Untitled

# Trading Account Preparation

# Revenue

opening_stock = 0  # No opening stock mentioned
sales_total = sum(sales.values())
sales_returns = 1500  # Pooja returned goods

# Direct Expenses
purchases_total = sum(purchases.values())
purchase_returns = purchases["Govind"] * 0.10  # 10% returns to Govind
direct_expenses = 2000  # Freight (cash)

# Closing Stock
closing_stock = 35000

# Gross Profit Calculation
gross_profit = (sales_total - sales_returns) + closing_stock - (purchases_total - purchase_returns + direct_expenses)

# Profit and Loss Account Preparation
# Operating Expenses
wages = 6800
salary_cash = 6000
salary_bank = 10000
advertisement = 3000
electricity = 12600
telephone = 3500

# Depreciation
depreciation_furniture = 3000
depreciation_machinery = 2500

# Finance Costs
interest_on_loan = 40000

# Total Expenses
total_expenses = sum([wages, salary_cash, salary_bank, advertisement, electricity, telephone, depreciation_furniture, depreciation_machinery, interest_on_loan])

# Net Profit Calculation
net_profit = gross_profit - total_expenses

# Balance Sheet Preparation
# Assets
cash_balance = 200000 - (25000 + 2000 + 6800 + 6000)  # Initial cash - expenses
bank_balance = 500000 - (10000 + 40000 + 3000 + 12600 + 3500)  # Loan - payments/expenses
machinery = 50000 - depreciation_machinery
furniture = 30000 - depreciation_furniture

# Liabilities and Capital
capital = 200000 + 250000 + 30000  # Initial investments
closing_stock_asset = closing_stock

# Organizing Balance Sheet
balance_sheet = {
    "Assets": {
        "Cash": cash_balance,
        "Bank": bank_balance,
        "Machinery": machinery,
        "Furniture": furniture,
        "Closing Stock": closing_stock_asset,
    },
    "Liabilities and Capital": {
        "Capital": capital,
        "Bank Loan": 500000,
        "Net Profit": net_profit,
    }
}

gross_profit, net_profit, balance_she
et