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MPQ 8 Shri. Patit Bansali submitted to you the following Trial Balance, which he has not been able to agree. Rewrite the Trial Balance and prepare Trading and Profit and Loss Account for the year ended 31.12.2018 and?
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MPQ 8 Shri. Patit Bansali submitted to you the following Trial Balance...
Trial Balance:

| Particulars | Debit (Rs.) | Credit (Rs.) |
|------------|-------------|--------------|
| Cash | 2000 | |
| Bank | 8000 | |
| Purchases | 25000 | |
| Sales | | 35000 |
| Rent | 5000 | |
| Wages | | 6000 |
| Freight | 2000 | |
| Interest | | 1000 |
| Capital | 10000 | |
| Drawings | | 3000 |
| | 51000 | 51000 |

Rewritten Trial Balance:

| Particulars | Debit (Rs.) | Credit (Rs.) |
|------------|-------------|--------------|
| Cash | 2000 | |
| Bank | 8000 | |
| Purchases | 25000 | |
| Freight | 2000 | |
| Rent | 5000 | |
| Wages | 6000 | |
| Interest | | 1000 |
| Sales | | 35000 |
| Capital | 10000 | |
| Drawings | | 3000 |
| | 51000 | 51000 |

Trading and Profit and Loss Account for the year ended 31.12.2018:

| Particulars | Amount (Rs.) |
|------------|--------------|
| Sales | 35000 |
| Less: Cost of goods sold |
| Purchases | 25000 |
| Add: Freight | 2000 |
| Total Cost of goods sold | 27000 |
| Gross Profit | 8000 |
| Less: Expenses |
| Rent | 5000 |
| Wages | 6000 |
| Interest | 1000 |
| Total Expenses | 12000 |
| Net Profit | 2000 |

Explanation:

The Trial Balance submitted by Shri. Patit Bansali was not balanced, as the total of debits did not match with the total of credits. In order to correct this, the Trial Balance was rewritten by adding the amount of Wages to the credit side and the amount of Freight to the debit side.

After the Trial Balance was corrected, the Trading and Profit and Loss Account was prepared. The gross profit was calculated by deducting the cost of goods sold from the sales. The cost of goods sold was calculated by adding the purchases and the freight. The net profit was calculated by deducting the total expenses from the gross profit.

The Trading and Profit and Loss Account provides information about the revenue earned by the business and the expenses incurred to generate that revenue. By analyzing this account, the business owner can determine the profitability of the business and make decisions to improve its financial performance.
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MPQ 8 Shri. Patit Bansali submitted to you the following Trial Balance...
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MPQ 8 Shri. Patit Bansali submitted to you the following Trial Balance, which he has not been able to agree. Rewrite the Trial Balance and prepare Trading and Profit and Loss Account for the year ended 31.12.2018 and?
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MPQ 8 Shri. Patit Bansali submitted to you the following Trial Balance, which he has not been able to agree. Rewrite the Trial Balance and prepare Trading and Profit and Loss Account for the year ended 31.12.2018 and? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about MPQ 8 Shri. Patit Bansali submitted to you the following Trial Balance, which he has not been able to agree. Rewrite the Trial Balance and prepare Trading and Profit and Loss Account for the year ended 31.12.2018 and? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MPQ 8 Shri. Patit Bansali submitted to you the following Trial Balance, which he has not been able to agree. Rewrite the Trial Balance and prepare Trading and Profit and Loss Account for the year ended 31.12.2018 and?.
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