Which of the following statement is INCORRECT in the context of Profit and Loss account?
Income Tax paid in case of a proprietary concern is charged to Profit and Loss Account.
The correct answer is option 4. Reason: In a proprietary concern, income tax is a personal expense of the owner and not charged to the Profit and Loss Account.
Similar Questions
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?
______ appears on the credit side of Manufacturing Account.
If the net sales are Rs.35,000, Net Purchases Rs.25,000 and the Closing Stock is Rs.5,000, what will be the amount of Gross Profit?
______ is/are charged to the Profit & Loss Account.
Which of the given statement(s) is/are correct in the context of manufacturing account?
(i) A Manufacturing Account is prepared for finding out the cost of goods produced (also called Cost of Production)
(ii) Sale of scrap and the closing work-in-progress are shown on the credit side of the Manufacturing Account.
Which of the following statements is/are correct in the context of the Trading Account?
(i) Trading Account is prepared for ascertaining the net profit.
(ii) Cost of goods purchased includes all expenses incurred till goods are brought to the place of business.
Which of the following items is NOT recorded in profit and loss account?
Important Questions from Trading and Profit & Loss Account
Which one of the following is the Not-for-Profit Organization?
In case of net worth method of single entry, net profit is ascertained by
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?
