Check sibling questions
Accounts and Finance
Step 1 Basic of Accounts - Debits and Credits

Those expense which are related to business are  Direct Expenses

All others are Indirect Expenses .


For example

For a factory , salary paid to workers is Direct Expense but salary paid to accountant is an Indirect Expense

(as workers are directly used in manufacturing process)


But for a CA Firm , salary paid to accountant is an direct expense (as accountant are directly used in accounting process)



Suppose a Chemist Shop purchases Medicines for 300000

It also pays 20000 freight to truck operator who brings the medicines

It sells the Same for 400000

Calculate Profit and Loss

View Answer


Suppose a Factory purchased Plastic for Rs 100000

It paid 30000 Salary to Labour who converted the same into Plastic Bottles
It also paid 10000 salary to accountant for making books of accounts
It sold Plastic Bottles for Rs 170000

View Answer

Q 3


View Answer

Make Trading and Profit and Loss Account

View Answer

Q - 4

Resolve Q3 assuming there is

Opening Stock  50000
Closing Stock 40000
View Answer

Q 5 -

Suppose a person has Purchase and Sales of 60000 and 70000

He took a loan from bank of 100000@8% per annum

He gave loan to his friend whole 100000@ 9% per annum

Calculate Profit and Loss

View Answer

Learn in your speed, with individual attention - Teachoo Maths 1-on-1 Class

Ask a doubt
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.