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Distinguish between a Trading Account and a Profit and Loss Account.

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प्रश्न

Distinguish between a Trading Account and a Profit and Loss Account.

अंतर स्पष्ट करें
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उत्तर

S. No. Basis of Distinction Trading Account Profit and Loss Account
1. Purpose To ascertain the Gross Profit. To ascertain the Net Profit.
2. Sequence Prepared before the Profit and Loss Account. Prepared after the Trading Account.
3. Main contents Contains opening stock, closing stock, purchases and sales, wages, etc. Contains Gross Profit, office expenses Salaries, insurance, discounts, etc.
4. Transfer of balance Its balance is transferred to the Profit and Loss Account. Its balance is transferred to the Balance Sheet. 
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अध्याय 7: Final Accounts of Sole Proprietorship - EXERCISES [पृष्ठ १०५]

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गोयल ब्रदर्स प्रकाशन Commercial Studies [English] Class 10 ICSE
अध्याय 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 13. | पृष्ठ १०५

संबंधित प्रश्न

Give a word, term, or phrase which can substitute the following statement:
Income due but not yet received


Give a word, term or phrase that can substitute the following statement: 

Account prepared to know Net Profit or Net Loss.


Give a word, term or phrase which can substitute  of the following statement:

Account prepared to know Net Profit or Net Loss.


Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March, 2018 from the following balances.

1) Bank charges ₹ 22,000
2) Interest (Cr.) ₹ 16,000
3) Sundry expenses ₹ 42,000
4) Insurance ₹ 35,000
5) Salaries ₹ 40,000
6) Rates and Taxes ₹ 13,000
7) Postage ₹ 8,000
8) Advertisement ₹ 40,000
9) Rent paid ₹ 32,000
10) Bad debts ₹ 10,000
11) Commission (Cr) ₹ 17,500
12) Printing & Stationery ₹ 21,000
13) Loss by fire ₹ 18,000
14) Discount (Dr) ₹ 23,000
15) Discount (Cr) ₹ 37,000
16) Misc. Income ₹ 14,000
17) Depreciation ₹ 34,000
18) Carriage Outwards ₹ 60,000
19) Godown Expenses ₹ 40,000

Note: Gross Profit ₹ 4,07,500


Give a word, term or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Give a word, term or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Imagine you are an accountant of Shah & Company. You have to pass an entry of interest received by the company. What will be the accounting treatment?


Give a word, term or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March, 2018 from the following balances. 

1) Bank charges ₹ 22,000
2) Interest (Cr.)  ₹ 16,000
3) Sundry expenses ₹ 42,000
4) Insurance   ₹ 35,000
5) Salaries  ₹ 40,000
6) Rates and Taxes ₹ 13,000
7) Postage ₹ 8,000
8) Advertisement ₹ 40,000
9) Rent paid ₹ 32,000
10) Bad debts  ₹ 10,000
11) Commission (Cr.) ₹ 17,500
12) Printing & Stationery ₹ 21,000
13) Loss by fire ₹ 18,000
14) Discount (Dr.) ₹ 23,000
15) Discount (Cr.) ₹ 37,000
16) Misc. Income ₹ 14,000
17) Depreciation ₹ 34,000
18) Carriage Outwards ₹ 60,000
19) Godown Expenses ₹ 40,000

 Note: Gross Profit ₹ 4,07,500


Give a word, term or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.


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