Trading and profit and loss account class 11
The purchase price is to be the book value of assets taken over less liabilities subject to (a) an addition of Rs 10,000 for goodwill, (b) an increase of 20 per cent in the book value of the fixtures and fittings, and (c) a deduction of 5% from total of debtors to allow for possible bad debts. Profit and loss account is a nominal account. Thus, indirect expenses like office and administration, selling and distribution, financial expenses, repair and renewables etc. are recorded on the debit side of profit and loss account. All incomes of the business except sales and closing stock are recorded on the credit side of profit and loss Every company prepares a Profit and Loss Account/statement at the end of the year generally, to get the visibility of the income, earning, expenses and loss incurred in a specific range of period. It is important to prepare Profit and Loss statement because this information helps an organisation to take the right business decision like where should we do the cost-cutting, from where can a NCERT Solutions for Class 11 commerce Accountancy CBSE, 9 Financial Statements - I. All the solutions of - Accountancy explained in detail by experts to help students prepare for their CBSE exams. Profit and Loss Account . For the year ended 31 st March 2014 . Dr. Cr. Particulars. Rs. Particulars. Rs. Trading Account For the year ended
Preparing a trading account is the first stage in of final accounts of a trading concern. It determines the gross profit or gross loss of the concern for that accounting year. For determining the true result or the net result of the business, preparing the Trading and Profit and Loss account is necessary.
Trading account for XYZ Ltd for the year ended 31 March 20X5: Note that the closing stock figure would appear in the balance sheet under Stock. Profit and loss the trading and profit or loss account is also called income statement. Question added by Sultan Alghamdi Date Posted: 2016/02/11. Upvote (1) · Views (414) A trading account helps in determining the gross profit or gross loss of a business concern, made strictly out of trading activities. Trading involves buying and selling activities. In the trading account, the cost of goods sold is subtracted from net sales for the period to calculate gross profit. Question 11. Closing Stock on 31st March, 2016 was Rs.1,27,410. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2016 and Balance Sheet as at that date. Adjustments to be made are: i. Depreciate Plant and Machinery at 10% and Furniture at 5%. ii. Raise the Provision for Doubtful Debts to Rs.15,000. iii.
In this video we have discussed : (1) Calculation of gross profit or gross loss (Trading A/c) (2) Calculation of net profit or net loss (P&L A/c)
Profit and loss account is a nominal account. Thus, indirect expenses like office and administration, selling and distribution, financial expenses, repair and renewables etc. are recorded on the debit side of profit and loss account. All incomes of the business except sales and closing stock are recorded on the credit side of profit and loss
Every company prepares a Profit and Loss Account/statement at the end of the year generally, to get the visibility of the income, earning, expenses and loss incurred in a specific range of period. It is important to prepare Profit and Loss statement because this information helps an organisation to take the right business decision like where should we do the cost-cutting, from where can a
the trading and profit or loss account is also called income statement. Question added by Sultan Alghamdi Date Posted: 2016/02/11. Upvote (1) · Views (414) A trading account helps in determining the gross profit or gross loss of a business concern, made strictly out of trading activities. Trading involves buying and selling activities. In the trading account, the cost of goods sold is subtracted from net sales for the period to calculate gross profit. Question 11. Closing Stock on 31st March, 2016 was Rs.1,27,410. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2016 and Balance Sheet as at that date. Adjustments to be made are: i. Depreciate Plant and Machinery at 10% and Furniture at 5%. ii. Raise the Provision for Doubtful Debts to Rs.15,000. iii. Profit and loss account is a nominal account. Thus, indirect expenses like office and administration, selling and distribution, financial expenses, repair and renewables etc. are recorded on the debit side of profit and loss account. All incomes of the business except sales and closing stock are recorded on the credit side of profit and loss
The manufacturing organisation will still need a trading and profit and loss account. The only major The trading and profit and loss account shows, in detail, how that profit or loss has arisen. The profit and loss 11 December. 30. 50.00 Is total capital employed analysed among different classes of business? · If so, can
Question 11. Closing Stock on 31st March, 2016 was Rs.1,27,410. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2016 and Balance Sheet as at that date. Adjustments to be made are: i. Depreciate Plant and Machinery at 10% and Furniture at 5%. ii. Raise the Provision for Doubtful Debts to Rs.15,000. iii.
Profit and loss account is a nominal account. Thus, indirect expenses like office and administration, selling and distribution, financial expenses, repair and renewables etc. are recorded on the debit side of profit and loss account. All incomes of the business except sales and closing stock are recorded on the credit side of profit and loss class 11 accounts financial accounts of sole proprietorship Final accounts trading account profit and loss account balance sheet Accounts adda video 69 • Our Profit and loss account is made to ascertain annual profit or loss of business. Only indirect expenses are shown in this account. All the items of revenue and expenses whether cash or non-cash are considered in this account. Understand the concept of Trading Account here in detail. Preparing a trading account is the first stage in of final accounts of a trading concern. It determines the gross profit or gross loss of the concern for that accounting year. For determining the true result or the net result of the business, preparing the Trading and Profit and Loss account is necessary. In this video we have discussed : (1) Calculation of gross profit or gross loss (Trading A/c) (2) Calculation of net profit or net loss (P&L A/c)