Rs. , + Rs. , ) on expenses/losses including salaries, rent and bad debts. Therefore, the net profit is calculated as Rs.
, . Illustration Prepare a trading account from the following particulars for the year ended March , : , , 05000 , , , Solution Trading Account for the year ended March , Expenses/Losses Revenues/Gains , , , , , , Gross profit , , , , , Illustration Prepare a trading account of M/s Prime Products from the following particulars pertaining to the year - . , , , Return inwards , , Return outwards , Factory rent , , Solution Books of Prime Products Trading Account for the year ended March , Expenses/Losses Revenues/Gains , , , , , Less : Return ( , ) , , Less : Return ( , ) , , inwards outwards Factory rent , , Gross profit , , , , , Illustration . Prepare a trading account of M/s Anjali from the following information related to March , .
, , , , , Purchases return , Sales return , Carriage on purchases Carriage on sales Factory rent , Office rent , Dock and Clearing charges , Freight and Octroi , Coal, Gas and Water , Solution Books of Anjali Trading Account for the year ended March Expenses/Losses Revenues/Gains , , , , , Less : Sales return ( , ) , , Less : Purchases return ( , ) , , Carriage on purchases Factory rent , Dock and Clearing charges , Freight and Octroi , Coal, Gas and Water , Gross profit , , , , , , Illustration From the following information, prepare a profit and loss account for the year ending March , . Gross profit , Rent Salary Commission paid , Interest paid on loan Advertising , Discount received , Printing and stationery , Legal charges Depreciation , Interest received , Loss by fire , Profit and Loss Account for the year ended March , Expenses/Losses Revenues/Gains Rent Gross profit , Salary Discount received , Commission , Interest received , Interest paid on loan Advertising , Printing and Stationery , Legal charges Depreciation , Loss by fire , Net profit (transferred to the , capital account) , , Test Your Understanding - I I State True or False : (i) Gross profit is total revenue. (ii) In trading and profit and loss account, opening stock appears on the debit side because it forms the part of the cost of sales for the current accounting year. (iii) Rent, rates and taxes is an example of direct expenses.
(iv) If the total of the credit side of the profit and loss account is more than the total of the debit side, the difference is the net profit. II Match the items given under ‘A’ with the correct items under ‘B’ (i) Closing stock is credited to (a) Trial balance (ii) Accuracy of book of account is tested by (b) Trading account (iii) On returning the goods to seller, the buyer sends (c) Credit note (iv) The financial position is determined by (d) Balance sheet (v) On receiving the returned goods from the (e) Debit note buyer, the seller sends