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From trial balance to financial statements

Illustration 2

If the procedure is followed in relation to the sales account, the result will be:
Sales
Dr $ Cr $
12-May Cash 210
19-May SP 580
25-May Cash 430
28-May Cash 890
Statement of
31 May profit or loss 10,200 29-May KM 8,090
–––––– ––––––
10,200 10,200

Note that there is no longer an account balance on this ledger account the
procedure can be repeated for the following accounting period. It is important
to remember that any statement of profit or loss ledgers must not have any
balances on them at the end of the accounting period.

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