Dr

Profit and Loss A/C Particulars

To Opening Stock
Rule 1 Debit all expenses and losses To Purchase
Credit all gains and income "-"(Minus) Purchase Return
To Wages
1 Now, All the debit balance will go in Expenses To Carriage Inward
if not in expenses the will go in asset side of Balance sheet To Power
2 All the credit balance will go (Credit means income for P and L AC) To Gross Profit
to Income side in P&L and if not the will go to liabilities side of the
Balance sheet
To Salaries
For Study To Carriage Outward
https://youtu.be/lRq58tmMpJc?si=cntrcgtn3aCBW4qg To Electricity
Refer this video To Net Profit
 P and L
Amount Particulars
50,000.00 Sales 140000
70000 (Minus) Sales Return 4000
2500 67,500.00 Closing Stock
15,000.00
8,000.00
5,700.00
17,800.00
164,000.00

5,000.00 To Gross Profit C/D

6,000.00
4,500.00
2,300.00
17,800.00
 Cr Balance Sheet
Amount Liabilities Amount
Capital 104,300.00
136,000.00 (Minus)Drawings 10,000.00
28,000.00 (Plus) Net Profit 2,300.00 96,600.00
Bills Payable 4,400.00
Creditors 50,000.00
Loan 40,000.00

164,000.00

17,800.00 191,000.00

17,800.00
Assets Amount
Cash 5,200.00
Furniture and fixtures 7,500.00
Debtors 80,100.00
Bank Balance 4,200.00
Building 40,000.00
Plant And Machinery 20,000.00
Bills Receivable 6,000.00
Stock 28,000.00

191,000.00
# Video Link
https://youtu.be/HH_TZ-3OM5Q?si=8lOsqY_7xswAE8GU

Dr P and L Cr
# Particulars Amount Particulars Amount
Opening Stock 5,000.00 Sales 95,000.00
Purchase 58,000.00 Closing Stock 8,000.00
Wages 4,500.00
Add:outstanding Wages 500.00 5,000.00
Gross Profit 35,000.00
103,000.00 103,000.00
Postage 250.00 Gross profit C/D 35,000.00
Salaries 4200
Add:outstanding Salaries 300 4,500.00
Discount 700.00
Bad debts 450.00
Interest 300.00
Insurance 600.00
Depreciation Machine and Building 2,100.00
Net Profit 26,100.00
35,000.00 35,000.00

Balance Sheet
# Liabilities Amount Assets Amount
Capital 38,000.00 Debtors 4,500.00
Add: Net Profit 26,100.00 64,100.00
Creditors 8,500.00 Machinery 12,000.00
Bills Payable 2,000.00 (Minus)Dep 10% 1,200.00 10,800.00
Loan 15,000.00 Building 18,000.00
Outstanding Salaries 300.00 (Minus)Dep @5% 900.00 17,100.00
Outstanding Wages 500.00 Fixture and Fittings 10,000.00
Land 40,000.00
Stock 8,000.00
90,400.00 90,400.00
https://youtu.be/OgpjFFEqL5E?si=uYWb53hLMFskjSIA https://youtu.be/S_5CLAgszg8?si=Rbex1vvJAY7_QEdD
Video Reference Watch Mamagers Commission Again
Note Managers Commission is given on net profit and is and expense

Dr P and L Cr
Particulars Amount Particulars Amount
Opening Stock 6,500.00 Sales 87,100.00
Purchase 42,000.00 Sub: Sales Return 1,300.00 85,800.00
Sub:Purchase Return 1,500.00 40,500.00 Closing Stock 13,500.00
Wages 14,000.00
Sub:Prepaid Wages 2,000.00 12,000.00
Fuel And Power 4,400.00
Carriage on Purchase 2,800.00
Gross Profit 33,100.00
99,300.00 99,300.00
Carriage on Sales 5,200.00 Commission 1,800.00
Salaries 18,000.00 Sub: Advance Commission 300.00 1,500.00
Outstanding Slary 6,000.00 24,000.00 Gross Profit C/D 33,100.00
General Exp 6,700.00 Net Loss 15,100.00
Insurance 1,700.00
Sub:Prepaid Insurance 200.00 1,500.00
Interest 1,000.00
Sub:Prepaid Interest 400.00 600.00
Depreciation on Patents 1,000.00
Depreciation on Machinery 2,000.00
Interest on Capital - 8,700.00

49,700.00 49,700.00
Liabilities Amount Assets Amount
Capital 87,000.00 Patents 5,000.00
Add: Interest on Cap @1 8,700.00 Sub: Dep @20% 1,000.00 4,000.00
Sub : Drawings 7,400.00 Freehold Land 30,000.00
Sub: Net Loss 15,100.00 73,200.00 Machinery 20,000.00
SundryCreditors 7,600.00 Sub: Dep @10% 2,000.00 18,000.00
12% Loan 10,000.00 Goodwill 14,000.00
Outstanding Salary 6,000.00 Sundry Debtors 15,000.00
Advance Commission 300.00 Prepaid Wages 2,000.00
Prepaid Insurance 200.00
Prepaid Interest 400.00
Stock 13,500.00
97,100.00 97,100.00
https://youtu.be/pGymzuGAkJ8?si=5Pywhem1AEUZBSYH
Cost Sheet Reference Video

Cost sheet is mostly related to expenses

there are two type of expenses Direct Exp and Indirect Exp.
Direct means which is directly related to the Product or service we provide
Direct Exp has three Heads
Direct Material Exp
Direct Labour Exp
Direct Other Exp
Indirect Exp aslo has the same heads