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The purpose of profit and loss account is to ascertain

The purpose of profit and loss account is to ascertain

A.

Gross profit

B.

Capital

C.

Expenses

D.

Net profit

View answer & explanation

Correct answer is D

The profit and loss account also known as Income statement is prepared to ascertain the net profit. The net profit is ascertain when the expenses is deducted from the Gross Profit.

 

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