ACC1-CH.6+7

based on the data in the trial balance, we can prepare.....

 

•   Balance sheet (assets = capital + liabilities)

• Trading and profit and loss accounts

• 1.    Trading and profit and loss accounts

  2.    Balance sheet (assets = capital + liabilities

Net profit is calculated by drawing up ...........................................

• the Profit and Loss Account

• Trading Account

• Trading and Profit and Loss Account

Gross profit is calculated by drawing up ...........................................

• the Profit and Loss Account

• Trading Account

• Trading and Profit and Loss Account

............................... is the amount in the trading account by which sales income exceeds the cost of goods sold.

............................. is the profit remaining after “other costs” (eg: wages& salaries, office expenses….) have been deducted from gross profit.

Trading and Profit and Loss Account is a ........................... account, including Trading account (1) & Profit and loss account (2)

.......................... = Sales – Cost of goods sold            

.......................... = Purchases – Closing stock            

.......................... = Gross profit - ∑ Expenses            

If other income is received,

                                               Net profit = ............................................................ - ∑ Expenses