Question

from the following particulars, prepare a profit & loss account of asian traders for the year ended 31st March 2018:
Salaries 60,000
Discount allowed 8,000
Discount Received 5,000
Bad debts 2,000
Rent and Rates 2,000
Insurance 2,500
Interest on Investment 2,000
Depreciation 1,200
Commission (Dr.) 4,000
Gross Profit transferred from trading A/c 1,60,000​

Answer 1

Answer:

Interest on investment is our income so it comes in profit and loss debit side. Net profit is 87300.