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Usually you find in P & L account the figure of "Cost of sales" ("COS") or "Cost of goods sold". This figure might include, inter-alia, purchases and other related expenses. First you have to add COS the closing stock and deduct the opening stock. If nothing else was included in COS, then the result will be net purchases. Otherwise, deduct all aditinal amounts included in COS to have the correct figure of purchases.
What else can I help you with?
How will you find closing stock in trading and profit and loss account?
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values
Do you include purchases return in profit and loss account?
Yes, purchases returns should be included in the profit and loss account as they reduce the total cost of goods sold. When goods are returned, the value of those returns is deducted from the total purchases, thereby affecting the gross profit calculation. This adjustment helps provide a more accurate representation of the company's profitability during the accounting period.
What would you find on a profit and loss account?
In profit and loss account normally list all in the revenues and expenses and profit or loss for any particular fiscal year of company.
What are the limitations of profit and loss account?
"What are the limitations of profit and loss account?"
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
What is the difference between profit and loss account and profit and loss appropiation account?
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
What is debit balance of profit and loss account?
Debit balance of Profit & Loss Account represents "Loss"
Is vat entered in the profit and loss account?
VAT is accounted for in the Balance Sheet if you have the right to claim VAT on purchases and liability to pay VAT on sales respectively i.e. if you are VAT registered. VAT on purchases is accounted for in the Profit and Loss (purchases are entered gross i.e inclusive of VAT) if you have no right to claim it i.e. if you are not VAT registered.
Profit and loss appropriation account uses meaning?
details of profit and loss appropriation account Profit and loss appropriation account is prepared after profit and loss account..It s a account where the profits earned by the company is brought in from profit and loss accont and it s distributed to various accounts like interim divident account, provision for taxiation account, general reserve account etc.....it s a account which shows how the profits are distributed in an organisation.....
Is profit and loss account is a nominal account?
Yes. Profit and loss account is a nominal account and also trading a/c to be prepared at the end of the year.
About projected balance sheet and profit and loss account?
how to prepare the forecast report of profit and loss account with balancesheet
