salamzz...

plz tell me the format of profit n loss acoount and balance sheet acceptable by FPSC. Should it be horizontal or vertical ?

Secondly, should we make adjustments in original profit n loss account or in workings and just carry forward the figure from workings to profit n loss account.

thx

DMG:

nice question dear. Lets have a look over the expereince of candidates who have attempted this paper. We can not ignore the importance of presentation in the paper that carries a weight.

An appeal to seniors;;;;;;;;

It should be vertical as its in international practice.

__________________
"A man can be as great as he wants to be. If you believe in yourself and have the courage, the determination, the dedication, the competitive drive and if you are willing to sacrifice the little things in life and pay the price for the things that are worthwhile, it can be done."

AA

my dear formate of P/L is accepted in both formate in columner and report form, but columner form is easy thats why students feel ease to use this (columner) formate...

any other question,,,,
i did M.Com and also appearing in the CSS 2008

Accounting is my optional subject,,
if have u any other question than tell me.

wish u good luck

__________________
BORN TO LEAD..................

I think one can use both of these formats, but mostly you can see the financial statements of banking sector in statement format.

Practically trading concerns use columnar shape (T account shape) and service sector like banking and DFIs use statement shape.

Students use T account shape, because it's easy and less time consuming in exam.

Well, Honey Shah I think you are sound at accounting. Plz visit tricky accounting question thread. You contribution is needed there.

Try to solve questions and post valued questions tips in that thread.

AA:

ya u r right brothere...

But i m getting coaching from teacher who is also teaching in CSA(civil srvices academy) to the batch of Accounting and Auditing group, he also guide me in this regard to use only T-account formate...

anyhow i visit to thread u mentioned and Inshallah i contribute valueable things.

__________________
BORN TO LEAD..................

i can't understand completely, but i know yhat format on balanse sheet have no importanace, it depend upon u that u should use 4mate according 2 ur choice.
2ndly, do u want 2 make adjustment in balance sheet 4 making both side equal. i thinh u should do it bkz if ur company allow u. Is it orignal balance sheet?

Bushra:
DMG has asked question regarding changes in P/L account and not for the balance sheet. Please do not confuse Profit n Loss Account with Balance Sheet both are separate financial statements. Profit and Loss account is a nominal account and prepared for a period/not on a point of time. That is why it’s written like:

ABC Company Ltd.
Profit and Loss Account
For the period ended ............


And balance sheet is a position statement which shows the position of business on a certain point of time.Written like this:

ABC Company Ltd.
Balance Sheet
As on/as at...............


So far as question of DMG is concerned here is its answer:

It is best practise to adjust changes in working notes. Number these workings separately and include its net effect in the profit and loss account, do not forget to mention its working note number before that change in P/L account.


Note: Company is not entitled to change its principles of accounting as and when needed without following Comapnies Ordinance and International Accounting standards. There are some rules explained in IAS and Comapnies Ordinance 1984 schedules.

But this discussion is concerned with advance accounting company accounts, where as the trend of CSS papers shows that final accounts of individuals (sole proprietors) are focused. Which are relatively easy.

AA

Accounting was my optional this year and also in my previous attempt. Regarding the question, I would say that it entirely depends upon your personal preference, if you want to use the T-account form, thats fine and if you want to use the report form, then thats also fine. Personally I prefer the T-account form and made the P&L account this way in both CSS-2006 and 2007.

nhaider: Can you write here your score in both the attempts? Paper-1 and Paper-II