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What are the Important adjustment entries in a profit and loss account?
Wiki User
∙ 14y ago
Important entries in profit and loss account are.....
1. Depreciation
2. Bad Debts
3. Interest on capital & drawings
4. Prepaid expenses
5. outstanding expenses ......etc
Wiki User
∙ 14y ago
Some important adjustment entries in a profit and loss account include depreciation expense, accruals, prepayments, provisions for doubtful debts, and deferred revenue. These entries help to accurately match expenses and revenues in the accounting period they relate to, ensuring the financial statements present a true and fair view of the company's financial performance.
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What are journal entries for sale of vehicle for non profit?
debit cash / bankcredit vehicle account
Is Profit and loss appropriation account a financial statement?
Yes it is. For partnerships, their P&L account can be divided into 2 parts, the normal P&L account and also the P&L appropriation account. once profit and loss account is prepared to do some adjustment with the net profit , predecided by the management, a separate account is opened named profit and loss appropriation account. :) I LOVE JUSTIN BIEBER
What is the journal entries for disposal of fixed asset?
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
Why profit and loss account is called as profit and loss account and why not profit or loss account?
Tradition, and the need to call it something.
What are the limitations of profit and loss account?
"What are the limitations of profit and loss account?"
Why the statement of account is important for the organization?
a statement of account is like a profit and loss account you need to include you company revenue and that could let you know what your business is up to
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
Profit and loss appropriation account uses meaning?
details of profit and loss appropriation account Profit and loss appropriation account is prepared after profit and loss account..It s a account where the profits earned by the company is brought in from profit and loss accont and it s distributed to various accounts like interim divident account, provision for taxiation account, general reserve account etc.....it s a account which shows how the profits are distributed in an organisation.....
What is the difference between profit and loss account and profit and loss appropiation account?
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
Is profit and loss account is a nominal account?
Yes. Profit and loss account is a nominal account and also trading a/c to be prepared at the end of the year.
What are journal entries for sale of vehicle for a non profit entity?
debit cashcredit vehicle
