Finals A/c s

Question 1

Name the four parts to a final a/c

Answer 1

Trading a/c
Profit and loss a/c
Profit and loss appropriation
Balance sheet

Question 2

What does the trading account show and what does it include

Answer 2

Shows the revenue and expenses directly related to the trade.
Includes : sales- cost of sales = GROSS profit

Question 3

Explain depreciation

Answer 3

Reduction in value of fixed assets

Question 4

Explain carriage inwards

Answer 4

The expense paid by a buyer for the transportation of goods.