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What is the purpose of a Profit and Loss Account? - Commercial Studies

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What is the purpose of a Profit and Loss Account?

थोडक्यात उत्तर
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उत्तर

The Profit and Loss Account is essential for the following reasons:

  1. Understanding net profit or loss.
  2. Comparing it to previous year's profits.
  3. Control your expenses.
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पाठ 7: Final Accounts of Sole Proprietorship - EXERCISES [पृष्ठ १०४]

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गोयल ब्रदर्स प्रकाशन Commercial Studies [English] Class 10 ICSE
पाठ 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 4. | पृष्ठ १०४

संबंधित प्रश्‍न

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


Give a word, term, or phrase which can substitute the following statement:
The provision made to compensate the loss on account of likely debts.


Fill in the blank :
Interest of proprietor's drawing is credited to _________ account.


Find the odd one :


Find the odd one :


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


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 ₹ 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

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


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