Closing stock is an item of ______.

(a)

Fixed asset

(b)

Current asset

(c)

Fictitious asset

(d)

Intangible asset

Balance sheet shows the ________ of the business.

(a)

Profitability

(b)

Financial position

(c)

Sales

(d)

Purchases

Salaries appearing in the trial balance is shown on the _______.

(a)

Debit side of trading account

(b)

Debit side of profit and loss account

(c)

Liabilities side of the balance sheet

(d)

Assets side of the balance sheet

Current assets does not include _______.

(a)

Cash

(b)

Stock

(c)

Furniture

(d)

Prepaid expenses

Goodwill is classified as _______.

(a)

A current asset

(b)

A liquid asset

(c)

A tangible asset

(d)

An intangible asset

Write a note on trading account.

What are wasting assets?

What are fixed assets?

“Balance sheet is not an account”- Explain.

What are the advantages of preparing a balance sheet?

What is meant by grouping and marshalling of assets and liabilities?

From the following particulars, prepare profit and loss account for the year ended 31st December 2017.

Particulars	Rs	Particulars	Rs
Gross profit	21,05,000	Discount allowed	30,000
Trade expenses	20,000	Office lighting	19,800
Carriage on sales	1,00,000	Commission received	14,400
Office salaries	2,38,000	Interest on loan	22,000
Postage (office)	2,200	Stationery (office)	14,000
Legal charges	4,000	Export duty (on sales)	23,000
Audit fees	16,000	Miscellaneous receipts	5,000
Donation given	11,000	Travelling expenses related to sales	66,000
Sundry expenses	3,600	Selling expenses	53,200

From the following balances extracted from the books of a trader, ascertain gross profit and net profit for the year ended March 31, 2017.

Particulars	Rs	Particulars	Rs
Sales	72,250	Purchases	32,250
Opening stock	7,600	Sales returns	1,250
Purchases returns	250	Rent	300
Stationery and printing (office)	250	Salaries	3,000
Miscellaneous expenses	200	Travelling expenses (on sales)	1,800
Advertisement	500	Commission paid	150
General expenses	2,500	Office Expenses	1,600
Dividend received	2,500	Wages	2,600
Loss on sale of old furniture	300	Profit on sale of investments	500