1. Class XIAccountancy Module Developed by J.K.Saini,1

2. Objectives Students will be able to prepare final statement of abusiness - Profit and loss account and Balance Sheet2 3. The process of Accounting Cycle ends with the preparation of Final Accounts . So Let us begin various steps to compile final accountsAccounting Cycle : Journal Ledger Trial Balance Final Accounts3 4. Final Statements of Sole Proprietor comprise of preparing the following statements Trading and Profit and loss account Balance SheetBefore we move further, let me elaborate on some of the new terms and their meaningDirect Expenses: These are incurred on purchase and production of Expenses Like , Carriage, freight, Octroi, Wages, facrtory rent, RoyaltyGross Profit = Net Sales Cost of goods soldCost of goods sold= Opening Stock+ net purchases + Direct Expenses Closing Stock 4 5. To Opening Stock To PurchasesRs .. ..Less Purchase returnTO Direct expenses..To Gross ProfitBy Sales..Less Sales returnRs. ..By Closing Stock..Click here to listen to the sound?5 6. Now Let us move further to the second part of the income statement; i.e Profit and loss AccountTo Indirect Expenses and losses . To Net ProfitRs ....By Gross Profit By Income . .Rs. ..Click on the icon to listen ,,.... ?6 7. Let me elaborate on the meaning of Indirect Expenses and IncomesIndirect Expenses and losses >Office and Administration Expense Selling and Distribution ExpensesDepreciation and Repairs Any other loss etc. IncomesDiscount Recieved Commisson recieved Interest Receied etc. 7 8. Salaries, Rent, stationery, Telephone Charges, legal expenes , postage etc : Advertisement, Carriage outwards, Commission, showroom rent, etc Discount Allowed, Bank charges, interest on loan and on capitalBad Debts, loss of goods by fire etc.8 9. FeedbackI hope you were able to understand the process of preparing first part of the final statements i.e. Calculating Net Profit/Net LossNow answer the following question:-9