Drawings can be in the form of business facilities.

Drawings might also take the …….of goods for private use

In the balance sheet, the net profit is added to capital.

The value closing stock has got an effect on the profit for the period.

The journal is a kind of book of prime entry.

Errors are …………… using journal entries.

Capital expenditure is aimed at providing long-term benefits.

Where business ………… (e.g. telephone) are used for the owner’s personal use, this is also regarded as drawings, and adjustments must be made at the end of the year to reflect this.

Capital expenditure decreases the figure of assets in the balance sheet.

The main difference between the two types of expenditure is the ………… of time the expenditure is of benefit to the business.

The word ‘estimate’ in allowing for depreciation of fixed assets means that you are estimating the working……….of the asset.

Any debt written off must be charged against the profit by means of a ……….entry in the profit and loss account.

Bad debts written off are not shown in the balance sheet.

The main………….of depreciation are physical deterioration, economic factors and time factors.

The asset account is reduced by the annual provision for depreciation.

The reduced balance is the cost of the asset less depreciation to …………

Any………..in depreciation provision is charged against profit.

Amounts due from debtors, which are individually written off should be debited to bad debts account.

Any decrease in the provision for doubtful debt will be seen as an expense to the firm.

The bad debts account serves as a ………….point for debts written off over the year.