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

To finish  this scenario, use the Sample Size Estimator Sheets A, B of this file. In the previous years of the twenty-first century, annual salaries for federal employees in the

Applicaion of Specific And General Loan

QUESTION The recognition of human capital by modern businesses has led to the development of Human Resource Accounting (HRA) Required- (a) Explain the following terms-

As of 2005, consolidated financial statements of listed companies in the European Union are required to be prepared in accordance with IFRSs. Complete the following accounting p

are exploration costs assets to Mining companies?

Hello, I have a presentation about an assigned case study from the book and i also have the solution manual. I am extremely busy till the day of my presentation and my english lan

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


Along with a view to harmonise varying accounting policies and practices recently utilize in India, the Institute of Chartered Accountants of India (ICAI) created the Accounting St