Question 15 of 30
Q.
From the following details, prepare profit and loss account.
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| Gross profit | 50,000 | Interest received | 2,000 |
| Office rent | 10,000 | Carriage outwards | 2,500 |
| Discount Allowed | 12,000 | General expenses | 3,000 |
| Advertisement | 4,000 | ||
| Audit fees | 1,000 |
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2022Subjective· 3mImportance★★★★★
50% · 15/30 Questions
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Start your 14-day free trial to unlock the full solution →Carry the gross profit and other income to the credit side, charge all indirect expenses to the debit side; the excess of credit over debit is the net profit — here ₹19,500.
Only indirect expenses and other incomes appear in the Profit & Loss Account (gross profit is already the balance of the Trading Account).
Profit and Loss Account (for the period)
| Dr — Particulars | ₹ | Cr — Particulars | ₹ |
|---|---|---|---|
| To Office rent | 10,000 | By Gross profit b/d | 50,000 |
| To Discount allowed | 12,000 | By Interest received | 2,000 |
| To Advertisement | 4,000 | ||
| To Audit fees | 1,000 | ||
| To Carriage outwards | 2,500 | ||
| To General expenses | 3,000 | ||
| To Net profit (transferred to Capital) | 19,500 |
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