FINAL REPORTS

 Trading account: Buying and selling of goods.


Dr.                     Receiving aspect                                                                    Giving aspect    Cr.
Direct expenses
Amount
Direct Income
Amount
To
Opening stock
xxx
By
Sales
xxx
To
Purchases
xxx
By
(-)Sales return
xxx
To
(-)purchase return
xxx
By
Closing stock
xxx
To
Freight charges
xxx



To
Cartage and coolie
xxx



To
Lorry hire
xxx



To
Manufacturing expenses
xxx



To
Wages
xxx



To
Factory rent, fuel power
xxx



To
Gross profit (transfer to profit and loss account)
xxx




To Profit and loss account: Actual profit and loss of the business
Indirect expenses or payments
Amount

Indirect income or receipts
Amount
To
Salary
xxx
By
Gross profit
xxx
To
Postage and Telegram
xxx
By
Interest on investment received
xxx
To
Telephone charges
xxx
By
Interest on deposit received
xxx
To
Rent paid
xxx
By
Interest on loans received
xxx
To
Rate and taxes
xxx
By
Discount received
xxx
To
Insurance paid
xxx
By
Discount received
xxx
To
Interest on bank loan
xxx
By
Rent received
xxx
To
Bank charges
xxx
By
Bad debts received
xxx
To
Printing and stationery
xxx
By
Net loss
xxx
To
Discount allowed
xxx



To
Advertisement




To
Carriage outward (sales)




To
Depreciation on assets




To
General expenses




To
Traveling




To
Bad debts




To
Net profit






Balance sheet: Actual financial position

Liabilities
Amount
Assets
Amount
Bank loan
xxx
Cash in hand
xxx
Bank overdraft
xxx
Cash at bank
xxx
Bills payable
xxx
Fixed deposit at bank
xxx
Sundry creditors
xxx
Investments
xxx
Expenses outstanding
xxx
Bills receivable
xxx
Capital
xxx
Sundry debtors
xxx
(-)drawings
xxx
Closing stock
xxx
Net profit
xxx
Stock of stationery
xxx


Furniture
xxx


Plant machinery
xxx


Land and building
xxx


Motor vehicles
xxx


Prepaid expenses
xxx


Income outstanding
xxx

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In general Accounting is considered as the language of business throughout the world. In a simple term the language is the means of communic...