What are the components of Profit and Loss Account? Explain them
What are the components of Profit and Loss Account? Explain them All expenses, losses, incomes and gains are the components of Profit and Loss Account:
Expenses and losses are shown on the debit side of Profit & Loss Account. Following is the list:
Administrative Expenses:
* Office Salaries * Postage & Telephone * Traveling & Conveyance * Legal Charges * Office Rent * Depreciation * Audit Fees * Insurance * Repairs & Renewals
Selling and Distribution Expenses:
* Advertisement * Carriage Outward * Free Samples * Bad Debts * Sales Commission
Incomes and Gains are shown on the credit side of the Profit & Loss Account. Following is the list:
Gross Profit (balance forwarded from the Trading account)
Other Income:
* Discount received * Commission received * Non-Trading Income * Interest received * Bad Debts recovered * Rent received * Profit on the sale of assets
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