Trail balance


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22 January 2017 I am not a student but I want to know what is trail balance profit and loss account and balance sheet how it is calculated and the percentage of NET profit

Anand (Expert)
23 January 2017 With due respect to you, please note that this forum can answer specific questions.
The question you have asked actually has books dedicated to it. it will be difficult to answer it in short. But let me make an attempt
1. Trial Balance refers to the closing balance of all account books maintained by an entity. Accounting follows a double entry system i.e. for every debit there will be equivalent credit and vice versa. Hence a Trial Balance will always tally. i.e. total of debit side will match the credit side.

2. A balance sheet refers to the statement of assets and liabilities as at a particular date.

3. A profit and loss account refers to the statement of profit or loss generated during a particular period usually a year.

4. The profit and loss account is a summary of revenue income and expenses. (e.g sales, marketing expenses, salary,) Whereas a balance sheet is a summary of capital items (eg Building, machinery, share capital, receivables etc). Both these statements are prepared from a Trial Balance. The Trial Balance itself is prepared from the ledger accounts which are maintained.

The net profit of an entity for a period is calculated by taking all its incomes and reducing all the expenses.

05 July 2017 how to calculate G P

05 July 2017 how to calculate Gross profit and how to Calculate its Percentage

02 August 2025 https://docs.google.com/document/d/16MnxrCrbL-2eJWV_zuyIwS2VzOSvERX_vsg8Y0QxnBk/edit?usp=sharing


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