Distinguish between Profit and Loss Account and Profit and
Loss Appropriation Account.
- 4 Answers
- 47162 Views
- Genpact, I also Faced
- E-Mail Answers
Answer Posted / anjali penta.
Profit and loss account records all the operating and non operating incomes and expenses and incomes to arrive at net profit. This is Net Profit before tax. Further, we record provision for tax on the debit side of the Profit and loss account and get net profit after tax.
Profit and Loss Appropriation account showcases the appropriation of profit. in cse of Companies, only transfer to the various reserves and proposed dividend i recorded on the debit side. Whereas, on the credit side appears Net profit ater tx brought down from the profit and loss ccount and the balance brought dwn from h last year's profit and loss appropriation account.
| Is This Answer Correct ? | 12 Yes | 2 No |
Post New Answer View All Answers
What is meant by public accounting?
Define overhead in terms of accounting?
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.
adams a debtor for R600 had been declared insolvent and part of his debts has to be written off. The attorneys informed you that an amount of 25c in the rand will be paid and the rest must be written off
Define and distinguish between flexible and floating exchange rate system. What kind of exchange rate system does china have?
what is retention? how caculate on asset
What is compound journal entry?
Explain me the term material facts in accounting?
what is profitability ratio and dividend policy ratio
Please guide in details about Payroll in Tally.erp9??
What are the activities that are included in the cash flow statement?
is goods in transit will be liable for entry tax ?
What is BRS Adjustment entry?
What are the objects of cost accountancy?
IS THERE ANY DIFFERENCE BETWEEN PAID UP CAPITAL AND PAID IN CAPITAL?
