Advertisements
Advertisements
Question
Net profit/loss is transferred from ______.
Options
Trading Account
Profit and loss account
Balance sheet
Manufacturing account
Advertisements
Solution
Net profit/loss is transferred from Profit and loss account.
Explanation:
- The profit and Loss account is prepared to calculate the business's net profit or net loss for a given accounting period.
- The difference of the two sides of this account is either net profit or net loss.
- Net profit or net loss is transferred to the capital account.
APPEARS IN
RELATED QUESTIONS
Give a word, term, or phrase which can substitute the following statement:
The provision made to compensate the loss on account of likely debts.
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 ________
Fill in the blank :
All indirect / operating expenses are transferred to ________ account.
Correct and Rewrite the following statements:
When the credit side of the Profit and Loss Account is greater than the debit side, it is called Net Loss.
Give a word, term or phrase which can substitute the following statement:
Account prepared to know Net Profit or Net Loss.
The difference of the two sides of this account is either net profit or net loss.
Which account type does the Profit and Loss Account belong to?
Which of the following is added to bad debts while preparing the Profit and Loss Account?
What is the effect of depreciation on furniture and machinery in the Profit and Loss Account?
