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Chapter 16

3.4 Expenses figures

As with the sales and purchases, a ledger account is prepared which includes all
known figures. The missing figure is the amount required to make the account
balance.

This can be simplified using the following ledger account:

Expense account
Date Details $ Date Details $

01 Jan Prepayment b/d X 01 Jan Accrual b/d X
In year Bank X In year P&L (β figure) X

31 Dec Accrual c/d X 31 Dec Prepayment c/d X
––– –––

X X
––– –––

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