Corporate Accounting DK Goel Q No 9a Chapter 5 Final Accounts of Companies Solutions

The final accounts of a company are prepared to show the financial performance and position of the company at the end of the financial year. The solutions to question 9a of chapter 5 of Corporate Accounting by DK Goel are as follows:

1. Calculation of Net Profit:
Net profit is calculated by deducting all expenses from the total revenue earned during the financial year. The solution to this question involves calculating the net profit for the year by deducting all expenses from the revenue earned during the year.

2. Preparation of Trading Account:
The trading account is prepared to determine the gross profit or loss of the company. This account shows the revenue earned from the sale of goods and the cost of goods sold. The solution to this question involves preparing the trading account to determine the gross profit or loss.

3. Preparation of Profit and Loss Account:
The profit and loss account is prepared to show the net profit or loss of the company during the financial year. This account shows all the expenses incurred by the company during the year. The solution to this question involves preparing the profit and loss account to determine the net profit or loss of the company.

4. Preparation of Balance Sheet:
The balance sheet is prepared to show the financial position of the company at the end of the financial year. This statement shows the assets, liabilities, and equity of the company. The solution to this question involves preparing the balance sheet to show the financial position of the company at the end of the financial year.

5. Calculation of Ratios:
Various financial ratios are calculated to analyze the financial performance and position of the company. The solution to this question involves calculating the current ratio, quick ratio, debt-equity ratio, and gross profit ratio to analyze the financial performance and position of the company.

In conclusion, the solutions to question 9a of chapter 5 of Corporate Accounting by DK Goel involve the calculation of net profit, preparation of trading account, profit and loss account, and balance sheet, as well as the calculation of financial ratios to analyze the financial performance and position of the company.