It is prepared to calculate the net or ultimate profit or loss of the business for a given accounting period.

The accountant gathers together such expenses and transfers them to the debit side of the profit and loss account. When the difference between the two sides of this account totaled is the profit (if the credit total is more) or loss (if the debit total is more) of the business.

Particulars

Amount

Particulars

Amount

To Rent To Lighting

*** *** *** *** *** ***

By g.p.

***

By cash discount *** received By rent received By interest

To Salary To Office expenses

***
on ***

investment To Advertising To Bad debt

To Carriage outward ***

To Depreciation
To Packing expenses Total

***
*** *****
Total

*****

Particulars Rent Building

Amount 5000 25000

Particulars Purchase return Rent received

Amount 8000 5000

Purchase Salary Package exp.

10000 8000 6000

Carriage outward

6000

Stock(1.4.2010)

5000

Particulars To rent To carriage outward

Amount 5000 6000

Particulars By G.p. By rent received

Amount 125000 5000

To packaging exp. To salary To N.P.

6000 8000 105000

Total

130000

130000