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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 Prepayment X
In year Accrual X In year P/L (Balancing fig) X
––– –––
X X

Illustrations and further practice

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