Interested to Buy Any Domain ? << Click Here >> for more details...
We may get profit or loss from business. If so we can name
the statement as Profit or Loss account. But since a long
time we are naming it as Profit and Loss account. Why?
- 1 Answers
- 3334 Views
- I also Faced
- E-Mail Answers
Answer Posted / guest
we write profit and loss because to calculate profit we
need to findout both profit and loss then only we will be
able to come at one conclusion that the business is in
profit or loss
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
Differentiate accounting and auditing?
what is the difference b/w gain and profit?
2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.
sir what is the depreciation and how to calculate depreciation as per company books, i need as per IT ACT, AND Companies Act give me clarification with example
What methods do you use to discover sales opportunities?
Who uses accounting?
How do we calculate the cost of investment?
Accounting transactions are recorded in accordance with thier legal form or substance. Briefly explain the legal form and substance of the accounting transactions and give one relevant example.
What do you mean by material facts in accounting?
your company by machinary for Rs 3000000/-, what will be the maximum term lean avaible form bank?
what is the difference between accounting and bookkeeping?
what is your opinion regarding T.V shows on youth
what is the enty for contract bill raised?
what is a grn in terms of accounting ? what is a grnthroughpo in terms of purchase order? what is a direct grn?
Do you know what is project implementation?
