hello friends welcome to another episode of katha katha
because when we start our discussion, it goes on for a long
time because there are so many concepts and we look at
things in detail and depth we don't have any objective to
tell you shortcuts because shortcuts don't last long
knowledge, concept, our name is pure professional right,
yes sir with this note, let's move ahead we have seen in
the clip of incomplete records that if we want to get
profit from incomplete data from incomplete
then how do we move ahead we make a statement of affairs
and then put an equation and how do we do things, we have
seen this how do we calculate profit but, but, but it is
not necessary that the client brings incomplete data every
time and says I want to know the profit he wants profit
from that incomplete data it is not necessary from that
incomplete data it is possible that he says make my entire
trading P&L and balance sheet bank people are asking bank
people are not saying make profit and
it so we took out the profit they stopped the bank and bank
people agreed client wants loan from bank and bank people
will give loan when proper trading account, proper P&L
account and proper balance sheet many clients will come to
you many clients will come to you who will keep this kind
of demand who will say make our entire trading P&L and
balance sheet and give us we want to submit in bank we will
say bring tele data we will say bring bill we will say give
information we don't have anything
whatever you want we are sitting in front of you we can
tell you and make it and give us
if you work in any office it is possible that your
chartered accountant he will give you this work and tell
you that a client has come and you make his trading P&L and
balance sheet and give it to us then this work can be done
you have to do right? right sir ji so friends let's
understand through an example how to make complete trading
P&L and balance sheet from incomplete data that was a small
thing that we took out profit by using data now we will see
how we can work completely complete
drafting of trading P&L and balance sheet we have to work
hard don't step back we have to write example see we are
giving you notes of all things we are giving you notes of
all things but if we give you these things in notes example
etc.
then you will not do anything you will sit hand on hand and
watch the video we know this very well that's why how much
hard work you have to do 10% is given to you the 90% hard
work we had to do we did don't hesitate to write please
write together
Mr. A
does not maintain proper records
does not do proper accounting
Mr. A does not maintain proper records
we said give some data you must have made some incomplete
in this way trading P&L and balance sheet are not made you
must have made something then he said
I have kept a book of my cash account that how much cash
came and how much cash went
I recorded this thing properly and any businessman if he is
not doing accounting if he is not following double entry
system if he is not maintaining books properly still
despite that he is properly he keeps a book of his cash
account because cash is a very important aspect for anyone
if he does not have a proper book of cash then it is not
seen that's why he said you can give me a cash book we said
come on give me a book of cash account the analysis of cash
book
for the year ended
31st March 22
is given below 31st March 22 is given below
receipts amount
payments amount receipts amount payments amount balance
opening balance 2008
he said when the year starts on 1st April 21 the year is
ending on 31st March 22 so when will it start on 1st April
21 he said the day the year started on 1st April 21
I had 2800 rupees 2800 rupees 2800 rupees
during the year the debtors means the people whom we had
sold the loan those people 48000 rupees 48000 rupees 48000
rupees 48000 rupees
the sales in cash was 11000 rupees cash sale cash sale cash
sale was 11000 rupees additional capital was invested
during the year more cash was invested in the business 6000
rupees
and some investment was done interest was 200 rupees
to interest on investment 200 rupees
creditors were paid during the year 35000 rupees 35000
rupees salary was paid 6500 rupees
general expenses are 2500 rupees
rent and taxes are 1500 rupees
rent and taxes were paid 1500 rupees 1500 rupees taxes paid
Rs.
1500. Drawings are Rs.
3600. Cash Purchases, Nagat goods purchased whose payment
is Rs.
12000. Closing balance is Rs.
6400. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Drawings are Rs.
2600. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Closing balance is Rs.
2400. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Drawings are Rs.
6400. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Closing balance is Rs.
2400. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Cash Purchases,
Nagat goods purchased whose payment is Rs.
1500. Cash Purchases, Nagat goods purchased whose payment
is Rs.
1500. Cash Purchases, Nagat goods purchased whose payment
is Rs.
liabilities. Debtors, Creditors, Machinery, Furniture,
Inventory, Investments.
Write the amount.
Rs. 14500, Rs.
17600, Rs.
5800, Rs.
7900, Rs.
7500, Rs.
1200, Rs.
3900, Rs. 5700, Rs. 5000, Rs. 5000, Rs. 5000, Rs. 5000.
And keep one thing in mind that 10% depreciation has to be
applied on the machinery and on the furniture.
The depreciation rate is 10% on the machinery and on the
furniture.
