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Difference between P/L a/c and Trading a/c
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Answer / birendra singh
The trading account show in gross profit not show in actual
profit, but the profit and loss account show in actual
profit before pbt
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / ajaz ahmad bhat
Trading a/c is the a/c which only relates trade items purchases, sales, and expenses during the trading period but profit and loss a/c shown the all expenses whether direct or indirect and after we will give the output of result of net profit or net loss and transferred the balance sheet.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / sandeep
Trading account means business account in which all
business related account includes.
Profit & Loss account in which only income and expense are
include.
| Is This Answer Correct ? | 9 Yes | 21 No |
dear i want basic a\C's oriented question. these are asking in mostly all mnc companies
If there is an excess amt of TDS paid under the head TDS on contractor, then how it can be shown in Annexure of TDS return?
why is the recocillation done?
2 Answers Global Talent Track,
A computer purchased for the use of Branch & payment would be made by company. What would be the entry in the books of Branch ?
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why the accounts as personal real and nominal
I want to know accounting information in oracle apps projects costing module. i.e Which account is cr and which account db. Please help me.
HOW MANY CHART OF ACCOUNT WE CAN DEFINE IN A COMPANY CODE. (SAP QUESTION)
mention five items that is commonly use when preparing trading and loss account
whether bills of exchnge can come under the category of reserves and surplus
0 Answers Iyer Coaching Centre,
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?
if at the end of the year cash book is showing debit balance whether it is meant that cash is not deposited after deducting expenses in bank and it is in hand and we should deposit in next year
Audit 
