side If items appear on credit side If items not given whether debit or credit
Returns Shown on credit side of trading A/c by way of deduction from the amount of sales Shown on debit side of trading A/c by way of deduction from the amount of purchases It may be assumed as Return Inward or Return Outward by giving an assumption to that effect Discount Shown on the debit side of P& L A/c as discount Allowed Shown on the credit side of P& L A/c as discount Received It may be assumed as discount Allowed or Received by giving an assumption to that effect Commission Shown on the debit side of P&L A/c as Commission Allowed Shown on the credit side of P&L A/c as Commission Earned It may be assumed as Commission Allowed or Commission Earned by giving an assumption to that effect Interest Shown on the debit side of P&L A/c as Interest Allowed Shown on the credit side of P&L A/c as Interest Earned It may be assumed as Interest Allowed or Interest Earned by giving an assumption to that effect Rent Shown on the debit side of P&L A/c as Rent Paid Shown on the credit side of P&L A/c as Rent Earned It may be assumed as Rent Paid or Rent Earned Carriage Shown on the debit side of Trading A/c (if assumed as carriage on purchases) or P&L A/c (if assumed as carriage on sales) ________ It may be assumed as carriage on purchases or carriage on sales by giving an assumption to that effect Freight Shown on the debit side of Trading A/c (if assumed as Freight Inwards) or P &L A/c (if assumed as Freight outwards) ________ It may be assumed as Freight Inwards or Freight outwards by giving an assumption to that effect Wages & Salaries Shown on the debit side of Trading A/c ________ ________ Salaries & Wages Shown on the debit side of P &L A/c ________ ________ Trade Expenses Shown on the debit side of Trading A/c or P &L A/c (if Sundry expenses or office expenses are given ) ________ ________ Important Adjustments Items Treatment in Trading A/c Treatment in Profit & Loss A/c Treatment in Balance Sheet Closing Stock To be credited to Trading A/c ______________ To be shown on Asset side of Balance Sheet Depreciation ______________ To be Debited to Profit & Loss A/c To be deducted from the value of an asset in Balance Sheet Outstanding Expense Amount to be added to concerned expense in Trading A/c Amount to be added to concerned expense in Profit & Loss A/c To be shown on Liabilities side of Balance Sheet Prepaid Expense Amount to be deducted from concerned expense in Trading A/c Amount to be deducted from concerned expense in Profit & Loss A/c To be shown on Asset side of Balance Sheet Interest on Drawings _____________ To be credited to Profit & Loss A/c To be deducted from capital in Balance Sheet Interest on Capital _____________ To be debited to Profit & Loss A/c To be added to capital in Balance Sheet Bad Debts _____________ Amount of Bad Debts to be debited to Profit & Loss A/c Amount to be deducted from Sundry Debtors in Balance Sheet Reserve for Doubtful debts _____________ Amount of RDD to be debited to Profit & Loss A/c Amount to be deducted from Sundry Debtors in Balance Sheet Provision for discount on Debtors _____________ To be Debited to Profit & Loss A/c To be deducted from Sundry Debtors in Balance Sheet Provision for discount on Creditors _____________ To be credited to Profit & Loss A/c To be deducted from Sundry Creditors in Balance Sheet outstanding income _____________ Amount to be added to respective income on credit side of Profit & Loss A/c To be shown on Asset side of Balance Sheet Income received in advance _____________ Amount to be deducted from respective income on credit side of Profit & Loss A/c To be shown on Liabilities side of Balance Sheet Goods used by proprietor for personal use To be deducted from purchases OR To be credited to Trading A/c _____________ To deducted from capital as drawings Distribution of Goods as free Samples To be deducted from purchases OR To be credited to Trading A/c To be Debited to Profit& Loss A/c as Advertisements ______________ Important Adjustments
Goods destroyed by fire and insurance company admitted the claim The amount of goods destroyed to be credited to Trading A/c The amount of loss to be debited to Profit & Loss A/c The claim amount to be shown on Asset side of Balance Sheet Interest on loan taken _____________ The amount to be debited to Profit & Loss A/c Amount to be added to loan account on liabilities side of Balance Sheet Interest on loan given _____________ The amount to be credited to Profit & Loss A/c Amount to be added to loan account on Asset side of Balance Sheet Unrecorded Purchases The amount to be added to purchases in Trading Account _____________ Amount to be added to Creditors Unrecorded Sales The amount to be added to sales in Trading Account _____________ Amount to be added to Debtors