- Results of Trading Account
Visual Aid - 7: Profit and Loss Account
Profit and Loss Account
ó Selling and Distribution
Expenses
ó Management Expenses
ó Financial Expenses
ó Maintenance and
Depreciation
ó Net Profit
Rs.
ó Gross Profitó Earned Discountó Income From Investmentó Interest on Depositsó Interest on renewal of billsó Other incomeRsTotal Rs.
Total Rs.
7.6. Faculty should explain each item on the debit side of Profit and loss
Account with examples. Faculty may use the example given below:ó Selling and Distribution expenses
o Ware house and Store Rent
o Packing charges
o Export charges
o Cost of samples
o Cost of catalogues
o Advertising
o Travelers’ Salaries expenses and commission
o Bad debts
o upkeep of motor Lorries or Vanó Management expenses
o Office salaries and wages
o Office Rent and Taxes
o Office Lighting and Insurance
o Office Car up-keep
o Printing and Stationery
o Telephone charges
o Postage, Telegram etc.,
o Legal expenses
o Directors’ fees and expenses