Practice Structure Of Final Accounts (17.2) - Final Accounts (Trading, Profit & Loss Account and Balance Sheet)
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Structure of Final Accounts

Practice - Structure of Final Accounts

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Practice Questions

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Question 1 Easy

What are the three main components of final accounts?

💡 Hint: Think about the reports prepared at the end of an accounting period.

Question 2 Easy

What does the Trading Account help determine?

💡 Hint: Recall the purpose of this specific account.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the primary purpose of the Trading Account?

To calculate net profit
To determine gross profit
To assess financial position

💡 Hint: Think about what is determined after sales are calculated.

Question 2

True or False: The Balance Sheet shows the profitability of a business.

True
False

💡 Hint: Consider what the Balance Sheet presents.

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Challenge Problems

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Challenge 1 Hard

A company’s Trading Account shows sales of ₹250,000, opening stock of ₹50,000, closing stock of ₹20,000, and purchases totaling ₹180,000. Calculate the gross profit.

💡 Hint: Break down sales and costs into components to simplify calculations.

Challenge 2 Hard

Prepare a Balance Sheet for a business with ₹300,000 in assets, ₹100,000 in liabilities, and the rest as owner's equity.

💡 Hint: Remember the fundamental equation to find equity.

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