Question

Prepare a trading and profit & loss account and a balance sheet with imaginary figures. Assume at least 4 adjustments.

Answer 1

Answer:

Preparing a trading account is the first stage in of final accounts of a trading concern. It determines the gross profit or gross loss of the concern for that accounting year. For determining the true result or the net result of the business, preparing the Trading and Profit and Loss account is necessary. We prepare these accounts on the last day of the accounting year. We consider only direct revenue and direct expenses in this account.

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Answer 2

Answer:It determines the gross profit or gross loss of the concern for that accounting year. ... Preparing Trading and Profit and Loss and Balance Sheet ... We prepare these accounts on the last day of the accounting year. ... It shows all receipts and payments during the year and the balancing figure is the amount of missing item.

Explanation: