, ( Answer : Balance sheet total: ` , ) Accountancy - . Prepare trading and profit and loss account in the books of Ramasundari for the year ended 31st December, and balance sheet as on that date from the following information: Opening stock Wages Closing Stock Discount received Machinery Creditors , , , , , , Sales Purchases Salary Capital Cash at Bank , , , , , ( Answer : Gross profit: ` , ; Net profit: ` , ; Balance sheet total: ` , ) . Prepare trading and profit and loss account and balance sheet in the books of Deri, a trader, from the following balances as on March , . Debit Balances Credit Balances Stock Cash Bank Freight inwards Purchases Drawings Wages Machinery Debtors Postage (office) Sundry expenses Rent paid Furniture , , , , , , , , , , Sales Creditors Bills payable Capital , , , , , , , , , , Closing stock (31st March, ) ` , ( Answer : Gross loss: ` , ; Net loss: ` , ; Balance sheet total: ` , ) Operating profit is the profit earned from the normal operating activities of a business entity.
Operating profit is the difference between operating revenue and operating cost. Operating profit = Operating revenue – Operating Cost = Net sales – (Cost of goods sold + other operating expenses) = Net sales – (Cost of goods sold + office and administration expenses + selling and distribution expenses) Operating profit is also called Earning Before Interest and Tax, ie., EBIT Operating activities mean the activities relating to normal or main business of an enterprise. Operating revenues are the revenues earned in the normal course of business and operating cost is the cost incurred in the normal course of business of an enterprise. Operating cost includes cost of goods sold and other indirect operating expenses such as office and administration and selling and distribution expenses.
Purely financial expenses interest on loan and incomes such as dividend received are not included in operating expenses. Accountancy -