Repairs to machinery is shown as __________ in profit or loss account.

Interest on Debentures is a/an ___ and is debited to the 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.

All expenses are shown on _______ side of profit or loss account.

A loss incurred on the disposal of plant and machinery should be debited to Profit or loss account. Is the statement true / false?