Ch 4 · Final Accounts of Sole Proprietors

5 concept points · 4 formulas · 4 exam-critical points.

🧮 Formula sheet

1. Gross Profit = Net Sales − Cost of Goods Sold
2. Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses − Closing Stock
3. Net Profit = Gross Profit + Other Incomes − Indirect Expenses
4. Closing Capital = Opening Capital + Net Profit + Additional Capital − Drawings