Mada za sehemu hiiElementary Trading Profit And Loss AccountsMada 2
- Determine the Gross profit or Gross Loss
- Determine the net profit and the net loss
This account is used to determine net profit or net loss.
Net profit means actual profit obtained in the business which is credited to the profit and loss account.
| Details | Amount (Ksh) | Details | Amount (Ksh) |
|---|---|---|---|
| Transport | Xxxx | Gross profit b/d | Xxxx |
| Rent | Xxxx | Discount received | Xxxx |
| Other expenses | Xxxx | ||
| Net profit | Xxxx |
Means transport of goods purchased. This occurs when a buyer has paid the cost of transporting goods.
Transport charge of goods which is paid by seller to transport goods to his customer. This occurs when seller paid cost of transporting goods.
Return inwards
This occurs when the seller receives goods returned from his customer.
Return outwards
This occurs when the buyer returns goods to his supplier.
Prepare profit and loss account from the example given for the year ended 2004.
- Gross profit: 45,000
- Stationery: 9,000
- Water bill: 7,500
- Electricity: 5,000
- Wages: 2,800
- General expenses: 5,500
Solution
| Details | Amount (Ksh) | Details | Amount (Ksh) |
|---|---|---|---|
| Stationery | 9,000 | Gross profit | 45,000 |
| Water bill | 7,500 | ||
| Electricity | 5,000 | ||
| Wages | 2,800 | ||
| General expenses | 5,500 | ||
| Net profit | 15,200 | ||
| Total | 45,000 | 45,000 |
Prepare profit and loss account from the example given for the year ended 2007.
- Gross profit: 120,000
- Stationery: 22,000
- Water bill: 15,000
- Electricity: 58,000
- Wages: 7,500
- General expenses: 42,300
Prepare profit and loss account from the example given for the year ended 2002.
- Gross profit: 150,000
- Stationery: 33,000
- Water bills: 10,000
- Electricity: 28,000
- Wages: 15,000
- General expenses: 3,000
Prepare trading, profit and loss account for the year ended 30 June 2003.
- Purchases: 140,000
- Sales: 220,000
- Stock at 1 July 2002: 25,000
- Stock at 30 June 2003: 5,000
- Traveling expenses: 1,050
- Electricity: 1,200
- Wages: 3,000
- General expenses: 5,000
- Rent: 2,500
Solution 2
| Details | Amount (Ksh) | Details | Amount (Ksh) |
|---|---|---|---|
| Stationery | 22,000 | Gross profit | 120,000 |
| Water bill | 15,000 | ||
| Electricity | 58,000 | ||
| Wages | 7,500 | ||
| General expenses | 42,300 | ||
| Net profit | 27,400 | ||
| Total | 170,200 | 120,000 |
Solution 3
| Details | Amount (Ksh) | Details | Amount (Ksh) |
|---|---|---|---|
| Stationery | 33,000 | Gross profit | 150,000 |
| Water bills | 10,000 | ||
| Electricity | 28,000 | ||
| Wages | 15,000 | ||
| General expenses | 3,000 | ||
| Net profit | 61,000 | ||
| Total | 150,000 | 150,000 |
Solution 4
Trading Account
| Details/Particular | Amount (Ksh) | Details/Particular | Amount (Ksh) |
|---|---|---|---|
| Opening Stock | 25,000 | Sales | 220,000 |
| Add: Purchases | 140,000 | ||
| Goods available for sale | 165,000 | ||
| Less: Closing Stock | 5,000 | ||
| Cost of goods sold | 160,000 | ||
| Gross profit c/d | 60,000 | ||
| Total | 220,000 | 220,000 |
Mwalimu
Unasoma somo hili? Niulize nikuelezee chochote kilichomo.
Ingia ili kumuuliza Mwalimu wa AI wa Sonza kuhusu mada hii.
Ingia ili kuuliza