Business Reports Formulas
To prepare the Trading Account, Profit and Loss Account, and Balance Sheet based on the provided trial balance, we first need to organize the information into appropriate categories and calculate the missing values.
Given that the Gross Profit is 27% on sales, we can calculate the cost of goods sold (COGS) and the closing stock value using this information.
Let's start by calculating the COGS and closing stock value:
a. Calculate Gross Profit (GP):
1.
Gross
Profit = 27% of Sales
2. Gross Profit = 0.27 * Sales
b. Calculate Cost of Goods Sold (COGS):
1. COGS = Sales - Gross Profit
c. Calculate Closing Stock:
1. Closing Stock = COGS – Purchases
Now, let's organize the information and prepare the Trading Account, Profit and Loss Account, and Balance Sheet:
Trading Account:
Particulars Amount
(INR)
Sales 2,409,799
COGS Calculated
Gross
Profit Calculated
Profit and Loss Account:
Particulars Amount (INR)
Revenue
(Income) 9,920
COGS Calculated
Gross
Profit Calculated
Expenses To be provided
Net Profit Calculated
Balance
Sheet:
Assets Amount (INR)
Liabilities Amount (INR)
Closing
Stock Calculated
Capital To be provided
Loans To be provided
Other
liabilities To be provided
Total
Assets Total Liabilities
Once we
have the missing values for Expenses and Capital, and any additional information
on liabilities and loans, we can proceed with completing the financial
statements. Let's calculate the COGS, Gross Profit, and Closing Stock:
Calculations:
Gross
Profit = 27% of Sales
Gross
Profit = 0.27 * 2,409,799
Gross
Profit = 650,563.73 INR
Calculate Cost of Goods Sold (COGS):
COGS =
Sales - Gross Profit
COGS =
2,409,799 - 650,563.73
COGS =
1,759,235.27 INR
Calculate Closing Stock:
Closing
Stock = COGS - Purchases
Closing
Stock = 1,759,235.27 - 2,532,690
Closing
Stock = -773,454.73 INR
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