Provide for debtors Rs. 800.
I will tell you what it means later.
The question is over, you just note down.
Please note down.
The question is over, you just note down.
Good.
There is something left here, note it down.
We will use this data from here and try to make trading
account, P&L account and balance sheet.
Let's go for it, friends.
See, not every work can be done by software.
Remember this.
When will the software of telly support you?
When you give general entry to it.
Then it will make trading, P&L, balance sheet, ledger,
trial balance, etc.
If you don't give general entry to it, then how will it do
this work?
Think about it yourself and tell me.
The thing is fine, sir.
And when incomplete record is there, you have to make a
direct trading balance sheet from there.
So, there is no direct trading balance sheet in telly.
If you work in excel sheet,
you will put a manual account book and prepare a format in
excel sheet and give it to it.
Not every work will be done through telly.
Okay.
Although there is a single entry system in telly, but it is
so typical to operate that these things will not be
applicable there.
Okay.
It is a very typical scenario.
In that, in every case, you will have to keep a different
thinking, a different thought.
Okay.
Okay, sir.
And that too is just to do the entry of cash.
That single entry system is for those people who do not
have the knowledge of debit and credit.
It is not designed in such a way that you can do the
accounting of incomplete records in it.
It happens.
Don't they make you do it?
Yes, sir.
Okay.
Come on, brother.
Format it quickly.
Solution.
Sir, how did we make the format?
Open the page like this.
Both sides of the register.
Put trading P&L on one side and balance on the other side.
That's it.
We are working here for Mr. A.
Trading and P&L account.
For which year? 31st March 2022.
For the year ending, 31st March 2022.
Price.
Debit.
Credit.
Particulars.
Amount.
Particulars.
Amount.
After that, balance sheet.
As at 31st March 2022.
Liabilities.
Amount.
Assets.
Amount.
Assets.
Amount.
Let's start.
First of all, the opening balance of Rs. 2800 is cash.
Tell me where to write it.
Rs. 2800 is the opening balance of cash.
Sir, this will go in the opening balance sheet.
Absolutely right.
Look, the balance sheet we are making for 31st March 2022.
Here.
In this, we need something called capital.
How much capital is coming from the beginning?
In that, we add the net profit earned during the year.
Or minus the drawings.
We will not have that.
So how will we work?
That's why we have to make working note number 1 first.
In which we will make a balance sheet of opening date.
Balance sheet.
As at 31st March 2021 or 1st April 2021.
We need opening capital.
What was the capital on the first day of the year?
In that, we will add the net profit during the year.
We will minus the drawings.
How much capital will come to write in the balance sheet of
31st March 2022?
For this, we need opening capital.
So for opening capital, we have to make an opening balance
sheet.
And your cash balance will become an asset.
In the opening balance sheet, the asset side will come.
Rs. 2800.
What is the next item you have?
The next item is that money has come from the debtor.
Rs. 48000.
My dear friends.
So sir, it is like this.
What do we do to debtors?
We sell loans.
Then money comes.
Then it comes a little less.
Some loan is left.
To do all this calculation, you will make an account of
debtors.
You will do the same practically.
My dear friends.
You will make an account of debtors.
You will try to get the final figures by doing the complete
calculation in the account.
Remember.
Debtors is such an account.
And creditors is such an account.
Whenever you make a complete trading P&L or balance sheet.
With incomplete data.
So you have to make both these accounts.
To get more information.
Whatever the client has given is fine.
Now you will get more information from the total debtors
account.
How is it made?
Opening balance is written here.
How many debtors were there on the first day of the year?
How much more did you sell?
That is written here.
So so many debtors were already there.
So much more loan was sold.
Total debtors became this much.
Then how much money they gave you.
Whether it was given in cash.
Whether it was given in the bank.
After that minus.
Closing balance comes out.
If you have given any discount in the middle.
If there is any sale return.
That also comes on the credit side.
Things also come on the credit side.
So now we will complete the account of total debtors.
Friends please finish this.
How many opening debtors are there?
Means how many debtors were there on 1st April 2021?
Here it is 14500.
How many closing debtors are there?
How many debtors are there on 21st March 2022?
Here it is 17600.
Look at the cash book.
How much money has come from the debtors during the year?
Here it is 48000.
So we got the sale from here.
We will get the sale from here.
Very good.
See what is the way to get the sale?
How to get the credit sale?
Make a debtor account.
The trading account that you are making here.
You should know in this trading account.
Here you need the figure of sales.
And both sales are needed.
Cash sales and credit sales.
And cash sales.
Your question did not give.
There was a sale in cash of 11000 rupees.
You will write here 11000 rupees.
Where will you get the credit sale from?
He is not able to tell.
He does not remember.
He is not billing.
The client is saying.
I do not know.
You say okay.
We will make a debtor's account.
We will get the sale from there.
So how much will this balancing figure come? 48000 and
17600.
65600
Minus 14500.
Here it is 51100.
51100 rupees.
Okay.
Now.
What will be the effect of each item of debtors in the
final account?
Let's see this.
We will post each item in the final account.
Completely one by one.
14500 opening balance.
Assets are there.
In the opening balance sheet.
Debtor side.
Assets side will be written.
Debtors 14500.
14500.
Okay sir.
Sales.
Debtor side.
51100 will be written in the trading account.
51100.
And finally your total sales will be done.
62100.
62100 rupees.
62100.
After that.
The money that has come.
48000 rupees.
Cash and bank debtor.
Where will you write this 48000 rupees?
In the cash book.
This is written there.
And this is written there.
He had done so much work with himself.
Cash book will be made.
The closing balance will come in the closing balance sheet.
Debtor's asset side 17600
This thing is understood, this is the process.
Any item like make a complete account related to debtor
How does it become, you should know
How much is the opening balance, how much more did you
sell, how much money is left, how much
And then ask him
What details are available from it
And that balancing figure will come out of any item
Okay sir, okay, okay
He can tell the opening and closing debtor
How much money has come, he has written in his cash book
So the credit sales will come out
Okay sir, okay, okay
Let's go, okay
What is the next item in our question
This is done, this is done
Cash sales of Rs.
11000, I wrote it here
Yes sir, you wrote it here
After that capital Rs.
Capital Rs.
Okay, okay, okay
Capital Rs.
So tell me what effect will it have
What effect will it have
This will increase your capital
Now we do not have capital
We do not have opening capital
So how will we work
We are making an opening balance sheet now
It will come out of there
Do one thing
Working note number 3
Make an account of capital
Whatever you see is scattered
Make an account of it
Whatever you see is scattered
Make an account of it and collect it
That's it, as simple as that
Whenever you bring cash into the business
There is an entry
Cash account debit to capital account
Cash account becomes debit
And capital account becomes credit
So the debit of the cash account
He has done it in his cash book
He has written the debit side to capital
You do not have to do that
You have to write the credit side in the capital account
How much money, Rs.
6000 by cash
This is the double effect
This is the double entry system
He had not done this work
He has put one effect
Cash account debit to capital
Its effect will be on two accounts
One on cash and one on capital
So he has debited the cash account
He has written the debit side in the cash account
He has not made a capital account
He has not written the credit side
He has done one entry
It is called a single entry system
You are making it a double entry
You are recording the second aspect of it
This is perfect accounting
What is the next item we have
Interest on investment is Rs.
Sir, this is your
Interest on investment
This will become your income
Interest on investment Rs.
You will write it in P&L account
Give a little gap of 5-6 lines
Because after trading account
We write it in P&L
By interest on investment Rs.
Sale income comes in trading
Rest all income comes in P&L
Remember Sale income will come in trading account
It will come in P&L
Ok Sir
What is the next information
You have made a payment to creditors
Rs. 5000
As you have made debtors account
Similarly, creditors account
Will be made by creditors
Working note no.
Creditors account
And As debtors account
Is made
Opposite of it
Will be creditors account
Means Opening balance will come here
Buy balance BD
And all other years
We bought loan
This will be total loan
Then the payment we made from
Cash and bank will come this side
And finally closing balance
Will come
Discount will be adjusted
In this account
We don't have it, so we are not writing it
What is the opening balance of creditors
This is Rs.
Write here
Rs. 5800
What is the closing balance of creditors
Rs. 7900
Write here Rs.
How much did you make payment to creditors
This is Rs.
Write here
Rs. 35000
So how much did you purchase
During the year
And purchase is a very important
Aspect Where is the purchase written
In the trading account
You are getting the loan purchase 35 and 7900 42900-5800
This is 37100
Rs. 37100
Credit purchase is coming
This is it
Now do it one by one
Post all its items
Opening creditors
Rs. 5800
Liability side in the opening balance sheet
Write creditors
Rs. 5800
The loan you have purchased
Rs. 37100
Write it in the trading account
Leave one line for the opening stock
Two purchases
Credit one also
And loan one also
You have just found out the loan one
Rs. 37100
And how much is the cash purchase
Here is the cash purchase
Rs. 35000
Rs. 12000
So this total will come out
Rs. 49100
After this, the payment
He has written
Rs. 35000
The client has not done
You do not have to do
Closing balance
Write in the closing balance sheet
Liability side
Creditors Rs.
