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प्रश्न
Abnormal Losses such as stock destroyed by fire, goods lost intransit, loss on sale of fixed assets are recorded on the ______ side of the ______.
पर्याय
Debit, trading account
Credit, trading account
Debit, profit and loss account
Credit, profit and loss account
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उत्तर
Abnormal Losses such as stock destroyed by fire, goods lost intransit, loss on sale of fixed assets are recorded on the Debit side of the Profit and loss account.
Explanation:
Extraordinary expenses and abnormal losses, such as goods lost in transit, loss by fire, Cash defalcations, loss on sale of assets, etc., are debited to the profit and loss account.
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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 which can substitute the following statement:
An amount spent on promoting sale of goods.
State True or False with reasons :
Income due but not received is a liability.
Salaries appearing in the trial balance is shown on the ______.
Name any two direct expenses and indirect expenses.
What is the need for preparing profit and loss account?
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
It is an account prepared to know the net profit/loss. It is also a nominal account and represents second stage.
Net profit/loss is transferred from ______.
Which account type does the Profit and Loss Account belong to?
