Question

INTEXT QUESTIONS 13.5
L Write 'debit' if Profit and Loss Account is to be debited and credit
if to be credited of the following items:
(a) Legal charges
(6) Net Loss
(c) Rent Received (d) Discount Allowed
(e) Salaries
ACCOUNTANCY​

Answer 1

Answer:

• Write Debit if Profit and Loss account is to be debited and Credit if to be Credited Of the following Items :

a ) Legal Charges ; Debit side

Legal charges are recorded in debit side of Profit and Loss account.

b ) Net Loss ; Credit Side

Net loss is shown in credit side of P/L Account , if there is loss in Profit and loss Account

c ) Rent Received ; Credit Side

Rent received is recorded in Credit side and rent paid is shown in debit side

d ) Discount Allowed ; Debit side

Discount allowed is shown in Debit side and Discount received is shown in Credit side.

e ) Salaries ; Debit side

Salaries are recorded in debit side of Profit and Loss account

Profit And Loss Account :

After ascertaining the gross profit of the business the business man will be interested to know the net result of the business at the end of the accounting period.