Trading, Profit and Loss Account for the year ended

Sales

Usually on credit unless question states for cash

Purchase

Usually on credit unless question states for cash

Another 2 names for Sales

Turnover / Revenue

Another Names for Turnover / Revenue

Sales

Another names for Opening Stock

Inventories

Another name for Inventory

Opening Stock

What is Carriage Inwards?

Delivery expenses

What is Closing Stock?

Unsold Purchases

Another name for Gross Profit

Net Sales

Another name for Net Sales

Gross Profit

What are Discounts Received?

Reduction in invoice to supplier for paying early

What are Bad Debts?

From customers who won’t pay

What are Discounts Allowed?

Reduction in invoice for customers paying early

Net Profit

Growth of the company - increase/ loss

First Part of Sheet

Sales

Less: Sales Returns

Second Part of Sheet

Cost of Sales

Opening Stock

Purchases

Less: Purchase Returns

Carriage Inwards

Third Part of Sheet

Less: Closing Stock

Forth Part of Sheet

Gross Profit

Sundry Income

Discounts Received

Fifth Part of Sheet

Less: Expenses

Rent Paid

Heating + Lighting

Wages

Water + Rayes

Insurance

Bed Debts

Depreciation

Discounts Allowed

Sixth and Final Part of Sheet

Net Profit

Depreciation

Spreading the cost of a long-term asset over the period you expect to use it.