All nominal accounts that are to be accounted for are closed by transferring them to P & L A/c through closing entries in the nominal accounts. These include typically on Debits and Credits sides :
Debits
To Gross Loss brought down.
Selling and Distribution Expenses
- Advertisement
- Travellers' Expenses, Salaries, Commissions (for collections)
- Salesmen's Expenses, Salaries and Commissions
- Unproductive wages
- Bad debts
- Godown Rents
- Export Expenses - Documents preparation inclusive
- Packing charges
- Carriage outward, Deumrrages, Dock Dues
- Insurance
- Agents' commissions
- Vehicles Maintenance
- Other Trade Expenses
Management Expenses
- Rents, Rates, Taxes
- Office Salaries and Wages - [Managerial and assistances]
- Office Establishment
- Heating and Lighting
- Entertainment and Hospitality
- Printing and Stationery
- Postage, Telegrams, Telephones, Messengers
- Legal expenses
- Auditing fees
- Insurance
- Vehicles : Maintenance and Staff
- Miscellaneous and General, Sundries
- Provisions
Depreciation and Maintenance
- Depreciation of machinery
- Repairs and Maintenance
- Special Repairs [Excluded categories not to be taken]
- Operational Expenses
Financial Expenses
- Interest on Capital (of categories)
- Interest on Loans (of categories)
- Discounts allowed
- Cost of Discounting Bills
- Other Bank Charges
- Brokerage
Extra-ordinary Expenses
- Loss by natural occurrences and fire (not covered by insurance)
- Cashier embezzlement/defalcations.
To Net Profit transferred to Capital A/c
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