Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. prepare trading and profit and loss account from t

Prepare Trading and Profit and Loss account from the following information for the year 31st...

80.2K

Verified Solution

Question

Accounting

Prepare Trading and Profit and Loss account from the following information for the year 31st December 2015.

Opening stock 5,500 Return outward 1,500

Purchases 18,400 Return inward 900

Manufacturing wages 4,400 General expenses 700

Sales 42,000 Discount allowed 800

Carriage inward 600 Discount Received 500

Carriage outward 700 Interest Received 450

Factory Rent 2000 Closing Stock 8700

Office Rent 1200.

a) Why is it necessary to record the adjusting entries in the preparation of final accounts?

b) While preparing final accounts, what treatment is made of prepaid expenses?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the function given as example in lecture: f(x, y) = (e x cos(y), ex sin(y))...

Advance Math
Q

DO True False

Biology
Q

Figure shows as parallel LCR circuit connected to a 200V AC source L 5 H...

Physics
Q

A 100 foot vertical tower is to be erected on the side of a hill...

Basic Math
Q

214a preparing general journal entries lo3, 5 abe factor opened a new accounting practice called...

Accounting
Q

an outstanding check is a check that: a. has been written by the account holder...

Accounting
Q

A company had stock outstanding as follows during each of its first three years of...

Accounting
Q

The manufacturing costs of Calico Industries for three months of the year are provided below:...

Accounting
Q

Ferris Company began January with 6,000 units of its principal product. The cost of each...

Accounting
Q

The units of an item ayailable for sole during the voar were as follows: method;...

Accounting
Q

A band is considering the purchase of new amplifiers for its upcoming tour. The bands...

Finance
Q

The comparative balance sheet of Yellow Dog Enterprises Inc, at December 31, 20Y8 and 20Y7,...

Accounting