why should we call profit and loss account in general we get
profit either loss can we call that as profit or loss account?
Answer / gupta
We post all expenses and losses to the debit side of Profit and loss account and we post all incomes and gains to the credit side of profit and loss account.The outcome of the account may be either profit or loss i.e, we get profit if credit side is more and we get loss if debit side is more.But while recording transactions we post both profits(incomes & gains)and losses(expenses and losses).This is the reason why it is called profit and loss account but not profit or loss account.
Is This Answer Correct ? | 3 Yes | 1 No |
WHAT IS TAX ? WHY SHOULD PAY TAX?WHAT IS THE NEED FOR PAYING TAX?
Distinguish between Profit and Loss Account and Profit and Loss Appropriation Account.
what is the difference between 'quotation' and 'proforma invoice'?
Hi, Mobile manufacturing given a mobile phone as a gift to their employee. What journal entry we need to pass in company point of view.
how we enter insurance claim entry in tally
how to account salary advanced from petty cash
BANK
bill receivable is showing what A/c ( Real, nominal, personal)
What will be the journal entry of purchase and sale for ac purchased for 40000 vat 5% sold for 45000 vat5%
The following figures relate to the trading activities of M/s ABC Traders Ltd for the year ending 31 March 2004. Particulars Amount (Rs) Sales 5,20,000 Opening stock 76,250 Purchases 3,22,250 Closing stock 98,500 Sales return 20,000 Selling and Distribution Expenses Salaries 15,300 Advertising 4,700 Travelling 2,000 Administrative Expenses Salaries 27,000 Rent 2,700 Stationery 2,500 Depreciation 9,300 Other charges 16,500 Provision for tax 4,000 Non Operating Income Dividend on shares 9,000 Profit on sales of shares 3,000 Non Operating Expenses Loss on sale of fixed asset 4,000 You are required to: (i) Arrange the above figures in a form suitable for analysis. (ii) Show separately the following ratios. Net profit ratio Operating ratio Stock turnover ratio
I purchased a machine and finance it by bank with the amount 1900000 and bank apply the finance charge 440000 for 3 years finance how to pass this entry still machine value is 2200000 is finance charge is interest (indirect exp.) pls help me.
What is accrual accounting?