summarised below : · Part 6

profit and loss account and balance sheet as on December , Books of Dinesh Trading and Profit and Loss Account for the year ending December , Expenses/Losses Revenues/Gains Opening stock Sales , Purchases , Less Returns ( , ) , Less Returns ( , ) , Closing stock Gross profit c/d , , , , , , Gross profit b/d , Bad debts , , Expenses paid , Add Outstanding expenses , , Rent paid , Depreciation on Furniture , Motor van , Provision for doubtful debts , Net profit (transferred to capital , account) , , Balance Sheet as on December , Liabilities Assets Outstanding expenses , , , Capital , Less Provision ( , ) , Less Drawings ( , ) Closing stock , Furniture & Fixtures15, Add Net profit , , Less Depreciation ( , ) , Motor van , Less Depreciation ( ) , , , , , Working Notes : (i) Total Debtors Account Amount Date Particulars , Cash received Sales , , Bad debts , Sales return , , , , , (ii) Total Creditors Account Cash paid , , , Purchases , Purchases return , , , , (iii) Summary of Cash Receipts Payments , , Expenses paid , Drawings Rent paid , , , (iv) Statement of Affairs as on December , Liabilities Assets , , , Capital in the beginning , Furniture and Fixtures , (Balancing figure) Motor Van , , , , , (v) Calculation of Closing Stock Total sales , Less Sales return ( , ) Net sales , Total purchases , Less Purchases returens ( , ) ( , ) Rate of gross profit on cost % Suppose cost of goods sold is Then, Gross profit equals to Sales equals to Hence, Cost of goods sold will be Sale = Rs. , = × = , , The amount of closing stock will be calculated as : Net Purchases , Add Closing stock Cost of goods available for sale , Less Cost of goods sold ( , ) Closing stock Key Terms Introduced in the Chapter Incomplete records Statement of Affairs Summary with Reference to Learning Objectives . Incomplete