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प्रश्न
Gross Profit/loss is transferred from ______.
विकल्प
Trading Account
Profit and loss account
Balance sheet
Manufacturing account
उत्तर
Gross Profit/loss is transferred from Trading account.
Explanation:
- A Trading Account may be defined as an account prepared to ascertain a business concern's gross profit or gross loss for a given time period.
- Gross profit as a percentage of sales turnover indicates the business efficiency of a firm.
- Gross profit or gross loss is transferred to the Profit and Loss Account.
APPEARS IN
संबंधित प्रश्न
What is meant by purchase returns?
It is an account prepared to ascertain the gross profit/loss. It is a nominal account and represents the first stage of final accounts of a trading organisation.
Abraham is in business. The following balances were extracted from the books as on 31.12.2018. You are required to prepare a trading account and a profit and loss account for the year ended 31.12.2018 and a balance sheet as on that date.
| Debit (₹) | Credit(₹) | |
| Capital | 32,000 | |
| Drawings | 4,240 | |
| Purchases less Returns | 15,610 | |
| Rates and Taxes | 388 | |
| Salaries | 1,612 | |
| Lighting and Heating | 164 | |
| Electric Power | 384 | |
| Del credere Commission | 414 | |
| Insurance | 206 | |
| Advertising | 214 | |
| Sales less Returns | 34,176 | |
| Bad Debts Written off | 62 | |
| Postage, Telegrams, etc. | 826 | |
| Carriage | 754 | |
| Opening Stock | 6,160 | |
| Wages | 7,962 | |
| Land and Building | 15,840 | |
| Plant and Machinery | 4,034 | |
| Furniture and Fittings | 378 | |
| Sundry Debtors | 6,082 | |
| Sundry Creditors | 4,422 | |
| Cash at Bank | 5,268 | |
| 70,598 | 70,598 |
When preparing the accounts it is necessary to take the following matters into consideration: Closing stock on 31.12.2018 was ₹ 8,760.
From the following balances of Mr. Kumar, prepare final accounts for the year 2018:
| Debit Balance | (₹) | Credit Balance | (₹) |
| Salaries | 400 | Sales | 7,819 |
| Advertising | 42 | Carriage inwards | 9 |
| Postage and Telegrams | 27 | Capital | 3,600 |
| Bad Debts | 28 | Creditors | 1,124 |
| Interest | 130 | Loan | 1,200 |
| Discount (Dr.) | 100 | Debtors | 388 |
| wages | 430 | Fixtures and Fittings | 1,616 |
| Opening Stock | 995 | Buildings | 2,378 |
| Purchases | 6,200 | Machinery | 1,000 |
| Closing Stock | 1,430 |
Mr. Patil, the owner of Jai Hind Engineers, submits the following trial balance to you for the year ended 31st March 2019:
| Dr. (₹) | Cr. (₹) | |
| Purchase and Sales | 16,180 | 75,200 |
| Opening Stock | 6,500 | |
| Drawings | 4,000 | |
| Motor Cycle | 12,500 | |
| Cycles and Carts Delivery | 2,500 | |
| Bad Debts | 200 | |
| Debtors and Creditors | 4,000 | 2,000 |
| Vehicle Expenses | 1,100 | |
| Capital | 8,600 | |
| Bills Receivable and Payable | 800 | 1,000 |
| Bank and Cash Balances | 1,800 | |
| Petty Cash | 100 | |
| Insurance Premium | 500 | |
| Salaries | 900 | |
| Petty Expenses | 300 | |
| Wages | 1,500 | |
| Rent | 3,000 | |
| Godown Rent | 1,800 | |
| General Expenditure | 700 | |
| Bank Loan | 2,000 | |
| Carriage Inwards | 500 | |
| Worker's Equipment | 30,000 | |
| Returns | 200 | 280 |
| 89,080 | 89,080 |
Prepare the final accounts for him. Closing stock is valued at ₹ 5,400.
The following is the trial balance of Mr. C. Nariman for the year ended 31st December, 2018. Complete the final accounts for him, after incorporating the adjustments and thereafter complete the required details listed by him.
| Debit (₹) | Credit (₹) | |
| Capital | 65,000 | |
| Drawings | 4,000 | |
| Purchases and Returns Outward | 25,000 | 4,000 |
| Cash Sales | 17,000 | |
| Credit Sales | 54,000 | |
| Stock (1.1.2018) | 9,000 | |
| Salaries | 10,000 | |
| Wages | 3,000 | |
| Carriage Inward | 2,000 | |
| Bad Debts | 500 | |
| Petty Cash | 100 | |
| Cash and Bank | 6,000 | |
| Rent, Rates and Taxes | 4,000 | |
| Discounts | 400 | 500 |
| Telephones, Postage and Stationery | 1,500 | |
| Bank Loan on Mortgage | 14,000 | |
| Premises and Godowns | 35,000 | |
| Machinery | 50,000 | |
| Debtors and Creditors | 10,000 | 6,000 |
| 1,60,500 | 1,60,500 |
Stock on 31.12.2018 is ₹ 30,000.
