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Sole Trader:Trading and Profit and Loss Account Example

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Sole Trader:Trading and Profit and Loss Account Example

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.

 

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By | 2017-01-17T11:14:49+00:00 March 5th, 2016|Notes, Ordinary Level Notes, Principles of Accounts Notes|0 Comments

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

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