Question

The final accounts of a manufacturing company generally include the following statements.
i) Balance Sheet
ii) Manufacturing Account
iii) Profit and Loss Account
iv) Trading Account
v) Profit and Loss Appropriation Account.
The correct sequence in which the statements are prepared is?

• A. (i), (ii), (iii), (iv), (v)
• B. (ii), (iv), (iii), (v), (i)
• C. (v), (ii), (iv), (iii), (i)
• D. (i), (iv), (iii), (ii), (v)

Answer 1

The correct option is B (ii), (iv), (iii), (v), (i)

Following is the sequence for preparation of financial statements:

ii) Manufacturing Account

iv) Trading Account

iii) Profit & Loss Account

v) Profit & Loss Appropriation Account

i) Balance Sheet