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प्रश्न
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?
विकल्प
Asset side of balance sheet
Liability side of balance sheet
Credit side of trading account
Credit side of profit and loss account
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उत्तर
Credit side of profit and loss account
Explanation:
Interest received is a revenue receipt (income) and is credited to the Profit & Loss Account, not to Trading or the Balance Sheet; the answer key and notes confirm this.
संबंधित प्रश्न
Give a word, term, or phrase which can substitute the following statement:
Carriage paid on sale of goods.
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:
An amount spent on promoting sale of goods.
Find the odd one:
Rent, Salary, Insurance, Plant and Machinery
Name any two direct expenses and indirect expenses.
From the following information, prepare profit and loss account for the year ending 31st December, 2016.
| Particulars | ₹ | Particulars | ₹ |
| Gross loss | 60,000 | Printing and stationery (office) | 2,000 |
| Promotional expenses | 5,000 | Legal charges | 5,000 |
| Distribution expenses | 15,000 | Bad debts | 1,000 |
| Commission paid | 7,000 | Depreciation | 2,000 |
| Interest on loan paid | 5,000 | Rent received | 4,000 |
| Packing charges (on sales) | 4,000 | Loss by fire not covered by insurance | 3,000 |
| Dividend received | 3,000 |
Correct and Rewrite the following statement:
Capital A/c……………..Dr.
To Profit and Loss Account
(Being Net Profit transferred to Capital A/c)
______ provides information about the net profit earned or net loss suffered by the business during a given accounting period.
Which account type does the Profit and Loss Account belong to?
What principle is followed by recording indirect expenses and incomes in the Profit and Loss Account?
