Formidable Format Of Trading Account And Profit And Loss Account
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Particulars To Gross Loss bd Office and Administrative Expenses.
Format of trading account and profit and loss account. The Vertical Trading and Profit and Loss Account Format. The credit entry to the profit and loss account of 12 000 represents the net profit for the period. PROFIT AND LOSS ACCOUNT Horizontal Form for the year ended Dr Cr.
The profit and loss account Trading account is prepared to show the gross profit or gross loss for the period. Gross profit Sales revenue Cost of goods sold. Profit and Loss ac show the net result net profit or loss of the business for the particular accounting period.
Trading and Profit and Loss Account. It is the second statement of the final account. Cd 430 2230 2230 Net Profit Bal.
Understand the procedure of Preparing trading and profit and loss account and balance sheet of a business. As the name suggests it includes all the trading activities conducted by a business to ascertain the Gross ProfitLoss. Add Purchases or Inventory.
Both the trading account and the profit and loss account form part of the double entry as they are used to close off the temporary accounts at the end of an accounting period. Gross profit shows on the credit side and gross loss shows on the debit side of this account. Bd 430 The Vertical Trading and Profit and Loss Account Format.
The following is the pro-forma of Profit and Loss Account when it is prepared as a separate account. Profit and Loss Account Format. To Salaries Administrative To Office Rent Rates Taxes To Lighting To Legal Charges To Postage To Printing.
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