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these are amounts owed to the company through debtors this is the purpose why we also utilize the term sundry debtors to indicate the amounts owed to
it is generally taken to include currency or legal tender cheques or any other document which circulates as cash it is generally classified like a
current assetsthese are assets that will normally be converted in cash within a year or inside the operating cycle the operating cycle is the
the balance sheet lists assets capital and liabilities separately this is an accepted convention about the assets and liabilities are demonstrated in
accounting concepts the dual aspect principle has specific relevance to balance sheet according to this principal every transaction is concerned as
comprising examined the conceptual origin of the balance sheet we will here try to study the balance sheet by itself we have observed that every
currently i can represent my financial position in the subsequent
balance sheet is related along with reporting the financial position of an entity on a specific point in time such position is conveyed in terms of
1 list every item debited or credited in the profit and loss account2 illustrates the difference among trading account and profit and
1 trading account is prepared so as to calculate gross profit or loss whereas the function of the profit and loss account is to disclose net profit
the subsequent items are debited in the profit and loss account as1 administrative expenses comprising office salaries office lighting office rent
loss and profit account is prepared so as to discern whether the firm has made net profit or suffered net loss for a specified accounting period such
prepare the trading account from the subsequent figuresopening stock40000power6000purchases180000octroi11000carriage
organize the trading account from the subsequent detailsoffice rent rs 5000purchases rs 80100 opening stock rs25 000 stock at the end rs 15000
direct expenses comprise all those expenses incurred in bringing the goods to the place of business or trade or in-production process till the goods
these comprise goods purchased only for production and selling purposes goods utilized as assets and not for sale are not comprised in this head net
the opening stock of goods is the stock of goods in hand at the start of an accounting year it may contain stock of raw material work-in-progress and
trading account is ready to ascertain the gross profit and loss of a firm here gross profit is the excess of total revenue over cost of goods sold as
objectives of final accounts describe final account know their objectives and preparation of trading and loss and profit account find out the
the main function of accounting is to accumulate accounting data so as to calculate the profit and loss made through the business firm throughout and
you have learned about the business and its proprietor is reacted as separate entities it implies that separate accounts must be kept in the ledger
you must be aware about the most of business are made through cheques these days it involves the bank whether the firm has opened its own account
the term goods refer to articles that are traded through the firm articles bought for resale for illustration for book seller books are goods
journal is an every days record of business transactions this is also termed a day book and is used for recording every day transactions in the order
in previous section you learnt about the accounting involves four stagesi recording the transactionsii classifying-the transactionsiii