Trading account is prepares mainly to know the profitability
of the goods bought and sold by the business man.
The items which are shown under trading account relates to
purchases and production.
Trading account consists of two side debit side and credit side
CREDIT SIDE SHOWN ITEMS ARE:---
the items shown in profit and loss account debit side are:---
1.selling and distribution expenses:---
a.salesman's salary and commission
b.commission to agents
c.freight and carriage on sales
h.export duty etc...............
c.rates and taxes
f.printing and stationary etc.......
b.interest on capital
c.interest on loan etc........
4.maintenance,depreciation and provisions:----
c.provision for bad and doubtful debts etc.......
profit and loss account credit side:----
1.gross profit b/d(b/d=brought down)
5.interest on investments
6.dividend received etc...........
balance sheet :----
balance sheet is divided into two parts liabilities and assets
a.authorized share capital
b.issued share capital
c.subscribed share capital
2.RESERVES AND SURPLUS:--
b.profit and loss appropriation surplus
c.specific reserve etc.......
5.CURRENT LIABILITIES AND PROVISIONS:---
b.out standing expenses
c.tax on dividends etc.........
a.land and buildings
b.plant and machinery
c.furniture and fittings
e.copy rights etc......
a.investments in shares
b.investments in debentures etc......
3.CURRENT ASSETS LOANS AND ADVANCES:----
a.cash in hand and at bank
d.prepaid expenses etc.......
we deposited securoty to a party and now due to us interest
amount then party deduct TDS on interest but we not recive
cash or in bank he credited our account in his books so
what will be the journal entries in our's books.