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Unit 4: Final Accounts

Notes
To Depreciation on —
Land & Buildings —
Plant and Machinery —
Furniture —
To Stable Expenses —
To Directors Fee —
To Bank Charges —
To Interest on Loan —
To Interest on Capital —
To Discount on B/R —
To Sales Tax —
To Advertisement —
To Bad Debts —
To Agents’ Commission —
To Travelling Expenses —
To Free Samples distributed —
To Warehouse Expenses —
To Packing Expenses —
To Brokerage —
To Distribution Expenses —
To Delivery Van Expenses —
To Provision for Bad and Doubtful —
Debts
To Entertainment Expenses —
To Carriage Outword —
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.)
— —

Example: From the following information, prepare the Profit & Loss account.
Debit Credit

Gross profit from the trading account 1,00,000
Manager Salary 30,000
Office lighting 5,000
Office Rent 15,000
Contd...

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