Question

__________ is prepared to know the financial performance.

• A. Balance Sheet
• B. Trading & Profit and Loss Account
• C. Both
• D. None

Answer 1

Answer: (B)

Trading & Profit and Loss Account

Trading & Profit and Loss account is prepared to know the financial performance of the business for a particular period , usually a year. These statements are prepared at the end of financial year.

Trading & Profit and Loss Account

Particulars Amount Particulars Amount

To Opening Stock By Sales

To Purchases By Closing Stock

To Direct Expenses

To Wages

To Gross Profit

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To Rent By Gross Profit b/f

To Salary By Dividend

To Insurance

To Office Expense
To Depreciation

To Stationery

To Other indirect Expenses

To Net Profit

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