Advertisements
Advertisements
Question
Which of the following is NOT an item of profit and loss account?
Options
Carriage Outwards
Heavy advertising expenses
Purchases and Sales
Interest on Overdraft
MCQ
Advertisements
Solution
Purchases and Sales
Explanation:
Purchases and sales are trading-account items used to calculate gross profit and appear in the Trading Account, not the Profit & Loss Account. Carriage outwards, heavy advertising and interest are P&L expenses.
shaalaa.com
Is there an error in this question or solution?
