This section Covers..
01. Trading account
02. Profit & Loss account
03. Balance Sheet
Trading Account:
Trading account is prepared mainly to know the profitability of goods bought or manufactured sold by the businessmen. Difference between the selling price and cost price of the goods is that gross results.
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
To Opening stock
To Purchase less purchase return
To Production wages
To Manufacturing expenses
To Factory related expenses
To Gross Profit c/d |
|
|
By Sales less sales return
By Closing stock |
|
|
Total |
|
Total |
|
|
Profit and Loss account:
To know the net profit or net loss of the business activities after adjusting Office , administrative, selling and distribution expenses
Particulars |
Amt |
Amt |
Particulars |
Amt |
Amt |
Gross loss b/d
Salary
Rent
Commission
Office expenses
Lighting charge
Discount allowed
Advertisement
Warehouse charges
Travelling expenses
Carriage outwards
Interest on capital
Depreciation
Net Profit
|
|
|
Gross Profit b/d
Interest received
Commission received
Discount received
|
|
|
Total |
|
Total |
|
|
Balance Sheet:
To know the financial position of the company like assets and liabilities of the business. It contains two sides Assets and Liabilities
Liabilities |
Amt |
Amt |
Assets |
Amt |
Amt |
Current Liability
Sundry Creditors
Bills Payable
Bank Overdraft
Outstanding Expenses
Long term Liabilities
Share capital Reserves and Surplus
Debentures
Long term loans |
|
|
Current assets
Cash in hand
Cash at bank Closing stock Bills Receivable Short-term Investment
Sundry Debtors
Fixed Assets
Plant and machinery
Land and Building
Furniture
Vehicles
Goodwill
Copyrights |
|
|
Total |
|
|
Total |
|
|
 |
Back to Accountancy Section |
