You visited us 0 times! Enjoying our articles? Unlock Full Access!
A Trading account and Balance sheet B Profit and loss account C All of the above
Open in App
Solution
Verified by Toppr
The first step in the process of accounting cycle is recording of transactions in journal and ledger. After this process, summarizing takes place. Summarising involves posting from ledger to prepare a trial balance and then the items of trial balance are posted in profit and loss account from which we get the net profit of the firm. After that balance sheet of the company is prepared from which we get the details about the assets and liabilities of the business of the firm. So basically summarizing involves trial balnace,profit and loss account and balancesheet.
Was this answer helpful?
2
Similar Questions
Q
1
A Statement of Affairs is similar to the : (a) Balance sheet
(b) Trial balance
(c) Trading Account
(d) Profit & Loss Account
View Solution
Q
2
The balances of all assets accounts, expenses accounts, losses, drawing are placed in the __________ of the trial balance.
View Solution
Q
3
The following is the Trial Balance prepared by an inexperienced accountant. Redraft it in a correct form and give necessary notes : − TRIAL BALANCE Particulars Amount Particulars Amount 2,52,300 2,51,120
for the year ending 31st March, 2017 ₹ ₹ Cash in Hand 5,200 Bank Overdraft 16,400 Plant & Machinery 75,000 Capital 50,000 Typewriter 6,400 Goodwill 8,000 Stock (1-4-2016) 13,100 Sundry Creditors 8,200 Purchases 84,100 Sales 1,60,000 Carriage Inwards 2,800 Return Inwards 2,400 Carriage Outwards 1,600 Drawings 2,120 Sundry Debtors 18,300 Investments 4,000 Bills Payable 12,000 Rent Paid 9,600 Wages 16,500 Advertisem*nt 4,500 Discount Received 3,200
View Solution
Q
4
State true or false: 1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.
View Solution
Q
5
From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017. Account Title Debit Amount Rs Credit Amount Rs Stock as on April 01, 2016 16,000 Purchases and Sales 67,600 1,12,000 Returns inwards and outwards 4,600 3,200 Carriage inwards 1,400 General expenses 2,400 Bad debts 600 Discount received 1,400 Bank over draft 10,000 Interest on bank overdraft 600 Commission received 1,800 Insurance and taxes 4,000 Scooter expenses 200 Salaries 8,800 Cash in hand 4,000 Scooter 8,000 Furniture 5,200 Building 65,000 Debtors and Creditors 6,000 16,000 Capital 50,000 Closing stock Rs 15,000.
View Solution
