A gross profit is transferred to the ____________ side of the profit and loss account.

Debit

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Credit

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Current

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Asset

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Solution

The correct option is B Credit
Trading account is prepared to know the gross profit/loss of the business. Gross profit taken out from trading account is transferred to credit side of the profit & loss account to meet out the indirect expense.

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Similar questions

Q. Which are the accounts which are not balanced but transferred to Trading A/c or Profit &loss A/c?

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

Q. Before a partner retires, reserves created out of profits or balances in profit and loss account must be transferred to the capital accounts of all the partners in ________.

Q. Before a partner retires, reserves created out of profits or balances in profit and loss account must be transferred to the capital accounts of all the partners in -

Q. Entry for transfer of Gross profit is :
Profit and Loss A/c Dr.
To Trading A/c

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A gross profit is transferred to the ____________ side of the profit and loss account.

The correct option is B CreditTrading account is prepared to know the gross profit/loss of the business. Gross profit taken out from trading account is transferred to credit side of the profit & loss account to meet out the indirect expense.

The correct option is B Credit
Trading account is prepared to know the gross profit/loss of the business. Gross profit taken out from trading account is transferred to credit side of the profit & loss account to meet out the indirect expense.