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महाराष्ट्र राज्य शिक्षण मंडळएचएससी कला (इंग्रजी माध्यम) इयत्ता ११ वी

State True or False with reasons: Credit balance of Profit and Loss account shows net profit.

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प्रश्न

State True or False with reasons:
Credit balance of Profit and Loss account shows net profit.

पर्याय

  • True

  • False

MCQ
चूक किंवा बरोबर
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उत्तर

This statement is true.

Explanation:
A credit balance in the Profit and Loss Account indicates that the total revenue (credit side) exceeds the expenses (debit side), resulting in a net profit. This balance is then transferred to the Capital Account.

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पाठ 9: Final Accounts of a Proprietary Concern - EXERCISE [पृष्ठ ३१७]

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बालभारती Book Keeping and Accountancy [English] Standard 11 Maharashtra State Board
पाठ 9 Final Accounts of a Proprietary Concern
EXERCISE | Q 4. 5) | पृष्ठ ३१७

संबंधित प्रश्‍न

Answer in One Sentence:
State the meaning of Outstanding Expenses?


Give a word, term, or phrase which can substitute the following statement:
Expenses paid before it is due.


State True or False with reasons :
Income due but not received is a liability.


Fill in the blank :
Interest on Bank Loan is debited to _________  A/c


Fill in the blank :
Profit and Loss account is prepared to find out ___________ results of the business.


Find the odd one :


Do you agree or disagree with the following statement :
Reserve for bad debts is created by debiting Profit and Loss Account.


Correct and Rewrite the following statement:

Capital A/c……………..Dr.
To Profit and Loss Account
(Being Net Profit transferred to Capital A/c)


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 ₹ 407500

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 ₹ 407500


Give a word, term or phrase that 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 ₹ 407500


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.


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 11) Commission (Cr) ₹ 17,500
2) Interest (Cr.) ₹ 16,000 12) Printing & Stationery ₹ 21,000
3) Sundry expenses ₹ 42,000 13) Loss by fire ₹ 18,000
4) Insurance ₹ 35,000 14) Discount (Dr) ₹ 23,000
5) Salaries ₹ 40,000 15) Discount (Cr) ₹ 37,000
6) Rates and Taxes ₹ 13,000 16) Misc. Income ₹ 14,000
7) Postage ₹ 8,000 17) Depreciation ₹ 34,000
8) Advertisement ₹ 40,000 18) Carriage Outwards ₹ 60,000
9) Rent paid ₹ 32,000 19) Godown Expenses ₹ 40,000
10) Bad debts ₹ 10,000 Note: Gross Profit ₹ 4,07,500

Given below is the Trial Balance of M/s. Krishna & Sons Pvt. Ltd. as on 31st March, 2023. Prepare a Trading and  Profit and Loss account for the year ending 31st March, 2023 and a Balance Sheet as on the same date.

Trial Balance of M/s. Krishna & Sons Pvt Ltd. as on 31st March 2023.

Particulars Dr. Cr.
Capital - 50,000
Drawings 1,000 -
Debtors and Creditors 25,000 15,000
Loan - 20,000
Discounts 4,750 300
Purchases and Sales 90,000 1,72,000
Land and Buildings 88,000 -
Salaries 33,000 -
Cash in hand 2,700 -
Stock as on 01-04-2022 28,000 -
Commission Received - 18,550
Sales Return and Purchase Return 750 550
Carriage inward 1,200 -
Bills receivable and Bills payable 7,500 5,500
Total 2,81,900 2,81,900

Closing Stock was valued at ₹ 25,000


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?


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


______ provides information about the net profit earned or net loss suffered by the business during a given accounting period.


Net profit/loss is transferred from ______.


The difference of the two sides of this account is either net profit or net loss.


Explain the needs of the Profit and Loss Account.


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

Account prepared to know Net Profit or Net Loss.


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?


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