Question

.... is prepared to find out the stock as on date of fir
a) trending account
b) profit & loss
c) manufacturing account
d) memorandum trending
account​

Answer 1

Answer:

A)

Explanation

The previous year's trading account is prepared to find out the last year gross profit to help the calculation of Gross Profit during the year in which fire accident occurred, to find out the stock on the date of fire accident.

Answer 2

The correct answer is OPTION D: memorandum trading account.

• In the event of a fire, the value of the estimated stock must be calculated using the Memorandum Trading account.
• It's calculated using the previous year's Gross Profit Ratio, as well as Opening Stock, Purchase, Sale, and Direct Expenses.
• The purpose of a trading account is to determine the direct profit on a product sold.
• This contains credit items such as sales and closing stock, as well as debit items such as purchases and direct expenses.
• The profit or loss on a trading account is shown as a gross profit or loss.