41 Account -- Final Accounts

How is the gross loss determined?

How is the gross loss determined?

1 Answers

If direct income is less than direct expenses, than the difference is determined as gross loss.

More questions on Final Accounts

1. What are the accounts and statements prepared under final account?

Trading account, profit and loss account are the accounts and balance is the statement prepared under final account.

What result does a trading account ascertain?

Trading account ascertains the result of gross profit or gross loss.

What types of expenses and incomes are treated in trading?

Direct expenses and factory expenses and direct incomes are treated in trading account.

In which business account is direct expenses and direct incomes compared?

Direct expenses and direct incomes are compared in trading account.

What type of expenses and incomes are treated in profit and loss account?

All indirect expenses and all indirect incomes are treated in profit and loss account.

Why is profit and loss account prepared?

Profit and loss account is prepared to determine the position of net profit or net loss.