Rs. 7900
Write
What is the next item
After this, we have a question
Salary Rs.
Salary expense will come in P&L
Write below
Two salaries
Rs. 6500
Two salaries
Rs. 6500
Rent and taxes
What is the next item
General expense Rs.
Rent and taxes Rs.
These expenses will also come in P&L
To general expenses Rs.
To rent and taxes Rs.
P&L is made under trading
We are writing there
After that
There is no problem in them, so there is no need to make
their accounts
Drawings Rs.
There is nothing in drawings, it will be adjusted in capital
Capital account debit to drawings account
This is the entry
Drawings will come here
Rs. 3600
Drawings entry is capital account debit to drawings account
So the debit side will come in the capital account
Two drawings
Okay sir
Purchase Rs.
Closing balance of bank and cash Rs.
6400 and Rs.
Write in closing balance sheet
Bank Rs.
Cash Rs.
Assets or liabilities of closing date in closing balance
sheet
Assets or liabilities of opening date
In opening balance sheet
Okay sir
Okay After that
Next item
This is all
Additional information
Debtor and creditor have put
Opening balance of machinery Rs.
In opening balance sheet
Assets side write machinery Rs.
Rs. 7500
After that
Remember 10% depreciation on machinery
So when in closing balance sheet
You will write machinery
Here Rs.
So from this Rs.
First depreciation 10% minus
Rs. 750
So this will come
Rs. 6750
This is the effect of depreciation
One is in the balance sheet
Your asset will be reduced
One is in the balance sheet
Your asset will be reduced
And second depreciation
Will be written in P&L
Depreciation on machinery Rs.
Okay What is the effect of depreciation?
One is
You do not have to put depreciation on the opening date
Depreciation is put on the closing balance sheet
Depreciation is put on the last date
One is minus in the balance sheet and debit side in P&L
After that
Furniture's opening balance is Rs.
So write it in the opening balance sheet
Furniture is Rs.1200
But when you write in the closing balance sheet
Furniture will minus 10% depreciation
Rs.1200 minus depreciation 10% means Rs.120
This will be Rs.1080
Rs.1080 Depreciation will go to P&L
Depreciation on furniture Rs.120
Rs.120 Inventory on opening date Rs.4900
Do you know where it will go?
In trading account we write opening stock
Learn these things
What are the double effects of which thing?
One opening stock will always come in trading account
Debit side to opening stock
And in opening balance sheet asset side will come
In the name of stock or inventory Rs.3900
Remember these things which I am teaching
Learn these things
Accept these things
Where will the opening stock go?
One is debit side in trading account
And one is asset side in opening balance sheet
Okay sir, done sir
What is the next item?
Closing stock
Learn where it will go
One is in trading account
Buy closing stock Rs.5700
One is here
And second is in closing balance sheet
Asset side stock Rs.5700
In closing balance sheet asset side stock Rs.5700
These are its two effects
After that
Investments, opening and closing Rs.5000 and Rs.5000
Okay There is nothing in investments
In opening balance sheet also write directly
Investments Rs.5000
And in closing balance sheet also write directly
Asset side investment Rs.5000
Investment is our asset
There is no depreciation or depreciation on it
Depreciation is on tangible fixed assets
Investment is not a tangible fixed asset
Okay sir, done
Rs.5000
After that
Sir, all the information is done
Provide for debtors Rs.800
This is the point to pay attention
Debtors' money can drown Rs.800
In P&L will write in the name of provision
To provision for DD
Means doubtful debts Rs.800
To provision for DD
Doubtful debts Rs.800
And friends
The debtors you have written
In closing balance sheet Rs.17600
These will be reduced in the name of provision
Rs.800 Rs.17600-Rs.800 Outside you write Rs.16800
Rs.16800 Sir, what does it mean?
Provide for debtors Rs.800
Debtors are those people
With whom we have to take money
And provide means
Prepare and go
Rs.800 from the beginning
This is the idea that
Rs.800 can drown from those debtors
Prepare and go for Rs.800 from the beginning
So the idea of drowning is
This is a loss
This goes to the debit side in P&L account
That's why in P&L account
Debit side writes
All the losses
In the name of provision
And reduce it from debtors
Sir, why is the idea of drowning?
