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On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments?
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On 31st March,2016 the following trial balance of M/s Shyam Sundar and...
Trial Balance Overview
- On 31st March 2016, M/s Shyam Sundar and Sons presented a trial balance, which includes assets, liabilities, income, and expenses.
Adjustments
- Closing Stock: Ensure to account for the closing stock at the end of the financial year.
- Outstanding Expenses: Include any outstanding expenses that need to be accounted for.
- Prepaid Expenses: Deduct any prepaid expenses as they do not pertain to the current year.
Trading Account Preparation
- Sales: Total sales revenue is recorded.
- Cost of Goods Sold: Calculate the cost of goods sold by adding opening stock to purchases and subtracting closing stock.
- Gross Profit: Determine gross profit by subtracting COGS from total sales.
Profit and Loss Account Preparation
- Operating Expenses: List all operating expenses, including salaries, rent, utilities, and outstanding expenses.
- Net Profit: Calculate net profit by subtracting total expenses from gross profit.
Balance Sheet Preparation
- Assets: List all current and fixed assets, including cash, inventory, and accounts receivable.
- Liabilities: Document all current and long-term liabilities, including loans and accounts payable.
- Capital: Include owner’s equity, adjusted for net profit or loss from the profit and loss account.
Final Steps
- Verification: Ensure that the total assets equal total liabilities plus owner’s equity.
- Presentation: Clearly format the trading, profit and loss account, and balance sheet for easy understanding.
By following these steps, the financial statements for M/s Shyam Sundar and Sons will be accurately prepared and reflect the company's financial position as of 31st March 2016.
- On 31st March 2016, M/s Shyam Sundar and Sons presented a trial balance, which includes assets, liabilities, income, and expenses.
Adjustments
- Closing Stock: Ensure to account for the closing stock at the end of the financial year.
- Outstanding Expenses: Include any outstanding expenses that need to be accounted for.
- Prepaid Expenses: Deduct any prepaid expenses as they do not pertain to the current year.
Trading Account Preparation
- Sales: Total sales revenue is recorded.
- Cost of Goods Sold: Calculate the cost of goods sold by adding opening stock to purchases and subtracting closing stock.
- Gross Profit: Determine gross profit by subtracting COGS from total sales.
Profit and Loss Account Preparation
- Operating Expenses: List all operating expenses, including salaries, rent, utilities, and outstanding expenses.
- Net Profit: Calculate net profit by subtracting total expenses from gross profit.
Balance Sheet Preparation
- Assets: List all current and fixed assets, including cash, inventory, and accounts receivable.
- Liabilities: Document all current and long-term liabilities, including loans and accounts payable.
- Capital: Include owner’s equity, adjusted for net profit or loss from the profit and loss account.
Final Steps
- Verification: Ensure that the total assets equal total liabilities plus owner’s equity.
- Presentation: Clearly format the trading, profit and loss account, and balance sheet for easy understanding.
By following these steps, the financial statements for M/s Shyam Sundar and Sons will be accurately prepared and reflect the company's financial position as of 31st March 2016.
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On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments?
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On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments?.
On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 31st March,2016 the following trial balance of M/s Shyam Sundar and sons was taken out. prepare trading and profit and loss account for the year and the balance sheet as that date after making the adjustments?.
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