FINAL ACCOUNTS OF SOLE PROPRIETORS - I

FINAL ACCOUNTS OF SOLE PROPRIETORS - I Points to recall Following points are to be recalled before learning final accounts of sole proprietors - I: • Accounting process • Trial balance • Dual aspect concept, Historical cost concept, Periodicity concept and Matching concept • Differences between capital expenditure and revenue expenditure • Differences between capital receipts and revenue receipts Key terms to know Final accounts Financial statements Income statement Trading account Profit and loss account Cost of goods sold Gross profit Net profit Financial position Balance sheet