Ask Experts Questions for FREE Help !
Ask
    shilpa428's Avatar
    shilpa428 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 21, 2009, 08:02 AM
    Accounting
    How to prepare Profit & Loss Account and Balance Sheet from a Trial Balance
    Please send the answer with example its very urgent

    Thank u
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jan 21, 2009, 06:27 PM

    The Profit and Loss is figured by deducting your Expenses from your Revenues. The difference is called net income and transfers to the balance sheet as retained earnings.

    On your adjusted trial balance your permanent accounts transfer to your Balance Sheet (Assets, Liabilities, Owners' Equity accounts).

    The other accounts transfer to the Income statement.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

AP Journal Entires - accrual accounting and cash accounting [ 6 Answers ]

What are the journal entries for accrual accounting and cash accounting for an invoice and a payment?

What is the difference between Managerial Accounting and Cost Accounting ? [ 3 Answers ]

Hello Dears, I want to know about the difference between Managerial Accounting and Cost Accounting. Thanks ! Sincerely Yours, Mohammad Naim

Accounting steps for the accounting cycle [ 2 Answers ]

I think I wrote all the steps wrong can someone correct them for me thanks. List the following steps of the accounting cycle in their proper order: a) Preparing the post-closing trial balance.9 b) Posting the journal entries c) Journalizing and posting adjusting entries d) Preparing the...

Accounting [ 1 Answers ]

What are the terms for traceable and non-traceable cost

Accounting(cash basis of accounting) [ 1 Answers ]

Roberts Company prepared the following income statement using the cash basis of accounting: ROBERTS COMPANY Income Statement, Cash Basis Year Ended December 31, 2007 Service revenue (does not include $40,000 of services performed on account because the collection will not be until...

View more questions Search