What does mean is Profit & Loss Account Shows Debit Balance in
Trail Balance ?
Answer Posted / jack
Trial Balance is just a statement, and not an account.From
Trial blance debit balance is not showing to P&L A/C.
Is This Answer Correct ? | 2 Yes | 6 No |
Post New Answer View All Answers
Key difference between indian accounting standards and international accounting standards is.
What is the master account?
What are source documents in accounting?
Tell me under the accrual basis of accounting, when revenues are reported in the accounting period?
how to do asset appreciation in sap?
What is Prepaid Entry
What is cotangent Account?
we given watches to Employees how to treat accountability what is the debit and credit, or any provision to be ?
How much statistics knowledge is necessary or required in accounting?
How i should sellone the mobile phone when interviewer will ask sell this phone to me?
Which accounting applications are your familiar with?
Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
What is the Project Accounting in case of Real Estate or Construction Co`s ?
Why in SAP external number range should be selected for depreciation posting . any specific reasons for that explain me? Raj
How many types of business transactions are there in accounting?