why we transfer wages and salary in trading a/c,and why we
transfer salary and wages in p/l a/c?
- 2 Answers
- 16834 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 |
Post New Answer View All Answers
what will be the entry for inventory
PLEASE CLEARLY EXPLAIN WHAT IS MEANT BY TDS,CST,ADVANCE TAX,PF,PT,ESI.CLEARLY AS IF EXPLAINING TO LAY MAN
how to calculate the per unit cost of production
Which forms in use in service Tax, Excise duty and Vat for the return.
what is the accounting treatment in tally of free goods received with goods purchased.
what is gl a/c? & why is it maintain
salary payable deduct tds entry
1.WHAT IS BRS? 2.WHY DO WE PREPARE BALANCE SHEET? 3.WHAT IS TRIAL BALANCE? 4.WHAT IS VENTURE CAPITAL? 5. WHAT IS DEFFERED REVENUE EXPENDITURE?
What is an ea in accounting?
Are you comfortable with cold-calling?
Who is the sundry creditors
What is computerized accounting?
Where a cash discount should be recorded in a journal entry?
how calculate intrest on advance tax ? and penalty on vat?
hi to all.... what is the treatment for Work-In-Progress in Tally...please answer for it as early as possible... thanks & regards
