Will discuss an example of final account means how to prepared Trading Account, Profit & Loss Account & Balance Sheet Account in this blog.
The following Trial Balance of Mr. Chandrakant Shah as on 31st march, 2021. to prepared Trading Account, Profit & Loss Account & Balance Sheet Account after the given adjustment.
1) wages for march 2021 Rs, 2100 have not yet been paid
2) Insurance premium of rs. 600 is prepared and is include in general expenses.
3) Depreciate land & building @2%, Machinary @10% and Furniture @15% pa.
4) The value of the stock on 31st march 2020 was 14900.
5) The loan from mr. shah was taken on 1/10/2020. and interest is outstanding.
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Answer
-- First prepared Trading Account, Profit & Loss Account & Balance Sheet Account
-- Then enter Trial balance entries in this account.
-- Then after Adjustment entries(two entry of one adjustment, one in credit side & one in debit side from any two account of three)
-- Finally calculate total of debit side credit side are equal.
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Trading Account
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Profit & Loss Account---------------------------------------------------------------------------------------------------------------------------
Balancesheet Account
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