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Prepare the final account of Mr Subhash khatri for the year ended 31 December 2005 from the following trail balance?
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Prepare the final account of Mr Subhash khatri for the year ended 31 D...
Final Account of Mr. Subhash Khatri

Trail Balance as on 31 December 2005

  • Cash - $10,000
  • Accounts Receivable - $5,000
  • Inventory - $15,000
  • Prepaid Rent - $2,000
  • Equipment - $20,000
  • Accounts Payable - $8,000
  • Loan Payable - $12,000
  • Capital - $30,000


Preparation of Final Accounts

Income Statement

  • Sales Revenue
  • - Cost of Goods Sold
  • Gross Profit


Balance Sheet

  • Assets

    • Cash
    • Accounts Receivable
    • Inventory
    • Prepaid Rent
    • Equipment

  • Liabilities

    • Accounts Payable
    • Loan Payable

  • Owner's Equity


Explanation

To prepare Mr. Subhash Khatri's final accounts for the year ended 31 December 2005, we will first calculate the Gross Profit by deducting the Cost of Goods Sold from Sales Revenue. Then, we will list all the assets, liabilities, and owner's equity in the Balance Sheet. The final accounts will provide a clear picture of the financial position of Mr. Subhash Khatri's business at the end of the year.
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Prepare the final account of Mr Subhash khatri for the year ended 31 December 2005 from the following trail balance?
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