what are all the items comes under balancesheet(liability
side & asset side) step by step.& also trading and p&l
account. somany companies asking this type of question .
please tell me...
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Answer Posted / ogati sucharitha
Trading account is prepares mainly to know the profitability
of the goods bought and sold by the business man.
The items which are shown under trading account relates to
purchases and production.
Trading account consists of two side debit side and credit side
DEBIT SIDE SHOWN ITEMS ARE:---
1.opening stock
2.purchases
3.direct expense:--
a.buying expense
b.manufacturing expenses
4.gross profit c/d(c/d=carried down)
CREDIT SIDE SHOWN ITEMS ARE:---
1.sales
2.closing stock
the items shown in profit and loss account debit side are:---
1.selling and distribution expenses:---
a.salesman's salary and commission
b.commission to agents
c.freight and carriage on sales
d.sales tax
e.bad debts
f.advertising
g.packing expenses
h.export duty etc...............
2.administrative expenses:----
a.salaries
b.rent
c.rates and taxes
d.audit fess
e.bank charges
f.printing and stationary etc.......
3.financial expenses:---
a.discount allowed
b.interest on capital
c.interest on loan etc........
4.maintenance,depreciation and provisions:----
a.repairs
b.depreciation
c.provision for bad and doubtful debts etc.......
profit and loss account credit side:----
1.gross profit b/d(b/d=brought down)
2.discount received
commission received
3.rent received
4.interest received
5.interest on investments
6.dividend received etc...........
balance sheet :----
balance sheet is divided into two parts liabilities and assets
LIABILITIES:---
1.SHARE CAPITAL:----
a.authorized share capital
b.issued share capital
c.subscribed share capital
2.RESERVES AND SURPLUS:--
a.general reserve
b.profit and loss appropriation surplus
c.specific reserve etc.......
3.SECURED LOANS:---
a.debentures etc.....
4.UNSECURED LOANS:---
5.CURRENT LIABILITIES AND PROVISIONS:---
a.taxation provision
b.out standing expenses
c.tax on dividends etc.........
ASSETS:---
1.FIXED ASSETS:---
a.land and buildings
b.plant and machinery
c.furniture and fittings
d.patents
e.copy rights etc......
2.INVESTMENTS:----
a.investments in shares
b.investments in debentures etc......
3.CURRENT ASSETS LOANS AND ADVANCES:----
a.cash in hand and at bank
b.closing stock
c.sundry debtors
d.prepaid expenses etc.......
4.MISCELLANEOUS EXPENSES:---
a.preliminary expenses etc.....
5.PROFIT AND LOSS ACCOUNT LOSS
| Is This Answer Correct ? | 86 Yes | 11 No |
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