Which of the following items is recorded in profit and loss appropriation account?
Transfer to general reserve
The correct answer is option 2. The transfer to the general reserve is recorded in the profit and loss appropriation account. This account is used to allocate the net profit to different reserves or accounts such as the general reserve, dividend distribution, or retained earnings. The other items mentioned (bad debts, accrued interest, and printing and stationery) are typically recorded in the profit and loss account, not the appropriation account.
Important Questions from Trading and Profit & Loss Account
The cost of goods sold is equal to:
Which of the following costs is NOT included while calculating the cost of the inventory?
A not-for-profit organization pays rent for the building at Rs. 1,000 per month. However, the rent for the last two months has not been paid. What will be the amount shown in the receipt & payment account and income & expenditure account, respectively?
Which of the following statements is INCORRECT in the context of Not-for-profit organizations?
Which of the following items is NOT recorded in profit and loss account?
