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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