What is the treatment of profit or loss account while transferring amount to sinking fund?

Debit

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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. Any profit or loss on the sale of sinking (depreciation) fund investment is transferred to:

Q. Select the most appropriate alternative from those given below:
Gross Profit or Gross Loss is transferred to _______ Account.

The revaluation profit/ loss is transferred to the capital accounts of ______.

Q. A gross profit is transferred to the ____________ side of the profit and loss account.

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