Creating Accounts Homework Answers
Final account determines about the remunerative of the organization. First, all the transaction takes place in a business are registered in a journal diary then they are to shifted to journal, and the process of balancing takes place. In an accounting cycle there are many steps followed and among all that final accounting is the last step taken.
Creating Accounts is roughneck job for students as it includes a lot of assignments and projects in it with many exercises of solving question which students find difficult to solve and ultimately they need creating accounts homework answers help to cope with problem.
Difficulty faced by students:
- Lack of interaction:
Students face problem in interacting in the class as there are many students presents and teacher are not able to communicate totally.
- Lack of consideration:
Some students are introvert in nature and are not able to understand each and every topic taught in the class.
- Laborious agenda:
As we know students have hectic schedule and cannot manage time for assignments and projects. Thus they need creating accounts homework answers help.
- Understanding issues:
Some students are not able to understand accountancy, and they find commerce as toughest subject.
Profit and loss account: It identifies a firm’s sale, gains or losses within a specific time.Essentially it shows all fiscal development of the organization by determining revenues, expenses, gains or loss, earning or incomes,net profit or net loss.
To create the profit and loss account, there are some crucial points:
- The amount of goods sold and cost of goods must match
- Total revenue of a company and expenses must match
- Total revenue of a company and expenses must match
Requirement for creating accounts homework answers:
- Helps in understanding the topic in a better way
- Helps in getting goods marks in the examination
- Leads the student complete their work before given deadline
Reason for creating profit and loss account:
-It gives accurate idea about revenues and expenses of the organization and also let outsiders to appraise the company on its performance.
– Required by Internet Revenue Services.
Creating profit and loss account
- A) Put the heading with the company’s name and the time period within which it is to be made– it includes net sales, price of goods and services sold, expenses,other earning and expense.
- B) Add in the total sales, account value and adjustments in the worksheet– It involves costs of goods sold, puncture sales figure, producer’s cost of goods and services,direct costs and indirect cost,labor cost,mill equipment.
Creating accounts homework answers tip: Gross margin=Total Sales* Gross margin (%)
- C) Putting in the cost of sale of the organization in the worksheet– As a maker, one must complete the worksheet relating to cost of goods and services manufactured. Gross margin is calculated by subtracting cost of goods sold from net sales.
- D) Finding out gross margin for the organization: It consists of selling amount, organizational expenses, repair and improvement expenses, property expenses, employers’ salary, etc. Creating accounts homework answers tip: Gross Margin-Selling and Administrative Expense= Net Profit
- E) Figure out net operating profit for the firm: It includes other incomes and expenses of the organization such as miscellaneous sales, rents, profit and losses, interest, assets, etc. Creating accounts homework answers tip: Net profit= net profit before income taxes applied- Income taxes
Profit and loss accounts
(Ended on 31st January 2016)
Debit account Credit account
Particulars Amount Particulars Amount
To purchases 10,000
Net profit 2,000 by sales 14,200
(Moved to capital A/c
In balance sheet)
It is a snap of the fiscal condition of the firm which is calculated at the ending year of the accounting period. It constitutes of assets, liabilities,earnings, equity, etc. Preparing a balance sheet is a backbreaking work which students mostly avoid doing, but it is the most significant part of accounting as well as it tells the financial status of the organization.
It gives head to toe information about a business such as liability or financial obligation of the company and about the asset a company has.This includes all the real and personal accounts.
Creating accounts homework answers help: Assets= liabilities+producers equity.
Creating a balance sheet:
Balance sheet consists of two columns that include various item and the purpose it to balance the both side of the sheet. The two columns present assets and liabilities and this balance help to identify the expenses of the firm.
1) Assets: It is divided into two parts in a balance sheet such as current assets and non-current assets as in current assets includes cash, market securities, account receivable, expenses,inventory whereas noncurrent assets include tangible property like land, machinery and intangible property like goodwill.
2) Liabilities: The Company is obliged to pay to other organizations and it has a bad effect on the company. They are two type current liability which includes payables, accumulated expenses,revenue whereas long-term liabilities includes mortgages and loans
Creating Accounts Homework Answer illustration:
ASSETS AMOUNT LIABILITIES AMOUNT
Current assets Current liabilities
Cash 32,000 Accounts payable 1,00,000
Account receivable 2,00,000 Notes payable 60,000
Amount receivable 18,000 Accrued 40,000
Total current assets 2,50,000 Total current liability 2,00,000
Long-term Assets Long-term liabilities
Land 60,000 Loans payable 2,70,000
Building 5,00,000 owner’s equity
Equipment 30,000 Stock paid 50,000
Machinery 2,00,000 Retained earning 3,00,000
Vehicles 70,000 Total equity 3,40,000
Total long term assets 8,60,000
Total assets 1,110,000 Total liabilities and equity 1,110,000