Question

At the end of the year the interest paid and depreciation charged are transferred to the ______

account.

a. Asset

b. Profit and Loss

c. Purchased

d. Seller​

Answer 1

Answer:

b

Explanation:

Answer 2

Option B is correct  i.e. Profit and Loss .

At the end of the year the interest paid and depreciation charged are transferred to the Profit and Loss Account.

Profit and Loss Account is an financial statement that shows all the cost, revenues, expenses and income of an organisation during an year.

This is one of the three financial statement that any company or organisation issues.

These are issued yearly with Balance Sheet and Financial  statement of the company.

Thus tells us that if an organisation is earning profit or loss, this account gives us information about the profit and loss.