how to prepare Profit and los accounts ?
Answer Posted / viswajanani
debit side (all office expenses like salaries, rent electicity etc ) and credit side (the gross profit , commision recived and discount recived)
in p/l ac we will enter all the indirect expenses on the debit side and all indirect incomes on the credit side from this we will come know about the profit or loss of the company or firm
| Is This Answer Correct ? | 6 Yes | 2 No |
Post New Answer View All Answers
Example for extra ordinary expenditure?
Iam selected for final round of interview in IDBI bank for asst. manager post. Can any one help me in knowing what kind of questions will be asked in the interview and how should i prepair?
I KNOW THAT INSURANCE CHARGES ON PURCHASE OF VEHILE (LIGHT/HEAVY VEHICLES)HAS BEEN CAPITALISED OR NOT.?
What Settlement details are required on the delivery instruction slip?
Give me total Details of payroll calculation, payslip with examples.
Who to create a budget on software company
Short Answer on ______________Import Trade
What are direct income and indirect income
Explain the word Liquidation
What is the rule on a school who will be handled by anither school? How do I calculate the royalty per year to the school who will supervise a new school
Short Answer on __________Measurement
how we could adj. the entries of prop. & firm in merging time
From the following find out a. Profit Volume ratio b. Break even point c. Sales for 40% P/V Ratio d. Margin of safety from the sales Rs 3,00,000 e. Net profit from the sales of Rs 3,00,000 f. Required sales for the new profit of Rs 70,000 g. Required sales for the net profit of Rs 70,,000 after tax, the corporate income tax being 40% h. Additional sales required to convert an increase of Rs 3000 p.a. in the sales manager salary Sale 2,00,000 Variable Overheads 1,50,000 Profit 50000 Fixed overheads 15000 Net profit 35000 Sl No Heads of Account Debit Rs Credit Rs 1 Drawing and Capital 750 15,000 2 Stock as on 01.01.2009 69720 3 Bills Receivable and bills payable 1000 1180 4 Returns 300 320 5 Purchases and Sales 4500 8300 6 Wages 70 7 Discount 30 8 Salaries 200 9 Canara Bank Shares 3000 10 Insurance 120 11 Building 3000 12 Furniture 700 13 Debtors and Creditors 600 1300 14 Cash in Hand 470 15 Overdraft at bank 900
3. You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
What three Specific Job Positions do you target from the Industry