At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
To prepare the Profit and Loss account for the year ending 31st March 2060, we'll follow the traditional format and understand the necessary components. Here is the step-by-step solution and the final Profit and Loss account:
### Step-by-Step Solution:
1. Given Information:
- Revenue (Sales): Rs 10,000
- Net Profit: Rs 46,250
2. Expenses:
- Office Rent: Rs 8,000
- Selling Expenses: Rs 8,000
- Interest on Loan: Rs 5,000
- Distribution Expenses: Rs 2,000
3. Incomes:
- Gross Profit: Rs 1,30,000
- Profit on Sale of Furniture: Rs 4,000
### Total Expenses Calculation:
To calculate the total expenses, we sum up all the individual expense items:
[tex]\[ \text{Total Expenses} = \text{Office Rent} + \text{Selling Expenses} + \text{Interest on Loan} + \text{Distribution Expenses} \][/tex]
[tex]\[ \text{Total Expenses} = 8,000 + 8,000 + 5,000 + 2,000 = 23,000 \][/tex]
### Total Revenue Calculation:
To calculate the total revenue, we sum the gross profit, profit on sale of furniture, and sales revenue:
[tex]\[ \text{Total Revenue} = \text{Gross Profit} + \text{Profit on Sale of Furniture} + \text{Revenue (Sales)} \][/tex]
[tex]\[ \text{Total Revenue} = 1,30,000 + 4,000 + 10,000 = 1,44,000 \][/tex]
### Net Profit Calculation:
The net profit can be calculated by subtracting total expenses from total revenue:
[tex]\[ \text{Net Profit} = \text{Total Revenue} - \text{Total Expenses} \][/tex]
[tex]\[ \text{Net Profit} = 1,44,000 - 23,000 = 1,21,000 \][/tex]
### Detailed Profit and Loss Account:
Based on the above steps, the Profit and Loss account would look like this:
Profit and Loss Account for the year ending 31st March 2060
[tex]\[ \begin{array}{|c|c|c|c|} \hline \text{Particulars} & \text{Rs} & \text{Particulars} & \text{Rs} \\ \hline \text{Office Rent} & 8,000 & \text{Gross Profit} & 1,30,000 \\ \hline \text{Selling Expenses} & 8,000 & \text{Profit on Sale of Furniture} & 4,000 \\ \hline \text{Interest on Loan} & 5,000 & \text{Revenue (Sales)} & 10,000 \\ \hline \text{Distribution Expenses} & 2,000 & & \\ \hline \text{Total Expenses} & 23,000 & \text{Total Revenue} & 1,44,000 \\ \hline \text{Net Profit} & 1,21,000 & & \\ \hline \end{array} \][/tex]
From the Profit and Loss account, we determine:
- Total Expenses: Rs 23,000
- Total Revenue: Rs 1,44,000
- Net Profit: Rs 1,21,000
### Step-by-Step Solution:
1. Given Information:
- Revenue (Sales): Rs 10,000
- Net Profit: Rs 46,250
2. Expenses:
- Office Rent: Rs 8,000
- Selling Expenses: Rs 8,000
- Interest on Loan: Rs 5,000
- Distribution Expenses: Rs 2,000
3. Incomes:
- Gross Profit: Rs 1,30,000
- Profit on Sale of Furniture: Rs 4,000
### Total Expenses Calculation:
To calculate the total expenses, we sum up all the individual expense items:
[tex]\[ \text{Total Expenses} = \text{Office Rent} + \text{Selling Expenses} + \text{Interest on Loan} + \text{Distribution Expenses} \][/tex]
[tex]\[ \text{Total Expenses} = 8,000 + 8,000 + 5,000 + 2,000 = 23,000 \][/tex]
### Total Revenue Calculation:
To calculate the total revenue, we sum the gross profit, profit on sale of furniture, and sales revenue:
[tex]\[ \text{Total Revenue} = \text{Gross Profit} + \text{Profit on Sale of Furniture} + \text{Revenue (Sales)} \][/tex]
[tex]\[ \text{Total Revenue} = 1,30,000 + 4,000 + 10,000 = 1,44,000 \][/tex]
### Net Profit Calculation:
The net profit can be calculated by subtracting total expenses from total revenue:
[tex]\[ \text{Net Profit} = \text{Total Revenue} - \text{Total Expenses} \][/tex]
[tex]\[ \text{Net Profit} = 1,44,000 - 23,000 = 1,21,000 \][/tex]
### Detailed Profit and Loss Account:
Based on the above steps, the Profit and Loss account would look like this:
Profit and Loss Account for the year ending 31st March 2060
[tex]\[ \begin{array}{|c|c|c|c|} \hline \text{Particulars} & \text{Rs} & \text{Particulars} & \text{Rs} \\ \hline \text{Office Rent} & 8,000 & \text{Gross Profit} & 1,30,000 \\ \hline \text{Selling Expenses} & 8,000 & \text{Profit on Sale of Furniture} & 4,000 \\ \hline \text{Interest on Loan} & 5,000 & \text{Revenue (Sales)} & 10,000 \\ \hline \text{Distribution Expenses} & 2,000 & & \\ \hline \text{Total Expenses} & 23,000 & \text{Total Revenue} & 1,44,000 \\ \hline \text{Net Profit} & 1,21,000 & & \\ \hline \end{array} \][/tex]
From the Profit and Loss account, we determine:
- Total Expenses: Rs 23,000
- Total Revenue: Rs 1,44,000
- Net Profit: Rs 1,21,000
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