From the following Trial Balance of Mr. Rajesh, prepare final accounts for the year ended 31.3.2019:
| Debit (₹) | Credit (₹) | |
| Opening Stock | 19,000 | |
| Salaries | 10,500 | |
| Wages | 8,000 | |
| Railway Freight - Purchases & Imports | 2,500 | |
| General Office Expenses | 13,000 | |
| Annual Insurance | 2,000 | |
| Plant and Machinery | 50,000 | |
| Purchases and Sales | 1,20,000 | 2,53,000 |
| Rent | 7,500 | |
| Bad Debts and its Recoveries | 300 | 1,000 |
| Buildings and Sheds | 60,000 | |
| Bills Receivable and Payable | 12,200 | 4,000 |
| 10% Bank of Progress Loan | 50,000 | |
| Travel Costs | 15,000 | |
| Returns and Price Adjustments | 3,000 | 1,500 |
| Legal and Other Consultancy Fees | 10,000 | |
| Repairs | 8,600 | |
| Bank Account | 10,000 | |
| Capital and Drawings | 4,500 | 65,000 |
| Interest | 6,000 | |
| Debtors and Creditors | 35,000 | 22,600 |
| 3,97,100 | 3,97,100 |
Closing stock is valued at ₹ 45,000 (Its market price is only ₹ 40,000).
The following is the trial balance of Mr. M. Moonlite as on 31.3.2019. The Closing Stock as on 31.3.2019 is ₹ 40,000.
| Debit (₹) | Credit (₹) | |
| Salaries | 20,000 | |
| Royalty | 55,000 | |
| Capital | 2,60,000 | |
| Freehold Land | 60,000 | |
| Stock as on 1.4.2018 | 25,000 | |
| Goods Traded in | 2,05,000 | 3,55,000 |
| Drawings | 5,000 | |
| Brokerage | 4,000 | 6,000 |
| Motive Power & Coke | 6,000 | |
| Insurance | 7,000 | |
| Cash & Bank | 20,000 | 9,900 |
| Administrative & Selling Expenses | 55,900 | |
| Wages | 15,000 | |
| Returns | 10,000 | 5,000 |
| Suppliers & Customers | 30,000 | 15,000 |
| Interest on Overdraft and Borrowings | 18,000 | |
| Electricity | 5,000 | |
| Goodwill | 50,000 | |
| Leasehold Land | 20,000 | |
| Fixed Assets (other than land) | 1,50,000 | |
| 7,05,900 | 7,05,900 |
Compile the final accounts for the owner.
From the following Trial Balance of Rinky, prepare a Trading Account and a Profit & Loss Account for the year ended 31.12.2018 and a Balance Sheet on that date.
| TRIAL BALANCE | |||
| Dr. (₹) | Cr. (₹) | ||
| Building | 20,000 | Capital Account | 25,000 |
| Depreciation on above | 1,000 | Provision for Depreciation on Machinery on 1.1.2018 | 800 |
| Machinery | 6,800 | Creditors | 12,000 |
| Furniture | 2,000 | Bank Loan | 6,000 |
| Drawings | 1,500 | Sales | 53,000 |
| Debtors | 8,000 | Outstanding Carriage Inward | 200 |
| Cash | 1,600 | ||
| Opening Stock | 5,000 | ||
| Purchase | 31,000 | ||
| Wages | 3,000 | ||
| Carriage Inwards | 400 | ||
| Salary | 4,000 | ||
| Prepaid Salary | 1,000 | ||
| Advertisement | 300 | ||
| Insurance | 3,500 | ||
| Packing Materials | 7,900 | ||
| 97,000 | 97,000 | ||
Closing Stock ₹ 15,000.
The following Trial Balance was from the books of Ram as on 31st December 2018.
| TRIAL BALANCE | |||
| Dr. (₹) | Cr. (₹) | ||
| Drawings Account | 7,000 | Capital Account | 90,000 |
| Purchases | 82,210 | Purchase Return | 4,240 |
| Sales Return | 1,820 | Sales | 1,49,840 |
| Opening Stock | 11,460 | Bad Debt Reserve | 4,240 |
| Salaries | 6,280 | Discount | 180 |
| Wages | 8,560 | Sundry Creditors | 16,980 |
| Leasehold Premises | 25,000 | ||
| Rent, Rates & Insurance | 6,940 | ||
| Carriage Inward | 2,310 | ||
| Office Expenses | 9,520 | ||
| Plant & Machinery | 24,000 | ||
| Light & Water | 7,950 | ||
| Bills Receivable | 1,240 | ||
| Sundry Debtors | 38,970 | ||
| Cash at Bank | 12,400 | ||
| Cash in Hand | 2,210 | ||
| Office Furniture | 3,500 | ||
| Travelling Expenses | 9,870 | ||
| Bad Debts | 1,000 | ||
| Carriage Outward | 3,240 | ||
| 2,65,480 | 2,65,480 | ||
Prepare a Trading Account and a Profit & Loss Account for the year ended 31st December 2018 and a Balance Sheet as at that date.
The value of Stock on 31st December 2018 was ₹ 14 920.
