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Question 15 of 30
Q.

From the following details, prepare profit and loss account.

Particulars₹Particulars₹
Gross profit50,000Interest received2,000
Office rent10,000Carriage outwards2,500
Discount Allowed12,000General expenses3,000
Advertisement4,000
Audit fees1,000
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2022Subjective· 3mImportance★★★★★
50% · 15/30 Questions
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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 rent10,000By Gross profit b/d50,000
To Discount allowed12,000By Interest received2,000
To Advertisement4,000
To Audit fees1,000
To Carriage outwards2,500
To General expenses3,000
To Net profit (transferred to Capital)19,500

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