Question

On credit side of Profit and Loss account we record
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Answer 1

Answer:

for credit that is debt we calculate loss -profit

Answer 2

Trading and Profit and Loss Account is prepared to ascertain the profit and losses of the prganisation.

• From Trading Account we get the gross profit and from profit and loss account we get the net profit.

• On debit hand side in the profit and loss account we record gross profit and then we record all the office and  adminsitrative expenses.
• Office and administrative expenses are like salary, rent, printing and stationery, telephone bills, legal charges and trade expenses etc.

• On the credit hand side in the profit and loss account we record all the incomes like rent recieved, discount recieved, commission recieved, dividend on shares etc.