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Trading and profit and loss account format class 11. From the following balances extracted from the books of X Co prepare a trading and profit and loss account and balance sheet on 31st December 1991. After studying this lesson you will be able to. Trading account is based on matching the selling price of goods and services with the cost of goods sold and services rendered.
Taking into account the following adjustments prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March 2016. Trading Account and Profit and Loss Account and Balance Sheet - An Example. The profit and loss account is the second part of the final account that is used to determine the net profit of the business concern.
Distinguish between the capital and revenue expenditure and receipts. Trading and profit and loss account. The trial balance forms the basis for making the financial statements ie.
Determine the ratio of gross profit to sales. Let us know more about these accounts in detail. Depreciation 5 on Plant and Machinery and 10 on Fixtures and Fittings.
To determine the gross profit or loss in a financial year or period. Profit and Loss account is prepared for the following purpose. Rent Outstanding for March 2016 Rs150.
Trading and Profit and Loss Account. The trading and profit and. Adjusted Purchases Opening Stock Net Purchases Closing Stock Therefore Closing Stock Rs50000 is not considered while preparing Trading Account.
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