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ProfitLoss Account is prepared after the trading account is prepared.
Profit and loss account format in tamil. Similarly the loss per cent is the loss that would be made for a CP. In case of profit. For items of Incomes.
A contract account is debited with all direct and indirect expenditure incurred in relation to the contract. When there are two successful profits say m and n then the net percentage profit equals to mnmn100. Net profit is made when the total revenues exceed the total expenses.
Only the sales in excess of break-even point results in profit. Profit and loss account ac. Each account is closed and transferred to the profit and loss account in the general ledger.
It is usual to give each contract a distinguishing number. After the closing journal entry has been posted the profit and loss account would take the format shown in the example. Cost of Goods Sold 426200.
The following poultry project report is for establishment of 1000 vancobb Broiler chicks in well managed farm. It is credited with the amount of contract price on completion of the contract. Profit is computed to determine the profitability of product and the concern.
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