Income Statement
1. it is a nominal account.
2. it has two parts(a) Trading Account : for calculating gross profit/loss.
(b) Profit and Loss account : for calculating net profit/loss.
Note : all direct expenses are debited to Trading account and all indirect expenses are debited to Profit and Loss account.
Examples of Indirect Expenses :
(1) Office and admn. Expenses :
(2) Selling and distribution Expenses :
(3) Financial Expenses :
(4) Misc. Expenses :
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
Email Id : [email protected]
