Interested to Buy Any Domain ? << Click Here >> for more details...
why we transfer wages and salary in trading a/c,and why we
transfer salary and wages in p/l a/c?
- 2 Answers
- 17988 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / pranesh debnath
Because Wages & Salary is taken as closely related to trading activity that is transferred to Trading statement (Trading A/C) whereas Salary & Wages is related to operating activity and transferred to operating statement (P&L A/C).
| Is This Answer Correct ? | 32 Yes | 5 No |
Answer / ameet narayankhedkar
Balance in Trading a/c:
The "Trading a/c" is a nominal account. It is closed at the
end of the accounting period by transferring its balance
(Gross profit/loss) to the "Profit and Loss a/c".
Thus the trading account can be placed on par with any other
nominal account.
Balance in Profit and Loss a/c:
The Profit and Loss a/c is a nominal account. It is closed
at the end of the accounting period by transferring its
balance to either the Capital a/c or the Profit and Loss
Appropriation a/c (or Retained Earnings a/c).
The "Trading a/c" and "Profit and Loss a/c" relating to a
particular accounting period are independent of similar
accounts relating to any other accounting period.
| Is This Answer Correct ? | 5 Yes | 15 No |
My company has taken a car loan from HDFC Bank, Assume 7.5 lacs. but it disbursed after deducted adv emi. how to pass the jv for that . Plz pass the entry
what is accounts?
what is mercentile system in accounting
In the General Ledger.. When putting discounts, you put discounts on the DR side for Creditors and Discounts on the CR for Debitors.. Which side does discount go on for the rest of the accounts such as Purchases, M Dog, L Shirt, and L Dress?
What is the difference between cfa and csa?
You are a B.E Student? How can u manage Banking?
What is capital?
What is the basic entries of cash and bank with a trading company.
Sale of Rs.10000, where in 50% is on credit and there 10% discount on the immediete payment. Pass a journal entry for this
what is groups and and ledgers in tally can you give why we need to prepare them
in Sensex and Nifty, what is the measure to take the points
WHAT IS THE ROLE OF BANK CERTIFICATE OF EXPORT AND REALISATION IN EXPORT HOUSE? PLEASE TELL ME WITH DETAIL AND ITS PROCISSOR?
Audit 
