Profit and Loss Account Questions with solutions MCQs

1. Which of the following would not be found in a profit & loss appropriation account?

A

Interest on capital

B

Salaries

C

Interest on loan by partner to partnership

D

Interest on drawings

Profit and Loss Account Accountancy and Book Keeping
Correct Answer : C
Explanation :

Salary/commission to manager is an item of Profit and loss account. Only items relating to partners will be entered in Profit and loss Appropriation like interest on capital, profit, interest on drawings, salary/commission to partners.

Correct Answered :

Wrong Answered :

2. Which one of the following items cannot be recorded in the profit and loss appropriation account?

A

Interest on capital

B

Interest on drawings

C

Rent paid to partner

D

Partner`s salary

Profit and Loss Account Accountancy and Book Keeping
Correct Answer : C
Explanation :

Salary/commission to manager is an item of Profit and loss account. Only items relating to partners will be entered in Profit and loss Appropriation like interest on capital, profit, interest on drawings, salary/commission to partners.

Correct Answered :

Wrong Answered :

CONTACT US

  • J & K

  • admin@prepmart.in

  • LIKE AND SHARE YOUR EXPERIENCE

    Like Us on Facebook Join Us on Telegram
    VISITORS COUNT 9 0 2 0 2 3
    Developed By : Azhar Rashid Teli