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-   -   Balance day adjustments (https://www.askmehelpdesk.com/showthread.php?t=793159)

  • May 29, 2014, 06:09 PM
    leevoomirlon
    2 Attachment(s)
    Balance day adjustments
    I have done the balance day adjustments using the info below, but i dont know how to get the profit and loss amount from the expense and sales, and what should i do after that, please help me and if you could also check if my answers are correct

  • May 30, 2014, 06:14 AM
    paraclete
    This requires too much work to check your calculations

    as to profit and loss

    sales minus cost of sales equals gross profit
    gross profit minus expenses equals net profit

    you should prepare an income statement and a balance sheet, that is the conventional methodology
  • May 30, 2014, 06:45 AM
    pready
    Profit and Loss is also known as Net Income, which is Revenues minus Expenses. Net Income will be on the Profit and Loss Statement, which is also known as the Income Statement and Net Income will transfer to the Balance Sheet as Retained Earnings.

    The best way to do this is use Excel and set-up a Worksheet with columns for your trial balance, adjustments, adjusted trial balance, Income Statement, Balance Sheet, Closing Entries, and Post-Closing Balance Sheet

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