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
- 18176 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 |
Dear Sir, We are operating a Security Agency, Please suggest us how to calculate holidays & Overtime duty, where we take 12 hrs, duty from guards in place of 08 hrs. duty. Please suggest us how to calculate. thanking you, suman
How to make a vat entry in books including setoff?
List out things that fall under intangible asset?
What is Profit and Loss Account? What is Balance Sheet?
What type of Question asking in Interview for Infor LN profile for an experienced person.
Why do you prepare a Trial Balance?
what will be the possible question for an interview in account post as a fresher
Define "book value" as applied to accounting
director wife expenses which entry
distribution of gift in diwali to employee & buyer!! what's suitable expences head.
2 Answers Hindustan Institute of Technology,
what is the accounting term of bank reconcilation? explain me
how to calculate process account under fifo and weighte average method in eqivalent production.
Audit 
