade and other payables Cash (used in)/from operations Interest paid (note: amount paid during year) ( ) Income taxes paid (note: amount paid during year) ( ) Net cash (used in)/from operating activities 13