Question

State two items of ‘Other Incomes’ of the Statement of Profit & Loss.

Answer 1

1. Interest Income/Dividend Income: This includes interest earned on bank fixed deposits (FDs), loans given, or dividends received from investments in shares of other companies. Since this is non-operating income, it is shown under Other Income.
2. Profit on Sale of Fixed Assets/Investments: When a company sells an old asset (like machinery, building, or furniture) or a long-term investment at a price higher than its book value, the net profit earned from that transaction is recorded under Other Income.