Q.The financial statements consist of:

The indirect expense among the options is Salary — option (b).

In the Kerala Plus One (DHSE) Accountancy final accounts, expenses are split by where they are charged:

Direct expenses are those incurred to purchase goods and bring them to the godown in saleable condition (carriage inward, freight inward, wages). Indirect expenses are office, administrative, selling and distribution costs incurred after goods are ready — salary of office staff is a classic indirect expense charged to the Profit & Loss Account.

Correct option: (c) salary.

Direct expenses (wages, carriage inward, cartage) relate to buying/producing goods and go to the Trading A/c. Salary is an office/administrative expense - an indirect expense charged to the P&L A/c. So salary is an indirect expense.

Carriage outwards is an indirect (selling) expense shown in the Profit & Loss Account.

In final accounts of a +2 Commerce syllabus:

• Carriage inwards (on goods purchased) is a direct expense → Trading Account.
• Carriage outwards (on goods sold) is an indirect expense → Profit & Loss Account, because it is incurred to distribute goods after they are ready for sale.

It is neither a deferred revenue expenditure (benefit is not spread over years) nor a loss.

Manager's commission is a payment for services rendered, hence an expense.

• Commission paid (to a manager or agent) is a charge against profit for services received.
• It is debited to the Profit & Loss Account as an operating expense.
• Commission received would be an income; here it is commission to the manager, so it is an expense.

This is a routine P&L item in CHSE Odisha +2 Accountancy, aligned with NCERT/CBSE.

The Profit & Loss Account computes net profit/net loss after indirect items.

• It starts with gross profit (from the Trading Account), adds other incomes, and deducts all indirect/operating expenses.
• Its balancing figure is the net profit (if incomes exceed expenses) or net loss.
• Gross profit comes from the Trading Account; appropriation is in the Appropriation Account; financial position is the Balance Sheet.

This is core final-accounts knowledge in CHSE Odisha +2 Accountancy, aligned with NCERT/CBSE.

The Profit & Loss A/c reveals net profit (or net loss).

In +2 Class-12 Commerce Accountancy, the final accounts of a trading concern are prepared in stages:

• The Trading A/c matches sales/closing stock against cost of goods sold to give gross profit.
• The Profit & Loss A/c starts with gross profit, deducts indirect expenses (office, selling, financial) and adds other incomes to give the net profit carried to the capital account/Balance Sheet.

'Cost of goods manufactured' belongs to a manufacturing account and 'appropriation of profit' to the P&L Appropriation A/c, so the correct answer is net profit.