0
yes...on the cr side...
Wiki User
∙ 12y ago
Wiki User
∙ 11y agoadd with capital
Add your answer:
Earn +20 pts
What are the differences between gross profit and full cost profit?
gross profit is taken from the profit and loss account
Why is closing stock not written in the trial balance but always written below the trial balance?
The reason why closing stock is not taken into account in a trial balance is because a trial balance is a balance of all ledger account a given point in time.It records only transactions which have a two way effect for EG:Purchases where goods are bought against cash or credit and sales where goods are sold against cash or credit..But closing stock is not a transaction having a two way effect any given point in time.It is only an indication of the goods lying in the factory at the end of the year.It is therefore showed below the trial balance and not in the trial balance.However in order to derive at the exact gross profit the closing stock is taken into consideration in the trading account and also appears as an asset in the balancesheet.In some case the closing stock appears as an adjusted purchase account in the trial balance and in this case it does not appear in the trading account but appears only in the balance sheet. The main reason is that we do not pass any entry for consumption. Hence we donot prepare any ledger account for it.
Why is return inward in debit side of trial balance?
Because when someone returns goods we hv more stock, hence we debit it in the trial balance, note that it is taken away from sales in the p & l just as expenses are debited in the trial balance and taken away in the p & l
In terms of accounting the trial balance when is it taken?
At least once a month
How is profit calculated from trial balance and bank statements?
Profit is calculated by comparing the income and expenses recorded in the trial balance with the transactions recorded in the bank statements. The trial balance provides a summary of all income and expenses for a given period, while the bank statements show the actual cash inflows and outflows. By reconciling any differences and adjusting for non-cash transactions, the final result is the profit earned during the period.
How do you prepar balance sheet?
The question is incomplete. Anyway i will try to answer. Balance sheet prepare from Tial balance. All the items in Trial balance classifeid as Balance Sheet item and P&L item. All the balance sheet items taken from trial balance should be shown in balance sheet. Balance sheet have two side namely liability and asset side. In asset side we shows Fixed asset say plant machinery vehicle...., current assets say stock debtor cash in hand etc...The fixed assets can we shown two ways, before depreciation and put provision for depreciation in liabilty side or After depreciation. The next step is to create liablity side say capital, creditors...etc. The Net Profit taken from p&l a.c adjusted with partners current account. This is only for basic information.
What does net mean in accounting terms?
Net is the final figure after you've taken expenses off. For instance net wages is wages after tax and other deductions. Net interest is after tax is taken off. Net profit is gross profit after overheads have been deducted.
What is the bank loan on a trial balance?
Bank loan is that amount which is taken from bank for daily working of business and liability of business to be paid in future.
What percent of taxes are taken out of a profit sharing check?
The percentage amount will be determined by what your marginal tax rate is when the taxable amount of profit sharing amount is added to all of your other gross income when you are preparing your income tax return for the year.
Is the percent margin of wages taken from the gross or nett?
gross
How do income statements and balance sheets articulate?
The income statement is part of the "Profit and Loss" ("P&L") statement. Here you state what is accounts receivable and what is paid, and end up with a profit or a loss. Now that is taken on to the balance, to make a profit is an asset, while a loss is a liability that has to be covered. So, in the balance, the profit appears as an increased bank deposit, or that you have increased inventory and bought cars and other things for the profit - or paid off debt. Now if you have made a loss, your debt should be increased, and your bank deposit decreased or you may have sold off inventory to pay off. This is seen in the balance. Taking the entire profit and use it to pay debt will decrease the balance, which bluntly does not look good. Here a good accountant makes a difference, place the profit to impress the bank and shareholders, articulate that you are doing fine by "pruning" the balance according to GAP rules that also makes the bank smile.
What is the definitiion of profit?
Profit is what you have left after you have taken out all of the expenses.
