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Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.?
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Give me a practical question of final accounts to be solved equivalent...
Question:
Prepare the final accounts of XYZ Ltd. from the following information for the year ending 31st March 2022:
1. Opening Stock: $50,000
2. Purchases: $150,000
3. Sales: $200,000
4. Direct Expenses: $10,000
5. Sales Returns: $5,000
6. Closing Stock: $40,000
7. Indirect Expenses: $20,000
8. Administrative Expenses: $15,000
9. Gross Profit Ratio: 25% on cost
10. Provision for Bad Debts: 5% on Debtors
Answer:
The trading account is prepared to calculate the gross profit or loss of the business. It includes all the direct expenses and incomes related to the purchase and sale of goods.
Opening Stock: $50,000
Purchases: $150,000
Direct Expenses: $10,000
Total Cost of Goods Sold: Opening Stock + Purchases + Direct Expenses
= $50,000 + $150,000 + $10,000
= $210,000
Gross Profit Ratio: 25% on cost
Gross Profit: Gross Profit Ratio * Cost of Goods Sold
= 25/100 * $210,000
= $52,500
The profit and loss account is prepared to calculate the net profit or loss of the business. It includes all the indirect expenses and incomes.
Sales: $200,000
Sales Returns: $5,000
Gross Profit: $52,500
Net Profit before Provision for Bad Debts: Sales - Sales Returns - Gross Profit
= $200,000 - $5,000 - $52,500
= $142,500
Provision for Bad Debts: 5% on Debtors
Provision for Bad Debts: 5/100 * Debtors
= 5/100 * Debtors
= 5/100 * (Debtors - Creditors)
= 5/100 * ($0 - $0)
= $0
Net Profit before Provision for Bad Debts: $142,500
Provision for Bad Debts: $0
Net Profit after Provision for Bad Debts: Net Profit before Provision for Bad Debts - Provision for Bad Debts
= $142,500 - $0
= $142,500
The balance sheet is prepared to show the financial position of the business at a particular point in time.
Liabilities:
Capital: $0
Assets:
Closing Stock: $40,000
Summary:
Prepare the final accounts of XYZ Ltd. from the following information for the year ending 31st March 2022:
1. Opening Stock: $50,000
2. Purchases: $150,000
3. Sales: $200,000
4. Direct Expenses: $10,000
5. Sales Returns: $5,000
6. Closing Stock: $40,000
7. Indirect Expenses: $20,000
8. Administrative Expenses: $15,000
9. Gross Profit Ratio: 25% on cost
10. Provision for Bad Debts: 5% on Debtors
Answer:
Trading Account
The trading account is prepared to calculate the gross profit or loss of the business. It includes all the direct expenses and incomes related to the purchase and sale of goods.
Step 1: Calculate the Cost of Goods Sold
Opening Stock: $50,000
Purchases: $150,000
Direct Expenses: $10,000
Total Cost of Goods Sold: Opening Stock + Purchases + Direct Expenses
= $50,000 + $150,000 + $10,000
= $210,000
Step 2: Calculate Gross Profit
Gross Profit Ratio: 25% on cost
Gross Profit: Gross Profit Ratio * Cost of Goods Sold
= 25/100 * $210,000
= $52,500
Profit and Loss Account
The profit and loss account is prepared to calculate the net profit or loss of the business. It includes all the indirect expenses and incomes.
Step 3: Calculate Net Profit before Provision for Bad Debts
Sales: $200,000
Sales Returns: $5,000
Gross Profit: $52,500
Net Profit before Provision for Bad Debts: Sales - Sales Returns - Gross Profit
= $200,000 - $5,000 - $52,500
= $142,500
Step 4: Calculate Provision for Bad Debts
Provision for Bad Debts: 5% on Debtors
Provision for Bad Debts: 5/100 * Debtors
= 5/100 * Debtors
= 5/100 * (Debtors - Creditors)
= 5/100 * ($0 - $0)
= $0
Step 5: Calculate Net Profit after Provision for Bad Debts
Net Profit before Provision for Bad Debts: $142,500
Provision for Bad Debts: $0
Net Profit after Provision for Bad Debts: Net Profit before Provision for Bad Debts - Provision for Bad Debts
= $142,500 - $0
= $142,500
Balance Sheet
The balance sheet is prepared to show the financial position of the business at a particular point in time.
Step 6: Prepare the Balance Sheet
Liabilities:
Capital: $0
Assets:
Closing Stock: $40,000
Summary:
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Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.?
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Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.?.
Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give me a practical question of final accounts to be solved equivalent to class 11th level but with proper answer.?.
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