Preparation of Trading, Profit And Loss Account - SS1 Accounting Lesson Note
The trial balance is drawn from the books of Ayo’s concept for the year ended 31 December 2022. Prepare a trading, profit and loss account given closing stock as ₦7500.
|
Dr. ₦ |
Cr. ₦
Capital
Furniture
Opening stock
Purchases
Return outwards
Transport expenses
Carriage inwards
Carriage outward
Return inwards
Discount received
Salaries
Debtors
Creditors
Cash in hand
Drawings
Sales
Discount allowed
21000
15300
37900
5600
1500
2000
6800
3250
23550
3700
12000
5000
250
137850
64500
4500
300
14550
54000
137850
Answer:
Statement of profit and loss
For the year ended 31 December 2022
Sales |
Less: Return Inwards
Net Sales
Cost of Goods Sold
Opening Stock
Add: Purchases
Less: Return Outwards
Freight Inward
Cost of Goods Available
Less: Closing Stock
Cost of Goods Sold
Gross Profit
Operating Expenses:
Salaries
Discount Allowed
Discount Received
Carriage Outward
Transport Expenses
Net Operating Expenses
Net Profit
(₦)
6,800
15,300
37,900
4,500
1,500
7,500
23,550
250
3,250
2,000
5,600
(₦)
54,000
47,200
49,200
41,700
5,500
34,650
20,150