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Calculation of Net Profit Using Naming Cell Reference

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Added on  2021-05-31

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Example: Particulars Amount ($) Sales $25,000.00 Manufacturing costs ($12,600.00) Gross return $12,400.00 Overhead costs ($16,600.00) Net Profit ($4,200.00) 3. There are multiple reasons for designing spreadsheet accounting report with the completely seperate report area and data entry area because accounting in spreadsheet shows clear picture about the company’s financials to the users of the financial statement. Example: Normal View: Ahuja Ltd Trading Account For the year ended 30 April, 2017 Particulars Amount

Calculation of Net Profit Using Naming Cell Reference

   Added on 2021-05-31

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RUNNING HEAD: ACCOUNTINGACCOUNTING
Calculation of Net Profit Using Naming Cell Reference_1
ACCOUNTING1Table of Contents1..................................................................................................................................................................22..................................................................................................................................................................23..................................................................................................................................................................34..................................................................................................................................................................65..................................................................................................................................................................96.................................................................................................................................................................117.................................................................................................................................................................128.................................................................................................................................................................169.................................................................................................................................................................1810...............................................................................................................................................................1911...............................................................................................................................................................2112...............................................................................................................................................................2113...............................................................................................................................................................23
Calculation of Net Profit Using Naming Cell Reference_2
ACCOUNTING21.Naming cell reference means naming the cell range in the workbook. This function in spreadsheet is used to make the calculation easy and simpler. Below example showing calculation of net profit using function ‘Naming cell reference’. Example:Calculation of Net Profit:Normal View:Sales ($)Expenses ($)Net Profit ($)1250002540099600Formula View:Sales ($)Expenses ($)Net Profit ($)12500025400=Sales-Expenses 2.There are multiple ways of applying negative numbers in workbook such as putting minus sign before the numbers, apply red color to the numbers or applying parentheses. Most common practice followed by the enterprises is to put bracket for denoting negative numbers in accounting. Using of brackets highlights credit entries or expenses for accounting purpose. Further numbers in brackets also easily identifiable to the readers that the number is in negative form.Example:
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ACCOUNTING3ParticularsAmount ($)Sales $25,000.00 Manufacturing costs($12,600.00)Gross return$12,400.00 Overhead costs($16,600.00)Net Profit($4,200.00) 3.There are multiple reasons for designing spreadsheet accounting report with the completely seperate report area and data entry area because accounting in spreadsheet shows clear picture about the company’s financials to the users of the financial statement. Another reason can be saidthat spreadsheet contains formulae’s and function bars which helps in making calculations easy and time saving. In addition to this, numbers can be deleted or changed from the accounting report without changing the whole calculations and data very smoothly.After the preparation of financials whole calculations must be combined with the data entry area.Hence, this will make the assessment of financials very simple to the stockholders.Example:Normal View:Ahuja LtdTrading AccountFor the year ended 30 April, 2017ParticularsAmount ($)ParticularsAmount ($)Opening Inventory:Closing Stock:Raw Material55000Raw Material19000Work in Progress15000Work in Progress9800Purchases:
Calculation of Net Profit Using Naming Cell Reference_4
ACCOUNTING4Raw Material16000COGS105600Direct labour14200Direct Expenses:Depreciation 9200Factory Insurance6500Manufacturing overhead: Manufacturing Expense9600 Factory Salary8900TOTAL134400TOTAL134400Ahuja LtdIncome StatementFor the year ended 30 April, 2017ParticularsAmount ($)Total ($)Revenues:Sales195000 Other Income0 Total Income (A)195000Expenses:COGS95600Salary26500General expenses14000Advertisement6500Light and Power4500Rate and Taxes6600 Total operating expenses (B)153700 Net Income (A-B)41300Formula View:Ahuja LtdTrading AccountFor the year ended 30 April, 2017ParticularsAmount ($)=+B4Amount ($)
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ACCOUNTING5Opening Inventory:Closing Stock:Raw Material55000Raw Material19000Work in Progress15000Work in Progress9800Purchases:Raw Material16000COGS=E17-(E6+E7)Direct labour14200Direct Expenses:Depreciation 9200Factory Insurance6500Manufacturing overhead: Manufacturing Expense9600 Factory Salary8900TOTAL=SUM(C5:C16)TOTAL=C17=B1Income Statement=B3=+B4Amount ($)Total ($)Revenues:Sales195000 Other Income0 Total Income (A)=SUM(C26:C27)Expenses:=D995600Salary26500General expenses14000Advertisement6500Light and Power4500Rate and Taxes6600 Total operating expenses (B)=SUM(C30:C35) Net Income (A-B)=D28-D36
Calculation of Net Profit Using Naming Cell Reference_6

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