Question

from the following trial balance of m/s ganesh and kartik you are required to prepare trading and profit and loss account for the year ended 31 st march 2011 and balance sheet as on that date after taking into account the additional information

Answer 1

for preparing the trading account first of all make the entry of opening stock on the debit side of trading account and take purchases and less from this return inward and on the other hand make the entry of sale and less from it return outward and entry in this debit add the closing stock and when adjustment is given of closing stock then it also add and enter in assets side of balance sheet. then the difference of these is called gross profit .in profit and loss account the gross profit taken and add post in credit side and all incomes are added and on other side of account take all operating expenses and it give us the net profit . in balance sheet it have not any debit or credit sides it's one side all liabilities and other side all assets . when this two sides are match each other then the whole process is complete.

Answer 2

from the following trial balance of ms ganesh and kartik you are required to prepare trading and profit and loss account for the year ended 31 st march 2011 and balance sheet as on that date after taking into account the additionnal information