Ch 4 · Final Accounts of Sole Proprietors

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

⭐ Important points (exam-critical)

• ⭐Every adjustment hits final accounts twice (P&L and Balance Sheet).
• ⭐Manager's commission can be on profit before or after charging — read carefully.
• ⭐Goods withdrawn for personal use: deduct from purchases, add to drawings.
• ⭐Abnormal loss of stock: credit Trading A/c at cost; insurance claim shown separately.