1. Prepare The Trading And Profit And Loss Account And Balance Sheet.
2. Prepare A Bar Diagram And Pie Chart Showing The Expenses , Income , Profit And Loss.
Look At The Image & Please Answer These 2 Questions (100 Points) :-
Answers
Answer:
For preparing Trading and Profit and Loss Account we need complete information regarding expenses, incomes, assets and liabilities of the concern. In incomplete records, some details are given and some are missing. Thus, we need to ascertain the missing details in an indirect manner by using the logic of double-entry.
The most common items that are missing and we have to find out for preparing Trading and Profit and Loss Account are:
Opening capital
Credit Purchases
Credit sales
Bills payable accepted
Bills receivable received
Payments to creditors
Payments to debtors
Any other cash/bank related items.
As we know that opening capital can be obtained by preparing the statement of affairs at the beginning of the year. For other items that are missing, we can easily obtain them by preparing accounts such as total debtors and total creditors, total bills receivable and total bills payable accounts and summary of cash.
Answer:
For preparing Trading and Profit and Loss Account we need complete information regarding expenses, incomes, assets and liabilities of the concern. In incomplete records, some details are given and some are missing. Thus, we need to ascertain the missing details in an indirect manner by using the logic of double-entry.
The most common items that are missing and we have to find out for preparing Trading and Profit and Loss Account are:
Opening capital
Credit Purchases
Credit sales
Bills payable accepted
Bills receivable received
Payments to creditors
Payments to debtors
Any other cash/bank related items.
As we know that opening capital can be obtained by preparing the statement of affairs at the beginning of the year. For other items that are missing, we can easily obtain them by preparing accounts such as total debtors and total creditors, total bills receivable and total bills payable accounts and summary of cash.