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Trading and Profit and Loss Account and Balance Sheet - Examples
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Hom e Final Accounts Ex am ple s of Trading and Profit and Loss Account and Balance She e t
Managerial Accounting
Introduction to Managerial Accounting Business and Quality Improvement Programs Cost Terms, Concepts and Classification Job Order Costing system Process Costing System Process Costing System Be ginning Inve ntory
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Examples of Trading and Profit and Loss Account and Balance Sheet:
Learning Objectives:
1. Prepare trading and profit and loss account and balance sheet.
Example 1:
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. $ 11,000 4,500 39,000 2,800 700 30,000 800 800 700 450 1,300 $ 500 200 1,000 500 4,750 1,100 1,450 60,000 3,000 19,650 17,900
Controlling and Costing Materials Materials and Inventory Cost Control By Products and Joint Products Costing Cost-Volume-Profit-Relationship Variable Costing System Activity Based Costing System Budgeting and Planning Standard Costing and Variance Analysis Gross Profit Analysis Linear Programming Technique Segment Reporting and Transfer Pricing Capital Budgeting Decisions Service Department Costing Cash Flow statement Financial statement Analysis Pricing Products and Services Managerial Accounting Terms and Definitions Managerial / Cost Accounting Formulas
Stock on 1st January Bills receivables Purchases Wages Insurance Sundry debtors Carriage inwards Commission (Dr.) Interest on capital Stationary Returns inwards
Returns outwards Trade expenses Office fixtures Cash in hand Cash at bank Tent and taxes Carriage outwards Sales Bills payable Creditors Capital
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Solution:
X & Co. Trading and Profit and Loss Account For the year ended 31st December, 1991 To Opening stock To Purchases Less returns o/w To Carriage inwards To Wages To Gross profit c/d 39,000 500 38,500 800 2,800 30,600 83,700 To Stationary To Rent and rates To Carriage outwards 450 1,100 1,450 11,000
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To Insurance To Trade expenses To Commission To Interest on capital To Net profit transferred to capital a/c 700 200 800 700 25,200
Trading and Profit and Loss Account and Balance Sheet - Examples
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30,600
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30,600
Financial Accounting
Bookkeeping and Bookkeeping Terms Accounting Principles and Accounting
X & Co. Balance Sheet As at 31st December, 1991 Liabilities Creditors Bills payable Capital Add Net profit 17,900 25,200 43,100 $ 19,650 3,000
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Assets Cash in hand Cash at bank Sundry debtors Bill receivable Stock Office equipment
Equation
65,750
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Journal Ledger Accounting For Bills of Exchange Subdivision of Journal Final Accounts Capital and Revenue Items Single Entry System/Accounting From
Incomplete Records
Example 2:
The following trial balance was taken from the books of Habib-ur-Rehman on December 31, 19 .... Cash Sundry debtors Bill receivable Opening stock Building Furniture and fittings Investment (Temporary) Plant and Machinery Bills payable Sundry creditors Habib's capital Habib's drawings Sales Sales discount Purchases Freight in Purchase discount Sales salary expenses Advertising expenses Miscellaneous sales expenses Office salary expenses Misc. general expenses Interest income Interest expenses 800 2,08,700 2,08,700 5,000 4,000 500 8,000 1,000 1,000 400 30,000 1,000 500 1,000 100,000 13,000 10,000 8,500 45,000 50,000 10,000 5,000 15,500 9,000 20,000 78,200
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Closing stock on December 31, 19 ... was $10,000 Required: Prepare income statement/trading and profit and loss account and balance sheet from the above trial balance in report form.
Solution:
Habib-ur-Rehman Income Statement/Profit and Loss Account For the year ended December 31, 19..... Gross sales Less: Sales discount Net Sales Cost of Goods Sold: 100,000 400 99,600
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Trading and Profit and Loss Account and Balance Sheet - Examples
45,000 30,000 1,000 31,000
Less purchase discount Net purchases Cost of goods available fort sale Less closing stock Cost of goods sold Gross profit Operating Expenses: Selling Expenses: Sales salary expenses Advertising expenses Misc. selling expenses General Expense: Office salaries expenses Misc. general expenses
Total operating expenses Net profit from operations Other Expenses and Incomes: Interest income Interest expenses Net increase Net income
18,500 15,600
Habib-ur-Rehman Balance Sheet As at December 31, 19..... ASSETS Current Assets: Cash Sundry debtors Bills receivable Stock on Dec. 31, 19 .. Investment Total Current Assets Fixed Assets: Buildings Plant and Machinery Furniture and fittings Total Fixed Assets Total Assets 50,000 15,500 10,000 75,500 122,000 13,000 10,000 8,500 10,000 5,000 46,500
LIABILITIES: Current Liabilities: Sundry creditors Bills payable Total Current Liabilities Fixed Liabilities: Habib's capital Net income for the year 78,200 15,800 20,000 9,000 29,000
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Trading and Profit and Loss Account and Balance Sheet - Examples
94,000
Less: Drawings
1,000 93,000
122,000
You may also be interested in other articles from "final accounts" chapter:
1. 2. 3. 4. 5. 6.
Trading Account Profit and Loss Account Difference Between Trading Account and Profit and Loss Account Balance Sheet Difference Between Trial Balance and Balance Sheet Examples of Trading and Profit and Loss Account and Balance Sheet
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