Image credit erekocynigit.com

Image credit erekocynigit.com

ZIMSEC O Level Principles of Accounts Notes: Trading and Profit and Loss Account Example

From the following trial balance of S Madondo, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 20X6. A balance sheet is not required.

 DRCR
$$
Sales190576
Purchases119832
Salaries56527
Motor expenses2416
Rent1894
Insurance372
General expenses85
Premises95420
Motor vehicles16594
Debtors26740
Creditors16524
Cash at bank16519
Cash in hand342
Drawings8425
Capital138066

345166

345166

Insert table here

  • Stock at 31 December 20X6 was $12,408

Solution

S Madondo

Trading and Profit and Loss Account for the year ended 31 December 2016

 $$
Sales190576
Less Cost of Goods Sold:
Purchases119832
Less closing stock

(12,408)

(107,424)

Gross Profit83152
Less Expenses:
Motor expenses2416
Rent1894
Insurance372
General expenses85
Salaries56527

(61,294)

Net Profit

21858

To access more topics go to the Principles of Accounts Notes.

 

- See latest Zimbabwe grocery prices -

Deals

SEE LATEST SUPERMARKET PRICES, SHOP FOR GROCERIES VIA WHATSAPP
SEE PRICES & NEWS
We publish the latest grocery prices from Zimbabwean supermarkets. We also deliver groceries online

Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, click here to enter your query.