The 'Net Profit' is transferred to: MCQ with Answer and Explanation

Question

Share Report Error

The 'Net Profit' is transferred to:

A. Capital Account (or Retained Earnings)

B. Drawings Account

C. Trading Account

D. Balance Sheet liability side

Answer: Option A

Solution (By JKSSB Mock Tests)

Net profit is added to owner's capital or retained earnings.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

The 'Securities and Exchange Board of India' (SEBI) regulates:

A. Commodity futures only

B. Banking

C. Insurance market

D. Capital markets and securities

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
SEBI is the regulator for securities market in India.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Job Work' under GST means:

A. Consultancy

B. Service contract

C. Employment

D. Processing or treatment on goods belonging to another registered person

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Job work involves undertaking a process on goods owned by another person.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

Carriage inwards is shown on the:

A. Debit side of Trading Account

B. Debit side of P&L Account

C. Credit side of P&L Account

D. Asset side of Balance Sheet

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Carriage inwards is the transportation cost of bringing raw materials/purchases to the factory, hence it's a direct expense charged to the Trading Account.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs