from the following trial balance and adjustments given below, you are required to prepare trading and profit and loss account for the year ended on 31st march, 2016 and balance sheet as on that date of m/s durgesh and dinesh. adjustments:- 1) the stock on hand on 31st march, 2016 was valued at$14,500, 2) outstanding salary was $350, 3) wages paid in advance to workers $600
Answers
Answer:
A business firm's trading account is a statement that details the gross earnings from its operations over a given time frame.
Explanation:
The closure journal entry is used to update the inventory accounts and close out any temporary purchases and revenue accounts before preparing the trading account.
An organization's revenue and spending (profit and loss) for a specific time period, usually one month or aggregated months across a year, are displayed in a profit and loss statement.
A company's profit and loss statement is calculated by adding up all of its sources of income and deducting all of its expenses that are related to revenue.
An organization's assets, liabilities, and shareholder equity are listed on a balance sheet, which is a financial statement.
Typically, balance sheets are created at the conclusion of an accounting period, such as the month, quarter, or year.
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