Salaries paid would be charged to which account - trading account or profit and loss account?
Salaries paid would be charged to profit and loss account.
Will you transfer wages and salaries account to the debit of profit and loss account ? Why?
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.
Salary paid was debited to the employee’s personal account, the rectification entry would be to debit the ___ Account.