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From the following Trial Balance, prepare Trading, Profit and Loss A/c for the year ended 31.12.15 and a Balance Sheet as on that date : 20. Debit balances Rs. Credit balances Rs. Purchases 11,870 Capital 8,000 Debtors 7,580 Bad debts recovered 250 Return inwards 450 Creditors 1,250 Bank deposits 2,750 Returns outwards 350 Rent 360 Bank overdraft 1,570 Salaries 850 Sales 14,690 Travelling expenses 300 Bills payable 1,350 Cash 210?
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From the following Trial Balance, prepare Trading, Profit and Loss A/c...
Trading, Profit and Loss A/c for the year ended 31.12.15


  • Sales: Rs. 14,690

  • Less: Returns inwards: Rs. 450

  • Net Sales: Rs. 14,240

  • Less: Cost of Goods Sold:


    • Purchases: Rs. 11,870

    • Less: Returns outwards: Rs. 350

    • Net Purchases: Rs. 11,520

    • Add: Opening Stock: Rs. 0

    • Less: Closing Stock: Rs. 0

    • Cost of Goods Sold: Rs. 11,520


  • Gross Profit: Rs. 2,720

  • Less: Operating Expenses:


    • Bad debts recovered: Rs. 250

    • Rent: Rs. 360

    • Salaries: Rs. 850

    • Travelling expenses: Rs. 300

    • Total Operating Expenses: Rs. 1,760


  • Net Profit before Interest and Taxes: Rs. 960

  • Less: Interest on Bank Overdraft: Rs. 120

  • Net Profit before Taxes: Rs. 840

  • Less: Provision for Taxes: Rs. 252

  • Net Profit after Taxes: Rs. 588



Balance Sheet as on 31.12.15


  • Assets:


    • Debtors: Rs. 7,580

    • Bank deposits: Rs. 2,750

    • Cash: Rs. 210

    • Total Assets: Rs. 10,540


  • Liabilities:


    • Capital: Rs. 8,000

    • Creditors: Rs. 1,250

    • Bills payable: Rs. 1,350

    • Total Liabilities: Rs. 10,600


  • Net Assets: (Total Assets - Total Liabilities)

  • Net Assets: Rs. -60



Explanation:

The Trading, Profit and Loss A/c has been prepared using the information given in the trial balance. The sales figure of Rs. 14,690 has been adjusted for returns inwards of Rs. 450, resulting in net sales of Rs. 14,240. The cost of goods sold has been calculated by subtracting returns outwards of Rs. 350 from purchases of Rs. 11,870, resulting in net purchases of Rs. 11,520. Since there is no opening
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From the following Trial Balance, prepare Trading, Profit and Loss A/c...
Trial balance
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From the following Trial Balance, prepare Trading, Profit and Loss A/c for the year ended 31.12.15 and a Balance Sheet as on that date : 20. Debit balances Rs. Credit balances Rs. Purchases 11,870 Capital 8,000 Debtors 7,580 Bad debts recovered 250 Return inwards 450 Creditors 1,250 Bank deposits 2,750 Returns outwards 350 Rent 360 Bank overdraft 1,570 Salaries 850 Sales 14,690 Travelling expenses 300 Bills payable 1,350 Cash 210?
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From the following Trial Balance, prepare Trading, Profit and Loss A/c for the year ended 31.12.15 and a Balance Sheet as on that date : 20. Debit balances Rs. Credit balances Rs. Purchases 11,870 Capital 8,000 Debtors 7,580 Bad debts recovered 250 Return inwards 450 Creditors 1,250 Bank deposits 2,750 Returns outwards 350 Rent 360 Bank overdraft 1,570 Salaries 850 Sales 14,690 Travelling expenses 300 Bills payable 1,350 Cash 210? 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 From the following Trial Balance, prepare Trading, Profit and Loss A/c for the year ended 31.12.15 and a Balance Sheet as on that date : 20. Debit balances Rs. Credit balances Rs. Purchases 11,870 Capital 8,000 Debtors 7,580 Bad debts recovered 250 Return inwards 450 Creditors 1,250 Bank deposits 2,750 Returns outwards 350 Rent 360 Bank overdraft 1,570 Salaries 850 Sales 14,690 Travelling expenses 300 Bills payable 1,350 Cash 210? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following Trial Balance, prepare Trading, Profit and Loss A/c for the year ended 31.12.15 and a Balance Sheet as on that date : 20. Debit balances Rs. Credit balances Rs. Purchases 11,870 Capital 8,000 Debtors 7,580 Bad debts recovered 250 Return inwards 450 Creditors 1,250 Bank deposits 2,750 Returns outwards 350 Rent 360 Bank overdraft 1,570 Salaries 850 Sales 14,690 Travelling expenses 300 Bills payable 1,350 Cash 210?.
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