Accounting

1. OFFICE AND ADMINISTRATION EXPENSES;-
These are the expenses connected with the management of the business e.g. Salaries of manage accountant and office clerks, office rent, office stationery, office electric charges, office telephone etc,
2. SELLING AND DISTRIBUTION EXPENSES:-
These are the expenses which are directly or indirectly connected with sale and delivery of good: These expenses vary with the sales i.e. they increase or decrease with the increase or decrease sale of good: e.g. Advertisement, Carriage outward, Salesmen's Salaries and Commission, Discount allowed, Travelin expenses, Bad debts, Packing expenses, warehouse rent etc.
3. FINANCIAL AND OTHER EXPENSES:-
All other expenses and losses excepting those mentioned above are considered under this class.
The following is given the specimen of Profit and Loss A/c:Dr. • Profit and Loss A/c for the year ended O
Details
Trading A/c
Gross Loss (transferred)
OFFICE & ADMINISTRATION
EXPENSES:
Salaries
Rent, rates, taxes
Postage &Telegrams
Office Electric Charges
Telephone Charges
Printing & Stationery
SELLING & DISTRIBUTION
EXPENSES:
Carriage Outward
Advertisement
Salesmen's Salaries
Commission
Insurance
Traveling Expenses
Bad Debts
Packing Expenses
FINANCIAL AND OTHER
EXPENSES:
Depreciation
Repairs
Audit fee
Interest paid
Commission paid
Bank charges
Legal charges
(Net profit transferred)
to Capital A/c.
Rs.
Details
Trading A/c
(Gross profit transferred) Interest Received Rent Received Discount Received Dividend Received Bad debts Recovered Provision for Discount
on Creditors Miscellaneous revenue (Net loss transferred)
to Capital A/c
Rs.