ocr: Trading. and Profit and Trading. and Profit and Loss Account (The Studio)-March Loss Account The Toy Box)-March Sales 1500 Sales 1500 less: Cost of Goods Sold 1000 less: Cost of oods Sold 1000 Profit 500 Profit 500 The businesses report identical profits. Kemember that the Profit and Loss Account statements are drawn up using the matching principle which states that revenue is recognised in the statement when it is earned rather than at the moment in time when sales receipts are actually received.: Similarly, costs are expensed in the statement according to the period of time in which they are ...
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