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Unit 12: Final Accounts
To Distribution Expenses — Notes
To Delivery Van Expenses —
To Provision for Bad and Doubtful Debts —
To Entertainment Expenses —
To Carriage Cutward —
To Loss on Sale of Assets —
To Licence Fees —
To Repairs of Assets & Motor Car
To Loss by Fire
To Conveyance Expenses
To Net Profit (Transferred to Capital A/c.)
— —
Illustration 4: From the following information, prepare the Profit & Loss account.
Debit Credit
` `
Gross profit from the trading account 1,00,000
Manager Salary 30,000
Offi ce lighting 5,000
Offi ce Rent 15,000
Local Taxes 1,000
Salary paid to salesmen 20,000
Commission charges paid 10,000
Legal charges paid 3,000
Bad debts 1,500
Advertising charges 25,000
Package charges 7,500
Discount allowed 3,000
Discount received 4,000
Dividend received 2,000
Rent received 1,000
Depreciation charges 10,000
Repairs and Maintenance 2,500
Interest on loans 1,500 500
LOVELY PROFESSIONAL UNIVERSITY 147
