Question

State any five items to be shown on debit side of ‘Trading Account’ and any five items to be shown on debit side of ‘Profit & Loss Account’.

Answer 1

Items to be shown on the debit side of Trading Account:

(i) Opening Stock

(ii) Purchases

(iii) Direct Expenses

(iv) ***** Profit

(v) Sales Return

Items to be shown on the debit side of Profit & Loss Account:

(i) ***** Loss

(ii) Net Profit

(iii) Indirect Expenses

(iv) Depreciation

(v) Loss on sale of fixed assets