CLASS 11 ACCOUNTANCY
TRADING AND PROFIT AND LOSS ACCOUNT PROBLEM
URGENT !!
Answers
Answer:
Trading, profit and loss account is prepared and attached respectively.
1) Gross profit = 98700
2) Operating profit = 29000
3) Net profit = 25800
Explanation:
- Gross profit is the profit remaining after making the sales.
- Operating profit is the profit remaining after all operating expenses.
- Net profit is the profit after all adjustments and appropriations.
Consider the following explanation as the answer.
Explanation:
Gross profit = 102200
operating profit=98700
net profit = 30600
Gross profit is the profit which remain after making sales and charging sales related expenses
Operating profit is the profit which remain after deducting operating expenses
Net profit is the profit which remain after making all adjustments and appropriations.
Trading and profit and loss a/c
opening stock 30000 sales
purchases (350000-12300) 337700
(260000- 16000) 244000 closing stock 55000
freight 4500
wages 12000
gross profit 102200
total 392700 total 392700
power and fuel 3500 gross profit 102200
operating profit 98700
total 102200 total 102200
rent 40000 operating profit 98700
salaries 18700 rent received 6000
advertisement 2300 dividend 4300
postage 1200 insurance 1600
printing 900
loss on sale 1100
bad debt 400
depreciation 5500
repairs 4500
misc. exp. 3800
provision for bad debt 1600
net profit 30600
total 110600 total 110600