Page 102 - Office Practice and Accounting 10
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8. Prepare Profit and loss account from the following details.
Gross profit 2,50,000
Bad debts 1,350
Advertisement 3,800
Legal expenses 3,600
Stationery 250
Insurance 3,000
Discount 100
Commission received 1,500
Repair 2,000
Salaries 80000
Office rent 12000
General expenses 14,000
Solution :
Profit and Loss Account
For the year ending … … …
Dr. Cr.
Particulars Amount Rs. Particulars Amount Rs
To salaries 80,000 By gross profit b/d 250000
To office rent 12000 By commission 1,500
To general expenses 14,000
To insurance 3,000
To legal expenses 3,600
To stationery 250
To discount 100
To bad debts 1,350
To advertisement 3,800
To repairs 2,000
To net profit 1,31,400
251500 251500
96 Office Practice and Accounting 10
