PROBLEMS PRACTICAL 1. Abraham is in business. The following balances were extracted from the books as on 31.12.2018. You are required to prepare a trading account and a profit and loss account for the year ended 31.12.2018 and a balance sheet as an that date.
Answers
Answer:
Trading & profit & loss account
particular. Amt. Particular. Amt.
opening stock 6160. Sales 34176
purchase. 15610
wages. 7962
carriage. 754
lighting & 164
heating.
electric power. 384
Gross profit.c/d. 3142
Total. 34176 Total. 34176
Gross profitb/d 3142
Rates&taxes. 388
salary. 1612
del credere. 414
commission
insurance. 206
advertising. 214. Net loss. 580
bad debt. 62
portage &
telegram. 826
Total. 372 2. Total. 3722
Balance sheet
liabilities. Amt. Assets. Amt.
Capital 32000. land & building. 15840
(-) drawing.4240. plant & Machinery 4034
(-) net loss.580. furniture. 378
27180
debtors. 6082
creditors. 4422. cash.at bank. 5268
total. 31602. total. 31602
Explanation:
solution for Abraham is in business
