Question

Under which line item (major head) of the Statement of Profit and Loss of a financial company will the following be shown:
(i) Interest on Loans Given:

(ii) Gain (Profit) on Sale of Securities;

(iii) Loss on Sale of Fixed Assets;

(iv) Interest paid on Deposits;

(v) Depreciation on Computers;

(vi) Goodwill Written off;

(vii) Commission paid for Deposit Mobilisation; and

(viii) Repairs Expenses?

Answer 1

ITEMS	MAJOR HEAD
Interest on Loans Given	Revenue from Operations
Profit on Sale of Securities	Revenue from Operations
Loss on Sale of Fixed Assets	Other Expenses
Interest paid on Deposits	Finance Costs
Depreciation on Computers	Depreciation and Amortisation Expenses
Goodwill Written off	Depreciation and Amortisation Expenses
Commission paid for Deposit Mobilisation	Finance Costs
Repairs Expenses	Other Expenses