Question

1. Prepare Trading & Profit and Loss Account, from the following balances of Mr. Khalifa for the year ending 31.12.2010.

• Office rent AED 3000                               Discount allowed AED 600
• Tax, Insurance AED 1,400                       Travelling expenses AED 2,600
• Discount received AED. 400                   Purchases AED 60000
• Advertisement AED 3,600                       Opening stock- AED 10000
• Salaries AED 8,000                                  Sales- AED 190000
• Stationeries AED 2,400                            Closing stock- AED 20000

Note: Answers should be in Word or Excel

Answer 1

Dr. Trading Account   Cr.

Particulars Amount Particulars Amount

To Opening Stock 10000 By Sales 190000

To Purchases 60000 By Closing Stock 20000

To Gross Profit 140000

Total 210000 210000

Dr.    Profit and Loss Account Cr.

Particulars Amount Particulars Amount

Salaries 8000 Gross Profit 140000

Office Rent 3000 Discount received 400

Travelling Expenses 2600

Stationeries 2400

Insurance 1400

Discount Allowed 600

Advertisement 3600

Net Profit 118800

Total 140400 140400