Question

To find out net profit or net loss of the business ________ account is prepared. (Fill in the blank by choosing correct option)
a) trading
b) capital
c) current
d) profit and loss

Answer 1

to find out net profit or net loss of the business profit and loss account is prepared.

hope that this will helpful for you

Answer 2

To find the net profit or net loss of the business profit and loss account is prepared.

Explanation:

• For the preparation of the balance sheet net profit or loss is important for calculating profit or loss of the account.
• Profit and loss account are prepared after the trading account.
• All the expenses like advertising, carriage outwards, postage expenses, telegrams and telephone charges regarding to business concern, gross profit and other expenses are included in the debit side of the profit and loss account, gross loss and other receivables are included in the credit side of the profit and loss account .