Simple trading profit and loss account questions answers


Section deals with preparation of final accounts by companies, while section deals with the form and contents of the balance sheet and the profit and loss account. A trading account sheet shows the results of the buying and selling of goods. This sheet is prepared to demonstrate the difference between selling price and cost price.

The trading account tally is prepared to show the trading results of the business, e. It records the direct expenses of a business firm.

Batlibboi- The Trading Account shows the result of buying and selling goods. In preparing this account, the general establishment charges are ignored and only the transactions in goods are included. The profit and loss account is a statement that summarizes the revenue's and expense's of an accounting period so as to reflect the changes in various critical areas of a firm's operations. It records the indirect expenses of a business firm. The balance statement demonstrates the financial position of a business on a specific date.

The financial position of a business is found by tabulating its assets and liabilities on a particular date. The excess of assets over liabilities represents the capital sunk into the business, and reflects the financial soundness of a company.

Now its known as the statement of financial position of the company. From Wikipedia, the free encyclopedia. This article has multiple issues. Please help improve it or discuss these issues on the talk page. Learn how and when to remove these template messages. This article provides insufficient context for those unfamiliar with the subject.

Please help improve the article with a good introductory style. October Learn how and when to remove this template message. Section deals with preparation of final accounts by companies, while section deals with the form and contents of the balance sheet and the profit and loss account.

A trading account sheet shows the results of the buying and selling of goods. This sheet is prepared to demonstrate the difference between selling price and cost price. The trading account tally is prepared to show the trading results of the business, e. It records the direct expenses of a business firm. Batlibboi- The Trading Account shows the result of buying and selling goods. In preparing this account, the general establishment charges are ignored and only the transactions in goods are included.

The profit and loss account is a statement that summarizes the revenue's and expense's of an accounting period so as to reflect the changes in various critical areas of a firm's operations. It records the indirect expenses of a business firm. The balance statement demonstrates the financial position of a business on a specific date.

The financial position of a business is found by tabulating its assets and liabilities on a particular date. The excess of assets over liabilities represents the capital sunk into the business, and reflects the financial soundness of a company. Now its known as the statement of financial position of the company.

From Wikipedia, the free encyclopedia. This article has multiple issues. Please help improve it or discuss these issues on the talk page. Learn how and when to remove these template messages. This article provides insufficient context for those unfamiliar with the subject. Please help improve the article with a good introductory style. October Learn how and when to remove this template message.