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
- 18020 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 |
Define bills receivable?
what is contigent liability and where we shown in balance sheet
what is mean by paidup capital.?
Can pls tell me difference between simple cash book & accrued cash book?
Purchased 10 pcs Mouse @ 230 from TC Ltd and get another 2 pieces as free sample.
What is accounting entity concept? why is it important in Accounting.
My Books of Accounts started from January 2013, I have opening Bank Balance Rs.1000/- Owner says this amount paid by one client in December 2012 appear in bank statement What is Accounting entry for the Accounting 2013 ?
What is the general classification of accounts that usually ledger account involve?
what is difference between capital reserve n reserve capital?
what is the role mis
what is the process of cenvat credit taken in service tax( in direct & indirect service)
Name three (3) equity security data points
Audit 
