[abi]

Thank you John for your support ..I can understand now

[abi]

Sorry John ,

The problem in question 1 is which side the Credit notes received belongs to Payable Control account? I though it should be on debit side of payable control account?

The problem in the question 2 is which side of cash account the Banked money goes to. I have put it to the Debit side but the couldn’t get the calculation. Later on I thought that money is going out from cash account while banking so must be put it into credit side of Cash Account.
Please advise…thanks

[abi]

Thank you John,

[abi]

Thanks John, I will follow as you suggested …will let you know if i get confused .

[abi]

Statement of Profit and loss or the year ended 31 Dec 20×2

In 000’s
Sales Revenue 2533
Cost of sales 1814
Gross profit 739
Distribution Cost 125
Admin Expenses 264
operating Profit

[abi]

Thanks John for your great solution …I am really thankful for your great support.

[abi]

Thanks John , Now I am more clear.. but there is little bit calculation mistake Net profit should be 42500 instead of 46500 .

Please I have one more question how Decrease in allowance treated in Statement of P/L? Is it the same way like increase in allowance ?
Thanks for your all help and support.

[abi]

Sorry sir for abit confused.
I mean to say ,how to prepare statement of profit and loss account using above accounts ?
Thanks

[Author]

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