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Question
Fill in the blank :
Interest of proprietor's drawing is credited to _________ account.
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Solution
Interest of proprietor’s drawing is credited to Profit and Loss Account
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RELATED QUESTIONS
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.
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 :
Profit and Loss account is prepared to find out ___________ results of the business.
Fill in the blank :
All indirect / operating expenses are transferred to ________ account.
Fill in the blank :
An excess of debit over credit in the Profit & Loss A/c represents the __________.
Find the odd one :
What is the need for preparing 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.
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 ₹ 4,07,500
Prepare the 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 (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
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?
Give a word, term or phrase which can substitute the following statement:
Account prepared to know Net Profit or Net Loss.
______ 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.
What is the purpose of a Profit and Loss Account?
Explain the needs of Profit and Loss Account.
What principle is followed by recording indirect expenses and incomes in the Profit and Loss Account?
What is the effect of depreciation on furniture and machinery in the Profit and Loss Account?
The “Packing expenses” are classified in the Profit and Loss Account when they are:
