This is not an account but it is rather a statement that shows the state of affairs of a business in a given particular period of time. It shows the financial position of a business at a particular period of time. It is a classified summary-of both the debit, and the credit balance existing in …
These are those things that are not expenses but they are income received into the business and so these should be added to the business gross profit before those expenses should be deducted in order to get the Net profit. Here, these income include thus: interest receivable, rent receivable, discount receivable etc. Any amount that …
These are those expenses that are being incurred during the process of selling and of products in the business. They are thus: interest payable on loan, bank charges etc
These are the provisions that are being made in respect of certain items. The examples of those items are provision for doubtful debts, provision for bad debts, provision for depreciation etc.
These are those expenses that have been incurred in the management of the business. Those expenses include thus: salaries, lighting and cooling, rent, water rate, depreciation of accounting machine, insurance etc.
This is an aspect of an account by which all gains and losses are, collected and recorded ‘in a book. Note that if the gains e greater in value than the losses, that excess is regarded as the Net profit. But if the losses are greater than the gains, the difference is regarded as the …