Accounting Forms

Accounting forms are templates or documents which are used to record, track and organize financial transactions. A manufacturing company typically has to maintain many fundamental accounting forms, in order to manage its financial activities. Depending on the company’s size, sector, and reporting requirements, other formats could be used. However, manufacturing organizations frequently utilize the following popular accounting formats:

• General ledger
• Balance sheet
• Cash flow statement
• Cost of goods sold
• Register of sales and purchases
• Inventory records
• Accounts receivable and accounts payable
• Cost allocation and costing systems
• Budgets and variance report
• Trial Balance

General ledger

This is the main accounting document that contains all of the business’s financial transactions. Accounts like sales, purchases, inventory, fixed assets, liabilities, and equity are included in it.

Columns typically found in a ledger form

1. Date: The date of the transaction.
2. Account: The name or number of the specific account affected by the transaction.
3. Description: A brief description of the transaction.
4. Debit: The amount debited from the account.
5. Credit: The amount credited to the account.
6. Balance: The resulting balance in the account after the transaction.

A balance sheet

The balance sheet format shows a company’s financial situation at a certain point in time. Liabilities and assets make up its two primary components. The list of assets on the left includes things like money, accounts receivable, stock, and real estate. Accounts payable, loans, and retained earnings are among the things mentioned under the heading “Liabilities and Equity” on the right side of the page.

Columns typically found in a Balance Sheet

Assets

Current Assets

1. Cash and Cash Equivalents
2. Accounts Receivable
3. Inventory
4. Prepaid Expenses

Non-Current Assets

1. Property, Plant, and Equipment
2. Intangible Assets
3. Investments
4. Long-term Investments

Liabilities

Current Liabilities

1. Accounts Payable
2. Short-term Loans
3. Accrued Expenses
4. Deferred Revenue

Non-Current Liabilities

1. Long-term Loans
2. Bonds Payable
3. Deferred Tax Liabilities
4. Pension Obligations

Equity

1. Share Capital
2. Retained Earnings
3. Treasury Stock
4. Accumulated Other Comprehensive Income

Cash flow statement

A company’s cash inflows and outflows during a given time period are tracked in this. It divides cash flows into three categories: financing, investment, and operating operations.

Columns typically found in a cash flow statement

1. Period: The time period covered by the statement.
2. Cash Inflows: The sources of cash, including sales, investments, loans, etc.
3. Cash Outflows: The uses of cash, including expenses, payments, etc.
4. Net Cash Flow: The difference between cash inflows and outflows.
5. Beginning Cash Balance: The cash balance at the beginning of the period.
6. Ending Cash Balance: The cash balance at the end of the period.

Cost of goods sold (COGS)

This statement’s format, known as the, aids manufacturers in determining the cost of producing goods Direct labour, Direct material and manufacturing overhead are included in this. 

Columns typically found in a Cost of goods sold form

1. Date: This column indicates the date of the transaction.
2. Description: This column provides a brief description of the item or product being sold.
3. Quantity: This column represents the quantity of goods sold.
4. Unit Cost: This column shows the cost per unit of the goods sold.
5. Total Cost: This column calculates the total cost of the goods sold (Quantity multiplied by Unit Cost).

Register of sales and purchases

This format keeps track of all sales and purchases, including information like-

Columns typically found in a Register of sales and purchases

1.  Date
2.  Name of the buyer or seller
3.  Invoice number 
4.  Quantity
5.  Total amount.

Inventory records

Manufacturing businesses keep a variety of inventory records, including inventories of raw materials, works-in-progress (WIP), and finished goods. These documents keep track of the numbers and prices of inventory items.

Columns typically found in a inventory records

1. Item Description: A brief description or name of the item.
2. Item ID/Code: A unique identifier assigned to each item in the inventory.
3. Quantity: The number of units or quantity of each item in stock.
4. Unit Cost: The cost of each unit of the item.
5. Total Value: The total value of each item (Quantity multiplied by Unit Cost).
6. Supplier: The name or code of the supplier from whom the item was purchased.
7. Date Received: The date on which the item was received into the inventory.
8. Location: The physical location or warehouse where the item is stored.
9. Minimum Stock Level: The minimum quantity of the item that should be maintained in stock.
10. Maximum Stock Level: The maximum quantity of the item that should be maintained in stock.
11. Reorder Level: The quantity at which a new order should be placed to replenish the stock.
12. Last Update: The date of the last update or modification to the inventory record.

Accounts receivable and accounts payable

These formats keep track of the money the business receives from clients (accounts receivable) and owes to vendors and suppliers (accounts payable).

Columns typically found in a accounts receivable form

1. Date: The date when the transaction occurred.
2. Customer: The name or number of the customer.
3. Invoice Number: The unique identifier for the invoice.
4. Description: A brief description of the transaction.
5. Debit: The amount of money owed by the customer.
6. Credit: The amount of money received from the customer.
7. Balance: The outstanding balance of the accounts receivable.

Columns typically found in a accounts payable form

1. Date: The date when the transaction occurred.
2. Vendor: The name or number of the vendor.
3. Invoice Number: The unique identifier for the invoice.
4. Description: A brief description of the transaction.
5. Debit: The amount of money owed to the vendor.
6. Credit: The amount of money paid to the vendor.
7. Balance: The outstanding balance of the accounts payable.

Cost allocation and costing systems

Systems for allocating costs to various goods or product lines are known as cost allocation and costing systems, and they are frequently used by manufacturing organizations. This aids in calculating the expenses and profitability of products.

Budgets and variance report

These formats are used for budgeting and tracking actual financial performance against the budgeted amounts. They help monitor and control expenses, revenue targets, and other financial metrics

Trial Balance

A trial balance is a list of all the accounts along with their balances as of a particular date. Before preparing financial statements, it assists in ensuring that debits and credits are equal and that the accounting records are in balance. Columns indicating the account name, debit balance, and credit amount are often present in the trial balance.

Columns typically found in a Trial balance form

1. Account: This column contains the names of the accounts from the chart of accounts.
2. Debit: This column shows the debit balances of the accounts.
3. Credit: This column shows the credit balances of the accounts.

These are some of the key accounting formats generally maintained by manufacturing companies. However, it’s important to note that specific companies may have additional formats or modify these formats based on their unique needs and industry-specific requirements.

Tabshir Shams @tabshirshams

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