i:t:-+E>:.

Tiil

FINAL ACCOUNTS

(b) For the items that appear in th.e credit side:

Sales (Net) A/c Dr.
Closing Stock A/c Dr.
To Trading A/c
(c) For the Cross Profit (i.e. when credit side is greater than the debit side)
Trading A/c Dr.
To Profit and Loss Aic
(d) For Cross Loss (i.e. when debit side is greater than the credit side):
Profit and Loss A/c Dr.
s.
To Trading A/c
mer
rtua i
Ruling of o Troding Account
red
Trading Accounl
pos€
for the year ended .,....
)r. (,r
Rs. Rs Rs. Rs

di ng
To Opening Stock By Sales
Cs rs Purchases le.ss: Returns lnward ..---
-essr Returns Outward
r the By Closing Stock
:ern -o Direct Expenses:
ut it- Wages
rcds Carriage lnwards
rsing
Freight
ryer
lmport Duty
a5e-(
Cas and Fuel
sioe
Factory Expenses
Royalty on Production
Profit and Loss A/c
(Cross Profit tra nsferred)

\ote.' Other adjustments, if any (e,9. Outstanding Wages or Prepaid Expenses), are also to be considered.
' ln case of Cross [.oss, it will be reversed:
It has already been explained in an earlier paragraph that the purposc of preparrng a
-'ading Account is to ascertain the gross profit or gross loss at the end of the financial year.
'.eedless to mention here that the gross profit or gross loss so ascertained is the difference
::\\/een'Sales'and'Cost of Coods Sold'. So, it becomes necessary to know the above two
-'rts: viz., Sales and Cost of Coods Sold.
iales: lt is not a problem for us to compLlte the total amount of sales. We can g,et it from the
Tria I Ba la nce.

=r Acc.- l2l