GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Following expenses are not shown in Profit & Loss Account
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Domestic and household expenses
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Life insurance premium
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Income tax
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All of the above
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Explanation:
Detailed explanation-1: -Withdrawal of capital is not shown in profit or loss appropriation account.
Detailed explanation-2: -Examples are salary to office staff, salesmen commission, insurance, legal charges, audit fees, advertising, free samples, bad debts etc. It will also include items like loss on sale of fixed assets, interest & provisions and accrued expenses as well. All abnormal losses are charged against Profit & Loss Account.
Detailed explanation-3: -All expenses are shown on debit side of profit or loss account.
There is 1 question to complete.