Escolar Documentos
Profissional Documentos
Cultura Documentos
Aim:
To construct a Profit & Loss Account
Objectives:
•All - Use appropriate business terminology / concepts
Less cost of
goods sold 34,697
Less expenses:
Wages paid 14,625
Rent & utilities 6,520
postage & priniting 1,720
Advertising 3,450
Insurance 210
Motor expenses 1,836
Closing
Dr inventory a/c Cr
2012
Sept30 balance b/d 3,000
Closing
Dr inventory a/c Cr
2012
Sept30 Trading 300
2012
The
We The balance
balance
need onofthe
to record thepurchase
sales
the a/ca/c
closing is is
inventory.Sept30 balance b/d 3,000
transferred
transferred
1. Debit theto tothe
thetrading
closing tradinga/c.
inventory a/c.
a/c with
1. 1.the
Debit
Debit the
valuethe sales
trading
of a/c
closinga/c (closing it)
inventory
2.2.Credit
Creditthe
thetrading
tradinga/c
purchase a/c
a/c (closing it)
GROSS PROFIT
Trading a/c
Dr Cr
2012 - 2012 -
Sept30 Purchases 12,000 Sept30 Sales 13,500
Sept 30 Gross profit 4,500 30 Closing inventory 3,000
16,500 16,500
2012 - 2012 -
Sept30 Rent 1,000 Sept30 Gross Profit 4,500
Sept 30 Lighting 800
Sept 30 Wages 2,000
4,500 4,500
NET PROFIT or LOSS
The expense accounts will now be closed-off.
Dr Wages a/c Cr
2012
Sept30 balance 2,000
2012
Sept30 P&L a/c 2,000
The P&L Statement
£ £
Sales 13,500
Less cost of goods sold:
Purchases 12,000
Closing inventory (3,000)
= 9,000 (COGS)
Less expenses:
Rent 1,000
Lighting 800
Wages 2,000