Errors in figures in the trading and profit and loss account will affect the calculation of profits.

Closing stock appears ………in the final accounts.

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

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

Drawings can be in the form of business facilities.

If drawings is in the form of goods, it is necessary to show a……….from purchases in the trading caccount.

An accrued expense is shown as an amount due within 1 year in the balance sheet.

An accrual of expense remains ………at the end of that period.

An accrued expense is shown amongst the liabilities in the balance sheet.

A prepaid expense requires no year-end adjustment.

Expenses and incomes need to be…………..to the correct accounting period.

Accrual of income means that income due …………. the financial year has not been received by the end of the year.