中四會計~關於Trading+P+L account

In principle, when you close the books of the company, you have to close all accounts to Trading Account, Profit and Loss account and the Balance Sheet.
So all expenses and incomes will be either transferred to Trading Account or Profit and Loss Account by Dr. Trading, Profit and Loss for expenses and Cr. Trading, Profit and Loss for incomes.
In your first issue on Stock, the first entry Dr. Trading Cr. Stock. The opening stock is an expense as this the cost of goods sold in this year, an increase in the actual expenses incurred in this year. However, the last entry means the total cost of purchases should be deducted by the value of the closing stock at the end of the year. This cost of purchase = Clsoing Stock means the cost should not be takenn up in this year of accounts but for the following year. So, you have to Dr. Stock Cr. Trading. Why we have to credit Trading because we have closed the purchases account and had transferred it to the trading account.
By the same reason, other administrative expenses e.g. prepayment or accrued e.g. rent, electricity etc must all be Dr. Profit and Loss Account for accrued expenses and Cr. Profit and Loss Account for prepaid expenses.

對不起, 我的名字是笨小孩, 我想問一下集思廣益譜新章先生一個問題, 為
什麼當 ACCRUED EXPENSE 時要 DEBIT PROFIT AND LOSS A/C, 而當
PREPAID EXPENSE 時要 CREDIT PROFIT AND LOSS A/C呢?

不是在製作FINAL A/C 時就要做ADJUSTMENT咩?