Simply put, it is the full and final accounting procedure which is carried out at the end of an accounting year, resulting in the preparation of relevant accounts. 100 each. Financial Statement of Electricity Companies. 3,51,450 as per Sec. Final Accounts as per Double Account System which included Revenue A/c, Net Revenue A/c, Receipt & … excluding goodwill). The amount of such reserve shall be invested in trust securities and the investment must be made within a period of 6 months from the date of appropriation. It determines the financial … (ii) The cost of intangible assets (i.e., underwriting commission, preliminary expenses etc. Uploader Agreement, Read Accounting Notes, Procedures, Problems and Solutions, Learn Accounting: Notes, Procedures, Problems and Solutions, Top 5 Problems on Final Accounts of the Companies, Company Final Accounts: Problems and Solutions | Accounting, How to Prepare Final Accounts of Companies? (2) 2,000 Equity shares are issued for consideration other than cash. According to paragraphs III, IV and V of the Sixth Schedule, every electricity company is required to maintain Contingencies Reserve. (ii) Of the balance of excess, ½ shall be transferred to Tariffs and Dividends Control Reserve, and the remaining ½) ½ shall be distributed in shape of proportionate rebate to the consumers on the amounts collected from the sale of energy and meter rental. The profit and loss account, instead of starting with gross profit, will commence with the income from the business activity, such as 'fees', 'income from clients', 'charges', 'work done'. Only two methods are recognised here for the amount of depreciation on fixed assets, viz., Compound Interest Method and the Straight Line Method. Prohibited Content 3. Final Accounts – Definition. This account is the first account prepared as a final account, it is prepared to ascertain gross profit or gross loss incurred during an accounting period. P5 – Financial Accounting: It consists of different topics under 6 sections which include Generally Accepted Accounting Principles & Accounting Systems, Preparation of Accounts, Control of Accounting Systems, Accounting in Service Sectors, Accounting for Special Transactions, Accounting for Banking, Electricity & Insurance Companies. You are required to show the disposal of profits assuming bank rate at 6% with the help of the following data: The following balances relate to an electricity company and pertaining to its accounts for the year ended 31st Dec. 1993: From the following information and details relating to the year ended 31st March 2000 and bearing in mind the provisions of the Electricity (Supply) Act, 1948, indicate the disposal of profits of X Electricity Corporation Limited: Before publishing your articles on this site, please read the following pages: 1. 3,59,550, therefore excess amount Rs. Final Accounts also consists of various adjustments. Thus the final accounts will consist of a profit and loss account and balance sheet. Disclaimer 9. 3,51,450) must be refunded to the company u/s 309 (5A). It is the difference between the total expenditure (including special appropriation). 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