7.3 - Profit and Loss Account
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Practice Questions
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What are indirect expenses? Give two examples.
💡 Hint: Think about overhead costs.
What does net profit represent?
💡 Hint: Consider the result of earnings after deductions.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is included in the Profit and Loss Account?
💡 Hint: Think broadly about the types of income.
True or False: Net profit can sometimes reflect a loss.
💡 Hint: Consider what the terms 'net profit' and 'net loss' mean.
1 more question available
Challenge Problems
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A restaurant reports gross profit of ₹150,000 from sales of ₹200,000. It has indirect expenses of ₹50,000 and indirect income of ₹10,000. Calculate the net profit or loss.
💡 Hint: Pay attention to the order of operations when calculating net profit.
If a company had a net loss of ₹30,000 last year due to high indirect expenses, and this year it managed to reduce those expenses by ₹15,000 while revenue remains the same, what is the new net loss?
💡 Hint: Think through how expense reduction impacts net results.
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