Close Menu
Login
(Sponsored by Sir Tauqeer)
Join Sir Tauqeer Whatsaap group
(Sponsored by Sir Tauqeer)
Join Sir Tauqeer Whatsaap group
(Sponsored by Sir Tauqeer)
Join Sir Tauqeer Whatsaap group
By Accounting Mcqs No Comments

Which of the following will not appear in Profit and Loss Account of a business?

A. Drawings
B. Bad debts
C. Accrued expenses
D. Reserve for discount on Sundry Creditors

Profit and Loss Account is an income statement which depicts all incomes/gains and
expenses/losses during an accounting period. Drawings are neither an income nor an expense to be recorded in Profit and Loss Account. Thus A. is the correct answer. The items in other alternatives are either expenses or accrued expenses or probable income of discount on sundry creditors. The depreciation, bad debts and provision for doubtful debts and accrued expenses appear in the Profit and Loss Account and provision for income i.e., provision for discount on sundry creditors. Hence A. is the correct answer.

Related Mcqs:

  1. Which of the following is not true with regard to preparation of Profit & Loss Account?

    A. Profit & Loss Account is prepared for a certain period and hence it is an interim statement
    B. Profit & Loss Account does not disclose the effect of non-financial items
    C. Net Profits are ascertained on the basis of current costs
    D. Net Profits as disclosed by P&L Account is not absolute

  2. The Profit and Loss Account shows the:

    A. Financial results of the concern for a period
    B. Financial position of the concern on a particular date
    C. Financial results of the concern on a particular date
    D. Cost of goods sold during the period

  3. Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

    A. Added, Reduced
    B. Added, Added
    C. Deducted, Added
    D. Deducted, Deducted

  4. Which of the following accounts appear(s) in the Balance Sheet of a business?

    i. Stock at the end of the financial year
    ii. Stock at the beginning of the financial year
    iii. Drawings
    iv. Prepaid Rent
    v. Interest received but not yet earned

    A. Only (i) above
    B. Only (iii) above
    C. Both (i)and (iii) above
    D. (i), (iii), (iv) and (v) above

  5. Building account is classified as _________ account?

    A. Nominal
    B. Real
    C. Cash
    D. Capital

  6. Office equipments account is classified as _________ account?

    A. Nominal
    B. Real
    C. Cash
    D. Capital

  7. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on SLM method, find the profit or loss on sale of the car?

    A. 20,000 Loss
    B. 20,000 Profit
    C. 10,000 Loss
    D. 10,000 Profit

  8. A second hand car is purchased for 2,00,000 and sold at 1,40,000 after two years. If depreciation is charged @ 10% on written down value method, find the profit or loss on sale of the Second hand car?

    A. Loss of 20,000
    B. Loss of 22,000
    C. Loss of 11,000
    D. Profit of 11,000

  9. Which of the following accounts will be debited if the business’s owner withdraws cash from business for his personal use?

    A. Drawings
    B. Cash
    C. Business
    D. Stock

  10. If a company has contingent liabilities, they appear in the__________?

    A. Balance Sheet
    B. Directors‘ report
    C. Notes on account to Balance Sheet
    D. Chairman‘s report

    Contingent liabilities are disclosed in the notes to Balance Sheet

Share.
Leave A Reply

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The reCAPTCHA verification period has expired. Please reload the page.