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The following balances are extracted from the books of Mr basantstock 5400capital 10000purchase 56870sales 8432purchase return 230debtors 13580general expenses 978rent and taxes 382bank balance 900discount credit 22sales return 400carriage 1744coal and power 8572wages 11700manufacturing expenses 1036creditors 12400salaries 861cash in hand 61drawing 600prepare training and pro and loss account for the year ended 2018 and balance sheet as on that date stock on 31 St December 2018 amounted to 15500
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The following balances are extracted from the books of Mr basantstock ...
To prepare the trading and profit and loss account for the year ended 2018:

Sales: 56,870
Less: Sales return: 400
Net sales: 56,470

Cost of goods sold:
Opening stock: 5,400
Add: Purchases: 10,000
Less: Purchase return: 230
Net purchases: 9,770
Cost of goods available for sale: 15,170
Less: Closing stock: 15,500
Cost of goods sold: 110

Gross profit: 56,360

Operating expenses:
General expenses: 978
Rent and taxes: 382
Carriage: 1,744
Coal and power: 8,572
Wages: 11,700
Manufacturing expenses: 1,036
Salaries: 861
Total operating expenses: 24,273

Net profit before other income and expense: 32,087

Other income:
Discount credit: 22

Net profit before tax: 32,109

Less: Income tax: (Assuming 30% tax rate) 9,632

Net profit after tax: 22,477

To prepare the balance sheet as on 31st December 2018:

Liabilities:

Capital: 5,400
Creditors: 12,400
Total liabilities: 17,800

Assets:

Stock: 15,500
Debtors: 13,580
Bank balance: 900
Cash in hand: 61
Total assets: 29,041

Net worth: 29,041 - 17,800 = 11,241

The balance sheet can be presented as follows:

Liabilities | Amount | Assets | Amount
---|---|---|---
Capital | 5,400 | Stock | 15,500
Creditors | 12,400 | Debtors | 13,580
| | Bank balance | 900
| | Cash in hand | 61
Total | 17,800 | Total | 29,041

Note: The net profit after tax of 22,477 is not shown on the balance sheet as it has already been taken into account in the calculation of the net worth.
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The following balances are extracted from the books of Mr basantstock 5400capital 10000purchase 56870sales 8432purchase return 230debtors 13580general expenses 978rent and taxes 382bank balance 900discount credit 22sales return 400carriage 1744coal and power 8572wages 11700manufacturing expenses 1036creditors 12400salaries 861cash in hand 61drawing 600prepare training and pro and loss account for the year ended 2018 and balance sheet as on that date stock on 31 St December 2018 amounted to 15500 Related: Profit & Loss Accounts - Principles of Accounting, Accountancy and Financial management?
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The following balances are extracted from the books of Mr basantstock 5400capital 10000purchase 56870sales 8432purchase return 230debtors 13580general expenses 978rent and taxes 382bank balance 900discount credit 22sales return 400carriage 1744coal and power 8572wages 11700manufacturing expenses 1036creditors 12400salaries 861cash in hand 61drawing 600prepare training and pro and loss account for the year ended 2018 and balance sheet as on that date stock on 31 St December 2018 amounted to 15500 Related: Profit & Loss Accounts - Principles of Accounting, Accountancy and Financial management? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about The following balances are extracted from the books of Mr basantstock 5400capital 10000purchase 56870sales 8432purchase return 230debtors 13580general expenses 978rent and taxes 382bank balance 900discount credit 22sales return 400carriage 1744coal and power 8572wages 11700manufacturing expenses 1036creditors 12400salaries 861cash in hand 61drawing 600prepare training and pro and loss account for the year ended 2018 and balance sheet as on that date stock on 31 St December 2018 amounted to 15500 Related: Profit & Loss Accounts - Principles of Accounting, Accountancy and Financial management? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The following balances are extracted from the books of Mr basantstock 5400capital 10000purchase 56870sales 8432purchase return 230debtors 13580general expenses 978rent and taxes 382bank balance 900discount credit 22sales return 400carriage 1744coal and power 8572wages 11700manufacturing expenses 1036creditors 12400salaries 861cash in hand 61drawing 600prepare training and pro and loss account for the year ended 2018 and balance sheet as on that date stock on 31 St December 2018 amounted to 15500 Related: Profit & Loss Accounts - Principles of Accounting, Accountancy and Financial management?.
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