Question

state the list of items that will appear in the profit and Loss Account of an enterprise.​

Answer 1

Explanation:

P&L usually has five main components:

revenue (sales/turnover)

revenue (sales/turnover)cost of goods sold (COGS)

revenue (sales/turnover)cost of goods sold (COGS)gross profit (revenue minus COGS)

revenue (sales/turnover)cost of goods sold (COGS)gross profit (revenue minus COGS)expenses

revenue (sales/turnover)cost of goods sold (COGS)gross profit (revenue minus COGS)expensesnet profit (gross profit minus expenses)

and other item

Office and administrative expenses

Office salaries, Office Rent, Office Light­ing, Printing, Stationary, and Telephone Rent, Directors’ fees, Auditor’s fee, Legal Expenses, Postage, Insurance, Repairs, Interest and other similar expenses connected with the office.

Financial expenses:

Interest on loan, Discount Allowed, Interest on Capital, Bad Debts, Bank Expenses, Discount on Bills etc.

Sales Expenses:

Salesmen Salaries, Travelling Expenses, Advertising, Selling Commis­sion, Brokerage, Free Samples, Trade Expenses etc.

Distribution expenses:

Carriage out, Warehouse expenses, Warehouse Insurance, Ware­house rent, Delivery Van Expenses, packing expenses etc.