Every year when there is a loan sale
Not all the money comes
Some money drowns
In every business
There are always bad debts
Some people kill money
Such people are always present
In every business
So whenever you prepare for debtors
To drown the loss from the beginning
So debit side in P&L
And in balance sheet
Minus from debtors
You will ask this
The client does not know about these things
You will ask the client
What is the estimate of drowning from debtors?
He will tell that 1%-2% money drowns
Then write debit side in P&L
And in balance sheet
Minus from debtors
Oh, this is the thing, sir
This is the thing, sir
This is the thing
Okay? Okay We have put all the information
All the data of the question
Now we have to play closing
What will be closed first?
First of all
You close the opening balance sheet
No. 1
After closing the opening balance sheet
Try to get the opening capital
2800 plus 14500 plus 7500 plus 1200 plus 4900 plus 5000
14,2,16,17,300,17,800,24,800,25,26,29,34 Total will come
34900
If you minus from this 5800 will become 29100 29100 So on
1st April 21
On opening date
Capital It came out
Balancing figure
Congratulations 29100
On 1st April 21
How much money did the owner invest in the business
It is found
Where will we put this?
In closing balance sheet
In the name of capital opening 29000 rupees
In the inner column
Why? Because friends
In this only we add or minus net profit
Or you can do one more thing
We have made an account of capital
Take this
We will put in the account of capital
The opening balance that we have got here
By balance BD 29100 rupees 29000 1 act
Take this
What will we do after this? 29100 rupees were already there
6000 rupees will be put during the year
This will be 35100
Out of which
By drawing 3600
The owner took it home
So sir
How much will be the closing balance of capital? 29100 plus
6000
Now Now Net profit remains in it
Can't close it now
Net profit remains
Okay So what do you have to do on number 1?
By tallying the opening balance sheet
Get the opening capital 29100 rupees 29100 Okay sir
After this
Write it in the account of capital
Just do this much
After that on number 2
On number 2
You have to balance trading and P&L
Get the balance of trading account
How much will be the Gp?
To gross profit
Balancing figure
62800 67800 Minus 494900 14800 rupees
Here also 67800
Gp of 14800
What do we do of Gp?
Immediately Hand over to P&L
By Gp 14800 By Gp 14800
And sir
Now finally calculate the net profit
To net profit
How much will be the balancing figure?
14800 and 200
This is 15000
Out of 15000
If you minus these expenses
Which are of how much? 6 and 2 8 and 1 9, 10.5, 11, 250,
11, 370 and 800 12,170 rupees
So this is 2830 rupees 2830 Got the net profit
So what do we have to do on number 2?
Balancing trading and P&L
Get the net profit 2830 And where will the net profit go?
Credit side in capital account
By net profit 2830 Credit side in capital account
By net profit 2830 Okay sir
Now calculate the balance of capital account 2900 6000 2830
Minus 3600 34330
34330
Write the total of both the sides
The total of both the sides is
34330 37930
And 37930
Got the closing capital 34330 Congratulations Come to the
closing balance sheet
Write the closing capital 34330
34330
Yes sir
We have written
Now what will happen?
Now friends
Your closing balance sheet
Should match automatically
If you have done all the work properly
Okay sir, this is the thing 34741 42230 And here 6750 1080
5700 16800 5600 5600 5500 There is a tally 42230 This is
the beauty of accounts
It will be tallied automatically
So friends see
Finally what you have to do
Watch this video again
Because people whose accounts are tight
They must have found this thing very strange
I agree, I know
Watch this video again
Okay The second thing
Practice by hand and see many times
The third thing
What is the process?
The data that comes from the client
You have to use that data
To make a trading P&L balance sheet
One by one
Okay Whatever adjustments are related to the thing
Like debtor, creditor
Capital Make separate accounts for it
And those who do not have more adjustments
Directly in P&L trading
And you can start posting in the balance sheet
You can post them directly
Okay How to make accounts
I have shown you
Then when
Closing time comes
So on number one
Close the opening balance sheet
The capital of that
Write the credit side in the capital account
By balance BD On second number, close trading P&L, take out
trading GP and hand it over to P&L and then take out net
profit
Write that net profit on credit side in capital account and
transfer closing balance of capital
Write that in closing balance sheet
Write that in closing balance sheet and ultimately your
closing balance sheet should automatically show Tally
It should automatically show Tally
Thank you, bye bye, take care