please write in a table Deadine Date Unit Cantroller/Examiner Week 9 Tutorial f
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please write in a table
Deadine Date Unit Cantroller/Examiner Week 9 Tutorial f Maniam maniam@limkckwing edu my Questions: 1. What is a trading account? 2. What are carriage inwards and carriage outwards? What are the accounting treatments for these carriages? 3. Following is the trial balance of Sun Enterprise: Trial Balance as at 31 March 2012 Credit RM Rent Insurance Lighting and heating expenses Motor expenses Salaries and wages Debit RM 1,560 305 516 1,960 4,850 35,600 ales Purchases Sundry expenses Motor vans Creditors Debtors Fixtures Buildings Cash at bank Drawings Capital 30,970 806 3,500 3,250 6,810 3,960 28,000 6,278 51,799 90,649 90,649 Inventory as at 31 March 2012 was RM9, 960 You are required to: (a) Prepare An income statement for the year ended 31 March 2012 (b) Prepare a balance sheet as at 31 March 2012Explanation / Answer
A trading account is primarily an account that enables an individual or other party to buy and sell securities, however it can also hold not only stocks, but also cash, securities and many other types of investments. There are two types of trading account: 1. Margin Trading Account A margin account involves a line of credit from your brokerage firm and this allows you to buy stocks or other securities and/or options if you so desire 2. Cash Trading Account: A cash account means that you can place trades for the investments using only the amount of money in your account Carriage Inwards Carriage inwards refers to the transportation costs associated with the purchase of merchandise or other assets. It is a direct cost for the organisation and is included in the cost of goods sold. In other words gross profit is derived after deducting carriage inward. Carriage Outward Carriage outwards is the expense of that a seller incurrs when it sells the goods to the buyer. This cost is the operating cost for the organisation, in other words it is not deducted for determining gross profit, but after gross profit while determining the Net Profit. Income Statement Particulars Amount Amount Sales 35,600 Add: Closing Stock 9,960 45,560 Less: Purchases 30,970 Gross Profit 14,590 Less: Operating Expenses Rent 1,560 Insurance 305 Lighting and heating expense 516 Motor Expenses 1,960 Salaries and wages 4,850 Sundry Expenses 806 9,997 Net Profit 4,593 Balance Sheet Particulars Amount Amount Assets Non Current Assets Buildings 28,000 Fixtures 3,960 Motor Vans 3,500 35,460 Current Assets Debtors 6,810 Cash at Bank 1,134 Stock 9,960 17,904 Total Assets 53,364 Liabilities Capital 51,799 Add: Profit 4,593 Less: Drawing 6,278 50,114 Current Liabilities Creditors 3,250 Total Liabilities 53,364
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