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In my opinion, following are some of the difficult adjustments in final accounts. Sr No. Adjustments 1st effect 2nd effect 1 Uninsured goods destroyed by fire/accident Trading A/c - Credit side (Gross amount) Profit & Loss A/c - Debit side (Gross amount) 2 Insured goods destroyed by fire/accidenRead more
In my opinion, following are some of the difficult adjustments in final accounts.
b. Profit & Loss A/c – Debit side (Amount of Loss ie.10,000)
a. If commission eg.10% is quoted on “Net Profit before charging such commission”:
Commission amount = Profit before commission * 10/100
b. If commission eg.10% is quoted on “Net Profit after charging such commission”:
Commission amount = Profit before commission * 10/110
Balance Sheet – Asset side (Reduce from Cash/Bank)