on trading account. . What are wasting assets? .
What are fixed assets? . What is meant by purchases returns? .
Name any two direct expenses and indirect expenses. . Mention any two differences between trial balance and balance sheet. .
What are the objectives of preparing trading account? . What is the need for preparing profit and loss account? III Short answer questions .
What are final accounts? What are its constituents? . What is meant by closing entries?
Why are they passed? . What is meant by gross profit and net profit? .
“Balance sheet is not an account”- Explain. . What are the advantages of preparing a balance sheet? .
What is meant by grouping and marshalling of assets and liabilities? IV Exercises . Prepare trading account in the books of Mr.Sanjay for the year ended 31st December : Opening stock Sales Sales returns , Purchases Purchases returns Closing stock , ( Answer : Gross profit: ` , ) Accountancy - . From the following balances taken from the books of Saravanan, calculate gross profit for the year ended December , Opening stock Direct expenses Closing Stock , , , , Net sales during the year Net purchases during the year , , , , ( Answer : Gross profit: ` , , ) .
From the following details for the year ended 31st March, , prepare trading account. Opening stock Purchases Sales Wages Returns outwards , , , , , Returns inwards Coal and gas Carriage inwards Closing stock , , , , ( Answer : Gross profit: ` , ) . From the following balances taken from the books of Victor, prepare trading account for the year ended December , : Adjusted purchases Sales Royalty on purchases of goods Octroi on purchase of goods Cost of goods manufactured , , , , , Closing stock Carriage inwards Import duty on purchases of goods Dock charges on purchases , , , , ( Answer : Gross loss: ` , ) ( Hint : Closing stock will not appear in trading account) . Compute