Items in the profit and loss account, Accounting Standards

The subsequent items are debited in the profit and loss account as:

1. Administrative expenses comprising office salaries, office lighting, office rent, printing, director's fees, insurance, telephone rent, postage etc.

2. Sales  and  distribution  expenses  containing  sales men  salary,  travelling expenses, commission, advertising, royalty, packing expenses, etc.

3. Financial expenses including interest on loan or capital, cash discount permitted bad debts and bank charges and so on.

4. Depreciation of assets and different provisions.

5. Another expenses and losses comprising loss on sales of fixed assets, by theft, loss by fire and by accident etc.

6. Taxes comprising sales taxes and income taxes etc.

The subsequent items are credited in the Profit and Loss Account as:

1. Interest Received

2. Apprentice Premium

3. Cash Discount Received

4. Dividend Received.

 5. Gain on Sale of Fixed Assets

6. Rent Received

Note: The personal and household expenses of the proprietor paid through the firm do not show in the profit and loss account. Quite these are reacted as personal drawings of the proprietor and are deducted by the capital into the balance sheet.

Posted Date: 4/3/2013 6:23:43 AM | Location : United States







Related Discussions:- Items in the profit and loss account, Assignment Help, Ask Question on Items in the profit and loss account, Get Answer, Expert's Help, Items in the profit and loss account Discussions

Write discussion on Items in the profit and loss account
Your posts are moderated
Related Questions
Dear Sir, I am an accountant working in a company with limited liability (WLL), one of the partners (A) will withdraw from our company. One of the existing partner (B) of the comp

Current Liabilities We have studied about liabilities are claims of outsiders against the business. Conversely, these are amounts owed through the business to people who have

Q. Define Economic and financial decisions? You most likely will find that of all the business knowledge you have acquired or will learn the study of accounting will be the mos

are exploration costs assets to Mining companies?

Hello, I am interested in help on an ACCO 310 case which is due on Tuesday the 13th at 12 PM. Please contact me at your earliest convenience and hopefully we can work something ou

Which ratio measures a business' average payment period? A.  current ratio   B.  liquid ratio C.  trade payables turnover   D.  trade receivables turnover

describe why a high stock turnover is considered to be a good thing

Q. What do you mean by Accounting Environment? Record keeping in an accounting sense is deliberation to have begun about 4000 BCE. The control, record-keeping, and verification

Accounting Concepts: The dual aspect principle has specific relevance to balance sheet. According to this principal, every transaction is concerned as one that has dual ef

Trading account is ready to ascertain the Gross Profit and Loss of a firm; here Gross Profit is the excess of total revenue over cost of goods sold as the credit side of the tradin