CameraIcon

SearchIcon

MyQuestionIcon

4

You visited us 4 times! Enjoying our articles? Unlock Full Access!

Preparation of Statement of Profit and Loss

Match the fol...

Question

Match the following as per the classification to be made in Statement of Profit and Loss and Balance Sheet :

A

Finance Cost

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Current Liability

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Fixed Asset

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Other Income

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

Interest payment will form part of Finance cost.

Rental Income will form part of Other Income.

Machinery will form part of fixed tangible asset.

Trade payables will form part of current liability.

Suggest Corrections

thumbs-up

1

Similar questions

Accrued income is credited to the profit and loss account and shown in the balance sheet as a current asset. Why?

Q. As per schedule III of the companies act, schedule to balance sheet and income statement are now known as _________.

Q. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).

Assertion (A) - Any reserves or accumulated profits/losses appearing in the balance sheet should be transferred to the partner’s capital accounts in an old ratio.

Reason (R) - Accumulated profits/losses appear in the balance sheet after a change in profit-sharing ratio.

[0.88 marks]

Q. Following is the Trial Balance as on 31st March 2016. Prepare Trading and Profit and Loss Account and Balance Sheet :-

Particulars	Debit (₹)	Credit (₹)
Stock (1st April 2015)	8,000
Sales		2,20,000
Purchases	1,26,000
Productive Wages	56,500
Salaries	16,000
Stores Consumed	6,050
Carriage	3,050
Rent and Rates	5,200
Insurance	1,320
Machinery	52,000
Building	67,000
Capital less Drawings		1,45,600
Sundry Debtors	44,000
Sundry Creditors		20,000
Secured Loan		15,000
Furniture	3,350
General Expenses	2,600
Cash in hand	1,930
Bad Debts	1,020
Bank	6,580
Total	4,00,600	4,00,600
Total

Additional Information :
(a) Stock on 31st March 2016 is ₹ 20,600.
(b) Depreciate machinery @ 10% p.a.
(c) Make a Provision @ 5% for Doubtful Debts.
(d) Provide

2 \frac{1}{2} %

for discount on sundry debtors.
(e) Rent and Rates include security deposit of ₹ 400.
(f) Insurance prepaid ₹ 120.

Q. From the following Trial Balance of Mr. Alok, prepare Trading and Profit & Loss Account for the year ending 31st March, 2014, and a Balance Sheet as at that date:-

Dr. Balances			(₹)	Cr. Balances	(₹)
Drawings			5,275	Capital	59,700
Bills Receivable			4,750	Loan at 8% p.a. (on.1.4.2013)	10,000
Machinery			14,400	Commission Received	2,820
Debtors (including X for dishonoured Bill of ₹ 1,000)			30,000	Creditors	29,815
Wages			20,485	Sales	1,78,215
Returns Inward			2,390
Purchases			1,28,295
Rent			2,810
Stock (1.4.2013)			44,840
Salaries			5,500
Travelling Expenses			945
Insurance			200
Cash			9,750
Repairs			1,685
Interest on Loan			500
Discount Allowed			2,435
Bad-Debts			1,810
Furniture			4,480
			2,80,550		2,80,550

The following adjustments are to be made:
(i) Stock in the shop on 31st March, 2014 was ₹ 64,480.
(ii) Half the amount of X's Bill is irrecoverable.
(iii) Create a provision of 5% on other debtors.
(iv) Wages include ₹ 600 for erection of new Machinery.
(v) Depreciate Machinery by 5% and Furniture by 10%.
(vi) Commission includes ₹ 300 being Commission received in advance.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Statement of Profit and Loss

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Preparation of Statement of Profit and Loss

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon