Question

The profit & loss disclosed by the accounts of a company is ________________.

• A. Transferred to share capital account
• B. Shown in the column of 'Current Liabilities and Provisions'
• C. Shown in the column of ' Reserves & surplus' under a separate account
• D. Transferred to general reserve
• E. Transferred to Dividends payable account

Answer 1

The correct option is C Shown in the column of ' Reserves & surplus' under a separate account

Profit and loss disclosed by the company should be shown under the head reserves and surplus as Surplus i.e., balance from statement of profit and loss account.