Closing Transfers (Grade 10 NSC Matric Accounting): Flashcards

Income statement and balance sheet

Income, expenses, trading account, profit and loss account

Assets, liabilities, and capital

Bringing temporary accounts to zero balance at year-end

To calculate gross profit

$\text{Net sales} - \text{Cost of sales}$

$\text{Gross profit} + \text{Other income} - \text{Expenses}$

$\text{Opening capital} + \text{Net profit} - \text{Drawings}$

Money/goods owner took from business for personal use

Only permanent accounts (assets, liabilities, capital)