True and fair profit or loss of a company can be known by _________.

Preparing trial balance

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Preparing respective ledger of account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Preparing trading a/c

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Preparing trading & profit or loss a/c

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
Preparing trading & profit or loss a/c

True and fair profit or loss of a company can be known by preparing trading & profit or loss a/c.

Suggest Corrections

Similar questions

Q. Steps of preparing Final Accounts is -
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount Rs	Credit Amount Rs
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank over draft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock Rs 15,000.

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. While preparing trading and profit and loss a/c _________ is made.

Trading & Profit & loss account and balance sheet is prepared from:

Join BYJU'S Learning Program

True and fair profit or loss of a company can be known by _________.

The correct option is D Preparing trading & profit or loss a/c True and fair profit or loss of a company can be known by preparing trading & profit or loss a/c.

The correct option is D
Preparing trading & profit or loss a/c

True and fair profit or loss of a company can be known by preparing trading & profit or loss a/c.