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प्रश्न
What is the need for preparing profit and loss account?
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उत्तर
- Ascertainment of net profit or net loss
- Comparison of profit
- Control on expenses
- Helpful in the preparation of the balance sheet.
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence:
What do you mean by Prepaid Expenses?
Select the most appropriate alternatives given below and rewrite the sentence :
Discount earned is transferred to credit side of ___________ account
Excess of credit over to debit in Profit and Loss Account indicates ________
State True or False with reasons:
Credit balance of Profit and Loss account shows net profit.
Fill in the blank :
Interest on Bank Loan is debited to _________ 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 ₹ 4,07,500
The difference of the two sides of this account is either net profit or net loss.
In case, the total of the debit side is greater than the total of the credit side, the difference represents ______.
The “Packing expenses” are classified in the Profit and Loss Account when they are:
