Ch 4 · Final Accounts of Sole Proprietors

🧮 Formula sheet

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