Write a note on trading account.

What are wasting assets?

What are fixed assets?

From the following balances taken from the books of Saravanan, calculate gross profit for the year ended December 31, 2017.

Particulars	Rs	Particulars	Rs
Opening stock	1,50,000	Net sales during the year	4,00,000
Direct expenses	8,000	Net purchases during the year	1,50,000
Closing Stock	25,000

From the following balances taken from the books of Victor, prepare trading account for the year ended December 31, 2017:

Particulars	Rs	Particulars	Rs
Adjusted purchases	80,000	Closing stock	7,000
Sales	90,000	Carriage inwards	3,000
Royalty on purchases of goods	4,000	Import duty on purchases of goods	6,000
Octroi on purchase of goods	2,000	Dock charges on purchases	5,000
Cost of goods manufactured	5,000

Definition of profit and loss account.

Definition of Balance Sheet.

State the methods of drafting a balance sheet.

Godrej Ltd. imported from Germany one machinery for sale in India and another machinery for production purpose? Will you treat them as goods or fixed assets?

Identify the values involved in showing contingent liabilities in notes to accounts.