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unit-6-concepts-relating-to-final-accounts

Unit-6 Concepts Relating to Final Accounts

In this unit you will learn about basic concepts which guide the preparation of final accounts properly.

Ascertain the profit to the business for the month of June, 1988 for which the 'following information is available.

Sales  80,000

Cost of goods produced   70,000

Cost of goods sold   60,000

Salaries for June   10,000

Rent for June paid in July 1000

Sundry Expenses   600





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Learning Pundits Content Team

Written on Apr 16, 2019 3:40:32 PM

Revenues: Sales= Rs. 80,000

Costs: Costs of goods sold + salaries for June + rent for June paid in July + sundry expenses Rs. 60,000 + Rs. 10,000 + Rs. 1000 + Rs. 600 = Rs.71,600

Cost of goods have to be matched with their sales revenue(Matching Concept). So, profit is Rs. 80,000 - Rs. 71,600 = Rs. 8400