Question

6.
Following are some of the ledger balances. Prepare Profit and Loss Account of
Mr. Prasad for the year ended 31st December, 2018.
Salaries 34,000; Commission received * 1,800; Discount allowed 1,800; Discount
received 2,850; Advertising 3,650; General expenses *1,450; Rent paid 4,500;
Cash in hand 1,900; Cash at Bank 2,950; Machinery * 80,000; Capital Account
1,50,000; Drawings Account * 2,400. Gross Profit 79,500.

Answer 1

Answer:

first put the gross profit in credit side of pl ac

thn salaries in dr. , commission received in cr. ,

discount allowed dr. , discount received in cr. , advertisement in dr. , general expenses in dr,

rent paid in dr., now calculate net profit..

thn in balance sheet put capital ac + net profit - drawings...

thn in asset side put cash in hand, cash at Bank, closing stock if any.. assets if any ...