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Question
Office rent, office lighting, office salaries, insurance, postage and telegrams, stationery and printing, audit fees, legal expenses are recorded on the ______ side of the ______.
Options
Debit, trading account
Credit, trading account
Debit, profit and loss account
Credit, profit and loss account
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Solution
Office rent, office lighting, office salaries, insurance, postage and telegrams, stationery and printing, audit fees, legal expenses are recorded on the Debit side of the profit and loss account.
Explanation:
Office and Administrative expenses, such as Rent, Rates and Taxes, Office Salaries, Printing and Stationery, Office Lighting, Postage and Telegrams, etc., are debited to the profit and loss account.
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