how to prepare Profit and los accounts ?
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Answer Posted / srikant
After complition of Trading A/c. The Gross profit will
transfer to P/L A/c or carry forward to P/L A/c. If there
is Gross profit it goes to right hand side of P/L A/c or if
there is Gross loss then the loss goes to left hand side of
P/L A/c.P/L A/c has two side, one is Expenses side & other
is Income Side. Expenses Side :- Salary, Electricity bill,
stationery exp, Printing exp.,Carriage outward, Bad debts &
all indirect expenses & Income side :- Commission received,
Interest received,Bad debts recovered etc. After complition
of entries, if income is higher than expenses it should
write Net Profit or if Income is less than expenses it
should Net loss.
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(a) Rajesh Ltd. gives you the following information for the year ended 31st March, 2006: (i) Sales for the year Rs. 48, 00, 000. The Company sold goods for cash only. (ii) Cost of goods sold was 75% of sales. (iii) Closing inventory was higher than opening inventory by Rs.50,000. (iv) Trade creditors on 31.3.2006 exceed the outstanding on 31-3.2005 by Rs. 1, 00, 000. (v) Tax paid during the year amounts to Rs. 1, 50, 000. (vi) Amounts paid to Trade creditors during the year Rs. 35, 50, 000. (vii) Administrative and Selling expenses paid Rs. 3, 60, 000. (viii)One new machinery was acquired in December, 2005 for Rs. 6, 00, 000. (ix)Dividend paid during the year Rs. 1,20, 000. (x)Cash in hand and at Bank on 31.3.2006 Rs. 70, 000. (xi) Cash in hand and at Bank on 1. 4.2005 Rs. 50, 000. Prepare Cash Flow Statement for the year ended 31.3.2006 as per the prescribed Accounting Standard. (b) Define the teen "Operating Activities", "Investment Activities" and "Financing Activities" as per NA S-3 Send me this question answer in my mail Address please help me to how solve the question ( deepakgaire@gmail.com) plese plese
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