Solve the problem of manufacturing, trading profit and lost account

Question

solution on how to prepare manufacturion, trading profit and lost account

Answer 1

When preparing a profit and loss account, all the balances in the ledger accounts that do not go directly to the Balance sheet wil wind up there via the Revenue (Profit and Loss) Statement. The revenue statement basically has five sections: They are:

Sales Revenue

(minus) Cost of Goods sold

this gives the Gross profit

(minus) Expenses

this gives the Net Profit or Net Loss