Profit and Loss
System
Posts: 100,534 🤖 Admin 🤖
Please can anyone tell me if a profit and loss account includes items sold on credit and are still not paid for or if it only inlcudes items that you are in reciept of money for.<BR><BR>Thanks
0
Comments
-
Profit and Loss
Hi ya.<BR><BR>Yes the profit and loss will include items sold on credit â?? this will appear as sales, a credit balance in the profit & loss account. The debit entry will of course go to the sales ledger control account and should/will appear as a debtor on the balance sheet (debit balance) â?? thereâ??s your double entry. This debtor balance will be cleared when the receipts are receive, thus debit the bank and credit the sales ledger control account.<BR><BR>Regards0 -
Profit and Loss
cheers..that helps alot :-)0 -
Profit and Loss
as above buddy0 -
Profit and Loss
I hope this helps.<BR>we do accounting on accrual basis. ie. if we sell something on credit , we create a debtor and register the sale as it has been sold for this period,(month / year). when we receive the cash is immaterial as far as accounting is concerned. <BR>this helps in relating incomes and expenses to the same period. <BR>0